Who would have guessed that legal marijuana in the US could lead to even more trouble in regards to the Mexican drug world?

Now that marijuana, either recreational or medical, can be accessed in over half of the United States, Mexican drug cartels are starting to realize that there isn’t as much of a demand for them to grow, smuggle and distribute pot across the border.

A 24-year old pot farmer in Mexico told reporters that two or three years ago 2.2 pounds of pot would bring in $60-$90, where today he can only get $30-$40. If prices continue to drop, it could likely lead to the collapse of the Mexican weed market. It also doesn’t help that “Made in America” pot is much better quality than the green from the south.

Why the difference in quality between U.S. grown green and Mexican marijuana? Growers in the U.S. have access to the latest in growing technologies, including top of the line green house facilities. The higher quality product is bringing in a higher price as well, typically three to four times more expensive than Mexican bud. The THC content of American weed is usually 10%-20%, where Mexican weed is usually on the 5%-8% side.

One Mexican marijuana farmer who as been growing for years, told the Washington Post, “I wish the Americans would stop with this legalization.” “It’s not worth it anymore” said Rodrigo Silla.

With revenue from marijuana down, it seems violence in Mexico has gone up. It’s easy to figure out why. The drug trade in Mexico brings in more money during a year than the GDP of most other countries and the authorities that should be stopping the illegal activities are corrupt and weak.

Slowing down, and ultimately putting an end to revenue from weed is key to putting an end to Mexican drug cartels. Unfortunately, it might not mean the end, as Cartels could just change their game plan to include distribution of other drugs or changing gears all together with illegal activities like human smuggling.

If stopping the Mexican cartels is a top goal for the U.S. government, then simply removing marijuana from the Schedule 1 category, or legalizing recreational use and sale across the country, instead of just state-by-state, would surely cause the cartels to crumble. A report in 2010 said that if Mexican pot was removed from the American market, it could cause Mexican profits to fall 85%.

With the way American’s have been supporting state’s legalization efforts, big changes on a federal level may not be too far from reality. But with the Mexican cartel’s murdering approximately 13,000 people a year, no changes can happen fast enough.

MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
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