The price of recreational cannabis in Michigan continues to decline and businesses, especially growers, are struggling as a result.
The average retail price for an ounce of recreational marijuana flower dropped to $65.21 in February, down nearly 30% compared with $91.94 in February 2024 and continues a trend of prices generally declining since sales started in Michigan in December 2019, according to a recently released monthly report from Michigan's Cannabis Regulatory Agency.
"The growers are really struggling right now to recoup the cost of cultivation," Robin Schneider, executive director of the Michigan Cannabis Industry Association, said. "So essentially, they can't sell it for what it costs to grow it. So I'm anticipating we're going to see a lot more businesses fail this year. There's so much product in the system that prices may continue to fall."
Total sales of recreational marijuana products in Michigan dropped in February to $241 million, down from $247 million in January and $259 million the same month a year ago, according to the report, even as the total volume of products sold was higher last month compared with February 2023.
