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Too many dispensaries are resulting in a serious problem.
New Mexico's cannabis industry recently reported staggering revenues of over $30 million per month between March and September.
However, it's not the industry's total earnings that concern experts, but rather the numerous struggling businesses.
Jessie Hunt, a spokesperson for R. Greenleaf and Everest dispensaries, expressed profound worries about the excessive number of licenses issued since recreational marijuana legalization, “Looking at the data, the number of licenses that have been issued in the state of New Mexico, it's of extreme concern to us.”
The state has granted over 1,000 licenses, leading to dispensaries in major cities holding more cannabis than they can sell. Not to mention, New Mexico's cannabis prices are among the lowest in the country, causing discouragement among growers.
A poll of registered New Mexico voters conducted by Aspect Strategic reveals widespread agreement that there are too many dispensaries in the state. Three-quarters of dispensaries report monthly sales of less than $50,000, making it impossible to cover expenses.
To support the industry's growth, experts like Hunt suggest a more cautious approach, urging the state to consider a temporary halt on new licenses. This pause would allow the market to stabilize before gradually resuming licensing in the future.