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What is Hemp Toll Processing?

As the CBD market continues to become increasingly competitive, many producers are seeking ways to maximize their product and production capabilities.
July 6, 2022
April 24, 2024
Company News

What is Hemp Toll Processing?

As the cannabis and CBD market continues to become increasingly competitive, with no signs of slowing down, many producers are looking to external partners to maximize their product and production capacity. Toll processing is a cost-effective solution for companies to outsource some of their materials to a trusted partner for processing while still maintaining control of their product development and marketing processes. Of course, not every company wants to be vertically integrated, which is expensive and significantly complex. However, most cannabis/hemp companies enjoy the benefits of offering various products they can't otherwise directly make themselves.

How do they accomplish that? Cultivators and growers can do it with toll processing arrangements.

Toll processing, or tolling, is a service where a licensed extraction facility processes another producer's cannabis/hemp for a fee. It's a simple procedure where a cultivator's biomass is turned into CBD oil on demand. The resulting extract can be sold as is or developed into a profitable and marketable product. We take out the hassle of manufacturing concentrates so cultivators can focus on their crops and ensure yield maximization after each harvest. Here are the steps of hemp biomass tolling:

Why choose toll processing?

Not all companies have the facilities or technical know-how to process their cannabis into the extracts they require for their Cannabis 2.0 products. Bio-mass is prone to mould and Cannabinoid content degradation over time. It also requires storage space which is an extra cost. Working with a toll processing partner can provide several benefits for your business.

Toll processing agreements should be advantageous between both parties.

The client receives a customized product without the hassle and complications of having to make the product itself without enough experience. The client also has control over product integrity and customization, the quality and the standard that they are looking for

The toller/processor/manufacturer gets a fixed contract to do what it does well, making/finishing third-party products using its existing labour force, facilities, equipment, and expertise

Having a contract between companies is an excellent procedure to follow. It prevents disputes between parties since contracts are a collection of terms that parties have reached with a consensus. They are very effective at avoiding conflict and confrontations in the future.

Additional benefits of hemp toll processing:

Customize your output. Differentiate their products from competitors, and stay unique to their brand.

Cost-effective. Having a team of expert cannabis engineers and qualified equipment operators can be costly for a business, especially when you only need the service for three months a year. When partnering with TNL, Growers and producers can minimize capital expenditures and labour while focusing on building your brand and product needs.

Time-flexibility. Book the tolling service when it suits your needs best.

Access to a team with different knowledge and skill set. When working with a team that knows the ins and outs of extraction and distillation, they can bring additional insights you have not thought of and avoid costly mistakes, which can be expensive on time and the bottom line.

Exclusivity and confidentiality. There are a lot of trade secrets in the cannabis markets, and extending your capabilities as a company with the privacy of third parties is a good thing.

Criteria to keep in mind when looking for a tolling partner:

1. What extraction method does the tolling service offer?

2. Does the processor have the equipment and capacity to maintain your required extraction volumes?

3. Do they have experience making quality Crude oil? Can they decarb the crude? Do they have proper distillation equipment?

4. Do they have a process that cleverly pulls desired components of the plant, leaving behind unfavourable fats and lipids?

5. Does the processor have a proper quality assurance process in place? A facility's equipment and methods are only as good as the standards that govern them.

6. Can they help me formulate with carrier oils to exact percentages making my product complaint?

7. Can they provide an in-house HPLC test with a COA to confirm their work?

8. All parties will need to negotiate over what constitutes the final product specifications in writing. Acceptance or rejection by the client will be written in the contract. That includes the spec of biomass being used. Of course, any good processor will want to test your biomass for any problems at the beginning.

If the raw material does not pass inspection, it's better to find out in the beginning than have a load of finished products that are not fit for purpose or worse they are harmful.

If, after answering all of the above questions, you are still unsure if the processor is a good fit for your needs, ask for a sample, book a call and discuss your needs one-to-one, because at True North Labs, we're problem-solvers!

We love the challenge of getting into the nitty-gritty. Solving the unsolvable. Fixing the unfixable.

Because, basically, that’s what we live for: the chance to test ourselves, to always be improving, and in so doing to provide our customers with the best solutions to whatever challenges may be facing.

Why True North Labs is your ideal partner

If you have made it this far, here is why we think True North Labs is your ideal partner

·      We're a solutions driven company that wants to empower better health

·      We like Helping clients and remain optimistic and enthusiastic about the future of cannabinoids and/or adaptogens in general

·      We have worked in the Pharma space and have loads of knowledge, and experience working with cannabinoids.  

·      We also have a global network to solve almost any problem.

·      We treat our clients like Partners – we seek to work hand-in-hand with all of our clients

·       We have a facility in Switzerland to help you with either tolling or ingredient sourcing and if you want to take it further, we can also help with product manufacturing.