The extracted oil is a valuable commodity for the business and offers enormous scope to generate substantial revenue streams.

The cannabis oil extract is a precious commodity; it is considered a high-value product. Its production can generate substantial revenues and generate significant profit margins.

Cannabis extraction takes place once the cannabis flower is harvested and cured. After this, the oil gets separated from the biomass into a concentrate. 

The extracted oil has much higher and consistent levels of cannabinoids than the flower, the active compound responsible for the plant’s medical effects, the two most commonly known are THC & CBD. One of the main challenges for cannabis flower is the difficulty in homogenising the flower, as it can contain varying levels of cannabinoids.

  • Three factors determine cannabis oil production:
  • Raw material – quality or type of cannabis flower used
  • Production method – costs, difficulty & distribution ability
  • Legal classification and licensing – GMP/cGMP/API etc.

CBD Isolate – is a single compound of cannabidiol (CBD) produced through multiple refining of the cannabis oil. The isolate is a white crystalline powder of 99-100% pure CBD. The compound is widely used due to its consistent purity, versatility and ease of use as an ingredient to add to formulations.

Full Spectrum – A popular term for Cannabis oil that is extracted and contains all the cannabinoids from the raw material. The oil has much more beneficial from a health perspective as it contains many cannabinoids which contribute to general wellbeing. However, it is more difficult to import/export, mostly due to THC concentrations.

Medical – Oil is produced to a medical standard. Very similar to full-spectrum, however, comes with strict production methods and techniques. The highest value but the most difficult to import/export due to regulatory, infrastructure development, and licensing specifications.

“Cannabinoids are the primary active compound within cannabis, they are (mostly) responsible for the plant’s medical effects, the two most common are THC & CBD”.