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The Status of Cannabis Supply Availability in Michigan

Indoor Marijuana Plants

Currently, there is a tight supply of wholesale adult-use/recreational marijuana flower in Michigan. Soon, the Marijuana Regulatory Agency (MRA) is facilitating a stakeholder workgroup to discuss and provide suggestions on the regulatory topic of supply availability. 

Why Are Recreational Marijuana Prices So High?

The shrinking adult-use marijuana supply is causing prices to soar sharply, as growers and cannabis business owners are struggling to keep up with growing public demand. Additionally, the agency plans to phase out caregiver supply, which currently accounts for 60% of marijuana flower in the legal marketplace. 

Marijuana business owners in Michigan report pounds of wholesale cannabis flower are selling for the following:

  • Low-quality indoor: $3,400-$3,600 ($2,400-$2,600 for medical marijuana a year ago)
  • High-quality indoor: $4,500-$5,000 ($3,500-$4,000 for MMJ a year ago)

Adult-use cannabis sales in Michigan began Dec. 1, 2019, with totals reaching almost $6.5 million during the first month. Since then, marijuana cultivators have slowly increased production.

Additionally, recreational marijuana sales could reach $1.4-$1.7 billion a year when the market reaches maturity, according to Marijuana Business Daily estimates.

More Municipalities Needed to Opt In

When the adult-use rules were created in Michigan, the MRA did not limit the number of adult-use marijuana businesses. However, they did give municipalities the choice of whether to opt in or not.

As of December 2019, nearly 80% of Michigan cities, towns and counties (about 1,400 communities) had opted out of allowing adult-use cannabis sales. For instance; Detroit, which could have roughly 50 retail locations, extended its ban of adult-use cannabis sales through March 31 until regulators could develop a social equity program and squash the “black market”.

Map of Licensed Marijuana Facilities in Michigan

Simply, there are not enough licensed adult-use cannabis retailers currently to satisfy the rapidly growing demand.

How to Participate in the Workgroup

The work group will take place following the MRA’s public meeting in Saginaw on Thursday, Mar. 26 from 11 AM – 1 PM. Individuals interested in participating in the workgroup must send an email with “WORKGROUP” in the subject line to with the following information in the body of the email:

  • Your name, mailing address, email address, and phone number.
  • Occupation or job title and the name of the employer or organization that you are affiliated with.
  • A brief explanation (no more than 150 words) detailing your qualifications for inclusion in the workgroup.
  • Please do not include attachments with your email.

The agency will consider all email requests that meet these requirements, and any additional relevant information in selecting participants for this workgroup. Requests and inquiries made via telephone or to other MRA contacts will not be accepted. 

When is the Application Deadline for the Workgroup?

The deadline to email your request to participate in this workgroup is Wednesday, Mar. 11th at 5 PM. Selected individuals will be notified directly by the MRA. Workgroup participants will be announced by Friday, Mar. 13th. 

The purpose of this workgroup is to solely gather information. To that end, the MRA is seeking input on the regulatory topic of supply availability. The MRA encourages those that are not selected to participate in the workgroup to attend the open meeting taking place at 9:30 AM prior to the closed workgroup.

Barton Morris
Barton Morris has been providing high-quality legal representation in the area of state and federal criminal defense for more than 20 years.
The Cannabis Legal Group has been providing our clients professional and quality legal assistance in all aspects of representation for years.

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