MJBizMag July 2022 - 64

MJBizDaily Buyers Guide Extraction
mjbizdaily.com
The discovery of intoxicating hemp-derived cannabinoids have increased interest in hemp extraction.
PLANNING A HEMP
AND CBD EXTRACTION BUSINESS
It has been four years since Congress passed the 2018 U.S. Farm Bill legalizing hemp and its
derivatives, yet hemp cultivators and product manufacturers continue to navigate roller coasterlike
regulations and fluctuating consumer demand for CBD and low-THC products.
As pointed out in the 2022 MJBiz Factbook, hemp operators are just starting to recover from
a nationwide CBD glut that crashed prices in 2019 and 2020, thanks to the surprise success of
intoxicating hemp-based extracts including delta-8 THC.
" There have been many 'pop-up' manufacturers and distributors that have inundated the market
with great prices but then disappear, " says Liz Geisleman, CEO at Rocky Mountain Reagents, an
extraction chemical and lab supply company based in Golden, Colorado. " We had one company
make a very sizable investment in a CO2
was gone. "
This risky landscape for CBD extraction entrepreneurs and product manufacturers highlights the
importance of understanding business best practices and extraction methods to increase the
chances for success in this fledgling industry.
extractor that worked for a month and then the company
4
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MJBizMag July 2022

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