"Where are you getting the figure of 700/400 per pound?"
There is nobody in the state currently growing for less than $500 per pound that I can identify. Even the company with 80,000 sq ft of indoor production is at $700 per pound. I have met one company who achieved $500 per pound but they included the entire plant in that figure, not just the smoke-able parts.
"Quality cannabis can be grown at 10/ounce, or 160 a pound."
Not sure where you are getting that figure. If you could produce high quality medical grade marijuana for $160 per pound you'd be a billionaire. (Even in Mexico they charge $500 per pound). There are TREMENDOUS costs associated with building out a large indoor production facility. Your $160 estimate would not cover electricity and nutrients alone, let alone labor, rent and state fees. Perhaps if you had a hundred acres you could achieve this price, but certainly not with the limitations imposed by the regulations. (Nobody has the plant count to grow out 10 acres, let alone 100).
"Also, keep in mind, price will drop as it's legalized, not that it's not a high return."
This is true, especially when Colorado legalizes recreational marijuana use this fall. The reality on the ground is that there remains a tremendous shortage of product throughout the state. That is the main reason the price is as high as it is.
This opportunity only exists because prohibition is in effect in 60% of the US. Prohibition drives the price as high as $7000 per pound retail on the east coast. As prohibition ends so do the profit margins but we estimate there is at least another decade of this gray-area state legal for-profit opportunity.
Thanks for your comments.
I agree, the price drop will take time, just as it has in Cali with medical.
I got the figure while researching cannabis a while back, but it wasn't for commercial scale grows so I'm sure other costs play a factor.
What techniques do you plan on using for growing? Will you produce organic cannabis as well? Do you plan on engineering your own strains? And do you plan on selling bulk or retail level products?
Sorry for all the questions, thanks for your response.
