Nevada’s recreational marijuana supplies are plentiful but not overly abundant, keeping wholesale cannabis prices on the high side compared to other adult-use markets.
Business owners in the Silver State don’t expect wholesale prices to remain steep for much longer, however.
Growers are continuing to build out their cultivation facilities and improve their growing methods, pumping additional supplies into the market.
“Supply is catching up,” said Andrew Jolley, owner of The Source dispensary and retail shop in Las Vegas.
“Prices are dropping.”
Looking ahead, the state will need plentiful supplies to meet continued robust consumer demand.
Nevada’s adult-use market has been on a tear since its early start program went into effect last July.
Sales are averaging $1 million a day, driven by the more than 40 million tourists who visit Las Vegas every year.
That’s solid for a nascent market that has yet to reach full production capacity.
Plus, prices in the retail stores haven’t dropped much, with some ounces of flower still selling for $350 or more.
Growers also are commanding a decent price point for high-quality cannabis.
The majority of cannabis in Nevada is grown indoors, though there are a few greenhouse operations.
The state has no outdoor grows, limiting the amount of available production capacity.
On Jan. 1, 2018, the state’s Department of Taxation assessed the average wholesale market price at $2,268 for a pound of flower and $601 for a pound of trim.
Those prices are considerably higher than in other mature recreational markets.
Quality drives price
While those taxation department figures are based on cultivation transactions from April 2017 to October 2017, marijuana business owners in the state say there is a much wider range in prices.