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The Michigan Marijuana Regulatory Agency (MRA) recently issued its November 2021 report detailing sales, licensing, and production data in the state’s medical and adult use cannabis markets. Overall, Michigan’s combined medical and adult use sales were $152.7 million in November, down 6.5% from October 2021’s combined sales of $163.5 million, but up 66% from the November 2020 combined sales figure.
Michigan spot prices have undergone a bit of a rout amid what is the first significant outdoor harvest season, the recall and subsequent reversal that put what MRA claims is “moldy, contaminated marijuana” product back on the market, and the steady entrance of new growers into the market. Growers tell Cannabis Benchmarks the price correction is exactly that: a correction of prices that were too high. Additionally, we are told there is now significantly more lower priced product in the Michigan market because new cultivator licensees are offering inexpensive wholesale rates in an attempt to penetrate the market and build their brands.
Adult use sales have fallen in three of the past four months, which coincides with employment circumstances in Michigan. The Bureau of Labor Statistics shows unemployment has actually worsened from summer to fall with the unemployment rate in August at 4.7%, rising to 6.3% in September, and ticking down to 5.9% (preliminarily) in November, making for significantly less money in some consumer’s pockets. Seasonality of demand may also be playing a role, as the late autumn and winter typically see lower sales in more mature markets.
Retail flower sales revenue fell 4% in August, eked out minor gains in September and October, but fell sharply in November. Flower sales volume and revenue figures for the trailing three months are shown in the table below.
Inventory of flower held by growers in the adult use sector that had passed the state’s required testing stood at 32,495 pounds at the end of November. Combined with the amount of flower held in inventory by retailers – 36,484 pounds – the amount of immediately marketable flower in Michigan’s adult-use market as of the end of November stood at 68,979 pounds, or the equivalent of 3.7 months of supply based on the November flower sales volume.
The number of plants reared and harvested in the most recent three months are shown in the table below. Vegetative and flowering plant figures are as of month-end, while harvested plant figures encompass all those successfully brought in during the entire month.
Vegetative plant counts fell 8.6% in October, but increased 0.8% in November. Flowering plants fell by 17.8% month-on-month and harvested plants fell 36% in the post-harvest period.
As more Michigan growers come to market, retail price competition appears to be picking up with ounce prices falling over $13 and extrapolated pound prices falling by $210.