Colorado Rule Change Opens the Door for Wholesale Marijuana Growers

GGS MMJ Team meeting with a Master Grower using GGS integrated growing systems

October 1st, saw the end of Colorado’s so-called "70/30 Rule" which required that dispensaries grow 70 percent of what they sold, and only purchase up to 30% from commercial marijuana growers.

Stores are now free to buy as much marijuana as they need from commercial growers, opening the doors for large scale agricultural production of cannabis.  Good for greenhouse growers who understand large scale agricultural efficiencies and production practices. Good for consumers as commercial wholesale growing will inevitable increase demand and lower prices.

According to The Colorado Springs Gazette, the state is issuing 46 more pot shop licenses in addition to the 200 that already exist. Colorado is also licensing 37 more growing facilities and 13 new product manufacturers who make marijuana-infused products.

The decision of state legislators to enforce vertical integration on early entrants in the marijuana industry was designed to slow growth at the initial stages.  Few organizations can maintain maximum performance and rapid growth when required to be everything to everybody.

The 9 month period was established to control the market in the early stages of development, but with this restriction being lifted we will now see more companies specializing in what they do best.  This means dispensaries can decide to grow specialty strains that may be popular to their particular cliental, while at the same time expanding their sales offering to include other strains commercially available from wholesale growers.  Or they may decide to focus on providing a better retail experience and leave the growing to several contract growers.

Wholesale growers will be able to gain production efficiencies by using commercial growing systems, and quality and consistency will improve.  Retailers will demand lab data to ensure they are getting quality cannabis, so wholesale marijuana growers who succeed will have to have the systems and quality control checks in place to ensure consistency in their product.

This is a new playing field for cannabis growers.  More competition means you want to do it right the first time.  Whether you are growing marijuana in a greenhouse or growing in a warehouse, make sure your facility, marijuana handling systems, irrigation, fertigation, HVAC, LED lights or HPS lights, and environmental controls, are all designed as an integrated system.