Hemp Investor and Business Strategy: Extract, Bottle, and Sell Direct
Starting a Hemp Extraction Business
Starting a Hemp Extraction Business (pdf)
Reinventing Botanical Extraction
With the incessant demand for consumer grade hemp CB D rich products, along with CB D isolate for product infusion, there is a bottleneck between harvest and concentrate extraction. This is because most farmers don’t have funding or capabilities to perform extraction. Third party extractors, termed toll processors often demand a 50 percent toll for their services. Unfortunately, there aren’t many processors available and many are unreliable.
Of the extraction systems available on the market, they are high-priced, legacy-based systems that perform inefficiently, and effectively cause a bottleneck in processing.
Infinity Supercritical recognized these inherency’s in 2015, and established a line of technologically advanced extraction systems.
Hemp Extraction: Large quantities of hemp need to be extracted at harvest time to preserve the unique medicinal qualities of the plant oil.
Batch Processing: The industry currently has large batch processing systems, which limit capability.
Solvents: Most processing is focussed on using solvents like butane (explosive and leaves a residue), ethanol (poor terpene retention and when poorly executed loss of CB Ds), and CO2 (best option).
Response Time: Extraction times are usually slow, and don’t match market demand.
Old Technology: Current extraction systems are based on 60 year old technology.
Infinity Supercritical offers a full spectrum extraction line of technologically advanced equipment.
High Value Hemp Extraction: High quality oil extraction Supercritical CO2 system.
Large Volume: Continuous feed, push-button extraction using water. Spinning Disc Reactor (SDR) system.
Eco Extraction: SDR uses water, and the only technology in the industry to introduce eco-extraction as a green branding process.
Why Now ?
Timing: The market has a high demand for CB D rich hemp products.
Opportunity for this market exists as processors scramble to meet demand, with legacy extraction systems. Unfortunately, ethanol extraction falls short with a inferior product that doesn’t have good terpene retention. That leaves CO2 and water extraction.
The other problem is that most extractors don’t have proper COA (Certificate of Analysis) for pesticide free input hemp flower, nor post extraction COA for oil that is at or below the .3% THC legal limit.
How To Build A Vertically Integrated Hemp CB D Oil Business:
1. Establish Good Rapport with Farmers and Hemp Flower Suppliers: Growing a pesticide free and legal hemp (lower than .3% THC content) supply is critical to supply. Offer to pre-buy some of their product at a set price. Purchase certified and analyzed product from last years harvest (at a discount).
2. Buy Your Own Hemp Flower and Oil Analyzing Machine: Don’t trust what others tell you, analyze the product yourself, and re-verify quality. Have a third party also analyze so you can compare and verify. Analyze your competition and see if they’re actually selling what they claim (the results may surprise you). Post all results on your web page blog. Transparency is critical to establishing a good reputation. Trust and verify.
3. Start Small and Buy a 10L Supercritical CO2 extractor: Each machine can extract $5,000-$10,000 per day (amounts vary according to hemp flower buy price, extract sell price, etc.). Number up machines as capacity increases until you reach 10 machines, then buy a larger SDR which can process up to 2,400 pounds of hemp flower per day. The CO2 extracts can be build immediately (1-2 weeks) which allows you to get started now.
4. Buy a SDR Water Processor: As your profits grow, and processing capacity increases, buy a larger continuous feed hemp flower oil extractor. These larger machines take 6-12 months to build and test, so plan ahead. If you start with the CO2 extractors, those can be build on-demand and get you processing right away.
5. Dedicated Sales Person: Have at least one person dedicated to selling crude oil, bottled full spectrum hemp oil online, bottled full spectrum hemp oil to local retailers (and nationwide). Also have them determine CB D isolate (crystal) sales, to analyze whether or not a post processing system will be needed at a future date.
6. Start with Full Spectrum Hemp Oil Extraction: The highest buy prices is now with full spectrum hemp CB oil. It is the fastest and easiest to produce (it’s the crude oil extract right out of the machine). To bottle it, mix with a carrier oil such as coconut oil. One bottle of about 30 ml of coconut oil will have 500 mg, 1,000 mg (1 gram), or 2,000 mg (2 gram) of hemp oil in it. CO2 oil extract is commanding a price up to twice that of ethanol extraction, since it’s a better quality extraction.
7. Start with Extraction, Not Growing: The most profit in the hemp market is extracting and selling the oil. There are thousands of pounds of hemp flowers in warehouses in Oregon, Colorado, Wisconsin, and other states.
8. Do not Start with Isolate (Crystal): The most profit in the hemp market is extracting and selling the hemp full spectrum oil. The crystal has a solid buying market, but at only $6.50 a gram versus $10-40 a gram for the oil (wholesale) and $90-140 a gram (retail). Start with the biggest profit ratio, and then use the profits to purchase post-processing equipment to make isolate (crystal).
9. Coordinate Farmers: Coordinate strategies with farmers, so that they know they have a hemp flower buyer at harvest time. Also educate them on how to properly dry hemp flower, and package properly with commercial vacuum bag storage (similar to hops drying, storage, and processing).
10. Time is of the Essence: If you don’t do something prior to fall harvest, then just sit back and watch others ride the boom. Like we saw in Denver during the initial cannabis boom, the reaction time needs to be realized quickly. If you can’t move to extract profits quickly, then the best idea is to just stay out of the opportunity.
Summary: The above is a good strategy to start. While your opportunity may be different, extraction will give you a good roadmap on beginning a hemp business. Please feel free to call Infinity Supercritical and discuss your options and potential extraction facility.