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Is Cannabis a Commodity?
Is Cannabis a Commodity?
SEA OF GREEN
By Duncan Cameron, SOW Consulting LLCFebruary 3, 2023
A younger me in an old school grow
Is marijuana a commodity? Back in 2009 there was a 60 Minutes news story about Michael Pollan and his seminal book ,"The Botany of Desire". The story follows the history of four plants (tulips, potatoes, apples and cannabis) and how they have influenced people and culture. I was back in school at the time pursuing a botany degree. When the segment about marijuana came on my wife turned to me and said, "That's what you need to be doing". Words do have power and this was another example of that manifest. Fast forward a couple of months and through a friend of a friend I ended up flying out to Denver to meet the guy who would be my boss for the next 12 years.
Throughout that time we would talk about the uniqueness of cannabis cultivars and how genetics is the only real gold in the universe. Even though I wholeheartedly believed that sentiment, I could never stop thinking about the historical lessons laid out in Pollan's book. At the height of the tulip bubble in the mid 1600's you could buy a mansion on the grand canal in Amsterdam for the cost of a tulip... and then it crashed. Now I can get 50 bulbs for $15 from just about anywhere.
I tell this story because it does have significance for the current state of marijuana. Some cultivars do have unique properties but the current consumer is mainly driven by potency, proximity and price. Legal operators often get upset when they see a lack of production management from the State but other legal operations only tell half of the story. State governments demand their pound of flesh in the form of taxes and fees. Ancillary businesses put a marijuana premium on their goods and services and the black market is still alive and well.
The rapidity at which new strains are dropped and then disappear from view (Girl Scout Cookies anyone?) should give any grower pause about the real value of their crop. Flower is ubiquitous now and is more and more used as a raw material for finished products. Isn't that a commodity?
Other News
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The Colorado Department of Ag's Pesticide Advisory Committee held its quarterly meeting at the beginning of the week. It's renewal season for commercial applicators. Those that need to should apply
. There is also an
now. I currently sit on the board representing urban agriculture. If you have any concerns and live in Colorado give me a shout.
I love to hear stories about growers trying to create more natural systems to combat indoor grow issues. Most of them focus on
but there are other opportunities to become more environmentally sound in growing practices.
Even though atmospheric CO2 levels are rising roughly 20% of the CO2 generated is on purpose for commercial use. Many indoor grow operations enrich the air with gas from these sources. Is there a better way?
has been trying to break this cycle by connecting producers with consumers via some pretty interesting hi tech. On the other end of the spectrum is a billions year old approach fo natural CO2 production.
point to a very low tech way that has promise to be scaled up for commercial purposes.
Need help with your CAPA plan? ASTM can help you with this
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