// BUSINESS INNOVATIONS //
Scaling Extraction Navigating Local Limitations and Looming Certifications By Jessica McKeil
The cannabis extraction market is an exciting one. With the U.S. market predicted to hit $5,940 million by 2026 according to Facts and Factors, and the global market $28.5 billion by 2027 as reported by Grand View Research, everyone is getting in on the action. What these compelling numbers don’t describe are the continued volatility and realworld limitations cannabis extractors face scaling their production. Growing isn’t always easy in the extraction space. Extractors must navigate the ever-changing landscape of new markets, regulations, and consumer demands, all while staying profitable.
across the country, including in California, Nevada, and Oklahoma. In his experience, “most of the multi-state operators spend so much money that by the time they land with the right consultant group, they’ve already spent excessive amounts of money, and they just don’t feel like spending more.”
Backbone Head of Product Erika Tingey
Growing an extraction business is about flexibility and future-proofing investments. Because pivoting as a processor isn’t always possible, planning for growth from the start is the key to success.
there is a patchwork of legislation and regulation covering all things cannabis. Most multi-state extractors face an entirely new set of challenges in every state and often in every county.
So, what can a concentrate maker plan for today to ensure future growth is as smooth as possible?
For example, the local county fire marshal plays a significant role not only in determining how many (if any) cannabis operations exist in their district, but also in what sorts of operations they can run. Not all counties are open to all solvents, with many placing restrictions on volatiles like butane.
Frustrations and Pain Points Common in the Extraction Industry Cannabis processors each navigate unique sets of circumstances depending on the state and even the county in which they operate. Yet, despite the high degree of regional variability, there are several common pain points.
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First, is the astronomical start-up cost. Nearly everyone interviewed for this piece mentioned how tight budgets are, not only restricted to the initial build-out, but also to the future potential of a facility. Cutting corners in the early days frequently places significant limitations on future expansion.
If adjustments are needed, Moates has found these operators are tapped out and the capital has dried up. Facilities are forced to make current systems work, often to the detriment of product quality and future growth.
Marcus Moates, owner and founder of Nature’s Lab Extractions, has set up operations
A second common frustration occurs during expansion into new markets. Across the country,
Cannabis & Tech Today // Summer 2021
Moates detailed how Nature Lab Extractions operates under a Type 6 Non Volatile Solvents Extraction License in California because securing a Type 7 Volatile is all but impossible. He is not the only processor to have discovered that facility expansion is largely restricted by the local regulation on the solvents themselves. Plan to Pivot According to Local Limitations What is clear for all extraction facilities is the limitations of the local environment. What are
