Mexican marijuana profits are falling as a result of free-market economics and loosened US marijuana laws.
The price decline has led to reduced marijuana production and forced Mexican farmers to supplement income by entering the poppy or heroin business. The US and Mexico compete not only in price of marijuana but also quality and it is not proving cost effective for the Mexico. The high demand for heroin in the US has also shifted the Cartel to push resources away from marijuana and toward other drugs that are illegal in the US such as heroin, methamphetamine and cocaine. Jose Marcelino Ortiz and Nik Zecevic discuss the impact of the US on Mexican marijuana on the Lip News.