- Greenhouse production continues to be the no. 1 tool for reducing initial operational costs.
- The report analyzed five years of data to identify key trends in the cannabis cultivation market.
- The average cost to grow a pound of dried flower was $396 for warehouse cultivation sites, only $233 for greenhouse sites.
According to a recent five-year study of the cannabis industry, greenhouse production is a leading choice for cannabis cultivation companies (https://ibn.fm/yULMF). The report, published by “Cannabis Business Times,” reaffirms the business strategy of Hero Technologies (OTC: HENC), a cannabis company that is focused on growing into a multistate, vertically integrated entity with strong cultivation and dispensary assets.
“Greenhouse production continues to be the no. 1 tool for reducing your initial and operational costs for a 52-week production facility, as illustrated in this year’s report showing a decrease in indoor and increase in greenhouse cultivation sites,” states the “2020 State of the Industry” report. “Nearly a third of greenhouse cultivators also report average production costs of less than $100 per pound of dried flower, compared to 11% of indoor cultivators.”
The report carefully analyzed five years of data to identify key trends in the cannabis cultivation market. Key findings from the report include the consistent move from warehouse, or inside, cultivation to greenhouse, or outdoor, cultivation; a trend toward bigger operations and more facilities; and the average cost comparison to grow a pound of dried flower between greenhouse and warehouse sites.
“The year-over-year percentage changeshowing where people grow cannabis —warehouse/indoors, greenhouse or outdoors — was negligible when comparing 2019 to 2020,” the report noted. “When looking further back in time, the number of people growing cannabis in warehouses has decreased by 20 percentage points since the first ‘State of the Cannabis Cultivation Industry’ study in 2016, when a vast majority (80%) of participants grew indoors compared with 60% in this year’s study. Meanwhile, the number of participants growing in greenhouses and outdoors has increased steadily over the years, with some variations.”
The report went on to observe that “most participants operate single cannabis growing operations (59%), but examining five years of data reveals trends toward larger facilities and more grow sites. In 2016, 66% grew in a single facility/location. Between 2016 and 2020, the number of participants indicating they grow in two or more facilities/grow sites increased from 32% to 41%.
“The number of cultivators growing in five or more sites jumped by 5 percentage points compared with the first year of the study, moving from 6% to 11%,” the report continued. “In addition, the number of cultivators who have 80,000 sq. ft. or more of production space has increased by 12 percentage points comparing the 2016 to 2020 studies, and now nearly a fifth of study participants (19%) indicate they grow in facilities that size or larger.”
The trend toward greenhouse cultivation is understandable when looking at the bottom line. The report noted that, in 2020, the average cost to grow a pound of dried flower was $396 for warehouse or indoor cultivation sites, and more than $150 less — or $233 — to grow the same amount in a greenhouse.
These numbers are welcome news for Hero Technologies, which has a majority stake in BlackBox Systems and Technologies LLC, an aeroponic cannabis cultivation system that provides optimal conditions in greenhouses to enhance photosynthesis and produce large flowering plants. The system addresses some of today’s most relevant challenges with cannabis cultivation by featuring robust odor-control systems, proprietary zero-waste growing systems, and the lowest carbon footprint of any industry standards.
Hero Technologies Inc. is a cannabis company working toward a vertically integrated business model. The company’s strategic business plan includes cannabis genetic engineering, space for both medical and recreational cannabis cultivation, production licenses, distribution licenses, consumer packaging, and retail and dispensary operations that make the company a multistate operator.
For more information, visit the company’s website at www.HeroTechnologiesInc.com.
NOTE TO INVESTORS: The latest news and updates relating to HENC are available in the company’s newsroom at https://ibn.fm/HENC
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