Michigan adult-use cannabis stores dealt supply setback

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Recreational marijuana stores in Michigan could face a shortage of product after state regulators ruled that adult-use shops can no longer buy MJ from a network of caregiver growers.

The Marijuana Regulatory Agency issued a bulletin reversing course that said only medical marijuana dispensaries can now buy and sell products from caregivers, the Detroit Free Press reported.

“Effective April 8, 2020, the MRA will not permit caregiver-produced or derived product to enter the adult-use market,” according to the bulletin.

That overturns an earlier decision in March, when the MRA ruled that caregivers could continue to supply both the medical and recreational side of the market until Oct. 1.

Caregivers account for about 60% of the medical and recreational cannabis sold in Michigan.

Both medical and adult-use marijuana stores are allowed to stay open during the coronavirus crisis.

The latest decision, however, could provide more business to the state’s licensed marijuana cultivators and processors, while resulting in a “critical shortage” for adult-use MJ stores, at least in the short term, the Free Press reported.

“The caregiver product brought into market was meant to supplement the medical market,” David Harns, spokesman for the MRA told the newspaper.

“And on the adult use side, things are moving toward a self-sustaining eco-system.”

Recreational marijuana sales kicked off in Michigan last Dec. 1.

For more of Marijuana Business Daily’s ongoing coverage of the coronavirus pandemic and its effects on the cannabis industry, click here.