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Home » Black market is Utah's biggest competitor to medical marijuana program
Cannabis Technology

Black market is Utah's biggest competitor to medical marijuana program

adminBy adminSeptember 24, 2024No Comments3 Mins Read
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TOOL COUNTY, Utah — WholesomeCo will soon begin harvesting its first outdoor grow.

The marijuana plants, spread across more than two acres in remote Tooele County, appear healthy and thriving.

“This allows us to lower prices, increase product selection and grow as a cannabis program in Utah,” said Alex Iorgu, one of the founders of Wholesamco.

Utah's medical marijuana program is settling down nearly five years after voter approval of Proposition 2, which legalized marijuana in the state. (The Utah Legislature ignored Proposition 2 with its own highly regulated program.) Medical marijuana businesses say they're seeing growth and success. Iorgu, who worked on the Proposition 2 campaign, said about 80,000 people in Utah are considered medical marijuana patients. But local businesses say their biggest competition remains the black market.

“About 60 percent of the product in the state is purchased outside of the legal medical marijuana program,” Iorgu said, “which means they're either bringing it to the border or getting it from the illegal market.”

Data collected by the Utah Department of Health and Human Services shows that patients are either traveling to neighboring states where recreational marijuana is legal or buying it from local dealers, with cost appearing to be the biggest reason.

“I represent the vast majority of patients who are simply choosing between using medical marijuana and paying rent and food,” said Desiree Hennessy, executive director of the Utah Patients Coalition. “This is the reality of their lives: relief from pain? Treating illness? Or eating? And insurance simply doesn't cover it and doesn't help these patients.”

Utah's medical marijuana regulations are stricter than states that regulate recreational marijuana for adults. But Wholesamco's Iorg argues that could be a reason to choose Utah, because testing requirements ensure a safer product. Utah-based medical marijuana companies offer delivery and convenience, he said.

“We strive to match others on quality, selection, and as we grow as a company and as an industry, we'll get closer,” Iorgu told FOX 13 News. “We'll never match illegal prices or neighborhood recreational prices, but we want to provide convenience and access.”

Every year, the Utah Legislature makes amendments to its medical marijuana laws, and Senate Minority Leader Luz Escamilla (D-Salt Lake City) is one of the lawmakers handling those bills.

“We're making changes when they're needed and we're being very proactive,” Escamilla told FOX 13 News, adding that he's also taken into account a lot of input from patient groups and the cannabis industry.

The 2025 Utah legislative session is no exception, with new marijuana bills due to be considered, and Hennessy said his group hopes to continue to expand access to cannabis.

“Patients won't have to struggle to update their cards, find a doctor and get their condition recognized,” she said. “That's what we need to focus on. We've proven that this is not going to be a public health concern, and we know how to make sure it doesn't become a concern, so let's move on to making this easier for patients who take advantage of this program.”

Iorgu said more people are benefiting from medical marijuana, and he would like to see lawmakers do more to persuade patients to shop locally.

“We want to help let people know they don't have to go out of state to get the medicine they rely on, and we want people to know that cannabis is safe and high quality,” he said.



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