• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Marijuana

Looser U.S. Laws Are Hurting Mexico’s Marijuana Industry

By
Michal Addady
Michal Addady
Down Arrow Button Icon
By
Michal Addady
Michal Addady
Down Arrow Button Icon
December 30, 2015, 4:43 PM ET
View of marijuan plants at a field, in L
View of marijuan plants at a field, in Los Algodones community, Culiacan, Sinaloa State, Mexico on January 30, 2012. Mexican soldiers found a marijuana field and incinerated the drug as part of the Culiacan-Navolato operation. More than 40.000 people have been killed in rising drug-related violence in Mexico since December 2006, when President Felipe Calderon deployed soldiers and federal police to take on organized crime. AFP PHOTO/Alfredo Estrella (Photo credit should read ALFREDO ESTRELLA/AFP/GettyImages)Photograph by Alfredo Estrelloa — AFP via Getty Images

When drug laws in the U.S. get looser, it’s Mexican producers who reportedly suffer the consequences.

Since states have risen restrictions on marijuana, the demand for Mexican drugs has gone down significantly. The LA Times reports that in 2008 two-thirds of all marijuana consumed in the U.S. had been imported from Mexico, and now it’s less than one-third.

Mexicans are competing with Americans on both price and quality. High Times magazine writer Daniel Vinkovetsky told the Times that “Mexican marijuana is deemed lowest on the totem pole,” and since higher quality American product is now much more accessible, people are “[turning] their backs on imports.” The DEA has even seen a few cases of American pot being smuggled into Mexico.

“Even though it’s not really considered good business anymore,” a grower known only as Emilio told the Times, “there’s nothing else to do.”

In the last four years alone, the price per kilogram fell from $100 to just $30 in Sinaloa, which is Mexico’s biggest production state and where Emilio’s farm is located.

Cartels and growers alike now have to find something to fill the void left by this reduced demand. According to a DEA report, Mexican cartels are supposedly trying to compete with Americans with better quality marijuana.

The report adds that if cartels continue to get edged out of the marijuana market, they could turn to harder drugs.

About the Author
By Michal Addady
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Two female college roommates study together in the dorm
SuccessEducation
Trump wants to cut federal loans from college programs that don’t pay off. College cosmetology, fine arts, and music programs are at risk
By Preston ForeMay 3, 2026
11 minutes ago
president donald trump
PoliticsDonald Trump
A $20B battleship the U.S. abandoned after WWII is back in Trump’s $1.5T defense budget. Experts say modern missiles will easily destroy it
By Jake AngeloMay 3, 2026
32 minutes ago
US Federal Reserve Chair Jerome Powell departs a press conference at the Federal Reserve Board Building in Washington, DC, on April 29, 2026.
EconomyFederal Reserve
Fed whisperer splits on Powell: A+ as steward, but ‘I don’t think you could give him high marks on the economy’
By Eva RoytburgMay 3, 2026
60 minutes ago
Julia Hartz, the cofounder and CEO of Eventbrite
Successchief executive officer (CEO)
Eventbrite CEO sold her company for $500 million—without a job for the first time since 15, she’s playing chess with a robot and eyeing internships
By Emma BurleighMay 3, 2026
2 hours ago
Zoom is giving away $150K to ‘solopreneurs’ with no strings attached—as 33 million workers ditch corporate to become their own boss
SuccessCareers
Zoom is giving away $150K to ‘solopreneurs’ with no strings attached—as 33 million workers ditch corporate to become their own boss
By Orianna Rosa RoyleMay 3, 2026
3 hours ago
Trump vows to reduce U.S. troops in Germany ‘a lot further’ than 5,000 as defense official says armed services were blindsided by move
EuropeMilitary
Trump vows to reduce U.S. troops in Germany ‘a lot further’ than 5,000 as defense official says armed services were blindsided by move
By Kirsten Grieshaber, Emma Burrows, Aamer Madhani and The Associated PressMay 2, 2026
9 hours ago

Most Popular

Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
Personal Finance
Scott Bessent on financial literacy: 'it drives me crazy' to see young men in blue-collar construction jobs playing the lottery
By Fatima Hussein and The Associated PressMay 1, 2026
2 days ago
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
Economy
Gen Z is rebelling against the economy with ‘disillusionomics,’ tackling near 6-figure debt by turning life into a giant list of income streams
By Jacqueline MunisMay 2, 2026
19 hours ago
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
Commentary
Stop donating to Harvard and the Ivy League. There's a better option that MacKenzie Scott already figured out
By Ed Smith-LewisMay 2, 2026
1 day ago
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
Commentary
The American household just took an 81% margin cut. Wall Street hasn’t priced it in
By Katica RoyMay 2, 2026
22 hours ago
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
Law
A Chick-fil-A worker got fired and then showed up behind the register to allegedly refund himself over $80,000 in mac and cheese
By Catherina GioinoMay 1, 2026
2 days ago
Current price of oil as of May 1, 2026
Personal Finance
Current price of oil as of May 1, 2026
By Joseph HostetlerMay 1, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.