Business & Finance

Canada’s legal market sells outdoor weed for 28 times cost of production

At $7 dollars per gram, the outdoor-grown product remains far more expensive than illegally grown marijuana which has continuously dropped in price since legalization.

Ali Taghva Montreal, QC
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Have you ever wondered how much it costs to grow outdoor marijuana?

Thanks to a new by Global News story we know its roughly 25 cents per gram for companies like 48North to produce the product.

This is multiple times cheaper than indoor operations which have a growing cost of $2 per gram.

This 25 cent per gram grown marijuana will then be sold in Quebec for $7 per gram, roughly 28 times the cost of production. While extremely expensive, in relation to production cost, the product will be the cheapest available option for legal consumers.

At $7 dollars per gram, the outdoor-grown product remains far more expensive than illegally grown marijuana which has continuously dropped in price since legalization. According to StatsCan, the price averaged at $5.90 per gram, with options available at even lower price points.

In virtually every province, sites like Weedmaps now provide extremely low-cost options to consumers, with 28-gram orders dipping at or below $3 per gram.

Of course, this is an illegal option, but with black market prices rapidly dropping far below the cheapest prices in the legal market, and most consumers already use to buying from an illegal market place, the long term capability for legal producers to compete for clients remains in question.

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