May 2019 - 33

PRODUCTION
Matt Sauls: From a business standpoint I totally agree. From a
cultivation standpoint, environment is everything. Being able to control
your environment is paramount in cultivating anything, but especially
cannabis, so they have to make sure everything is in place to control the
environment and then build around that.
When deciding between an indoor grow and a greenhouse, what are
the major factors?
MS: There are lots of challenges with large-scale cultivation in indoor
facilities. If you're going to make it profitable, you're really going to have
to maximize your use of square footage. You have to go vertical. You
have to get energy-efficient lights. You have to maximize automation and
minimize labor. You have to do all these things, because it much more
expensive to operate the indoor environment versus a greenhouse.
WK: An indoor grow room is always going to be a high cost per pound.
Also, the upfront cost is much higher. In greenhouses, we usually see
anywhere from $35 to $50 per square foot, and that includes installation,
freight, equipment, taxes, pretty much everything. That number quickly
jumps to over $150 per square foot in an indoor grow, and that's on top of
high operating costs.
How can new growers maximize their profits?
MS: When new markets open up, the pattern we're seeing is that there's
a high cost per pound, which at the time can justify a lot of expenses
for setting up a large operation, but growers have to anticipate that the
market will become more competitive. Prices are going to drop and they're
going to have to exist on thinner margins down the road. It makes sense
to set up an operation in stages.
WK: Yes, smartly phasing in produces and expansions can definitely help
maximize profits. For instance, with our GrowSpan greenhouses we can
add greenhouse bays one at a time. You can expand as you make cash,
and that's one of the smartest ways an operation can do it.
MS: Scaling up your greenhouse as production demands it is a really
smart way to go about it. I see a lot of people investing in multimilliondollar
cultivation sites that may or may not be profitable in a few years
when the price per pound is half of what it used to be. That's the trend
we're seeing, so it makes sense to anticipate that.
WK: You can also do the same thing with automation. You can start
producing now and capture the current market rate, while it's still high,
and then add things like automatic watering, computer control and climate
irrigation. That can all be phased in over time as cash flow allows.
Where do you see a lot of growers losing profit?
MS: Something I say regularly is don't try to scale the closet grow.
Basically, don't take methods that worked in small-scale cultivation, which
may have been born out of necessity, and try to scale it as a commercial
business. It's never going to work. Growers should look toward practices
used in modern, large-scale agriculture.
WK: Another way I see a lot of waste is through misinformation and
outdated growing methods. Most new cannabis growers are not utilizing
university-level research to make decisions. Instead they're making
decisions based on what YouTube or the internet is saying. Growers
should use analytical research to drive changes in the grow. It's a more
commercial approach, and it can help to avoid costly mistakes.
What are some techniques or tools that growers often overlook, but
could help them maximize yield, quality and profits?
WK: Automatic irrigation systems are one of the least expensive and
most time-saving units that I've seen out there. For a couple hundred
dollars you can have a completely automated watering system that
delivers a precise amount. It reduces heavy watering and extreme drying,
so it can be a good way to prevent disease.
THE STRENGTH BEHIND YOUR
IPM PROGRAM
WATER SOLUBLE SYSTEMIC NEEM
BOTANICAL, INSECT, MITE, & DISEASE CONTROL
UNTREATED
DISTRIBUTED BY
TREATED WITH AZASOL®
UNTREATED
TREATED WITH ECO-1®
PARTNERS IN PLANT CARE
COME SEE
WHAT'S NEW AT
CULTIVATE '19
BOOTH #1950
May 2019

Table of Contents for the Digital Edition of May 2019
