Cali’s Wholesale Cannabis Prices Rising
Wholesale cannabis prices in California are slightly trending upwards. While the market was quite volatile, the bear run seems to have ended.
After dropping to an all-time high in November, the price of bulk cannabis flower is beginning to rise once more. Several operators have reported this to MJBizDaily.
This is exciting news for thousands of cannabis cultivators throughout California. Everyone, including the craft growers in the Emerald Triangle and even some of the largest operations in the country located in Santa Barbara County, has felt the impacts of low wholesale cannabis prices.
The price began falling around a year ago. But besides the price drops, many cultivators have been struggling to compete with the illicit market. High taxes and limited legitimate retail operations for their products have contributed to these struggles.
Currently, the average price per pound of legal marijuana flower is at around $750 to $1,100 for high-quality buds. However, small buds still only demand $300 to $450 a pound. But this is welcomed considering November’s prices fell to around $400 per pound for some of the best flower on the market.
According to Thrive Society’s internal tracking system, which is responsible for analyzing sales and volume data from over 400 farms and 200 retailers, shows that wholesale prices started to fall in March 2021. Come November, high-grade flower dropped by more than 65% from the highest price at around $1,250 per pound, which was what wholesale cannabis sold for in August 2020.
Some top-grade greenhouse flower completely sold out in January at around $700 per pound. This is significantly higher than the historic low, which was around $550 during the fall.
Even though this price is low for the wholesale market, it’s still a sign that things are getting better.
However, not every cultivator is feeling the rebound; some companies are only experiencing minor increases in their wholesale pricing. Some have reported prices of $250 to $500 per pound for outdoor flower, which is a significant increase from the lows of $150 to $250 per pound they experienced during November and December.
Even with this increase, many farmers are choosing to destroy their yields rather than paying the state’s cultivation taxes. These taxes tend to cost farmers in excess of what they can sell their wholesale buds for at their lowest prices.
However, the demand is rising, somewhat aggressively, throughout the wholesale market. This is mainly for biomass and trim, specifically for Southern California purchasers.
It is evident that the wholesale cannabis market is beginning to rebound. While prices are still low in comparison to other states, this is a positive sign for cultivators throughout California. Hopefully, this trend continues and helps to legitimize the cannabis industry in California.
Have you experienced any changes in the price of wholesale cannabis in the last year or so? Let us know what your experience has been like in the comments below!