Large scale grows are bringing down the price of marijuana, reports the Daily Camera. By a lot.
The cost for a pound of pot was about $2,400 to $2,600 last October, according to data from California-based Tradiv. Last month, it was $1,400 to $1,600 a pound. That’s a 58 percent drop.
The decreased prices aren’t a matter of less interest — consumer demand is actually increasing, says the Camera. The market’s getting flooded, leading a steady decline in wholesale prices.
Roy Bingham, founder and CEO of Boulder-based BDS Analytic told the paper falling prices will mean companies may rethink growing their own pot:
“I expect it to end vertical integration,” Bingham said. “Just like in other industries, there will emerge businesses that are good at the beginning of the supply chain and those at the end of the supply chain.
“Those in the middle, the ones trying to do everything, they’re going to go away.”