Your private label CBD products could suffer. Don’t let rookie hemp farmers screw up on your dime.
If you’re working with a hemp-based CBD manufacturer sourcing their raw materials from a farmer who can’t tell the difference between hemp and oregano, you’re the one paying for their mistakes.
To be fair, what struggling farmer wouldn’t hop on the hemp bandwagon? For decades farmers across the country have been scraping by. They earn minuscule margins from grains and other cheap crops. It’s no wonder many farmers with no experience growing hemp decided to make it their new income source.
Senate majority leader and federal lawmaker Mitch McConnell is known for his long history of introducing legislation to fight against the legalization of marijuana.
But hemp’s promise for a new beginning changed everything. Upon touring a pilot program in his home state of Kentucky, the Senater saw the light. McConnell could finally see how hemp is totally different than marijuana. The uses for hemp based products are exponential.
A highly educated, elite politician sees the potential in a booming hemp industry. Why would Joe Farmerton have any doubt in his own success as a provider for top private label CBD manufacturers?
Hemp-Based Private Label CBD Products isn’t for the faint of heart
The world of hemp cultivation is like a wild frontier. Bandits and snake oil salesmen are easier to find than a pint of Guinness in Ireland.
While the potential for profit remains high. The supply of viable seeds continues to shrink. Since a hemp plant’s cannabinoid profile is decided by genetics. Finding a reliable supply of seeds suited for low-THC production is key to a profitable harvest.
Farmers growing hemp for fiber and other industrial purposes don’t have to follow a strict vetting process for their plants.
Private label CBD manufacturers, on the other hand, have to be picky. Pickier than a kid who refuses to eat anything besides chocolate milk and mac n’ cheese.
In order to get their plants through to a processor, farmers must maintain only female plants.
Male plants contain little to no CBD, making them suitable for industrial purposes, but worthless when it comes to harvesting their cannabinoids.
Criminals Think They’re Getting Marijuana
The latest issue with growing hemp. Stupid thieves who think they’re grabbing fistfuls of marijuana.
And they aren’t learning from their mistakes. What started as 20 plants here and there is turning into hundreds of plants stolen every week from hemp plantations.
It’s to the point where farmers are on their porches with a shotgun like an old cartoon.
Keeping a lookout is a full-time job. Sleep-deprivation doesn’t pair well with the intensive labor required to raise hemp.
Competing Against Established Markets
Just like finding a reliable seed supplier is one of the more complex details of entering the world of hemp farming. Having someone ready to buy the crops is criticle.
Farmers raising food staple crops don’t have this problem. They can take their harvest to any grain elevator and cash out.
This isn’t the case with hemp. Because domestic hemp production is still in its infancy. Most CBD manufacturers are still sourcing internationally.
Many farmers were led to believe their hemp crops would be as good as gold. They didn’t take into account that they’d be going up against an already booming foreign hemp industry.
Much like the tulip frenzy that hit Holland centuries ago. The excitement and hype are attracting more farmers than the demand for hemp can provide.
What happens when you flood a market with cheap product? Summer of 2019, the first harvest season since the passing of the 2018 Farm Bill brought trouble.
Private label hemp manufacturers were suffering through the biggest price drops. End of last year, prices across the board had dropped by 80% for most CBD product categories.
When CBD processing giant GenCanna filed for Chapter 11 bankruptcy, a tinge of fear went up the spine of every hemp farmer in America.
If one of the most well-funded hemp processing operations with a team of seasoned executives couldn’t make it in this business, who can?
So what led to GenCanna’s downfall? Some blame the drop in hemp prices. Others blame the CFO for mishandling investor relations. And that’s not to discount the facility’s fire and construction delays on their latest building.
Sure, from an outsider’s perspective it seems like GenCanna’s bankruptcy could be seen from space.
These all sound like regular business problems, though. Lots of companies deal with buildings burning down, lackluster leaders, and changing market prices.
And they keep on keeping on. Was there something under the hood we’re missing as to why GenCanna couldn’t get their business together before claiming bankruptcy?
The Real Problem For Private Label CBD Products
GenCanna’s president has another theory on why things didn’t work out for the US-based hemp manufacturer–the FDA.
Because of the lack of formal regulations being actively enforced, the hemp industry has become one run by companies that “act now, apologize later.”
Legitimate companies doing everything they can to follow the law are sitting at the sidelines.
They’ve already spent thousands on developing all kinds of different CBD products, but are waiting to hear if their products will even be legal to sell.
Piles of unsold inventory lie unused, giving the entrepreneurs behind them anxiety about whether they’ll ever be able to unload their product before they spoil.
Meanwhile, private label hemp manufacturers are working with brands that simply don’t care.
They know there’s money to be made and don’t mind breaking a few rules. The good guys are benched while the bad guys get not much more than a warning letter, and maybe a fine.
Consumers come out as the real victims of the FDA’s negligence. Without proper regulation, we’ll continue to see mislabeled and even dangerous products branded as CBD cure-alls.
In an effort to stop brands from taking advantage of consumers, they’re holding back the companies that really care about their customers.
GenCanna was in the middle of applying for Generally Regarded as Safe (GRAS) status.
Without the deep pockets of a large CBD manufacturer behind it, GRAS certification for hemp seems like a dream rather than an attainable goal.
Why Spring Creek Labs Is Better
Newbie hemp-based CBD product manufacturers should scare newbie CBD brands and retailers.
Just like some farmers are getting hit with easily preventable mistakes, who knows what some US-based CBD manufacturers are hiding behind closed doors.
That’s why Spring Creek Labs is the only private label CBD product manufacturer that makes sense for a startup to use.
By owning all our own farms, production facility, and labs we cut the guesswork out of CBD production.
Market testing is such an important part of getting any new brand off the ground, which is why we lower the barrier to entry.
With a low minimum order of just 250 units, you can stock your shelves with a variety of CBD products.
Email us now and you could have your hands on your own private label CBD products before the end of the month!