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California, known for its ideal climate and rich cannabis history, is regarded as one of the best places to grow weed. The state has also led U.S. cannabis reform, from the first legalization ballot initiative in 1972 to becoming the first state to legalize medical marijuana in 1996. A decade later, in 2016, it legalized recreational use. Since then, California, home to the world's largest cannabis market, has faced significant challenges.
Small pot farms in regions like the Emerald Triangle have struggled to survive due to oversupply and falling prices, writes SF Gate. Issues like inappropriate labeling, lab shopping, and a pesticide scandal have also plagued the industry. While legal cannabis sales decline, cartel operations thrive in national parks.
To explore these challenges, we spoke to Josh Wurzer, chief compliance officer and co-founder of SC Labs, one of the first to raise concerns about pesticide testing. "From the beginning, our goal has been to be the most science-focused testing laboratory in the cannabis industry," Wurzer told Benzinga.
"We are committed to promoting safe cannabis consumption by ensuring the quality and safety of cannabis cultivation and product manufacturing. Our passion for the plant drives us to support research into its chemical composition, exploring how these compounds influence the flavor, aroma, and unique effects of different strains."
Pesticides, Inaccurate Labeling And Lab Shopping
In 2023, there was a cannabis recall after an investigation found dangerous pesticides in popular weed products and a lawsuit against cannabis lab shopping. According to Wurzer, who is also a board member of multiple cannabis industry organizations, including the U.S. Pharmacopeial Convention (USP), lab shopping has become a significant issue within the testing industry.
"This problem primarily stems from the fact that the THC concentration in cannabis and cannabis concentrates has become a key factor in determining the wholesale price of these products. This creates a strong incentive for growers and manufacturers to seek out laboratories that report the highest THC concentrations, regardless of the accuracy of the data," he said.
He added that cannabis is vulnerable to pests like spider mites and fungal pathogens like powdery mildew. With no approved pesticides and strict testing requirements, managing these threats is challenging and expensive. Some producers bypass detection by using lenient labs.
While regulators are in charge of overseeing the quality of lab testing, growers and producers are those financially impacted by unfavorable results, Wurzer adds. Without the enforcement of penalties for these actions, "unethical behavior is incentivized."
"I certainly don’t envy our regulators," he said. "Many of them are working hard to do the best they can within the constraints of the current rules and restrictions. It’s no small task to try and organize an industry that has been so fragmented, especially when so many people are struggling financially, and there are numerous competing interests at play."
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Cannabis Will Likely Always Be Affected By HLVd
In 2019, a hop-latent viroid (HLVd) was identified as an infectious pathogen devastating cannabis farms in California by infiltrating plants and ruining entire crops just before they're ready for harvest. According to a 2021 estimate, it affected 90% of California cannabis crops.
Wurzer explained that cannabis will likely always be affected by HLVd, the same way that potato farmers are continuously plagued with the Mosai Virus. However, the cannabis industry has developed a support system that enables growers to mitigate HLVd’s effects. This has enabled the breeding of resistant strains, improving hygiene practices in nurseries and conducting regular monitoring through testing.
Fixing Some Of The Challenges
In view of HLVd, dangerous pesticides and inaccurate labeling, the question is: have California consumers lost trust in the state’s legal cannabis products? This could be one of the reasons why the illicit market is still thriving; consumers are turning to cheaper products. Wurzer notes that the price difference between regulated and black markets is significant.
Another challenge comes from the hemp market and the confusion about what is and is not legal. To save the industry, regulators need to address the competition from intoxicating cannabinoids in the hemp market, which is currently mostly unregulated and flooded with dangerous synthetic chemicals, he explains.
Wurzer suggests reducing taxes and regulatory burdens on growers and producers without compromising the quality and safety of products. Profiteers selling unsafe products need to be disincentivized, and ultimately, "the path forward must include federal legalization."
Finest Cannabis In The World
Wurzer believes there's no other place on earth that can match the quality of cannabis grown in California, and "as long as that remains true, we have a real opportunity to fix this mess."
Once cannabis is allowed to cross state lines, California will have a significant advantage, he adds. "No one will want to purchase inferior synthetic THC flowers from other states when they can get high-quality sun-grown flowers from Mendocino, Humboldt, and Santa Cruz. I’ll confidently put our sun-grown flowers up against the best indoor cannabis produced anywhere else in the world, and I have the lab data to back up those claims."
In April 2023, SC Labs partnered with another major laboratory network to develop the Trust in Testing Certification a set of enhanced national standards for cannabis testing. This program is "designed to address some of the gaps in state regulations that have allowed unscrupulous labs to produce questionable data or manipulate the system," Wurzer details. There's been a significant interest from retailers looking for a trustmark that provides confidence in the products they offer. SC Lab's goal is to establish a group of laboratories dedicated to doing things the right way.
Lisa Weser and other cannabis industry professionals discussed the balance between consumer demand and quality production at the Cannabis Market Spotlight event in Anaheim. They explored different perspectives on the topic and emphasized the importance of meeting consumers' needs while maintaining high standards. This highlights the ongoing conversation in the industry about striking a balance between meeting preferences and ensuring quality.
Chelsea Kossower of Puffco highlighted the importance of authenticity in the cannabis industry. Brands must understand and engage with the community for long-term success.
