Opinion: Technology Will No Longer Play A Supporting Role In Cannabis

By Jay Evans, CEO of Keirton.

The economic impacts of COVID-19 have been far-reaching, leaving few sectors of the economy unscathed. This includes cannabis as some of the industry’s largest players have been forced to make difficult decisions amidst these circumstances - from corporate restructuring, to storefront and facility closures. Leaders in the cannabis industry are now doubling down on the long-term sustainability and survival of the industry, raising many questions around the best path forward.

Although the initial spike seen in US cannabis sales at the onset of the coronavirus outbreak has tapered off slightly - this, according to recent data by Headset - the cannabis industry has continually demonstrated its resilience in the face of global instability. No stranger to dramatic shifts in statewide regulation and operation, or responding to calls for innovation and increased security, the industry has evolved to include safeguards for stability, including built-in defenses against the devastation the pandemic is now unleashing on the global markets, economy, and workforce. How will cannabis, one of the western world’s youngest legal industries, maintain its foothold?

Technology and cannabis cultivation

Cannabis’ relationship with technology is a complicated one. Historically, technology has had a negative stigma amongst people in the industry with many attributing the loss of cannabis cultivation and production craftsmanship to automation, and the resulting job loss. And yet, over the last four years, we’ve seen a shift amongst the industry’s leaders leading to an increase in the demand for technology by cannabis producers across the world.

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To date, roughly 80 percent of the industry’s leading legal cannabis producers - across over 30 countries - use custom cannabis equipment by Keirton for their cannabis cultivation and production. We’ve seen, firsthand, how technology has and continues to transform the industry; production volume and output have increased to meet the growing market demand, with producers consistently generating higher quality, safer products that ultimately have a positive impact on their bottom lines.

At all levels of production, whether commercial or craft, technology has improved efficiency - in the actual cultivation and processing of dry flower, but also in the use of human resources in higher-value positions of the supply chain. Particularly now, in a world where physical distancing has become crucial to protecting our health, producers that remain hesitant about adopting technology into their operations may find themselves left behind.

Withstanding the impact of a global health crisis

Of the 33 states that allow some legal form of sale and consumption of cannabis, over 20 have deemed it an essential service during the coronavirus outbreak. Cannabis retailers have had to temporarily close their storefronts - eliminating in-person visits to dispensaries - which in turn have forced them to offer new services like curbside pick-up and home delivery in order to get their products into the hands of the people that need it most.

As a result, cannabis sales have remained fairly stable - an outcome that can be credited to the continued demand for cannabis by regular and heavy consumers, as well the industry’s ability to consistently meet that demand through the cultivation of high-quality flower and the production of diverse product ranges.

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Due to federal and state government mandates discouraging employees from going into work, many cannabis facilities are operating short-staffed, with anywhere from a 5-20 percent reduction in human labor. Producers are taking these measures seriously - not wanting to compromise the health and safety of their people, product, and consumers - and are increasingly turning to technology as a solution to sustain, if not augment, their operations. Where processing 100 lbs of dry flower might require the labor of 100 pairs of hands, technology can support cannabis producers in accomplishing the same amount of work with only two pairs of hands.

In the same vein, there’s been a heightened focus on ensuring robust procedures are in place in cannabis facilities to eliminate any opportunity for product contamination. Sanitation is already extremely important in cannabis production, regardless of the current health crisis - employees wear masks, hair nets, and protective clothing, and isopropanol (an ingredient in some rubbing alcohols) is typically accessible throughout the facility. But technology is taking these safety measures one step further. By leveraging machinery to process dry flower - detecting powdery mildew, instances of mold, or other human-introduced contaminants - cannabis producers can cut down on potential contaminants by reducing the frequency of interaction between humans and the plant, thereby ensuring a more consistent and safer product.

Forecasting growth in America’s cannabis industry, now, and beyond COVID-19

Today, cannabis finds itself at many intersections - be it entertainment, health and wellness, food, and even apparel. With this working to the industry’s advantage, one thing is for sure: the market will continue to grow, even after the dust settles on the coronavirus and global recession. Just as the burgeoning food industry continues to innovate products by using unique drying techniques or experimenting with new flavors and textures, cannabis brands, producers, and retailers will follow suit, leveraging technology as an invaluable vehicle to bringing more diversified product offerings to market.

Over the next five to ten years, we will likely see more instances of cannabis legalization - particularly in the US, where federal legalization is on the horizon. Across the world, over 30 countries have already legalized cannabis for medical purposes, making it very possible that these regions will also begin to consider legalizing cannabis for recreational use in the near future.

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The need for technology in cannabis is becoming more apparent, and its value is being amplified even more so because of the current conditions we’re living in. With concerns surrounding economic viability and stability, many cannabis producers are looking to integrate cannabis technology into their businesses to ensure they’re able to keep the lights on and survive the impact of the global health crisis.

Noticias sobre cannabis en Español en El Planteo.

\Lead image by Ilona Szentivanyi. Copyright: Benzinga.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.