We've all been watching in the U.S. Pacific Northwest for a while as cannabis prices continue to drop. Anecdotally, I remember that retail prices for an ounce of mid-grade flower was between $175 to $200 USD. Today, you can get the same quality for around $100. This shift in retail prices has been driven by drops in wholesale prices, but this story in Willamette Week shows that wholesale cannabis is selling at historic lows in the Northwest.
Oregon weed isn't just the cheapest in the country. Its wholesale prices for outdoor-grown cannabis flower are now the lowest the United States has ever seen.
Those wholesale prices hit an all-time low last week at an average of $398 per pound, says Cannabis Benchmarks, which monitors industry prices nationwide. The group says the Oregon price is "the lowest ever observed for that grow type in any market."
Generally, these types of price drops are the results of supply and demand, and this is no exception:
Leading cannabis economist Beau Whitney says he is not surprised prices keep falling in Oregon. "There are still growers entering into the market, and because they're entering into the market, there's going to continue to be a healthy supply at least into 2019," he says. "We can expect to see continued price declines for at least eight to 12 months."
While this is great news for consumers, how will it impact the growers? Not very well, as we already know. Many of these businesses were built on cannabis staying above a certain price. Continued price drop that move cannabis to a commodity price, it will end up having to be farmed like a commodity - isn't that something we want to avoid?