With deregulation happening incrementally all over the globe, the next step for MSOs and other large grow ops is how to scale up cannabis production and reduce volatility in product quality. This is the problem that Agrify Corporation hopes to solve with their growth solutions for cannabis growers. We were pleased to invite Raymond Chang, the CEO of Agrify (NASDAQ: AGFY), to sit with us for an interview to discuss how his company tackles the cannabis industry’s issues, and to gain some insight on their road ahead.
Here’s a few highlights from the interview:
Delivering what the cannabis consumer wants
Raymond Chang’s interest in the industry began with a family member needing medical marijuana. One of the key issues plaguing cannabis growers, he noticed, is volatility – something that medical cannabis cannot have, and something that even recreational users of the plant do not want.
Chang says that 50% of the plant’s potential is determined by the genetics; the rest of the outcome of the final cannabis product is determined by the growth environment. And in the industry as it stands, he says, cannabinoid profiles can swing up to 15-20% in every crop.
Agrify Corp’s secret sauce in cannabis growth solutions
“Unless you can produce CPG-like quality, you’re going to lose the customers,” Chang says. And to do that, you have to “Pepsify” the product – making sure that the customer gets the same product, the same smell, the same taste very time.
Agrify Corp’s solution for cannabis growth is using data and science to institutionalize the process, and then technology to enable the required consistency. In a nutshell, every strain has a grow plan. And their modular growth chambers not only provide cannabis the temperature, lighting, and humidity controls that help each strain grow best, they can be stacked vertically to take advantage of the height of the facility.
Agrify’s solutions are proprietary. Where before cannabis growers would have to cobble together their own systems, Agrify Corp’s units and components are built to work together, minimizing wasted space.
Expanding into related opportunities with Atlantis Hydroponics
Last month, Agrify announced a binding letter of intent for a partnership with Atlantis Hydroponics to build out a 2,500 square foot research and development facility. If the deal plays out well, Atlantis, which is in smokable hemp products, will use Agrify technology and science so that both companies can “jointly go after the smokable hemp market,” particularly internationally. Chang says that as hemp is in deregulation in Asia and other places around the globe, previously Agrify wasn’t looking into the smokable hemp market, but this could be a great opportunity for both companies.