by Canna America | October 6, 2023 | Cannabis
The cannabis supply chain is composed of five central stages:
cultivation
manufacturing
testing
distribution
retail
Cultivation
The first stage in the cannabis supply chain is cultivation. Cultivation involves growing and harvesting the cannabis plant. Specifically, the cultivation process involves six broad stages including: germination, seeding, vegetative, pre-flowering, flowering and harvesting. Once the plant is cut and dried, the final step in the cultivation process is trimming the cannabis nugs for a more attractive look. The vessels in which these steps take place occur anywhere from large indoor farms to small outdoor grows. Overall, cultivation has become more appealing as security in obtaining a license allows for long-term planning (Greenfield, Zwielich 2021).
Manufacturing
The second stage is manufacturing cannabis for retail sale. This stage includes extraction, which involves the producer creating a number of by-products from the plant (Greenfield, Zwielich 2021). Manufacturing also involves cannabis infusion with other products that will eventually hit retail shops such as gummies, brownies, and other infused products. However, before any cannabis products can be sent out for distribution and hit the retail market, they must undergo tests at state-accredited labs, which screen the products both for potency and for the presence of unwanted pesticides and other contaminants (Greenfield, Zwielich, 2021).
Testing
The third stage in this supply chain is lab testing. This essential stage is the final step towards allowing any cannabis product to be distributed and sold in the retail market. Although every state has its own regulations around testing, the shared purpose is to ensure that products are safe to consume (The Cannabis Supply Chain Explained, 2023). These products must be tested in an accredited lab. The purpose of these lab tests are to ultimately ensure that the products meet state compliance and check for contaminants such as pesticides, mold and mildew in order to meet the requirements to hit the retail market (The Cannabis Supply Chain Explained, 2023). Testing occurs in different ways. For example, growers will have an entire batch tested and assigned a unique ID tag. Another form of testing involves cannabis products that have been altered from their original form such as prerolls, which, in this case, must be lab tested in their “final” form. These results will then be linked to that specific batch in the state’s seed to sale software (The Cannabis Supply Chain Explained, 2023).
Distribution
The fourth stage of the supply chain involves our realm which is distribution. Perhaps the most complex stage of the supply chain, distribution handles many intricate elements of the industry including METRC, packaging and labeling products, distributing/delivering completed skus to retails all while maintaining compliance and keeping track of various forms of products from multiple brands in a federally legal environment. All vehicles dropping off the compliant skus to other distribution centers or retail stores must also be compliant and regulated by the U.S. Department of Transportation. Again, distribution covers a variety of elements when it comes to the cannabis supply chain. Distributions handle providing completed products to lab testers as well as tracking inventory and materials for a variety of brands and ultimately possess a great responsibility to multiple brands as their product and materials remain in the distributor's hands for a substantial amount of time.
Retail
The last stage of the supply chain involves the retailers, such as dispensaries, delivery services, and the sale of the products. The lab tested compliant cannabis products are only able to be purchased from licensed dispensaries and delivery services (The Cannabis Supply Chain Explained, 2023). Compliance labels, known as COA’s, must be visible on these products where consumers can easily read information about the product they are purchasing such as THC and cannabinoid levels.
Sources:
Distru. (2023, August 3). The Cannabis Supply Chain explained. https://www.distru.com/blog/cannabis-supply-chain
Greenfield , M., & Zwielich, M. (2023, January 30). Time to understand the cannabis supply chain. Berdon. https://berdon.com/time-to-understand-the-cannabis-supply-chain/
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