I think many people on this site are anticipating a price crash in hemp and the corresponding downstream products. We are already swing distillate being sold for under 2k/kilo even here on future 4200. What strategies are you using to hedge against this price drop? Are there things we can do as an entire industry to minimize the adverse effects of a price crash? Specifically for processors, what is the best way to approach this?
Here are some of my thoughts:
-My first thought was to the diamond industry, where diamonds are kept in vaults and prices are controlled. This isn’t too feasible due to product degradation and because it would be almost impossible to get everyone to be on the same page. Maybe it would be better to hold on to product for a few months, hoping that a bounce back in price would overcome any degradation.
-Toll processing under contract seems to be a really good way to go-especially if the agreement has a dollar value per gram processed. My main concern here is that I don’t want to put the farms out of business. At a certain point, they wouldn’t be able to toll anymore
-Many people on here have talked about moving over to other cannabinoids. While this may have a slightly higher barrier to entry, these markets will all fall with CBD.
-One of my co-workers suggested we wait out the storm by not dealing with CBD at all, but by producing terpenes and then throwing the hemp into a still and making organic ethanol (we are organically certified). I think this is a good strategy but I don’t think it extracts enough value from the hemp.
One thing I know for sure is that people selling equipment are going to make a killing
I think one potential for all this cbd is to convert it into other cannabinoids. From what I’ve been seeing cbd is a good precursor for some novel cannabinoids that can have some new potential benefits
Last batch I processed smelled phenomenal. No clue where the boss dug it up. The stuff he just dragged in is going back if I have my way. Or I need to turn a shipping container into a dryer in the next few days…
I want all the popular strains aroma that we know and love to come from hemp but it’s not going to happen with that dreaded cherry menthol terp that always comes with CBD.
I second that. Dude shit might not be true thc cannabis terpenes but they are the best thing I’ve tried.
I’m sooooo glad he dm’ed me out of the blue and sent me a sample. I’d be in the dark otherwise.
Between me and others I’ve sent to him. He has sold several liters. I’ve yet to hear someone say they suck. Rather the opposite. How much they appreciate the hook up
that linkage has definitely been broken.
there are “hemp” strains that taste & smell good.
@qma yeah, I’ve got an itty bitty CO2 rig in house, and as soon as I have a room for it, with power so I can plug it in, I’m gonna learn me another way to put the cannabis in the tube
edit: and yeah, hydrocarbons then low temp distillation is probably a higher throughput solution.
