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Cannabinoid distillates allow you to create exact formulas, since you can start with 85% CBD and create a tincture with 25% CBD but not have to worry about loosing the broad spectrum benefits.
CBD, or cannabidiol, is a non-intoxicating compound found in cannabis and hemp. CBD oils, gummies, and other products are continuing to grow in popularity as natural remedies to manage anxiety, stress, pain, and even serious ailments like epilepsy. CBD can be extracted from the plant to make products that come without the intoxication or the smoke inhalation: enter CBD Distillate.
Distillation is highly customizable and allows manufacturers to decide how much they want an oil to resemble the the original plant extract. So, if you’re making tinctures for example, you would want an oil with a very neutral taste. If you’re creating a vape oil that is supposed to actually taste like cannabis, you can reintroduce some of the terpenes that have been removed using a method known as mass spectrometry.
CBD distillate is a highly concentrated extract derived from hemp and cannabis plants, although the latter is not very common. CBD distillate typically has upwards of 85%-90% cannabidiol and it’s considered one of the purest and cleanest extracts available on the market, second in purity only to CBD isolate.
On the other hand, if you want exact formulations (like what is needed when producing medications) the process can be reversed. So, you would start with an oil add the distillate or isolate. When working with pharma, there is no place for non-medicinal plant matter or any other substances.
We can become ‘cannabinoid deficient’, which results in our bodies becoming destabilized and no longer functioning optimally. It’s believed that many illnesses stem from the inability to produce endocannabinoids, although more research is needed on the subject. This is where supplementing with plant-based cannabinoids (phytocannabinoids) comes into play.
CBD, or cannabidiol, is a non-psychoactive compound found in both hemp and cannabis plants. In cannabis, it’s the second most dominant cannabinoid, next to tetrahydrocannabinol (THC). In hemp plants, it’s usually the star of the show (although some strains are high in CBG as well).
What is CBD Isolate?
We have partnered with some leading suppliers of CBD isolate and distillate. Both products are, as you probably guessed, GMP and certified by the EU, with suppliers listed in the Eudra database, and available for export globally. We offer the best pricing and have the ability to accommodate extremely large orders.
When talking about CBD extracts, there are a few terms that frequently get thrown around: isolate, broad spectrum, and full spectrum. Today we’ll focus on Isolate.
The reason CBD works for such a diverse range of conditions is because of the Endocannabinoid System (ECS). The ECS is a network of receptors that can be found throughout the bodies of all mammals. We naturally create cannabinoids (endocannabinoids) which interact with these receptors to regulate different processes in our bodies and maintain homeostasis. The ECS helps manage things such as immune function, appetite, sleep wake cycles, pain response, and the list goes on.
The most overlooked factor impacting price is that demand for CBD has fallen. On May 15th, a leading merchant service provider, Elavon, stopped processing credit cards for the CBD industry. There was an immediate ripple effect, as 50% of all B2C CBD sales occur online. Product manufacturers lost their ability to process transactions, and online sales stopped. The industry is still searching for an easy, permanent payment processing solution.
The days of CBD isolate shortages and huge margins may be gone, and never coming back. I believe the bottom of the market is $3000 / kilo of CBD Isolate. This price factors the cost of biomass at $2.50 / % pt / lb, and charging a small fee for processing. This price will occur if sellers become desperate to dump material before the next crop.
In May 2019, the hemp industry experienced a pricing crash like never seen before. Over the course of 45 days, the average cost of CBD dropped 30%. There are also indicators that CBD, especially isolate, prices will continue to decrease.
How Do You as a Buyer Take Advantage of this Opportunity?
Until then, protect your business and reach out to our team to secure sales for next year’s harvest.
The price volatility of CBD is indicates that our industry is sensitive to changes in supply and demand. To recap, the gradual increase in the industry total CBD production, mixed with the lack of access to credit card processors resulted in a 30% price drop. This shows that either a decrease in demand or increase in supply can quickly move the market. This is a small precursor to harvest 2019, where total available material will double. I fear the industry has a fierce and unavoidable oversupply problem. There are two potential solutions that will produce wealth and riches. The FDA can provide guidance enabling large brands and retailers to pursue CBD. The USDA opens up Import / Export so high quality, USA grown, hemp extract can ship across the world.
Stay in touch with multiple extractors and create competing demand for your business. You know that the prices are falling, and the extractors know this as well. If you can have two or more processors bid for your business, you will get a better deal.
You can leverage a professional representative to leverage the market on your behalf. The Kush.com supply chain managers combine the buying power of many partners into a large order. This enables our team to secure the best available rate for CBD, every time.