Hello, I have an opportunity to become a part of a fund seeking to create economic and educational opportunities within specific areas. They will be buying a 40k sqft building and I will get access to a reasonable sized space. The building will be empty and I will need to build out the space to function as a CBD Extraction/ Products Manufacturing company. I have read the hemp processing equipment selection on here which estimates 50-100k in equipment for the scale of processing 100lbs a day. Florida does not yet have specific rules for hemp processors. But I would like to understand what the ballpark costs might look like Per Sqft. To build out a space with the fixtures, plumbing, ventilation, etc that we will need. Looking to process ethanol to distillate, maybe c02 in the future! As well as making topicals, tinctures, capsules, etc.
Expected investment seems kinda low.
Return on investment would be ridiculous.
100 lbs/day => 10% yield => 10 lbs of CBD / day, so about 5 kg.
5 kg @ $5K/kg, = $25K / day, so in a week you would pay for your facility?
Margins like that won’t be around long and i expect the CBD market will turn into a commodity next year.
Anyway, for a small facility we tell people to plan for at least 1 mil in equipment and build-out.
If I am being realistic, I see that more cash is definitely advisable. But our company currently operates as a products processor without any ethanol extraction/distillation/isolation. Our current valuation is at around 100k. So I’m trying to wrap my head around how we can justify asking for a figure like $1mm. I do see that I could produce $25k in isolate per day. But Im worried about our ability to create a streamlined system for distributing at this type of volume.
We have been asked to put together a plan for 500k in funding
wouldnt it be great if it was this easy? Theoretical yield of cbd is wayy lower then that it normally takes between 40-50 lbs of whole plant hemp to make a kilo of end isolate.
This is more of a question for your General Contractor, or an indepth consultation that will go back and forth on the super minute details
500-600K definitely bumps you up in capacity, as long as thats your lab build out and not super heavy on building and construction infrastructure. A recent client of ours is setting up operations for 600lbs per shift and had a total budget of 600K, and thats without going to isolation. I can help you find your path, but id definitely set your sights higher than 100lbs/ shift
I can likely have a budget upwards of $1mm if I can justify the funds and project an attractive enough ROI. I need to create a business plan within 1 month. This will include all aspects of the project minus the actual building. Retrofitting, raw materials, equipment, marketing, labor, etc. Have you seen the Hemp Equipment Selection Guide Excel? I just saw that there is a low budget estimate for 500lbs per day which calls for under $200k in equipment. This could be realistic.
Cooling and filtration are not included watch for that !!
Yes, but that 200K is to get the job done bare minimum, We build facilities to scale, so every piece will always be used in the scale up. Its called doing it right the first time, and it will save you so much time and money.