The price of marijuana bud has dropped more than $400 per pound in Colorado this year, according to a state Department of Revenue report released on Wednesday.
The average price for a pound of marijuana bud was $846, based on sales from marijuana cultivation facilities recorded between Feb. 1 and April 30. It’s the first time the price has fallen below $1,000 per pound since recreational marijuana was legalized in 2014. The report specifically tracks the sales from suppliers to marijuana dispensaries and product manufacturing facilities.
The state is closely monitoring marijuana production to prevent an oversupply, Colorado Department of Revenue executive director Mike Hartman said in a news release.
At the start of 2018, the average price of marijuana bud was $1,265 per pound. The most it’s ever been, according to data from the state, was $2,007 in January 2015.
The average price of whole marijuana plants has also dropped from $230 per pound at the start of 2018 to $150 per pound now.
Steve Ackerman, who owns Fort Collins dispensary Organic Alternatives, attributes the sharp fall in price to simple supply and demand.
“Retail marijuana is a relatively new, maturing market with a lot of early entrants and resultant over-production,” he said in a text message to the Coloradoan. “Downward pressure on prices will drive the less efficient players out of the market and prices will stabilize.”
During the first quarter of 2018, Colorado saw $4.9 million in medical and retail marijuana sales. Last year, the total sales exceeded $1.5 billion for the first time.
The Colorado marijuana industry has generated nearly $5 billion in sales since recreational use was permitted in 2014.
State law requires the Colorado Department of Revenue to regularly track sales and average marijuana prices. The department oversees the state’s entire marijuana industry.
There are currently 10 marijuana dispensaries in Fort Collins city limits.
Average market price per pound of bud:
Jan. 1, 2014: $1,876
July 1, 2014: $1,876
Jan. 1, 2015: $2,007
July 1, 2015: $1,868
Jan. 1, 2016: $1,948
July 1, 2016: $1,816
Jan. 1, 2017: $1,471
July 1, 2017: $1,298
Jan. 1, 2018: $1,265
July 1, 2018: $846
Note: Average prices are determined by the average transaction in the months leading up to the listed dates.
Source: Colorado Department of Revenue