Has cannabis finally become a true commodity like wheat, corn, and soy? Industry analysts have been predicting it for years, considering the exploding size and scope of the global market. But, with several key components missing, cannabis and cannabinoid products are still waiting to reach traditional commodity status, including free movement over borders and access to financial banking services here in the US.
In our latest conversation with Rob McEvoy, Vice President of Customer Success at Agrify, we discuss what’s missing from the cannabis-commodity equation. McEvoy speaks about the disparate rules and regulations currently governing the cannabis industry and makes a few suggestions on how to move the needle forward.
Has cannabis evolved into a true commodity like more traditional crops?
Cannabis is currently transcending from elicit, niche products in an underground market to a more consumer packaged goods look and feel in a commercialized industry. We are seeing celebrity involvement, influences from food, fashion, as well as in-person events, transforming cannabis into a true commodity that is bought and sold in mainstream stores and retail marketplaces.
What 3 elements are missing that would confirm its classification as a commodity?
Three elements that the cannabis industry is missing in order to establish cannabis products as commodities are the ability to have interstate transport between businesses as well as import and export operations for international trade.
State programs are currently disparate in their rules and regulations, so consolidation into a domestic body of laws regarding cannabis would further promote and establish cannabis as a commodity.
Lastly, financial banking services and access to government benefits are integral for companies looking to grow and develop new brands and new marketplaces.
What are the current standards of quality that apply to cannabis?
The current standards of quality that currently apply to cannabis involve its appearance, its aroma, its flavor, and user experience. From there, we then look at cannabinoid content as well as terp profiles. But perhaps the most important driver of quality is the operator’s ability to consistently reproduce their products at scale.
What next? What regulatory changes are in the works that are moving the needle forward?
We’re starting to see regulatory changes happen with packaging and labeling requirements as it relates to how to brand and message products into our marketplaces. This will ultimately start to correlate with federal legalization and agencies like the FDA, who will become involved in operational quality assurance as well as the specific claims and statements made on packages to the consumers at the point of sale.
Agrify: One Step Closer to Cannabis Achieving True Commodity Status
Consistency in yield and phytochemical profile will be one of the main ways the cannabis sector achieves true commodity status.
Agrify integrated software and hardware solution gives cultivators the tools needed to produce a high-quality flower, with a consistent profile with every single turn. This revolutionary vertical farming solution promises no more surprises, and the means to maintain genetic integrity through using Agrify’s fine-grained controls, optimized environments, and detailed reporting.