Nevada’s recreational marijuana supplies are plentiful but not overly abundant and that keeps wholesale prices on the high side compared to other legal recreational markets.
Supply is catching up as growers continue to build out cultivation facilities and improve growing methods, providing additional supplies into the market, but they have yet to reach full capacity. Supply is catching up to meet continued customer demands. Nevada’s wholesale cannabis pipeline is sufficient at the moment, and business owners expect it to increase as more cultivation operations develop capacity and improve rate of production.
The majority of cannabis in Nevada is grown indoors, though there are a few greenhouse operations. The state has no outdoor grows, which does limit the amount of available production capacity.
Quality drives price
The higher the THC content, the higher the price growers can command for high quality cannabis.
With cannabis sales averaging $1 million dollars a day, prices have generally stayed the same since the rollout of legal recreational sales on Jult 1st. Prices in the retail stores haven’t dropped much ($250 to $350 an ounce for flower), with some ounces of flower still selling for over $350 or more. The average wholesale market price for a pound of flower is selling for $1,800 – $3,500 depending on quality. Average flower, with approximatly a 16% THC content and a moderate terpene profile, sells for $2,300-$2,600 a pound.
Prices may drop
As supply continues to increase in the next year, wholesale prices should trend downward, with an expected end result of retail prices to fall accordingly.