Marijuana Business Factbook 2019

254 Marijuana Business Factbook 2019 Chapter 6 | Cannabis Testing Labs and Ancillary Firms © Copyright 2020, Marijuana Business Daily , a division of Anne Holland Ventures Inc. You may NOT copy this Factbook, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call (720) 213-5992, ext. 1. CHART 6.03: Testing Lab Overview: Typical Number Of Clients Served, Testing Time Turnaround & Number Of Cannabis Samples Tested Each Month Source: 2019 Marijuana Business Factbook © 2019 Marijuana Business Daily, a division of Anne Holland Ventures Inc. All rights reserved. Testing Lab Overview: Typical Number Of Clients Served, Testing Time Turnaround & Number Of Cannabis Samples Tested Each Month Median Number Of Clients In 2018 Testing Time Turnaround Number Of Cannabis Samples Tested Each Month 150 3 Days 1,655 The median number of clients served by testing labs in 2018 was 150, speaking to the level of concentration of testing labs in some states, such as California and Colorado. It also speaks to the level of business these firms must conduct in order to earn revenues that will keep them afloat financially, with equipment and staffing costs ― and addressing shifting regulations ― increasing startup and operating costs. The median testing time turnaround in 2018 was three days. Cultivators, infused product manufacturers and retailers seek brisk turnaround to get their product onto shelves as quickly as possible. That time is affected by how many clients the lab serves, as well as the complexity of the testing and state requirements on the amount of product required for testing. For example, a shift in Oregon’s regulations in 2016 led to testing turnaround times in excess of 30 days as labs struggled to implement new testing requirements. The state responded by rolling back the rules. In Washington state ― where testing for pesticides, heavy metals and toxins is not required but is randomly checked by regulators, who post the names of failed products online ― retailers voluntarily started testing products but contend this practice has slowed the entire supply chain. The median number of samples tested each month per lab in 2018 was 1,655. The number of samples tested by a lab each month is impacted by the level of state requirements and the number of labs available to test in that area. Dual-market states, where testing is required for both medical and recreational cannabis, will supply a greater volume of product to labs for testing than what will be sent to labs in small medical markets.