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Pesticides Are Damaging the Legal Cannabis Industry; The Solution? Something From the Desert

Healthy consumption of cannabis starts with natural growing practices, something certain companies have been ignoring, this has proven to be costly.

There have been numerous recalls by Health Canada due to banned pesticides found in the Cannabis LP’s product. Today, more than ever people are informed on what is in their food, supplements and drugs, namely pesticides and dangerous chemicals.

According to a recent VICE report, for every kilogram of legal cannabis consumed in Canada, nearly eight kilograms of cannabis plants and waste are composted, burned, or destroyed by Canadian pot growers. One of the major reasons for this is a failure to meet Health Requirements.

 

Organigram Not So Organic

One of the most infamous and ironic cases of LP’s not following Health Canada’s guidelines was the certified organic grower Organigram (OGI.T.

In 2017 a class action lawsuit against Organigram rought attention to the fact that just because a company gets its organic certification doesn’t mean they are following protocol. Organigram got slammed by this the company was caught using two pesticides, myclobutanil and bifenazate. Organigram lost its organic certification and voluntarily recalled almost all of its products sold in 2017, consumer complaints were nausea, vomiting and dizziness.

California Tightens Up

California recently tightened its pesticide laws which has lead to the destruction of masses of product unfit for consumption under the new laws.

According to California’s Cannabis Pesticide Regulations:

Effective July 1, 2018, all cannabis and cannabis products will be subject to laboratory testing under the California cannabis regulations to ensure appropriate pesticide use. These standards, developed by the California Department of Pesticide Regulation (CDPR), impose heightened restrictions on cannabis crops compared with other agricultural products. If a cannabis product sample fails residual pesticide testing, the entire batch from which the sample was collected fails and cannot be sold by a retailer. See California Code of Regulations (CCR) § 5719. Impermissible pesticide violations may result in contamination of an entire crop and substantial lost profits to any cultivator lax on compliance.

Failing to take steps to comply with the CDPR’s standards puts a cannabis company at risk of litigation and jeopardizes business contracts with other downstream cannabis operators whose manufactured products are rendered unsalable due to crop contamination. Business practices that run afoul of pesticide standards may call for civil or criminal penalties under California’s Food and Agricultural Code (FAC), or warrant a serious infraction charge from CalCannabis Cultivation Licensing authorities, a division of the California Department of Food and Agriculture (CDFA), subjecting operators to fines of $1,001 to $5,000 per violation. Civil penalties may also impede state or local license renewal. Moreover, the CDPR standards provide fodder for prospective plaintiffs’ attorneys to bring Unfair Competition lawsuits under California’s Business and Professions Code, section 17200, et seq. for, among other things, unlawful business practices and deceptive or fraudulent advertising based on alleged contamination or adulteration of the product. These lawsuits give rise to costly litigation, damages awards, statutory penalties and possible injunctions that prevent business operations

 

The Solution, SOP Potash

One solution to this emerging issue of cannabis not passing new regulations is the utilization of SOP potash.

It is mainly used as a fertilizer to encourage water retention in plants, increase yields, improve taste and help plants resist disease. The most common potash fertilizers are sulfate of potash (SOP) and muriate of potash (MOP). Potash is commonly found in deserts such as the Great Salt Lake region of Utah.

Potash and phosphate are both used to produce fertilizers, which are becoming increasingly important as demand for organic food grows.

However, potash and phosphate have different roles in crop growth, and they cannot be used interchangeably. Potash and phosphate are often precisely applied to meet the specific requirements of a particular crop, climate, soil type or topography.

There are several organic potash sources that can provide potassium in organic vegetable gardens. Greensand, kelp meal, and hardwood ashes are all good organic potassium sources.

Plants need Potassium (sometimes called potash) for plant immunity, flowering and fruiting, and potassium is critical for producing the brightly-colored pigments—like lycopene in tomatoes and lutein in corn—that are so good for us.

Organimax (KMAX.V)

For investors interested in potash companies, it’s worth being aware of the difference between potash and phosphate. That knowledge can help guide investment decisions and can ultimately lead to increased profitability.

Investing in potash companies is also a way to invest in the future of the cannabis industry without directly investing in cannabis companies. Organimax  (KMAX.V)   ( ) has potash projects in both Mexico and Canada  that comprise more than 424,000 hectares of land.

The Company has previously identified high-grade potassium in both the salar sediments and near-surface brines, and is progressing towards its maiden sediment mineral resource estimate (MRE).  In addition, recent geophysical work has indicated that the depths of the salar basins are much greater than previously thought, making the salars highly prospective for large brine aquifers to be discovered at depth.  In parallel to the MRE, OrganiMax is conducting a detailed geophysical program to define the extent of the salar basins and use the results to target a deep drilling program to test for brines at depth.

 

Disclaimer: Organimax is a paid client of High Energy Trading, click here to read full disclosure.

High Energy Trading is not a licensed broker-dealer, market maker, investment advisor, or underwriter. All information that we provide is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities.

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