Hemp extractors, Tfree market and waiting to get paid...

Colorado market for what its worth

I’m sitting on more crude than I have outlets to sell at the moment, almost 300 kgs, all of which was cold ethanol extracted and has been decarbed, most of which has COA’s showing CBD over 60%

Have had a few different people/companies approach me wanting to buy crude on an agreement to be paid ~45 days after the fact, with them doing the processing from crude into distillate and Tfree from there. Reading the agreements they have, they basically don’t give a set value to the crude, but an “estimated/perceived value” and the contract doesn’t really hold the tfree processor to any specific timeframe, just some generic phrases about “acting in the best interests of the client”. I also note that at least one of them wants crude that “conforms to federal guidelines” and includes a statement about being under .3% THC, which tells me that whoever wrote the agreement is a moron who doesn’t understand how extracting concentrates the things it pulls out of the biomass.

Curious if any other extraction labs on here have had experience good, bad or otherwise with these sorts of agreements. I’ve heard some rumblings about how the Tfree market is not as big as many claim, just that it’s being chased because it’s currently fetching higher $/kg prices than distillate or isolate.

I also have concern about the competency of the people doing this, I understand not wanting to have a ton of $$$ tied up in input products in the even of the tfree market dropping like we’ve seen happen to crude, distillate and isolate in the last year, but I also have some skepticism because I haven’t worked with any of these labs and have no idea the experience or competency of the people doing distillation, I know a competent WFE operator can get 65-70% first pass yields from the crude my lab puts out, but the way these contracts are written if the distillation yields are 40% there’s no recourse for the business who put the crude up in the first place

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Should have a set price per kilo of crude you give them. Current market value being ideal. I give you 100 kilos you pay me 45,000 being 450$ per kilo I give you. Regardless of their incompetency. Then have a failure to produce clause that states they have 45 days to sell it and if they don’t they owe you the cost of the crude back in t free distillate stating the cost of t free distillate in the contract. Basically 1.65 kilos of crude equals 1 liter of distillate plus the cost of remediation and small amount of labor for doing the distillation.

So 450 x 1.6 + (remediation cost) + (labor for distillation) = X (cost per liter of distillate they should return should they not be able to pay you.)

So then take 45,000/X = total liters of thc free disti they should return if they can’t sell any in 45 days.


Drops mic


Translation: “don’t worry, we’ll take care of you”

I’ve never had one of those deals work out


Dont forget only 80% return on distillate to tfree

That’s where the 1.6 kilos of crude is coming into the equatuob

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1kg crude x 60% return × 80% return = 2.08 kg crude

You get reallyyyyy bad returns if that’s your equation for your distillate. So you have 60% loss from crude to 2nd pass? Damn