Hemp tolling splits

I got asked the other day about processors in OR or possibly WA / CO that would provide tolling for
a large volume of hemp to be converted into isolate - 250k lb total biomass at about 12% CBD to be processed. Split deal preferred.

Anyone here able to help out? Also, what’s the going rate for splits?

3 Likes

Good luck with that one. If you find someone who this actually works out with and your happy with the % back let me know I’ll be next in line.

I’ve looked at this in detail with a couple of my suppliers. I’ll give you my experience with actual established processors. 1000-2000 lbs is a test. They really only want to run 10k lots plus.

The splits are 12%+ material you will get a 50/50 split 7-11.9% 60/40 in labs favor >7% it’s 70/30.

Here’s the kicker, what you think is 12% is probably more like 7% in reality

If I can give you one piece of advice when getting into this game would be to make a deal with the processor based on test results not their extraction results or in house testing. Choose a mutual 3rd party lab. Grind/ homogenize the material together and send 3 samples of the agreed on material to same lab. What ever the average of the 3 tests is coming back the processor should make a deal based on that number and it should be 60%+ of what the potential CBD is in the sample. ie 10kg if potential CBD goes in 6kg of isolate comes out. You split the 6kg 50/50 or what ever the agreed split is

Then you have to decide is they keep the heads and the tails of the distillation and extraction

Lots of fun !

10 Likes

Thanks for the detailed response. This jives with what I’ve heard so far, and is pretty close to what I suggested might be reasonable when I was asked initially. Though I figured that 60% is a bit on the low side.

My understanding is that the material has been independently tested and came out at a 12% plant/batch average, not just taking the top buds off and testing them.

1 Like

62% is what my guys in Colorado promise and I have even seen the spread sheet of extraction results from another processor and his is 62% of potential. Ive had others tell me up to 68%, but I’ve also heard other telling people less than 50%

4 Likes

I can maybe help find a processor in CO/OR. Will have to find out. Want to email me? Derekbaronbrayton@gmail.com

Thanks for the offer! I’ve passed your info to the person that asked me about the splits - I’m just trying to help someone out, not trying to be a middle man on this one.

2 Likes

Simple math.

10,000 lbs of 10% material sold at a premium of $4.50 per percent ($45/lb) will earn a farmer $450,000.

OR

50/50 Split
We take that 10,000 lbs
~50 lbs to make 1 kilo of isolate
~200 kilos of isolate
Leaves the farmer with 100 kilos of isolate or $5500 guaranteed buy back rate which will earn the farmer $550,000.

That’s an additional $100,000 in profit over 60 days.

We arrange pick up, logistics…it’s insured during transportation.

We have offices and labs in Denver, CO. Open door policy, come visit us in person.

Alexander Ceranek
Business Development
adm-labs.com
alex@admgroupintl.com

5 Likes

Could you recommend me a Colorado processor to do a split on some hemp biomass

1 Like

These are customers of ours in central Oregon and people we trust. Collections – CHTC, Inc. Give them a shout.