Both work closely with dispensaries in Albuquerque, and both say the state has granted too many licenses. And the price of pot is falling. For Rowland, she says cannabis prices in New Mexico are among the cheapest in the country, which affects her work as a grower.
“Good job, New Mexico. We went straight to the bottom and that, as a grower, is extremely discouraging,” Rowland said.
I feel for the businesses, but having low cost cannabis is a good thing for consumers. If they slow down licenses or stop them, then that also blocks new business from having a shot. Imagine being told you can’t grow because you didn’t sign up in time. I’m not big on restrictions anyways, but if they are going to do it, then slow down outside of state companies.
I’m guessing this will work itself naturally with some businesses closing up shop until there is a correct amount of stores for the state.
Weed, when legal, is pretty easy to grow. The price in a legal market should be about 10-20% the price of the old illegal market price.
The only price pressure on legal weed is down. We have seen that in pretty every market where is has been legalised.
And that is with quality rising as well.
It was the same with Booze during prohibition. Once it was legal again, the expensive rotgut disappeared to be replaced by quality at 1/10 the price.
I think a lot of people were expecting to make their fortune growing. Sort of like how the medical cannabis producers had a lock on the market until rec was legalized. And there was a shortage when rec first went legal, meaning those initial growers really cashed in. New business owners need to do their due diligence before starting a new company.
Yep. There is no gold rush here.
I expect it to be like micro-brewers. The majority will fail in the first 3 years as the easy money is long gone.
