The legalization of recreational marijuana in Michigan has had quite an impact. June was a record month with recreational sales of over $254 million, and medicinal sales close to $7 million.
With all that cash flowing, the tax dollars from those sales are also making record profits for the state.
The marijuana industry from a retail standpoint has been budding recently for consumers as prices drop for some products.
It's also transforming the state's economic landscape and creating jobs. There are many dispensaries across the state like Lume or Jars Cannabis.
"It's definitely a competitive marketplace place. Consumers are definitely getting some great bundles. Some great deals," Donovan Adam, the director of sales a Jars Cannabis, said.
The total recreational sales in 2022 were $1.8 billion, which generated around $200 million in taxes for the state.
That money goes back to schools, counties and cities.
Sales since 2020 have skyrocketed for recreational use and more cultivators started popping up.
In 2021, there were fewer than 350 cultivator licenses in the state and they were selling for $4,000 a pound.
Now, there are more than 850 cultivator licenses and a pound of marijuana is less than $1,000. The bad news was for smaller cultivating operations, with some being bought up or simply closing their doors.
"It's not a green rush anymore. You better be a really good operator. One of the things we did was look at our company top to bottom and just got super efficient," Nir Saar, the president and COO of Doghouse Cannabis.
The Michigan Cannabis Manufacturer's Association pitched the idea of putting a temporary license moratorium in place to try and stop the plunge in prices.
Another contributor in the falling prices is the black market, which the CRNA has been cracking down on.
"Since Brian Hanna has taken over at the CRA, there's been a significant uptick in people being fined for doing things the wrong way or on the edge," Dough McLaughlin with Lume Cannabis said.
It's not just the cultivators feeling the pinch, it's also the cannabis real estate market that's shifting.
"I would say in the last 90 days of business there is a higher number of upkeep in terms of buyers and operators that want cultivation and processing buildings," Corbin Yaldoo with Corbco Ventures said.
But for the industry, it might not be until 2025 that they reach a full bounce back.
