Cheaper Cannabis Prices in Canada
Legal Prices in US Can Easily Be Double, Triple Canadian Prices – LPC
Cheaper cannabis prices is one of the reasons people say they go to the black market instead of legal cannabis stores. Not just that, but we assume that the US has cheaper cannabis prices too. But a recent Global News survey found that prices for legal cannabis can be much higher in the US. (Please see link at the end of this article.)
That’s for a variety of reasons, but most stem from the US’s fractured cannabis laws. Cannabis is not yet legal in the US at the federal level, though there is hope cannabis legalization in the US will happen soon. Until then, everything has to happen at the state level, and sometimes even regionally. Cannabis cannot cross state lines, even between two states where it’s legal.
“If there’s a surplus, you can’t ship it to another state,” said Michael Armstrong, a business professor and cannabis expert at Brock University. Companies can’t manage operations over the whole country, which would bring about cheaper cannabis prices. “Even the companies that are operating nationally are really collections of state organizations. They have to have production independently in each state, and retailers independently in each state.”
In fact, transportation other than by land is tricky, even with the same state. For example, you won’t find cheaper cannabis prices on Nantucket, Massachusetts. That’s because it’s an island only serviced by sea or air – and both are controlled at the federal level. Retailers there have to grow their own, driving the costs up to $20 US per gram. It’s the most expensive place that the Global News report found in the US.
Canada Has Cheaper Cannabis Prices Than Most US States – LPC
In general, Canada has much cheaper cannabis prices than the US. Prices vary across Canada of course, but the report found Hexo cannabis at as low as $4.49 in Quebec and $5 in Ontario. Compare that to:
- Ann Arbor, Mich. – $13.11 US/gram
- Salem, Mass. – $19.67 US/gram
- Colorado Springs, Colo. – $9.18 US/gram
- San Diego, Calif. – $13.11 US/gram
- Oregon Weedery in Portland, Ore. – $10.49 US/gram
- Las Vegas – $11.14 US/gram
The cost of business in Canada is also lower, leading to cheaper cannabis prices.
“(US cannabis businesses) don’t have bank accounts. They have to store cash in a safe on the premises or elsewhere,” Armstrong said. “If something gets stolen, there’s no insurance coverage.”
A recent theft of Aleafia product shows why that’s important.
Everyone would prefer to have cheaper cannabis costs. It’s also important to ending the black market. But if US cannabis retailers can make it work at higher prices, Canada should be able as well.
This editorial content from the LPC News Team provides analysis, insight, and perspective on current news articles. To read the source article this commentary is based upon, please click on the link below.
