There are times when I’m sitting with my buddies at a bar when we start rambling about these possible what ifs. I’m sure you’ve been there. I figured I’d recap my recent thoughts and share them with you. When your grow operation reaches the right size, it makes sense to look at buying products like coco coir, because I make coco coir, direct from the manufacturer. Why pay full retail when you can go direct to a manufacturer with the right quantities ordered? I mean if you know you need the stuff why not just plan strategically and save a bunch of money. The average dispensary in Denver can save over $40k a year by going direct to the manufacturer when it comes to coco coir of course.
I tell ya, as demand is increasing daily with new states, European countries, Canada, and now Mexico coming online with cannabis friendly laws, we are seeing organic growth with our customers north of 400%. What’s the result? Coco coir shortages occurring on a regular basis as we saw in Oregon the spring of 2017. If you use coco coir, it’s a smart business move to get your year worth’s supply locked down with a manufacturer. Otherwise, you may face shortages.
Check this out: Over 90% of the world supply of coco coir comes from India and Sri Lanka. Most companies do not have offices there however. Raw material is sourced from India or Sri Lanka, then sent to Europe for processing. It’s then packaged and sent to a warehouse in the destination country. The coco coir might go to hydroponic store and then get delivered to your grow facility.
This sounds nice and dandy, but the risk of contamination is higher when you have so many hands involved in the distribution chain.
That’s why it’s important to go direct to the manufacturer. Being compliant is quickly one if not the most important part about running a business involved in the cannabis space. Going straight to the manufacturer allows you to vet out their compliance directly. (Ahem, come check me out.)