A storm is brewing over Michigan's once-vibrant cannabis industry. A green rush has turned into a relentless race to the bottom, leaving operators grappling with razor-thin margins and an uncertain future.
The numbers are stark: Cannabis flower's wholesale price has plummeted to around $39 per ounce, a staggering decrease compared to a year ago. Fluctuating retail sales dipped from December through February before a slight recovery in March. These harsh market realities are colliding with an industry characterized by fierce competition for market share and an ever-expanding production capacity.
Then there is the proliferation of intoxicating hemp-derived products flooding retail shelves across the state, further depressing an already turbulent market. For many Michigan cannabis entrepreneurs, the question isn't just about profitability anymore. It's about survival.
The pervasive question echoing throughout the Michigan cannabis landscape is whether the downturn represents the nadir of the market's struggles. Several indicators suggest that the pain may persist, though perhaps less drastically.
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