Marijuana Business Factbook 2019

188 Marijuana Business Factbook 2019 Chapter 3 | Financial & Operational Data: Wholesale Cultivators © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. The shift toward producing for the extract market also will require cultivators to evaluate the strains they are growing. Strains that perform well in the flower market are not necessarily the same strains that perform well for extract. Factors to consider when growing for extract are levels of oil production, oil flavor (i.e., terpene profile), time to harvest, resin levels and potency. Cultivators producing for the extract market will need to determine ideal quantity of production as well, as producing a unit of concentrate requires more flower than retail flower. While wholesale prices for flower produced for extract are lower than those for retail flower, the increase in quantity needed may help to reduce this financial pressure somewhat. CHART 3.07: Colorado’s Recreational Marijuana Market: Average Market Rate For Wholesale Flower Allocated For Retail Vs. Extraction Source: Colorado Department of Revenue © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Colorado's Recrea�onal Marijuana Market: Average Market Rate For Wholesale Flower Allocated For Retail Vs. Extrac�on Jan-2018 Apr-2018 Jul-2018 Oct-2018 Jan-2019 Apr-2019 Jul-2019 Oct-2019 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 Price Per Pound $1,265 $376 $349 $230 $228 $200 $227 $227 $254 $1,012 $846 $759 $781 $806 $850 $999 Flower Allocated For Retail Sale Flower Allocated For Extrac�on Cannabis sold to retailers sells for a much higher price than cannabis sold to manufacturers, but the trend toward concentrates and edibles means a smaller percentage of flower will end up on retail shelves.