Wholesale marijuana flower prices in Michigan have leveled off and ticked upward in recent months, offering cause for cautious optimism among producers who suffered as prices plummeted during the past few years.
Michigan is a key state market for legal marijuana, projected to rank second only to California this year in terms of annual recreational and medical cannabis sales.
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Industry insiders attribute Michigan’s modest wholesale price stabilization trend to several factors, including:
Absorption of last season’s glut of outdoor cannabis. More municipal governments permitting retail sales. Authorities cracking down on illicit activity in the licensed market.
If some players are “bringing in product that is not legal, not compliant, and selling it for pennies, essentially, it really has this really rough effect on the market, on pricing, (on) everything from flower to distillate,” said Narmin Jarrous, chief development officer at Livonia, Michigan-based vertically integrated
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