“Secrets to Maximizing Success in the Cannabis Industry” with Ryan Douglas 

Welcome to another episode of WeedBudz Radio!  Today we have the pleasure of  speaking to returning guest; Ryan Douglas, Author of “Seed to Success”.  Ryan is here today to introduce his new book “Secrets to Maximizing Success in the Cannabis Industry”.  Join me in learning about propagation and other factors that affect cultivation and production in the cannabis industry.  

Ryan Douglas – Author & Cannabis Cultivation Expert
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Host: Ry Russell
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Transcription

Transcription from the episode below: This is a new Feature for us, please forgive any mistakes as we dial in our subtitles and transcriptions.

Welcome to another episode of Weed Buzz Radio.

I’m your host, Ry

And today, I’m really

excited because you might see a familiar face,

a guest we’ve had on before.

Ryan Douglas was on to talk

about his book From Seed to success.

And I’m guessing it was a success because we’re

here to talk about his next book, Secrets to

Maximizing Profits in the Cannabis Industry: Contemporary and

Pragmatic Tips for Improving Your Cultivation Business.

And that is something that, as a retailer, I

know I’m very curious about, because if the cultivators

can become m ore efficient and more pragmatic then our

prices go down and if our prices go down,

then you, the consumer, will hopefully be able to

pay a better price at the dispensary.

So we’re going to hit Ryan with some hard questions today,

but before we do that, I want to just ask you,

Ryan, for those that haven’t checked out, From Seed to success yet,

can you hit us with a quick kind of summary, if

you will, of what you got into in that book before

we talk about kind of the next step, if you will?

Yeah, of course.

And thanks for having me on again, Ry.

It’s a pleasure to be here. Awesome.

We appreciate it. Yeah.

So, about a year and a half

ago, I published From Seed to Success.

And essentially it’s a manual

for launching licensed cultivation startups.

And so that’s geared towards anybody from

any industry that’s interested in participating in

the cannabis industry through cultivation.

And so it’s essentially a manual, kind of a

step by step guide on how you go through

the most important parts of launching a cultivation business.

And so, having kind of covered the

basis of startups, what I wanted to

do was publish something on guaranteeing profitability.

How can companies really thrive and survive

now that they’ve launched their business?

And we’re kind of in an industry where there’s

plenty of challenges, you’ve got supply chain challenges, you’ve

got, in some places, increasing competition, increasing supply, and

the future is pretty much unknown.

So the question is, now that I have

a cultivation business, how can I guarantee that

it’s profitable for the near future?

And so what I wanted to do was

kind of create a more direct, more succinct

way of getting some information to readers.

Instead of writing a 285 page book,

this ebook is more like 30 pages.

And so I’ve just chosen a handful of topics that

seem to come up repeatedly when I speak to groups,

when I speak to cultivation business owners about the challenges

and concerns they have on a day to day basis.

So that’s why I chose to publish this new ebook.

I wouldn’t call it Spark Notes because there’s

so much value in there, but the way

that you describe it, it’s very succinct.

And for somebody like me who gets overwhelmed with big words

and lots of pages, it made a lot of sense.

And there was a lot of principles in

there that somebody who is not skilled in

cultivation like myself was able to see.

If there’s enough detail in there, you can

kind of see how one thing impacts another.

So I wanted to mention it is just

a perfect way to kind of get into

the weeds of things without being overwhelmed.

Yeah, and that’s the idea really.

Like I mentioned, there’s three or four points

that I cover in the book and they

come up repeatedly when I speak with clients.

So no point in trying to fluff

up a book to make it bigger.

Let’s just get right to the point.

And that was the goal.

I appreciate that.

And we talked a little bit prior to

the show and earlier that you kind of

helped push me when you launched From Seed to Success.

I was working on a book about my experience with the

Saco Drive in movie theater and it was something that was

kind of, I guess perking in my mind for a while.

But I was like, man, there’s all these amazing

authors in the cannabis space and I’m not going

to be a good cannabis author unless I practice.

And I really don’t have a lot of

expertise other than podcasting and studying the experts.

So I need to practice.

Got to get that muscle going.

And so I wrote a book called Relic

to Icon about saving the drive in.

But I’ll tell you it was a workout as we discussed,

like every 5, 000 words was like okay, well this is it.

And sometimes I felt like I was writing for

the sake of writing and I didn’t like that.

I like business books that are to the point.

And so it was kind of a hard balance between

what I’m being told it should be in length versus

what I think is value to the consumer.

And so this is just a great kind of add

on to From Seed to Success of kind of taking those

fundamentals of great, you’re here or you need to get

here and this is how you do it.

And now that you’re here, let’s talk about

how you dial some of that stuff in.

And that kind of leads me to my next question

because I love innovation and I love innovation specifically in

this space I’ve seen just where soil to, hydroponics to

some of the kind of I don’t know what they’re

called the aeroponics that I’ve seen. Yeah.

So there’s so many different things.

And so I’m curious just in the last year

or two, what some of the technology and innovation

that you’re finding interesting in the cultivation space?

Yeah, so what we want to look at is I

mean, I’m a big proponent for technological innovation and automation,

but when we’re talking about maintaining profitability, we don’t want

to automate just to say that we did.

The reason we do it is

to really increase our bottom line.

So we’re either producing more or we’re

increasing the quality of what we produce,

or we’re producing it for less.

And so when we look at new technology or new

automation, we want to make sure that it hits one

of those three items, because otherwise it might not be

an appropriate expenditure for some of these cultivation businesses.

And so that’s why in my new book, there’s

one chapter that covers new technology, and the goal

is really to present this technology that can help

growers reduce their cost of production.

And so, just briefly, I can mention a couple.

The first, even though it’s not new

technology, it’s becoming more and more popular

with cannabis growers, and for good reason.

And that’s tissue culture propagation.

So I can’t tell you how many times

I’ve walked through a cultivation facility that was

state of the art, but right away, they

had insect or disease problems on their crops.

And if you’re starting fresh, you’re starting new.

Really, in any industry, you shouldn’t

have problems for a while.

But there’s nothing worse than dropping ten or

$12 Million on a cultivation facility, staffing the

thing, and you start running it.

But you acquire essentially dirty genetics.

And even if the person has the best intentions

of providing you with really high quality genetics, unless

these are propagated inside of a lab and the

process of propagation is sterile, they can’t guarantee you

that what you’re receiving are completely clean starter plants.

And so what happens is essentially every

insect and disease infestation any grower has

ever encountered, nine times out of ten

comes from infected cuttings or infected plants.

And so

cannabis growers have always had to deal with insects.

But since more and more states and

countries are legalizing cannabis, you have more

greenhouse production, you have more outdoor production.

Not only do you have the traditional insects

and disease we need to battle with, you

have new diseases and insects that are jumping

from traditional crops to cannabis and hemp.

And so,

especially for greenhouse growers and indoor growers, outdoor growers,

a lot of that is up to mother nature.

We really don’t have much control at

all, but indoors and greenhouse we do.

And so what you have is more and

more growers turning to these tissue culture companies,

and what they’re doing is outsourcing propagation.

So for anyone listening, propagation is

essentially cloning or taking cuttings.

So traditionally, companies keep stock

plants from other plants.

Every so often, they take cuttings, they

root them, and now they have a

genetically identical plant to the mother plant.

So you can imagine if you took 100 cuttings,

now you can fill a grow room with a

hundred similar plants to that mother plant.

And that’s how we that’s how we

establish kind of a constant harvest schedule.

The risk is multiple.

One is that the longer a plant stays in production,

the more likely it is that it gets something.

And if we’re propagating plants that are

infected, inevitably this pathogen will show up

in production in the flowering space.

So you risk contaminating the crop, but

you also risk contaminating the entire facility.

But also, not every grow team

is excellent at rooting cuttings.

So whether you’re taking ten cuttings or

10,000 cuttings, generally we try to shoot

for 80% or more should root right.

So some just won’t root.

Some are going to die off, some will dry out.

So you determine what you need and

you take more cuttings than you need.

So if you have 20% die

back, you still hit your numbers.

But not every grower, not every cultivation

team is good at taking cuttings.

And the problem is in these production facilities

where you have a very tight production schedule,

if you are short, you basically have to

go into production with half empty rooms.

Or if we wait and take more cuttings

and wait until they root, now you’re looking

at production bottlenecks, which is just as bad.

So the reason people are going more and more

towards tissue culture and the reason more tissue culture

companies are starting to cater towards cannabis is one

these growers can outsource propagation entirely.

They don’t need to hold onto stock plants.

They don’t have to worry about propagating and taking

cuttings, and they can dedicate that space to flower

production, which is really where the money is that

when we talk about cannabis growing.

But probably the biggest reason is that these companies

will deliver hundreds or thousands of plantlets guaranteed disease

free to your doorstep on a set schedule.

So it takes some planning at the beginning of

the year, but, you know, every Monday at 10:00

in the morning, you can expect a FedEx delivery

or a truck to pull up to your facility.

And now you have rooted plantlets

that you immediately put into production.

And stuff happens during the course of a crop cycle,

but at least, you know, you’re starting 100% clean.

And that’s going to become more and more critical

as growers face newer diseases and newer insect infestations

that we don’t even have to worry about today.

So tissue culture, I think, is one of

the not necessarily a new advancement, but it’s

new for cannabis growers, at least.

And I’m sure the systems to which you preserve that is

only going to get better and improve over time as well.

You mean how these companies preserve their

genetics, how they hold on to them? Yes.

And in terms of, like you were saying, 80% in

terms of rooting on your own and such like that.

So I’m sure they must have systems in play, right, where you

can kind of get closer to maybe a 90 or 93%.

Exactly.

So even inside of a lab, everything isn’t perfect.

So naturally they’re going to duplicate more plants than

you need, so they can guarantee that they’re going

to deliver the numbers that you need.

But it’s also a long process if there’s one.

Well, it’s not really disadvantaged, but, I mean, taking

a cutting and rooting, it at home would take

about two weeks in a tissue culture lab.

The process can take 90 days, but that’s not a

big deal as long as you’re scheduling production accordingly.

But sorry, you had mentioned something about preservation,

which is what I thought you were getting

at, but I think I was wrong.

But this is really interesting regardless, please,

is that growers typically want to hold

on to a lot of different genetics.

Even if they’re only growing a few and selling

a few, they’ve got stuff that’s special to them,

stuff they want to breed within the future,

stuff that might be special to other people.

And so they end up holding onto

these plants that aren’t in production.

And inevitably what happens is they get

attacked by something, a disease or insect.

And so another benefit of tissue culture companies is they actually

can store genetics for you and they do it in a

form where it takes up hardly any space at all. Right?

They’re essentially freezing needs or getting them

as close to freezing as possible, and

they just halt the life cycle.

And it’s almost like a genetic library.

But in six months, if you decide that in nine

months you want to bring the bubble kush back into

production, you tell this tissue culture company they’ll take it

out of storage, they’ll start producing it and growing it.

And again, it’s guaranteed disease free.

You don’t have the hassle of it and all

you’re doing is giving these folks a date.

I need 1,000 bubble kush cuttings on September 1.

And if you’ve done that far enough

ahead of time and you’re working with

a competent propagator, it’s a done deal.

Can you transport that right now legally?

Is that different than like,

transporting clones across state lines?

So that’s an excellent point.

Some companies will not ship out of state.

So there are some large, very competent propagators that I

would love to refer to clients I work with.

But these folks will not ship outside of state.

Others will.

And they do that under the guise of hemp.

So they have a hemp license.

And if you think about it, it’s completely legal.

When you think about what is the definition of hemp,

it’s that less than 0.3% THC of dried weight.

And so a plantlet, even if this is like a 35%

THC flower, once it’s harvested, a plantlet, once it’s dried is

going to have almost a negligible amount of THC, if any.

So in theory it’s hemp.

If it’s tested in a lab, it’s hemp.

So these companies that do ship out of

state are doing it under a hemp license.

But like everything else

in cannabis, everything fluctuates.

It’s kind of a gray market.

So fortunately in more market yeah, if you

think Michigan, Colorado, California, within those states, there’s

propagators in Maine, they’re slowly coming online.

So we’ve got a few options

in Maine and Massachusetts as well.

And that’s going to happen over the

next few years across the US.

As states more and more states legalize, as those

markets mature, you’re going to see more tissue culture

companies pop up that service cannabis only because these

other companies that have been propagating agricultural crops for

decades, a lot of them won’t touch cannabis.

And you can understand why. Absolutely.

So one question I had was in terms of

the standard cloning process, is there a concern for

dilution of that kind of starter plant or that

mother plant, whatever that is referred to as?

Can that be kind of trimmed off of for eternity?

Is there an expiration to that?

I guess, again, as a retailer, I’m just so kind

of fascinated and ignorant, I suppose, to how that works.

So there’s opinions on both sides of the aisle.

And honestly, I’m not even sure where I

land on that because you have growers that

say you’ve got growers that have held onto

the same genetic material for years, sometimes decades.

And some people will say that there’s

something that’s called genetic drift, that the

more you propagate the plant, the more

drifts away from the original characteristics.

And you’ve got other folks that are taking

cuttings from the same plant for years, and

they say it’s the same, if not better.

So in my experience, I think the biggest risk

is that what you can have occasionally are mutations.

It’s not genetic drift, it’s just a sport

or a mutation, and that could create something

that’s genetically different from the mother plant.

But in my experience, and granted, I haven’t been growing

for 40 years, but I’ve been in cannabis for approaching

ten years, and so I haven’t seen it myself.

But the second I say that, there’ll be

ten other growers that will contest what I

say and say that absolutely, there’s a difference.

So, hot topic, but I can’t give

you a solid answer either way.

And before we wrap up, I probably

have another hot question for you.

But I’m curious because on the retail

side, I know systems like Metric, all

of our sales transactions goes into Metric.

We finalize those transfers from our

vendors, the cultivators, the processors that

comes to us, we receive them.

For us, Metrics a minimal hassle.

So can you help myself and some of

the other retailers maybe have a little empathy

on the cultivation side on what really goes

into the kind of track and trace program?

Because I hear it a lot, but when it’s

four buttons for us, it’s hard to empathize. Yeah.

So it can get tricky because as growers, we

need to track plant material from the get go,

even from the initial cutting of the stock plant.

And if there’s any problems or if any plants,

for whatever reason don’t make it, we need to

be very clear about removing those from inventory and

being specific about why those were removed from inventory.

So on the growing side, the better technology you

have, the easier your life is, which I guess

we could say about a lot of things.

But I’ve worked in facilities where we were using barcodes

and traditional barcode scanners, and those labels would get wet

after a couple of weeks with soil and irrigation, and

then it would be hard to read.

And sometimes standing inside these big

facilities, there’s so much equipment, the

WiFi signal isn’t that great.

So then the scanner isn’t reading, and you’re running

around the grow room trying to get a signal,

trying to read a barcode that isn’t clear in

the first place, and it’s a real headache.

But with RFID tags, life can be a lot easier.

Now, the infrastructure is a little bit more expensive,

but what it allows you to do essentially, is

instead of a barcode, it’s like a mini computer

chip inside of a tag on each plant.

And so you could literally walk into a grow

room with this handheld RFID scanner, do a scan

of the room, and within seconds, you’ve inventored literally

hundreds of plants if you’re within range.

Now, a step up from that

would actually be mounted stationary readers

throughout the greenhouse or production facility.

So you’re no longer scanning.

What happens is automatically, once these

plants move into or out of

a grow room, they’re automatically recorded.

Their movement is recorded.

Some facilities take it a step higher than that

and connect the RFID tag readers to their cameras.

So you could call up a certain idea of

a plant, and you could either visually or on

the computer, literally see it’s moving throughout the production

facility for the entire crop cycle.

And the goal here is one, to minimize labor.

So you’re not running around trying to get signal to

read bar codes, but you’re also complying with the state.

And that you know, where everything is at any moment.

And should you have an unannounced

audit, you can answer these folks’ questions.

You can tell what you have, where it

was, who moved it, all of that.

Do I want to know how much a system like that costs?

I don’t even know how much it cost.

No, I don’t have that number off the top of my head.

But I mean, this is technology in other

industries, so it’s not necessarily prohibitively expensive.

Perhaps given the size of the production

facility, it might be more of an

appropriate recommendation for others than maybe craft

growers that might not be so critical.

That makes sense.

So, Ryan, my last hot button question for

you, and this was a debate all morning,

so there’s a lot riding on this question.

So the question was, in regards to trimming, I

don’t want to work this with any bias.

So I’m trying to think of how the fight went down

and think of the most unbiased way to ask this.

In regards to trimming, is there a preference?

I guess it’s two parts.

Is there a preference to trimming when the

flower is cured or when the flower is fresh?

And if there is a preference, is there a

preference that is cost preferred to the cultivator versus

is there a preference on the consumer side?

So is there one way to do

it where the consumer is happier?

Is one way better because

the cultivator thinks it’s cheaper?

Or is there just a flat?

This is the best way to do it.

All the pressure is on you.

So in terms of quality, I think the best cannabis

flower is produced when you cut the plant and you

hang it dry and then you trim it by hand.

Or you mentioned curing, some people cut the

plant, they dry it, they cure it, and

then they do the final term by hand.

But regardless of which combination, in my experience and in

my opinion, because I’ve done it several ways, we dry

the plant first and then we trim it by hand.

Best quality is that way.

Now, not every cannabis production facility can afford that

because here’s the number we want to work with

one employee trims about a pound of dried cannabis

flower in an eight hour shift.

If you have a small outfit, that means you

and your buddies and maybe your mom for a

couple of days and you take care of it.

If you’re running a big facility, you need to either hire

the entire town or we need to automate the process.

So that doesn’t mean that if we can’t afford to

do it by hand, we’re just going to grow crap.

My recommendation is that we still dry the plant

first, and then we use an automated trim machine

that is built for handling dried cannabis flour.

Is there a difference between dry and cured?

Yeah, of course.

It’s essentially cured is a

more elongated period of drying.

What do we consider dry?

Oftentimes that’s determined by a lab.

It’s determined by the moisture

content inside of a flower.

And so that range is roughly nine to 13% moisture.

And so once your plant dries down to the point where it’s

9% to 13% moisture, you can package it and sell it.

If you smoke the flower, it

will burn easily in that stage.

Now, curing we could do that for a

few more weeks or a few more months.

And so it’s essentially you’re drawing it out a little

bit more, but it has more to do with the

change of the chemistry of the plant that happens.

Are you running for governor?

No, I don’t think I’d want that job.

That seems like a very diplomatic answer.

And if I was set it’s dried, it’s not

necessarily fresh, but it’s not necessarily cured.

Kind of in the middle. Right.

Think about curing almost as degradation,

but in a good way.

The flower degrades into slightly different chemical

structure, but it’s to our benefit.

It improves the flavor, the aroma.

Sometimes the color changes as well.

But you really reach a point where the

process should stop because it’s like anything.

If you hold on to it too long, it’s going to go bad.

So you really wouldn’t want to

cure anything longer than six months.

And as a grower, I don’t know if you had

some amazing flower, how you could just sit there and

look at it for six months without consuming it.

Yeah, that’s very true.

That would be a challenge.

Well, I will see if that answer suffices the debate

here with the team, but I greatly appreciate it, Ryan.

It is an incredible pleasure.

And now that your home base is not too far from

me, we’re going to have to grab lunch soon.

I can’t believe that the last time we talked was,

I think, right when the pandemic was really a thing.

That sounds right. Yeah.

So that’s just amazing to

kind of follow everybody’s journey.

So thank you so much for joining us today.

Oh, it’s my pleasure. Anytime. Awesome.

And thank you all for tuning in

with another episode of Weed Buzz radio.

We’ll catch you in the next show.