Saturation, staying ahead and the wild card still out there As of January, only about 160 of Michigan’s 1,773 cities have formally approved the cultivation and sale of recreational marijuana, according to data from the state’s Marijuana Regulatory Agency . As a result, licenses are highly concentrated in a small percentage of the state. But in March 2021, the MRA announced it would open the recreational marijuana licensing process to a wider pool of applicants. This change in the application process invited applicants and investors from other states. Previously, only applicants who were licensed under the Medical Marijuana Facilities Licensing Act were granted licenses. Signs of Saturation The number of Michigan cultivation licenses has more than tripled since last year. Increasing operations mean increasing supply of cannabis flower, which leads to plummeting prices. At the time of writing, the MRA has issued a total of 1,235 cultivation licenses. Many of these are “stacked,” with a large cultivator operating under numerous licenses, thereby increasing the total amount of plants they can grow.
Marijuana Venture, 05/24/2022 15:00:00