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The Oregon cannabis industry got some potentially good news this week on the federal regulatory front, and new data from the state on retail prices shows how much it's needed.
The median price in two tracked categories, usable marijuana, or flower, and extracts/concentrates, fell to record lows in April — $3.68 per gram for flower, $15.38 per gram for the processed product — according to the Oregon Liquor and Cannabis Commission.
At the wholesale level, extracts/concentrates remained at the record low they've been stuck at for nearly two years ago. Wholesale flower was $100 above its record low at $699 a pound, though still historically weak.
Amid plunging prices, sales growth that characterized the market from 2017 through 2021 turned around, falling 16% in 2022 and 4% in 2023, though things might finally be stabilizing: Through April, statewide sales were $315.7 million, up slightly from $313.9 million in the same period last year.
Still, save for its early days and a pandemic boom, the legal Oregon industry's story has been one of saturated markets making life difficult for businesses. Banking and tax hurdles resulting from the plant's federal status as a Schedule I drug have exacerbated industry woes.
There's hope that the Biden administration's plan to move cannabis to Schedule III will bring lower tax bills and might open the door to banking reform, both of which could boost bottom lines for businesses.
Meanwhile, the state has a new law effectively capping the number of business licenses, a step beyond the temporary limits undertaken for the past several years.