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WHY ARE CBD PRODUCTS EXPENSIVE?

Do you think CBD products are too expensive? What price are you willing to pay for CBD? Does the quality of the product reflect its price?

The market for CBD products is overwhelmed with products at various price points. The law of supply and demand for a given product determines the price, but it is also worth paying attention to other factors. In this article, we will discuss the factors that influence the price – from the plantation to the moment the oil reaches you. 

What factors influence the price?

Based on the US cannabis market, we have compiled a list of aspects to consider when talking about the price of CBD products.

 

of cannabis cultivation and their processing associated with obtaining permits. This is not only a time-consuming process, but also an expensive one. And it’s not just about administrative costs, such as application fees or obtaining a license to grow and manufacture products, as is the case in the US. The costs associated with preparing a field, production site or warehouse to meet the required food processing standards are also high. What amounts are we talking about? It depends on the country of the manufacturer.

  • CROP COSTS 

Factors suchfactors as soil type, drainage and water retention are the most importantin obtaining a good harvest. When it comes to temperature, cannabis plants prefer a temperature that is close to that of the human body. The climate must not be too dry, not too humid. 

Thanks to modern technology, the cultivation of hemp can be more environmentally friendly and sustainable, but at the same time expensive. Outdoor cultivation requires proper soil preparation (drainage) and the preparation of an action plan that protects the crops from attacks by pests and weeds. Many producers are moving away from the use of pesticides and herbicides in favor of organic, biological and even mechanical methods of fighting weeds and pests, which are unfortunately more expensive than the products available on the market. Weather conditions should also be taken into account because they affect the quantity and quality of crops, and thus translate into production costs. Indoor cultivation is also not the cheapest, because you need to invest in equipment needed to carry it out, such aslighting LED. The complexity of growing indoors comes with costs that affect the price of CBD products.

  • LABOR COSTS

According to the 2016 report, hemp harvest covers over 30% of the total production costs. This is due to the fact that soil preparation, planting, irrigation, pruning and harvesting are just some of the various, very labor-intensive tasks. In this case, no agricultural machinery is used, but human hands.

Often, on a local farm, neighbors and friends get involved in several stages of cultivation as part of neighborly help, but there are also producers-growers who are forced to hire people to harvest, whether it’s permanent or seasonal workers. Labor and transport costs are also included in the price of the raw material that producers pay when they do not grow the hemp themselves.

  • EXTRACTION COSTS

There are various methods of extracting CBD oil, including extraction with alcohol, supercritical carbon dioxide or cold pressing. The choice of the extraction process adds value to production, but it also comes with costs. For CO2 extraction you need specialized equipment, the operation of which requires skills and specialist knowledge. These two facts make carbon dioxide extraction the most expensive method on the market used by manufacturers. In this case, the price goes hand in hand with the quality of the produced extract and production efficiency, not to mention the safety of people involved in production, users and the environment. Producers who decide to extract with ethanol may and do not have to invest in expensive equipment, but good-quality, safe alcohol, which is used in large amounts, because it is not as efficient a solvent as CO2, costs its money.

  • TESTS AND ANALYZES The

distribution of health related products strongly involves third party safety and cleanliness testing, which is typically performed by laboratories following standard regulatory procedures for product quality approval. And while such tests are not required for hemp supplements, many manufacturers choose to do so to ensure the best quality products. The related costs depend on the scope of the research carried out. Analysis to confirm the presence of two cannabinoids and their acidic forms will be cheaper than analyzing eight or ten cannabinoids. 

  • SHIPPING COSTS

In the case of manufacturers, this is the mail-order sale of orders placed in online stores. And when shopping online, we unfortunately have our requirements: the parcel is to be delivered as soon as possible, no matter where it is sent from, the packaging is to protect the content from damage, it would also be nice to receive some promotional materials, e.g. a discount coupon or a free sample, short waiting time to the consultant’s response. And these expectations are met by most manufacturers, which unfortunately involves additional costs, which are included in the price of the product.

What are the prices like in Poland?

The Polish market is filled with products from various price ranges. Prices range from several dozen to several hundred zlotys depending on the concentration of cannabinoids in the product. 

The cultivation of hemp and production is not the cheapest and requires a number of permits. Each stage of production carries costs, and the suspiciously low price compared to similar products from other brands should give you food for thought: what is behind such a low price? Does the manufacturer cut costs by saving on ingredients, their quality or analysis? 

So what manufacturer should you choose?

Should it be a native producer that deals with the production of CBD oil from seeding to product packaging and shipping? Or maybe a foreign producer that buys high-quality, certified hemp for its production? Or maybe a producer who buys CBD oils from another manufacturer and sells them under his own brand, the so-called white label? Who to trust? The decision is yours, but don’t base your choice on price alone.

 

 

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