As more growers enter the cannabis cultivation business in California, businesses are getting ready for a changing market. OutCo Labs in San Diego's East County is not a typical cannabis business. It grows, manufacturers, and sells cannabis products at its own dispensaries. OutCo also wholesales cannabis products to retailers across Southern California.
OutCo grows cannabis indoors which allows for a higher quality product, but it is expensive. There is lighting, air circulation, filtering, water, pest and labor considerations. Fish believes as more growers come in, the cannabis growing process will change.
"I really believe that the days of the indoor grow except for very specific niche kind of stuff — they’re kind of numbered," he said. "I think we’re going to see a lot of price compression. To grow indoors and you’ll hear different numbers from different people, but let's call it between $500 - $600 per pound is your cost to grow. To grow in a sophisticated light deprivation, light supplementation greenhouse where you’re using the power of the sun is more like $250 per pound. I think that’s the future of the industry."
Fish said the cannabis industry is not the "cash cow" it is sometimes made out to be.
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