CBD Extraction: Think It Through Before You Buy Equipment
Posted on November 23, 2021 by Cedarstone Industry Team
CBD extraction is big business right now. There is no arguing that. Processors all over the country are buying marijuana and hemp, extracting CBD, and then transforming it into a variety of cannabis products. Needless to say, there is good money to be made if you know what you are doing. However, be cautious. It is good to think things through before you start buying equipment.
There are three primary ways CBD is extracted from cannabis plant material. We will briefly discuss them in a moment. First, note that each extraction process requires different equipment. That equipment varies in price, volume, and the knowledge required to operate it properly. It would be a shame to invest a lot of money in equipment you will never use.
Think About Your Budget
Right off the top, you need to think about your budget. Not only are you going to have to buy stainless steel tanks, tubing, condensing equipment, etc., but you are also going to have to pay a hefty licensing fee. The fees in most states are intentionally set high so as to weed out fly-by-night operations. All of this is to say that your budget might determine your choice of extraction methods.
The three most common means of extracting CBD are steam distillation, solvent extraction, and CO2 extraction. Steam distillation is generally the most cost-effective option for new processors. CO2 extraction is the costliest. You also need a lot of extra knowledge and training to do it right and make money doing so.
Think About Your Available Space
The floor space you have to work with can also influence how you go about extracting CBD. Different extraction methods require different footprints. Then there is the question of volume. How much CBD do you want to produce in a given amount of time?
Steam distillation doesn’t require a huge footprint compared to the other methods. Yet it also does not produce consistent results. Steam distillation isn’t all that efficient, either. If you needed to set up two or three extraction lines to reach your goals, perhaps you’re better off using that same floor space to install a solvent or CO2 extraction line.
Consider Your Long-Term Goals
Long-term goals are part of every business venture. They are something you definitely need to think about before you start buying CBD extraction equipment. Where you hope to be in the future will likely influence your short-term buying decisions.
It is okay to be content with maintaining a small operation that processes cannabis and sells finished products to local dispensaries. If that’s your long-term goal, you can make purchase decisions based on how small you like to keep your operation. But if you have plans to grow and expand beyond the local market, you might have to think a little bigger.
Shooting for a larger operation might warrant spending a little more on CBD extraction equipment now. It might also be worth leasing or buying more space than you need now, anticipating that you’re going to need it all down the road.
Only Fools Rush In
Getting started in the cannabis processing business requires a considerable financial investment. As a provider of CBD extraction equipment, we have seen more than one entrepreneur rush in without thinking things through. We can tell you firsthand that rushing in is a good way to lose money.
Before you buy your first piece of equipment, make sure you think things through. Figure out your preferred extraction method. Think through your budget, space requirements, and long-term goals. The more purposeful you are, the greater your chances of success.