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

2. Physiology of a Cannabis Plant

3. Physiology

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

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

6. 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

7. Clones

8. 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

9. Clones

10. Clones

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

12. Step 2: Growing Breeding Cultivating Seeds Clones Outdoor Greenhouse
Indoor

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

14. Outdoor

15. 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

16. Outdoor

17. 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

18. Outdoor

19. Outdoor

20. (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)

21. Outdoor

22. 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

23. Greenhouse

24. Greenhouse

25. Greenhouse

26. Greenhouse

27. Greenhouse

28. Indoor
Fully enclosed structure using only artificial lighting

29. Indoor

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

31. Indoor

32. 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

33. Indoor

34. 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

35. Indoor

36. 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

37. Indoor

38. Indoor

39. 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

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

41. Step 3: Safe Medicine
Testing

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

43. Testing

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

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

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

47. Types of Extraction
Dry Sieve

48. Types of Extraction
Ice Water

49. Types of Extraction
Oil

50. Types of Extraction
Alcohol

51. Types of Extraction
CO2

52. Types of Extraction
Butane and Other Gases

53. Concentrates
"Concentrated cannabis means the separated resin, whether crude or purified, obtained from marijuana." Health & Safety Code
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

54. Concentrates

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

56. Innovative Products

57. 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

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

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

60. Dispensaries

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

62. Financial Stats for the Cannabis Industry

63. National
Before the first states legalized recreational marijuana, CNBC reported that estimates of the total US underground market ranged anywhere from $ 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.

64. 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.

65. 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.

66. 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

67. 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