Observers speculate that growers who are investing tens of millions of dollars might be banking on a change in federal law that would allow marijuana to be transported to other states, such as Indiana. Beyond mergers and acquisitions, some believe there also will be a lot of business failures. Transformative: Marijuana boom brings jobs and new life to factories, storefronts in southwest Michiganīut it’s questionable whether demand will ever be able to catch up with the ever-expanding number of dispensaries and facilities that grow and process marijuana. To some degree, the market for cannabis products might still be in its infancy, with researchers studying the possible benefits from the 80-plus cannabinoids contained in the marijuana plant. “We have 10-times the number of products compared to when we opened,” said Paniagua from Cannivista, pointing out the vapes, tinctures, edibles, bath bombs and other items that are available. On the retail side of the business, it’s also critical to provide an environment and friendly, knowledgeable staff to help customers sort through the wide array of cannabis-related products that are available. “And quality is the only way to win the game.”Ī grower that develops a reputation for high-quality cannabis builds brand loyalty and having dispensaries guarantees shelf space - and some necessary margins - where the public can find those products. “With this much competition, vertical integration is key,” said Ingo Ausland, vice president of operations for NoBo Michigan. 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.

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