Utah’s medical cannabis program is one of the best in the nation. Beehive State lawmakers have reached a fairly good balance between patient needs and regulatory demands. Still, the program isn’t perfect. Among its most glaring problems is retail cost. Patients are still spending too much on cannabis medicines.

The medical cannabis patient total in Utah has surpassed 90,000 at this point. That’s impressive for a highly conservative state where original estimates suggested fewer than 10,000 would apply for medical cannabis cards. Unfortunately, the largely rural state is served by just 15 medical cannabis pharmacies.

The medical cannabis pharmacy, Beehive Farmacy operates two of them, one in Salt Lake City and the other in Brigham City. They say all but one of the licensed pharmacies is located in a metropolitan area. That leaves rural residents with a long drive to the pharmacy or the choice to find another source. Enter the black market.

Not Just California

When we talk about the state-legal marijuana market competing against the black market, California immediately comes to mind. The Golden State is notorious for having a black market that dwarfs legal operations. But apparently, Utah has a black market problem, too.

According to a Fox 13 report posted in late September 2024, an estimated 60% of all medical cannabis consumed in the state of Utah is purchased outside the state-licensed system. That means the majority of products are being purchased in one of two ways:

1. Patients are visiting neighboring states where they can purchase recreational marijuana; or
2. They are purchasing from black market operators located inside Utah’s borders.

Either way, it is clear that the state-licensed system isn’t adequately meaning patient needs. The big concern among patients obtaining their medicines from outside the system is cost. That should be no surprise.

The Black Market Is Cheaper

It doesn’t take a degree in business management to figure out the black market product is cheaper. Illicit operators do not have to pay thousands of dollars for state licenses. They don’t pay to have their products tested by independent labs. They do not have the overhead associated with establishing costly retail pharmacies. And of course, they also don’t pay taxes.

No matter where you go in the country, black market operators can sell their products at much cheaper prices – prices so cheap that licensed operators simply cannot compete and stay in business. And by the way, this is the way it has always been.

Illicit overseas manufactures can create remarkably similar knockoffs that appear to be legitimate branded products to the naked eye. They can do it at a fraction of the cost. Likewise, bootleggers can distill illicit spirits they turn around and sell at rock bottom prices.

Final Price Matters Most

According to Beehive Farmacy personnel, price is what matters most to so many patients. All of healthcare has become prohibitively expensive to the point that patients are more than happy to jump at the cheapest possible price. Medical cannabis is no exception.

When all other things are equal, the seller with the lowest price will garner the most business. And even when things are not equal, patients are willing to sacrifice at least some quality in order to save money. That’s why the black market still thrives in tightly regulated states like Utah.

As long as the government regulates cannabis, there will be a black market. It is unavoidable and unstoppable. If the government really wants to stop black market operators, the way to do it is to take the chains off the legal market and let the natural forces of business take over.