Washington has legalized the recreational use of marijuana, but surprisingly supply is much higher than the demand. According to CNN, new growers jumped on the market and now there is a buttload of weed and no one to smoke it. Unlike Colorado, pot in Washington can be grown outside and last summer the weather was perfect, leading to a huge crop for many growers.
Growers in Washington are taxed separately to retailers and processors, and this can account for as much as 75% of the general retail price. As you can see, it can be difficult to put a price on pot that can go into competition with both illegal marijuana coming in from California and Oregon as well as medical marijuana, which isn’t taxed at all.
Washington handed out licenses to growers faster than retail licenses and this has created an imbalance in the community between stores and growers. Reports say that this will even out in the next few months, because there will be another 100 stores opening in the near future.
Colorado can benefit by getting tourists from all over the world, whereas Washington can’t, and because Colorado isn’t surrounded by neighbouring states that have plenty of medical marijuana, they are closer to the South, Northeast and Midwest. This scenario has plummeted prices in Washington, especially for farmers, and even though this seems temporary, it has not stopped many growers from facing bankruptcy.
Some growers have accused the retailers themselves of demanding wholesale prices so that they can make more money, but apparently it has gotten to the stage where growers are practically giving it away to help build customer loyalty as well as ridding their own inventory.
According to reports, there is now over 45,000 pounds of marijuana surplus in the state.