Cannabis that tests at less than 18% THC can be difficult to sell
Wholesale prices for recreational marijuana flower in Alaska remain high, though rates have fallen slightly as more growers build out facilities and the market expands as it matures.
While prices are strong compared to other mature recreational cannabis markets, an arduous tax burdens cultivators to the tune of $800 per pound of wholesale flower.
This drives some legal companies out of the market, giving illicit businesses a competitive advantage and pushing the need for licensed companies to vertically integrate to succeed.
In a more direct way than other recreational cannabis markets, Alaska’s wholesale cannabis flower sales are clearly driven by THC potency.
Marijuana business owners in the state report pounds of wholesale cannabis flower are selling for:
- Indoor testing at 30% THC: $4,000
- Indoor testing at 25% THC: $3,500 (down $100-$200 from last year)
- Indoor testing at 20% THC: $3,000 (down $100-$200 from last year)
- Indoor testing under 20% THC: Less than $3,000
- Outdoor/trim grown primarily for extraction: $2,600-$2,800 (down $100-$200 from last year)
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