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The latest official data from New Mexico’s medical market shows that sales in the state expanded in Q3 2020, in line with nationwide trends that saw demand peak in late summer last year. According to the latest quarterly report from the New Mexico Department of Health (NMDOH), the state’s patient count grew to 98,507 by the end of Q3 2020, up by 4.7% from 94,102 at the end of the prior quarter. This growth rate slowed from almost 11% between Q1 and Q2.
The price per gram of flower purchased by patients declined to $9.41 in Q3 2020, from $9.89 in Q2 2020. Average units purchased per patient in Q3 2020 increased compared to the prior period, to 60.2 from 45. According to New Mexico regulators, “one unit of usable cannabis shall consist of one gram of the dried leaves and flowers of the female cannabis plant, or 0.2 grams (200 milligrams) of THC for cannabis-derived products.”
The total number of units sold in the state’s medical cannabis system expanded significant in Q3 after contracting in Q2. In Q3 2020, patients purchased 5,927,662 units of product, up 40.1% from 4,231,648 units in Q2 2020. It appears that the elevated demand observed in other medical and adult-use markets in Q3 2020 also occurred in New Mexico. In many of the markets covered by our reporting, monthly sales peaked in July or August in 2020.
Cultivation capacity expanded in Q3 2020 with 30,264 plants in production statewide, up by 4.5% from 28,950 in Q2 2020. The latest NMDOH data shows that producers are collectively allowed to grow up to 51,250 plants, leaving significant room for expanded cultivation if necessary.
Yields expanded along with the number of plants in production. Statewide, New Mexico growers generated 14,955 pounds of dried plant material in Q3 2020, up by 38.9% from 10,766 pounds in Q2 2020.
NMDOH data shows that the on-hand supplies of dispensary operations at the end of Q3 2020 rose compared to those documented at the close of the prior quarter. The state’s quarterly report shows that almost 5.8 million grams (almost 12,750 pounds) of flower and bud were in stock at the end of Q3 2020, up from almost 9,400 pounds in stock at the end of Q2 2020.