We break down the costs of CBD Oil production.
CBD is expensive! There’s no getting around that- on average, CBD costs around $.15 milligram, making a standard 500 milligram bottle cost around $75 on average- prices normally range from $50 to $200. That’s a lot of money! More than most other supplements on the market.
While good quality CBD is worth investing in, the high cost makes it tempting to buy cheap, inferior products, these products can be dangerous- they are often mislabeled and are filled with toxins and other sketchy ingredients.
To justify the high cost of CBD, it is helpful to know what goes into it to make it so expensive.
As with any farming, costs begin with the land itself and other expenses associated with cultivation; seeds, labor, equipment, license, etc.Not only does CBD require these standard expenses, but because cannabis is being planted, there are other testing and reporting costs that vary state by state- these costs can range from an additional $25 to $1000.
Harvesting and Extraction
Once the plants are grown, they need to be extracted. The cost of harvesting an acre of hemp can run from $300 t0 $2,5000 per acre. Once harvesting is complete, the plant needs to have the various components separated in a machine called a decorticator, which costs upwards of $2 million.
Next, cannabinoids, terpenes, and flavonoids need to be extracted from the plant. Popular methods include popular methods of extractions are through a Supercritical CO2 extraction or an ethanol extraction with CO2 extraction According to Cannabis Business Executive, a CO2 extraction machine can cost around $135,000 to $150,000 plus $20,000 to $35,000 for a rotary evaporator and centrifuge.
In addition to the machine costs are additional costs of the buildings, infrastructure, labor, and raw materials.
Once the plant materials are extracted from the cannabis or hemp plant, the acids from the cannabis contrantate need to be decarboxylated. The costs for a decarboxylation oven is about $5,000-$7,000. After the CBD is complete, it needs to be packaged in quality components that will not break or degrade the CBD.
Third-party Lab Testing
Once completed, before it is ready to be sold, CBD products should be tested to assure purity and concentration. While it is important to use third-party tested products, the tests are expensive, which adds to the cost of the product. After testing, the products are ready to be packaged and distributed.
Costs of doing business
In addition to the high cost of manufacturing CBD, the CBD business is an expensive business to be in. It requires a number of additional fees such as legal expenses, insurance, banking and payment processing, and compliance, which due to the nature of the business, are substantially more expensive than with non-cannabis related companies. These business expenses contribute to the company’s margins, and increase the cost of CBD products.
What to do?
Now that you know the costs associated with producing CBD, you probably see how questionable products that are sold for too-good-to-be-true prices are. That isn’t to say that spending a lot of money means the product is good- many CBD brands pass themselves off as premium or high-quality when they are not. It is important to do your research and learn what constitutes a high quality, safe, and natural CBD product. When you know that the product is good, spending the money will be a worthy investment.
By: BUSHL Jul 23, 2019