The growing market for cannabis consumption offers fantastic opportunities for cultivators looking to establish themselves in the industry. With that opportunity comes the challenge of maintaining exceptional product quality while limiting production expenses and ecological harm. Many resources, like soil, lighting, fertilizer, and irrigation systems, are essential to growing quality flower, making reductions difficult.
Fortunately, experienced growers have found ways to make the cultivation process more efficient without sacrificing quality. Following their lead while adhering to the requirements of your cannabis insurance provider can make your business efficient and profitable.
Managing Supply Costs
Paying for high-quality soil and nutrients increases production costs. However, some growers reuse their soil to spare themselves the expense of replacing it every year. The recycled soil requires rigorous testing to measure the mineral composition, trace metal content, and pH, but the testing and subsequent soil amendments still cost less than purchasing new soil.
Pre-mixed nutrient formulations offer convenience and reliability to cannabis growers but are very costly. Growers can mix solutions in-house to save money or purchase nutrients in bulk. As the cannabis industry expands, growers will have more options for supply purchases, making it worthwhile to shop around.
Balancing the Environmental Costs of Growing Cannabis
The highest environmental cost of cannabis cultivation is energy consumption. The energy required to run the lighting and machinery requires heavy consumption of natural gas and electricity. Growers can lessen their environmental footprint by installing LED lighting and purchasing modern, energy-efficient equipment. While this creates additional expenses upfront, it saves money in the long run by cutting down on fuel costs.
Another environmental concern with cannabis cultivation is water consumption. Many growing operations are located in areas where water bills are not a major expense, but water conservation is still urgent. Collecting condensation from machinery allows growers to reduce their water demands and the ecological impacts of their irrigation systems.
Human Resource Costs in the Cannabis Industry
At first glance, it may seem sensible to keep a large staff on hand to perform the many tasks required for quality cannabis production. However, some growers have found that maintaining a small crew of well-trained and competent staff members costs less and increases productivity. Keeping a smaller staff means less turnover, which means less time and money to recruit and train new workers. Automation is a charged topic in the cannabis industry, as it is in many other sectors. There is much debate over whether machines can perform technical tasks as effectively as people.
Keeping production costs and environmental impacts in check does not necessarily mean lower quality in the cannabis industry. Networking with other professionals can give you valuable tips on how to keep your business strong and efficient. Talk to your cannabis insurance provider if you have questions about the safety or practicality of implementing any suggestions.
About Axis Insurance
At Axis Insurance Services, we aim to help our customers identify their exposures and protect themselves. Founded in 1999, we offer insurance programs to a wide variety of professionals and industries including attorneys, real estate, healthcare, architects, and more, and also have a wholesale division. We pride ourselves on offering flexible insurance coverage tailored specifically to each customer’s needs. To learn more about our solutions, contact us at (877) 787-5258 to speak with one of our professionals.