Medical marijuana states experience wide spectrum of wholesale prices, supply

The wholesale price and supply situation for various state medical marijuana markets is a mixed bag, with different regulations, patient counts and product availability generating diverse situations.

In New Mexico, for example, medical marijuana business owners are experiencing increased demand and rising prices.

Elsewhere, however, MMJ business owners are suffering the same fate as their recreational counterparts, namely bloated supplies and sliding prices.

New Mexico’s situation is unique. Regulators there have capped the number of plants an MMJ business can grow at 450, but the patient pool is swelling by as much as 100 new patients a week.

That one-two combination has meant wholesale MMJ flower is harder to come by, so prices are rising in New Mexico.

One MMJ retailer there reported the market price is $2,800-$3,000 for a pound of wholesale flower, up from $2,100-$2,200 per pound a year ago.

That’s much higher than prices in mature recreational markets, such as Oregon and Washington, where industry officials report much lower prices for wholesale adult-use flower.

The situation in Arizona, meanwhile, resembles the Oregon and Washington rec markets.

Thanks to excess supplies, Arizona MMJ business owners have watched prices fall to a low of $900-$2,000 for a pound of wholesale medical cannabis flower. That’s down from $1,500-$2,600 a year ago.

Montana also has its own special circumstances.

The MMJ patient pool is rebuilding after a state law there effectively made the program unworkable. A 2016 ballot initiative revived the MMJ industry.

Since the vote, patient demand has grown – a situation that could push up retail MMJ prices there.

Below are snapshots of four medical marijuana markets: Colorado, New Mexico, Arizona and Montana.

Colorado

In Colorado, wholesale prices for both medical and recreational marijuana have been falling since adult-use sales began in 2014.

But the slide has been less pronounced

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