Marijuana supply surplus and the continued proliferation of the green crop have pushed prices of cannabis in Oregon to as low as $2 per gram.
The news website Register-Guard reported that it can go even lower if a customer is buying a larger amount. It said an ounce, or 28 grams, for $50, can fetch $1.78 a gram.
“The biggest thing is just competition,” said Josh Lehner, an economist with the Oregon Office of Economic Analysis in Salem, told The Register-Guard. “As we get more stores, as we get more growers, (as we get) more processors, it becomes a price competition. Prices start to fall, particularly when supply is outpacing demand or supply is ramping up faster than demand is growing.”
Marijuana prices in the Pacific Northwest state are witnessing about a 20 percent decline per year, Lehner said, he is expecting prices to plummet even more.
Late last year, pot prices were less than $7 per gram, down from nearly $10 just months prior, the economist added.
“We’re seeing increased competition for the consumer dollar,” he said.
“We’re seeing more stores, more retail outlets, so the availability of marijuana for recreational users continues to increase, and prices are coming down.”
Marijuana shops bloomed and mushroomed after recreational marijuana sales began in 2015 in Oregon, and the number of shops is continuing to grow.
So far, the Oregon Liquor Control Commission (OLLC) has 1,114 recreational marijuana producer applications pending in addition to 906, which are active. In Lane County, the OLCC has 120 producer applications pending and 122 active.
The OLCC also has 208 recreational retailer licenses pending in Oregon and 520 active, including 22 pending and 73 active in Lane County.
Oregon is not alone in this.
In mid-January, The Puff Puff Post reported that Washington state was also experiencing an oversupply, pushing prices as low as $1 a gram.[share-btn]