Bigger and bigger and bigger, No one is going to stop the MJ industry from prospering and the smart people will do very well.
New Mexico’s Medical Marijuana Industry Surging
medical cannabis in New Mexico
By Omar Sacirbey
New Mexico’s nearly decade-old medical marijuana market is sprinting ahead as if it had just opened, thanks to a 70% jump in new patients over the past year.
Sales via dispensaries hit nearly $10 million in the first quarter – almost double the total from the same period in 2015.
The growth has enabled marijuana businesses to expand, though companies are still having trouble keeping up with demand.
“Things have taken off,” said Duke Rodriguez, CEO of Ultra Health, a cultivator and dispensary owner. “Demand has been amazing.”
According to the latest report released by the state, medical cannabis sales increased to $9.96 million in the first quarter of this year from $5.7 million in the first quarter of 2015.
The state is now on track for at least $40 million in sales this year, moving it closer to the middle tier of medical cannabis states in terms of market size.
That would also put it within the $40 million-$50 million sales estimate in the 2016 Marijuana Business Factbook. Last year, the state’s dispensaries racked up $25 million to $30 million in sales, according to the Factbook.
The spike in patient numbers has largely fueled the industry’s sales gains. The number of registered medical marijuana patients in the state has surged to about 25,000 through the end of May from 14,600 in May 2015. And the patient count is expected to keep growing this year.
Ultra Health’s five currently open dispensaries see about 2,000 patients per week, but it hasn’t been easy keeping up increased demand.
“We’re stretching product to the max,” Rodriguez said.
Supply Challenges
While he is still able to keep his stores open seven days per week, Rodriguez said he knows of some dispensaries that are open only two or three times per week because they don’t have enough supply.
“There are patients who are being turned away at shops,” Rodriguez said.
The industry’s jump in sales, in fact, hasn’t been distributed evenly among marijuana businesses, according to the state report.
Medical marijuana businesses in New Mexico, where licenses holders operate vertically integrated grow sites and dispensaries, had average sales of $453,000 in the first quarter. The top business had revenues of almost $1.1 million during the quarter, while another business had almost $904,000 in revenue.
By contrast, 13 other businesses earned less than $100,000 during the quarter – including the two state’s two laggards, which earned approximately $7,000 and $27,000 in the quarter, respectively.
For now, there are 23 licensed producers that run 37 dispensaries. Another 12 nonprofits that were awarded
