Price of cannabis – is it really all that bad?

The cannabis industry claims recent drop in prices make cultivation and manufacturing taxes unaffordable.  But is the price really that low, how long has the price been depressed and how long will it continue? 

The industry points to $300 a pound price as being unworkable (note: grapes bring in less than $10 a pound and that industry does fine).  But a review of a January 7th 2022 pricing study prepared by the industry (Cannabis Benchmarks) points a much higher average price. It is true some sales are in the $300 range, but the California average outdoor price was $562, Greenhouse $704, and indoor $1368! Looking back to 2020 and early 2021, the industry was experienced records sales, high prices, never mentioned taxes.  Looking forward, on March 18th MJBusDaily reported the supply/demand is now balancing out, and accordingly California wholesale prices are now rebounding, with quality buds selling in the $750 - $1,100 price per pound range (up from bottom hit in Nov 2021 of $400).

The Cannabis industry is experience normal economic growing pains.    They over produced driving down prices, now supply/demand is coming into balance with high prices.   No tax relief should be provided for normal business cycles.