Presentation prepared for the Santa Cruz County C4 Committee Cannabis Supply Chain Presentation prepared for the Santa Cruz County C4 Committee

Physiology of a Cannabis Plant

Physiology

OVERVIEW Breeding Cultivating Testing Manufacturing Distribution Seeds/Clones Flowers Products Retail Trim

Step 1: The Nursery Breeding Why do we need breeders? Why do most cultivators use Clones? What are “Mothers”?

Seeds Approximately half of all seeds planted are males and not discovered until later in the growth cycle To select for preferred characteristics (aroma, height, yield, etc.) hundreds to thousands of plants are needed Male Plants are used for breeding Female plants are used for flowers

Clones

Clones Most farmers use clones instead of seeds to: Clones are made from “Mothers” Mothers are plants that are kept in a vegetative state from which clones are cut. It is the “mother” for all of the plants that will eventually be harvested. Losing a mother plant can sometimes be the end of a genetic line. Most farmers use clones instead of seeds to: 1. ensure the gender is female 2. to maintain consistent quality, potency, and yield 3. quicker harvest time

Clones

Clones

OVERVIEW Cultivating Breeding Testing Manufacturing Distribution Seeds/Clones Flowers Products Retail Trim

Step 2: Growing Breeding Cultivating Seeds Clones Outdoor Greenhouse Indoor

Outdoor FEB/MAR: Germinate Seeds MAR/APRIL: Plant Seedlings

Outdoor

Outdoor FEB/MAR: MAR/APRIL: APRIL/MAY: MAY/JUNE: JUNE/JULY: Germinate Seeds MAR/APRIL: Plant Seedlings APRIL/MAY: Tend seedlings Prep soil MAY/JUNE: Sexing Culling Planting JUNE/JULY: Veg Stage Pruning

Outdoor

Outdoor FEB/MAR: MAR/APRIL: SEPT: APRIL/MAY: AUG: MAY/JUNE: JUNE/JULY: Germinate Seeds MAR/APRIL: Plant Seedlings APRIL/MAY: Tend seedlings Prep soil MAY/JUNE: Sexing Culling Planting JUNE/JULY: Veg Stage Pruning AUG: Bloom stage Intersex SEPT: Encourage growth & Watch for Maturity

Outdoor

Outdoor

(cut, dry, cure, trim, store) Outdoor FEB/MAR: Germinate Seeds MAR/APRIL: Plant Seedlings APRIL/MAY: Tend seedlings Prep soil MAY/JUNE: Sexing Culling Planting JUNE/JULY: Veg Stage Pruning AUG: Bloom stage Intersex SEPT: Encourage growth & Watch for Maturity OCT: Harvest (cut, dry, cure, trim, store)

Outdoor

Greenhouse Can be operated year-round Use less water than outdoor farms (can also recycle water from dehumidifiers) Can be locked and secured from access to youth, thieves, and other "elephants” Can be an expensive initial investment Have a smaller physical and environmental "footprint” than outdoor and indoor cultivation operations

Greenhouse

Greenhouse

Greenhouse

Greenhouse

Greenhouse

Indoor Fully enclosed structure using only artificial lighting

Indoor

Indoor Fully enclosed structure using only artificial lighting Size ranging from 1 sq. ft. to 100,000 sq. ft. and up

Indoor

Indoor Fully enclosed structure using only artificial lighting Size ranging from 1 sq. ft. to 100,000 sq. ft. and up Multiple uses: breeding, propagation, vegetative growth, and flowering

Indoor

Indoor Fully enclosed structure using only artificial lighting Size ranging from 1 sq. ft. to 100,000 sq. ft. and up Multiple uses: breeding, propagation, vegetative growth, and flowering Can be used in conjunction with outdoor and greenhouse cultivation methods

Indoor

Indoor Fully enclosed structure using only artificial lighting Size ranging from 1 sq. ft. to 100,000 sq. ft. and up Multiple uses: breeding, propagation, vegetative growth, and flowering Can be used in conjunction with outdoor and greenhouse cultivation methods Necessary elements for growth provided and managed artificially

Indoor

Indoor

Indoor Fully enclosed structure using only artificial lighting Size ranging from 1 sq. ft. to 100,000 sq. ft. and up Multiple uses: breeding, propagation, vegetative growth, and flowering Can be used in conjunction with outdoor and greenhouse cultivation methods Necessary elements for growth provided and managed artificially Control of environment for a consistently high quality product

OVERVIEW Testing Breeding Cultivating Manufacturing Distribution Seeds/Clones Flowers Products Retail Trim

Step 3: Safe Medicine Testing

Testing Potency (Cannabinoid Profile) Pesticides Bacteria/Mold Residual Solvents Terpenes

Testing

Roles in the Cannabis Market Breeding Seeds Clones Cultivating Indoor Greenhouse Outdoor Manufacturing

OVERVIEW Breeding Cultivating Testing Distribution Manufacturing Seeds/Clones Flowers Products Retail Trim

Step 4: Making Products Manufacturing Types of Extraction Concentrates Innovative Products

Types of Extraction Dry Sieve

Types of Extraction Ice Water

Types of Extraction Oil

Types of Extraction Alcohol

Types of Extraction CO2

Types of Extraction Butane and Other Gases

Concentrates "Concentrated cannabis means the separated resin, whether crude or purified, obtained from marijuana." Health & Safety Code 11006.5. Prepares cannabis for infused products or smoking/vaping without the bulk of the plant matter Allows for a more consistent dose for patients concerned about purity and potency

Concentrates

Concentrates Kief CO2 Oil (Soft Gel Caps) Butane Hash Oil (BHO) Alcohol Tincture Butter Ice Wax

Innovative Products

Roles in the Cannabis Market Breeders Seeds Clones Cultivators Indoor Greenhouse Outdoor Manufacturers Flowers and/or Trim Methods of Extraction Types of Concentrates Innovative Products Retailers Dispensaries Delivery Services

OVERVIEW Distribution Breeding Cultivating Testing Manufacturing Seeds/Clones Flowers Products Retail Trim

Step 5: Medicine to the Patients Distribution Transporting to Retailers Direct to Patients Collectives Black Market Retailers Dispensaries Delivery Services

Dispensaries

Third Party Certification Best Practices Education Training Programs Certified Classes Third Party Certification Legitimacy Responsible Players Testing Protect Patients QualityAssurance

Financial Stats for the Cannabis Industry http://www.marijuanjaindex.com

National Before the first states legalized recreational marijuana, CNBC reported that estimates of the total US underground market ranged anywhere from $10 - 100 billion. Cannabis industry analytics firm New Frontier projects the legal market to exceed $15 billion in revenue by 2020, up from $4.7 billion in 2015. With a compounded annual growth rate of 27%, the cannabis industry is one of the fastest growing industries in the economy, growing faster than the internet media and biotechnology sectors – two of the best-performing areas of the economy. http://www.mjic.com/why-cannabis/

California New Frontier estimates that the legal cannabis market in California alone will represent a nearly $7 billion opportunity by 2020, making it the single largest state market in the country. Investors who view cannabis as simply an intoxicant are missing the bigger picture. Yes, legal marijuana can and will compete with alcohol for the consumer discretionary dollar, but the cannabis plant is also a medicinal and industrial powerhouse. http://www.mjic.com/why-cannabis/

California There is no doubt that legal cannabis is a frontier market, but it is one with more fundamental data to study than any that have come before. Rather than breaking new ground, the cannabis industry is moving from the black market into the light. http://www.mjic.com/why-cannabis/

Santa Cruz From Nov 2014 through June 2015, SC County has collected $1.391 million in tax revenue from measure K. In the month of July $190,780 was collected. SC County originally estimated $1 mil/year to be collected At this rate, the total will be close to $3mil/year from approx. only 21 businesses

Conclusion Responsible participants in SC County exist in all roles of the Cannabis Industry Education + Legitimization + Regulation = Mitigation of Damages and Risk/Loss Management Lack of the above has led to environmental degradation and the black market Communities can benefit from the cannabis revenue SC has a strong industry infrastructure that can preserve and strengthen the existing cannabis culture