![]() That’s the same strategy being employed by NoBo, which operates a grow and processing plant in Benton Harbor as well as retail outlets in Benton Harbor, Edwardsburg, Muskegon and Battle Creek. That’s one way to deal with the competitive environment.īut Lynch believes vertical integration also will be key to surviving the highly competitive environment, so the family-run business plans to open its own grow and processing facility in Niles in the next several weeks. ![]() Lynch said Green Stem routinely gets calls from business brokers who are looking for opportunities to buy, sell or form strategic partnerships. And such deals are likely to become common as businesses look ahead at the competitive environment. That might have been what prompted Common Citizen, which operates a 70-acre greenhouse in Marshall, Mich., to recently enter into a partnership with Cannavista in Buchanan. That’s a lot of volume for the market to absorb and could result in near-term mergers and acquisitions within the state’s cannabis industry as those who are solely focused on growing and processing look for guaranteed shelf space inside dispensaries. “Today, we’re approaching 1,000 growers.” “When we opened about two years ago, there were probably 100 or 120 growers in Michigan,” said George Lynch, CEO of Green Stem Provisioning in Niles. More: Two pro-pot activists died 20 years ago in a siege. Since recreational marijuana became legal in the state at the end of 2018, growers and processors have become more consistent and efficient at producing cannabis products and even distribution channels have become more streamlined, Paniagua explained.Īccording to the Michigan Marijuana Regulatory Agency, the price for an ounce of marijuana has dropped about 40% from $252 an ounce in January 2021 to $152 an ounce in January this year.Īnd barring any unforeseen problems, there’s little chance that prices will reverse course anytime soon as more grow facilities, processors and dispensaries are opening each month across the state. “Major manufacturers are coming into the market and bringing a production scale that supports lower prices.” “Prices have been dropping since day one and they continue to drop,” said Rick Paniagua, founder and CEO of Cannavista Wellness in Buchanan. More: Overdoses in Elkhart spark worries, warnings about marijuana laced with fentanyl In fact, sales have been steadily increasing as new consumers are drawn to the state’s dispensaries, which have been adding a wider assortment of products. While consumers have become accustomed to paying more for everything from gasoline to groceries over the past year, the cost for most cannabis-related products in Michigan has been steadily declining.Īnd it’s not like demand for cannabis is declining. Learn more about Cookies dispensary deals.Watch Video: Recreational marijuana in Michigan: What you need to know
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