Katelyn Baker
Well-Known Member
Some marijuana processors in Central Oregon have stopped supplying retailers due to delays in mandatory product testing for potency and contaminants, despite changes to state regulations announced earlier this month.
High costs and a shortage of certified labs for pesticide testing contribute to the delays, said business owners and consultants to the Oregon cannabis industry. Processors use two methods to remove the active ingredients from marijuana as extracts or concentrates for use alone or in edibles, including gel candies or beverages. Without timely test results, their products, worth hundreds of thousands of dollars, they say, remain in storage.
"It's a massive struggle," said David LaFlamme, CEO of NW Kind LLC, a Bend-based grower and processor of marijuana. "We're out of pocket while we're receiving zero revenue, and trying to keep employees working."
The Oregon Health Authority announced changes Dec. 2 to regulations on mandatory product testing designed to reduce the associated costs and make the testing process more efficient. But marijuana growers and processors said those changes will have little effect. They say they need more state-certified testing labs, particularly those that test for pesticides.
"There are a number of issues," said Erin Kennedy, a Portland cannabis consultant and founder of Aperture Consulting Group. "Testing had gone up in terms of costs, not necessarily one individual test but that so many tests are required. There are still issues with the number of labs that can test for certain things; only a few are accredited for pesticides."
The Oregon Health Authority, through the Oregon Environmental Laboratory Accreditation Program continues to accredit testing labs, just not at the pace marijuana businesses expect.
André Ourso, Oregon Medical Marijuana Program manager for the Oregon Health Authority, on Friday said the Health Authority this week will revise its Dec. 2 temporary rules to increase for testing purposes the size of a process lot of marijuana edibles from 1,000 units to 35,000 units. Also, the test sample size for processed marijuana will be smaller, provided the manufacturing process produces a consistent potency that is proven by a once-a-year control study.
As part of temporary rules announced Dec. 2, the authority reduced from three to one the number of process validation tests a processor is required to make in a year. That change means processors must prove just once a year that they produce a consistently homogeneous product, cannabis oil, for example, rather prove that three times a year. Product samples must still be tested at a certified lab.
Ourso said the two changes result from input by processors since Dec. 2. "We realized there are two areas we need to correct," he said. "Getting things done on a tight time frame, there is some risk."
He said that since Oct. 1 accrediting marijuana testing labs has not been a priority. Instead, those labs are considered in the order their applications are received. The accrediting program certifies labs in other areas, such as environmental health and safety.
The Health Authority requires marijuana growers and processors to test their products for potency, pesticides, water content and microbiological contaminants like mold and mildew. Only labs certified by the Health Authority and licensed by the Oregon Liquor Control Commission may perform the required tests, a measure meant to ensure not only contaminant-free products but consistent standards for potency. But too few labs were available Oct. 1 to accommodate the demand by marijuana businesses for product testing.
In response, the Health Authority lowered the amount of product required for pesticide testing. This month, the authority made further changes. In addition to lowering the process validation requirement, it also did away with tests for alcohol-based solvents, such as ethanol, and allowed growers to combine some batches of marijuana for testing.
LaFlamme said he spent about $15,000 to validate his extraction process under the original regulation. Since Oct. 1, however, he's been unable to sell any extracts because his lab test results have not come back. He estimated he's lost about $250,000 in revenue as a result.
"Part of the problem is that the accreditation of the labs was a huge bottleneck," he said. "Pesticides was the hard one."
The Medical Marijuana Program lists 19 certified marijuana testing labs in Oregon, with four certified for pesticide testing, three in Portland and one in Eugene.
Growers and processors describe a monthlong wait for test results, during which they cannot not move their product onto retailers' shelves. Revenue dried up. Some marijuana business owners in Bend said they laid off employees or reduced working hours to save costs.
Lindsey Pate, in business with her husband, Christopher Pate, as Glass House Grown, a marijuana grower and processor in Deschutes County, said she's a "big advocate" of testing rules, which provide transparency that protects business owners and consumers. But the testing system needs improvement, she said.
"It's definitely burdensome, but we acknowledge why those rules are being passed," Pate said. "If we could see a little bit more changes that give a little more time for labs to catch up, that would be good."
Jack Robson, a partner in High Desert Pure, a Bend-based maker of cannabis oil that comes in a vaporizer pen, said his business is on the verge of expansion but stymied by the testing bottleneck. Robson said the rule changes announced Dec. 2 have done little to alleviate the testing delays or reduce his costs. Robson, like LaFlamme, said he has moved none of his product to retailers in several weeks.
"Oil is a homogeneous product," he said Thursday. "Our deviation from potency from one (sample) to the next is very minimal, and we've been lumped in with other processors of edibles in the new requirements."
Robson, who said his business still produces relatively small product quantities, must provide a relatively large portion of his batches for multiple tests, which come at a high cost. Individual tests for pesticides, potency and solvents can cost about $300, Kennedy said. A batch may require more than one test, she said, and a half-pound of cannabis oil could cost the processor about $1,200.
Failure to provide timely test results to cannabis growers and processors provides incentives to sell those products on the black market. Small businesses are threatened if they cannot generate revenue, said Kennedy. Many marijuana businesspeople are emerging from a gray area and still regard the government with skepticism, she said. These businesses have hundred of thousands or millions of dollars at stake, she and others said.
"It's important for (marijuana business owners) to know there are efforts to alleviate those challenges. Everybody knows it's impossible to please everybody all of the time," said Kennedy, a former cannabis business inspector for the Health Authority. "The government must understand that people are afraid of losing their living and their livelihood. They're also afraid of the government; this is an industry that has never been regulated by the state. There should be a little more hand-holding on both sides."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Marijuana Rules Still Rankle
Author: Joseph Ditzler
Contact: 541-382-1811
Photo Credit: KRQE
Website: The Bulletin
High costs and a shortage of certified labs for pesticide testing contribute to the delays, said business owners and consultants to the Oregon cannabis industry. Processors use two methods to remove the active ingredients from marijuana as extracts or concentrates for use alone or in edibles, including gel candies or beverages. Without timely test results, their products, worth hundreds of thousands of dollars, they say, remain in storage.
"It's a massive struggle," said David LaFlamme, CEO of NW Kind LLC, a Bend-based grower and processor of marijuana. "We're out of pocket while we're receiving zero revenue, and trying to keep employees working."
The Oregon Health Authority announced changes Dec. 2 to regulations on mandatory product testing designed to reduce the associated costs and make the testing process more efficient. But marijuana growers and processors said those changes will have little effect. They say they need more state-certified testing labs, particularly those that test for pesticides.
"There are a number of issues," said Erin Kennedy, a Portland cannabis consultant and founder of Aperture Consulting Group. "Testing had gone up in terms of costs, not necessarily one individual test but that so many tests are required. There are still issues with the number of labs that can test for certain things; only a few are accredited for pesticides."
The Oregon Health Authority, through the Oregon Environmental Laboratory Accreditation Program continues to accredit testing labs, just not at the pace marijuana businesses expect.
André Ourso, Oregon Medical Marijuana Program manager for the Oregon Health Authority, on Friday said the Health Authority this week will revise its Dec. 2 temporary rules to increase for testing purposes the size of a process lot of marijuana edibles from 1,000 units to 35,000 units. Also, the test sample size for processed marijuana will be smaller, provided the manufacturing process produces a consistent potency that is proven by a once-a-year control study.
As part of temporary rules announced Dec. 2, the authority reduced from three to one the number of process validation tests a processor is required to make in a year. That change means processors must prove just once a year that they produce a consistently homogeneous product, cannabis oil, for example, rather prove that three times a year. Product samples must still be tested at a certified lab.
Ourso said the two changes result from input by processors since Dec. 2. "We realized there are two areas we need to correct," he said. "Getting things done on a tight time frame, there is some risk."
He said that since Oct. 1 accrediting marijuana testing labs has not been a priority. Instead, those labs are considered in the order their applications are received. The accrediting program certifies labs in other areas, such as environmental health and safety.
The Health Authority requires marijuana growers and processors to test their products for potency, pesticides, water content and microbiological contaminants like mold and mildew. Only labs certified by the Health Authority and licensed by the Oregon Liquor Control Commission may perform the required tests, a measure meant to ensure not only contaminant-free products but consistent standards for potency. But too few labs were available Oct. 1 to accommodate the demand by marijuana businesses for product testing.
In response, the Health Authority lowered the amount of product required for pesticide testing. This month, the authority made further changes. In addition to lowering the process validation requirement, it also did away with tests for alcohol-based solvents, such as ethanol, and allowed growers to combine some batches of marijuana for testing.
LaFlamme said he spent about $15,000 to validate his extraction process under the original regulation. Since Oct. 1, however, he's been unable to sell any extracts because his lab test results have not come back. He estimated he's lost about $250,000 in revenue as a result.
"Part of the problem is that the accreditation of the labs was a huge bottleneck," he said. "Pesticides was the hard one."
The Medical Marijuana Program lists 19 certified marijuana testing labs in Oregon, with four certified for pesticide testing, three in Portland and one in Eugene.
Growers and processors describe a monthlong wait for test results, during which they cannot not move their product onto retailers' shelves. Revenue dried up. Some marijuana business owners in Bend said they laid off employees or reduced working hours to save costs.
Lindsey Pate, in business with her husband, Christopher Pate, as Glass House Grown, a marijuana grower and processor in Deschutes County, said she's a "big advocate" of testing rules, which provide transparency that protects business owners and consumers. But the testing system needs improvement, she said.
"It's definitely burdensome, but we acknowledge why those rules are being passed," Pate said. "If we could see a little bit more changes that give a little more time for labs to catch up, that would be good."
Jack Robson, a partner in High Desert Pure, a Bend-based maker of cannabis oil that comes in a vaporizer pen, said his business is on the verge of expansion but stymied by the testing bottleneck. Robson said the rule changes announced Dec. 2 have done little to alleviate the testing delays or reduce his costs. Robson, like LaFlamme, said he has moved none of his product to retailers in several weeks.
"Oil is a homogeneous product," he said Thursday. "Our deviation from potency from one (sample) to the next is very minimal, and we've been lumped in with other processors of edibles in the new requirements."
Robson, who said his business still produces relatively small product quantities, must provide a relatively large portion of his batches for multiple tests, which come at a high cost. Individual tests for pesticides, potency and solvents can cost about $300, Kennedy said. A batch may require more than one test, she said, and a half-pound of cannabis oil could cost the processor about $1,200.
Failure to provide timely test results to cannabis growers and processors provides incentives to sell those products on the black market. Small businesses are threatened if they cannot generate revenue, said Kennedy. Many marijuana businesspeople are emerging from a gray area and still regard the government with skepticism, she said. These businesses have hundred of thousands or millions of dollars at stake, she and others said.
"It's important for (marijuana business owners) to know there are efforts to alleviate those challenges. Everybody knows it's impossible to please everybody all of the time," said Kennedy, a former cannabis business inspector for the Health Authority. "The government must understand that people are afraid of losing their living and their livelihood. They're also afraid of the government; this is an industry that has never been regulated by the state. There should be a little more hand-holding on both sides."
News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Marijuana Rules Still Rankle
Author: Joseph Ditzler
Contact: 541-382-1811
Photo Credit: KRQE
Website: The Bulletin
