In the state of Oregon, the hugely successful marijuana industry is seeing a big correction take place.
Back in September 2020, Oregon was seeing a median price for dried flower resting at $161 per ounce. Now, it’s down 27% to $118 in August, which is an all-time low in the state.
An even bigger drop is happening with payouts for weed farmers. There’s a 62% difference between the $1,299 per pound high in price from September 2020 and August’s $493 per pound price. Producers are able to self-distribute in the state of Oregon, but even with that factoring in, the numbers are pretty bleak.
Sales in total are down 15% in the state at $633.8 million. This is after a moratorium went into effect in the state, capping the amount of licenses given, due to a crowded marketplace. That surely is a small factor in the poor numbers here.
“Really, this is a story of supply exceeding demand, just like any other free market where you see prices going up or down,” says TJ Sheehy, OLCC Director of Analytics and Research. “Supply is likely still going to exceed demand. Really, the moratorium served to sort of stanch the bleeding to a degree in terms of more people coming in, especially on the production side.”
Read the original story at Cannabis Business Times.