Reducing Operating Expenses in Cannabis and Food Production Facilities

Reducing operating costs is a key objective for most businesses, including those in the cannabis and food production industries. In order to continue serving clients with quality products while managing inflationary cost pressures and responding to market pricing demands, companies need to focus on managing the ratio of costs to revenues. In this blog post, we will explore practical actions that companies can take to reduce operating costs while still maintaining quality products.

Irrigation and Water Treatment

Managing irrigation and water treatment can help reduce water consumption and nutrient costs. For example, one cannabis cultivator reduced their water usage by 40% by installing a closed-loop irrigation system. This system recirculates water through the plants, allowing them to use less water while also reducing nutrient waste. In addition, reclaiming condensate water can lead to significant cost savings. A food producer in California implemented a condensate recovery system that allowed them to reclaim and filter condensate from their dehumidification system, saving them approximately $15,000 per year on their water bill.

Lighting

Switching to LED lighting can reduce energy costs and improve efficiency. A cannabis cultivator in Colorado reduced their energy consumption by 50% after retrofitting their facility with LED lights. This resulted in significant cost savings on their energy bill.

Electricity

Adjusting lighting and HVAC schedules can also lead to cost savings. For example, a cannabis cultivator in Oregon staggered the start-up of their flowering rooms by 5-10 minutes to reduce peak energy use and offset demand charges. This simple adjustment saved them over $10,000 per year on their energy bill.

HVAC

Properly managing temperature and humidity can lead to significant energy savings. A cannabis cultivator in Washington was able to reduce their energy consumption by 30% by implementing a more efficient HVAC system and managing temperature and humidity levels more carefully.

Maintenance

Proper maintenance is essential for reducing operating costs and ensuring equipment operates efficiently. For example, a cannabis cultivator in California implemented a comprehensive maintenance program that reduced their equipment downtime by 50%. This resulted in significant cost savings on repairs and maintenance, as well as improved productivity.

In conclusion, reducing operating costs is crucial for businesses in the cannabis and food production industries. Practical actions such as managing irrigation and water treatment, switching to LED lighting, adjusting electricity schedules, and implementing proper maintenance programs can lead to significant cost savings without sacrificing quality. By focusing on reducing operating costs, businesses can maintain profitability and thrive in a competitive market.