Michigan’s Cannabis Headlines Differ from the Rest
News from www.MichiganMy420Network.com
Not normally said, there is one state right now that preaches the fact that their cannabis sales are…down. Hard to believe, but something mysterious has happened in the state of Michigan—no one seems to be purchasing cannabis anymore.
It’s unique when you look back over the industry’s history in Michigan. In December of 2019, after the state’s first stores opened, sales in Michigan increased month after month quickly. Combined sales from the recreational and medical markets was tallied at $35 million at the beginning of 2020, and by July of last year, Michigan recorded almost $110 million in monthly sales. Then, all of a sudden, sales dropped. It was in November of 2020 that the combined total was $92 million, and was still off by almost $10 million when the year came to an end. Like a struck helium balloon, Michigan’s cannabis industry deflated.
The news gets even stranger. Although sales in dispensaries are down, the actual number of consumers using cannabis has gone up. State experts have reported that Michigan is smoking now more than ever, leaving the mystery of where residents are buying their product to be solved.
Now this is one state that has had a strange relationship with the cannabis industry. Known as a self-sufficient, strong, determined state, the belief is that residents have decided to grow their own product in their own backyards instead of heading to their local dispensary. When the stimulus checks came, sales did go up and consumers returned briefly to the shops; but being that these checks are not recurring, they have taken it upon themselves to grow enough of their own product that they don’t have to pay more.
Robin Schneider, Executive Director of the Michigan Cannabis Industry Association, attests to this fact. She stated that there are “more than 400,000 tip workers in the state who have been largely unemployed due to COVID. Tip workers like waitstaff, bartenders, and retail counter personnel are more likely to be cannabis users because they don’t face employment discrimination over cannabis. When those workers lost their paychecks, they also lost money that might have been spent at the local cannabis store.”
There are other issues, however, that have sprung up when trying to solve this mystery. Poor quality accounts for yet another reason why people have taken it upon themselves to grow their own product. For those unaware, in the state of Michigan, for almost the first ten years after medical marijuana became legalized, patients had their products grown by their own caregivers. These caregivers, over time, became highly talented at their craft. But now, with all things legalized, they have also been replaced by large commercial growers. Reviews show that many consumers have found that the product grown by these investor-driven companies is inferior to the one they were used to receiving from their caregivers.
An unlicensed market that sells products at far less of a cost than dispensaries is also a factor. But when looking through the research and data, the greatest reason for the industry sales falling comes from the fact that Michigan has extremely generous home growing laws. In fact, the state has allowed residents to grow up to a dozen plants per household for recreational use, which is more than any other state.
It’s not difficult to see this as a major factor because, although Michigan’s cannabis shops are depressed by the lack of sales, seed suppliers and cannabis growing supply stores statewide are extremely happy. Their sales have been phenomenal and they report that the number of new growers in the state is extremely high. In fact, these businesses are looking at doubling or tripling last year’s profits when 2021 takes a bow.
Headlines will be interesting to watch when it comes to Michigan’s retail cannabis industry. With suppliers reporting record-breaking sales numbers and ‘rookie’ farmers gaining more and more experience, Michigan may just become the first state where dispensaries are no longer necessary.
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