PORTLAND, Ore. (AP) — State economists say rampant overproduction in Oregon’s market for legal, recreational marijuana has produced a 50 percent decline in prices.
The Oregonian/OregonLive reported Friday that the widely documented collapse has been tough on farmers and retailers – but a boon for consumers.
A new state analysis finds the price collapse sparked a big uptick in marijuana purchases and a corresponding increase in associated tax revenue.
Josh Lehner of the Oregon Office of Economist Analysis says lower prices are helping to drive the volume of sales higher and induce black and medical market conversions into the legal, recreational market.
Latest forecasts say recreational marijuana sales in Oregon will be nearly $543 million this year, up 29 percent from 2017 and well above economists’ expectations. They’re raising their forecasts even more in future years.