The wholesale price of cannabis flower in Colorado dropped to an all-time low, reflecting a market saturated with supply and squeezing cultivator margins.
The price per pound was $709 as of July 1, down 46% from $1,309 a year ago and nearly 60% from $1,721 in January 2021, according to Colorado Department of Revenue data.
Previously, the low was $759 a pound in October 2018.
The data is published quarterly, so there are fluctuations within a given quarter.
But the figures indicate the degree of price depression in the market.
That also is reflected in the fact that marijuana sales in dollar amount have declined for 12 months in a row in Colorado, Denver alt-weekly Westword recently reported.
Get the MJBizDaily Extraction Buyers Guide, now available.
This free resource offers practical business tips and valuable insights from cannabis extraction professionals to help plan or scale your extraction or processing operation with confidence.
Inside the MJBizDaily Extraction Buyers Guide:
- In-depth guidance for planning a CBD extraction business
- Best practices in sourcing solvents + solventless materials
- Lessons in shopping for extraction/processing equipment
- Tips for outfitting a facility for psilocybin mushroom extraction
- And more!
Separately, a city of Denver report shows that the market share in marijuana sales for Colorado’s largest municipality continues to decline as more sales occur in other parts of the state.
Denver dispensaries accounted for 30.9% of all retail sales in Colorado in 2021, down from 48.3% in 2014, according to Westword, citing a report from the Denver Department of Excise and Licenses.
