The short history of cannabis extraction
There was a day only several years ago when the only factory built extraction equipment available was $150k plus CO2 units built for botanical extractions. Butane extraction was being done in homemade pipes or blast tubes with cans of butane bought from the local hardware store. Alcohol extractions were being done only by hard core medical patients in 5 gallon buckets. In what seemed like less than a year, purpose built butane extractors began popping up in the market, built from trial and error and a little skill. Demand was high and supply was low. What cost a couple thousand dollars to build was being sold with 1000% markups just because they could. Alcohol extractors were soon to follow with markups that rivaled pharmaceutical medications.
The expanding facilities
As various forms of legalization spread around the country the race for supremacy among processers raged. Bragging rights were not only about volumes of product being manufactured but also by the amount of money spent on facilities and equipment. The market wanted to spend money. It needed to spend money! It seemed that the more something costed the more it was desired. Each new piece of equipment came with the promise of higher profits.
Reality sets in
Would those profits ever come to be realized? What was the actual return on investment? As this is being written, Aurora, one of the largest cannabis companies in the world is trying to offload some of their bragging rights. As Marijuana Business Daily reported “ The listing is the latest example of the broad retreat from mass-scale cannabis greenhouses in the past year by the largest Canadian producers, which wildly overspent on cultivation space from 2017 to 2019. Many of those greenhouse projects, whether constructed or acquired via mergers and acquisitions, ultimately led to direct real estate losses totaling millions of dollars for Canadian licensed producers and inventory write-downs amounting to billions of dollars” This is not only limited to Canadian companies or greenhouses. Similar events are happening at every level all around the United States as well.
A Brighter Future
The good news is that as companies roll back their spending, a larger market of equipment is becoming available. What was once an industry of little guys, taken over by large investments and egotistical corporate executives is once again offering its hand to the little guy. The weed tax being applied to nearly every extraction and processing system is fading and the playing field is being leveled. We now have the benefit of millions of dollars in research and development at our fingertips without paying an entry fee. One company leading the way in the the affordable equipment revolution is CRCfilters by Essential Innovations . CRCfilters began by offering consumables at bulk wholesale prices regardless of quantity. This allowed even the smallest scale processor an opportunity to compete with the larger companies in their purchases. They have now entered the equipment market with an ethanol extractor and purification system at a cost that nearly anyone can afford. The CRCfilters EP-05 alcohol extraction and purification system offers small operations as well as larger operations an opportunity to produce proven results at a fraction of the cost. The EP-05 system makes no sacrifices and has the capability to produce a quality of product that would typically take multiple processes and a large investment to replicate. CRCfilters aims to continue introducing affordable products with performance into the market promoting growth among the ranks. Its time to see real profits from smart investments by smart people.
Written By Arthur Paul – 2021