Significant wholesale pricing pressure continues to be financially devastating to growers. MJ Biz Daily reports of wholesale trim pricing has fallen as low as $50/lb. This extreme pricing pressure is exacerbated following the large amount of outdoor grown product that is available for sale after the fall harvest.
Per Cannabis Benchmarks U.S. Spot Prices Observations as of January 19, 2018, weighted average outdoor wholesale pricing for flower is $964, and $1,292 nationally for both outdoor and indoor.
Michael Gruber, Managing Partner of Salveo Capital, an active investor in the cannabis states that "...Wholesale pricing in general within mature markets continues to decrease significantly making profitability difficult for most growers. Successful growers will continually need to be large volume, highly efficient low cost and high yield producers, with a brand that resonates with consumers. Furthermore, vertical integration will be important for many, especially in certain state markets."