As the cannabis retail market continues to become increasingly competitive, with no signs of slowing down, many Licensed Producers (LPs) are finding themselves looking to external partners to maximize their product fulfillment and production capacity. Toll processing is a cost-effective solution for LPs to outsource a portion of their materials to a trusted partner for processing, while still maintaining control of their product development and packaging processes.
What Is Toll Processing?
Toll processing, or tolling, is a service where a licensed extraction facility processes another LP’s cannabis for a fee. With tolling, LPs will source or cultivate their own biomass, and then send it to a trusted partner, who will then extract, refine, and formulate it to the LP’s required specifications, including THC or CBD distillate, crude oils and even cannabis terpenes.
Why Toll Processing?
Not all LPs have the facilities or technical know-how to process their cannabis into the extracts they require for their Cannabis 2.0 products. Others simply might not have the capacity to process the volumes they need. In fact, there are a number of benefits that working with a toll processing partner can have on your business.
Toll processors can offer an array of customization options that vary with each product. This allows LPs to differentiate their product from their competitors and also stay unique to their brand.
- Reduced Labour Costs
Having a team of expert engineers and qualified equipment operators can be costly for a business at small scale. When partnering with a toll processor, LPs can minimize specialized labour costs so that the business can focus their resources on other brand needs.
- Logistics Coordination
Full service processors can coordinate all the logistics from the beginning to end, by managing delivery timing and transportation.
- On-Demand Flexibility
Toll processing offers scalable production without any of the upfront capital expenditures leading to fast lead times on products, predetermined costs, and the freedom to adjust production levels where needed.
- Value out of Waste Streams
Trim and other byproducts are often viewed as waste but toll processing of this biomass can generate low cost extracts to improve margins on cannabis 2.0 products.
- Team of Experts
Experimentation is no longer required when you are working with a team that knows the ins and outs of extraction and distillation. The team of experienced professionals allows LP’s to be assured they are being provided high purity bulk extracts for whatever their retail product desires may be.
Finding The Right Partner
When selecting a service, the least expensive option may not be the wise choice and while word of mouth can be a guide, conducting your own research ensures important information that may ultimately affect your decision is appropriately considered.
When selecting the right toll processing partner, there are a number of questions that we suggest you answer first:
- Does the processor use an extraction method that meets the needs of your brand, such as supercritical CO2 extraction?
- Is the processor able to achieve the extract potencies necessary for your product offerings, while simultaneously maximizing efficiency and throughput?
- Does the processor have the equipment and capacity to maintain your required extraction volumes?
- Does the processor have a proper quality assurance process in place? A facility’s equipment and processes are only as good as the standards that govern them.
- Have you reviewed all of their quality control processes beforehand? Including the ability to trace your product from arrival through to departure.
If after answering all of the above questions you are still unsure if the processor is a good fit for your needs, we encourage you to request a tour of their facility to see for yourself. Be diligent with your research, and find a partner that can help give your brand and its products an edge.
Looking to learn more about toll processing and the benefits it has to offer your brand? Contact Motif today and talk to one of our industry experts.