Why Does A Bottle Of Quality CBD Oil Seem To Have Such A High Price?

CBD
oil Seem To Have Such A High Price?

Farm to CBD

It’s important to learn that CBD oil production is full of difficulties from start to finish. Lets explore the reasons why CBD oil, and especially pure, high-quality extracts, such as “Full Spectrum Extract” prices are as high as they are. Following the CBD oil process from the cultivator (farmer) to the consumer reveals a significant time and energy is invested in making the CBD oil. All this can get expensive very quickly. High quality CBD Oil is always going to seem expensive. Hemp used for CBD oil is difficult to grow and produce and extremely difficult to get people to try because of the current negative image attached to hemp.Because the potential for fraud and illegal production of THC strains exist, the government makes itself present, ensuring everyone complies with the latest laws. Regulations are detailed and expensive, adding costs to CBD oil.

Farm

Cultivating

Cultivators (Farmers) are always attempting to grow the right CBD-rich strain of hemp. This is difficult, partially due to hemp laws. Some states require licenses and/or certification programs for hemp seed distributors and cultivators. Hemp is a very hardy plant but it needs a level of care that’s difficult to provide in some locations and require temperature controlled environments, along with artificial lights and extensive feeding systems. Cultivating hemp has additional reporting and testing costs due to the nature of what’s being grown. These costs can exceed a $1000. Some government agencies charge a per acre fee up to $5.00. Cultivators have costs for land, seeds, labor, equipment, etc. When hemp plants reach maturity it can cost as much a $ 600 per acre to harvest them.

Full-Spectrum CBD

Extracting

The extraction process to isolate the CBD and other cannabinoids from the hemp plant requires a significant amount of setup, as well as expensive equipment. Hemp plants need to have their various components separated with a machine called a decorticator. This machine can cost upwards of $2 million, CO2 extraction machine can cost $150,000 and $35,000 for a rotary evaporator and centrifuge. The hemp needs to be hit with a burst of CO2 treated with intense heat and pressure, creating what is known as supercritical CO2. Supercritical CO2 extraction is becoming the standard to remove the cannabinoids, and other compounds within the plant.

Once the cannabinoids, terpenes, and other plant materials are extracted from the hemp plant, the concentrate contains acids that need to be decarboxylated. The cost for a decarboxylation equipment can cost up to $7,000. What’s left after decarboxylatioon is “Full Spectrum Cannabinoid Oil” containing all the hemp plants cannabinoids, including CBD, terpenes, and the plants chlorophyll, lipids and waxes. This is the best option to achieve the “entourage effect,” that results when the many components within the hemp plant interact with the human body to produce a stronger influence than any one of those components alone.

Full spectrum cannabinoid oil is then suspended in inert oil for the purpose of easy transport and application. Cost increases at this step due to the type inert oil used. Coconut or hemp oil are often used, both to provide taste and texture. There are health benefits to using these type of fatty oils, such as coconut oil’s ability to encourage CBD intake in the body through Intestinal Lymphatic Drug Delivery, which is a unique quality of fatty oils. This allows the CBD Oil to become ‘stuck’ in the intestines and absorbed more easily into bloodstream.

Since the legal requirements for CBD oil can be complicated, CBD companies usually have someone in-house to ensure the process is following all regulations. They also make sure all the products meet the 0.3 percent THC limits and are inline with the products labeling.

laboratory

Quality

The finished CBD oil now needs to be tested for purity and concentration. CBD oil is tested extensively, both in Third-Party Laboratories and by governmental food and drug spot checks. Testing is very expensive, because the CBD oil is tested for Cannabinoids content, mold and fungus screening, residual solvents, terpenes, moisture content, microbial analyses, THC content and more. CBD oil should always be lab tested for purity, potency, and safety. The best companies pride themselves on their products quality.

Bottling

Bottled And Packaged

The CBD oil is then bottled, packaged, and prepared for shipment to their distributors.

Distribution

One of the major cost for CBD oil companies are their distribution channels used to position their products in the marketplace. Operating costs for CBD oil distributors can be much higher then other businesses because their considered a financial high-risk.

Other Cost

CBD oil is a premium and refined product, and this very fact enables suppliers to increase the “value proposition” of the CBD products. We are all attracted to beautiful packaging, and assign more value to products that are designed in a certain way. We are subconsciously influenced by the way products are presented to us, and we tend to make decisions based on emotions elicited by a product’s visual identity. This is called branding and adds cost to the CBD oil products.

Liability insurance for hemp companies can cost up to $600 per month! This same insurance policy for a non-hemp company would only be about $600 for a year.

Bank loans for CBD oil businesses are hard to find and can result in the opening of costly offshore accounts.

Attorneys will help insure companies are in compliance with the ever-changing CBD oil laws. A good attorney can help insure that a business owners’ rights are not being violated.

Legal hemp production is heavily taxed due to government oversight. CBD oil is heavily taxed regardless of its usage.

Accreditation ensure the CBD oils desired or intended result has been achieved for the consumer, but it’s also to try and encourage people to actually pick up and try CBD oil. Hemp’s negative public image is due to its association with marijuana and people skeptical of CBD oil. By obtaining a accreditation’s CBD producers hope to educate a wider audience.

As the demand for CBD oil increases so can its price. The increase in demand is largely due to CBD Oils health benefits. Studies on CBD oil has cited it aiding in a number of medical conditions and has worked for numerous people over the ages. Whether it has to do with insomnia, anxiety, inflammation, or general pain, CBD products have been effective in helping many people with their conditions.

Pretty Good Deal

If a bottle of CBD oil seems expensive. Then focus on this; it could really work. CBD has been demonstrated, time and time again, to potentially offer many medicinal benefits.

CBD oil seems expensive, but could be a pretty good deal.

farm-bill

2018 Farm Bill

CBD and industrial hemp were officially legalized this past December under the 2018 Farm Bill. With this legalization, we’re expecting sweeping reform to take place throughout the hemp industry. Many companies are eagerly waiting to get in the CBD business and costs across the board should decrease. Pressure is being put on legislators to provide federal regulations on CBD products that create quality standards industry-wide and could help lower costs.

 

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