Michigan Cannabis Flower Price Drops to $80 Per Ounce

Michigan’s average price-per-ounce for cannabis flower fell from $152 in January 2022 to just $80 in January 2023.

Full story after the jump.

Cannabis flower prices per ounce have fallen in Michigan from $152 in January 2022 to $80 in January 2023, WOOD-TV reports. Benham Wrigley Jr., an attorney with CannaLex law, attributed the price decline to “oversupply.” 

“You might go to the state of Illinois and only find 12 growers, here you can have as many growers as municipalities will allow.” — Wrigley to WOOD TV 

According to a Crain’s Detroit Business report, there are five Michigan cannabis companies that have been placed under receiverships in the state. A receivership is a court-appointed tool that can assist creditors in recovering funds in default and can help troubled companies avoid bankruptcy.  

SKYMINT, which has 24 dispensaries in Michigan and has entered into a receivership, said in a statement it was forced to do so because the company was facing many challenges in the state, “including excess supply, decreasing prices, limited access to capital and the increasing cost of capital.” 

Wrigley said he expects cannabis prices in the state to level out as stores inevitably go out of business and growers produce less.     

According to the Michigan Department of Treasury, adult-use cannabis sales in Michigan topped $1.8 billion during the 2022 fiscal year. There are 574 adult-use licensees throughout the state.  

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Industry perspectives on this story:

Regarding the unhealthy fiscal status found in the cannabis industry, there is an easy answer to getting it fixed. The major cause of the current economic turmoil is threefold. Too many growers, which should self-correct over time as with any business the strong will survive, plus the illegal players and the dispensary pricing control. Let me explain. True the black market isn't going away but if the wholesale price was regulated then the dispensaries wouldn’t be able to buy the cheap stuff (illegal black market) unless they were also cheating. It’s true there are a lot of shady things happening but when the dispos are in charge of setting the wholesale price, there’s little to be made by the grower. The legal grower is the foundation without which there is only the black market growing and selling unapproved weed and who knows what you’re getting. All would benefit from the dispos playing on a level buying field instead of monopolizing the industry. I’m an owner of a grow and can see the writing on the wall which says to vertically integrate, and so we will, but the legally run cannabis industry should regulate the wholesale pricing based on total thc/terpene levels if the growers in particular are going to survive. The general public would buy at the retail price levels just as they did in the beginning of the green rush. The wholesale pricing regulations need to be state and countrywide governed by the MRA or similar agencies. This is what equity looks like from the bottom up.

Craig Whitney - President, New Lyfe Michigan

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