Home » Hemp/CBD » A Look into Production: Which 6 Factors Determine the Price of CBD?

A Look into Production: Which 6 Factors Determine the Price of CBD?

Products made from marijuana and hemp are exploding in popularity because of recent legalization laws passed across the country. Lawmakers are starting to make steps in the right directions as they become more aware of the health capabilities of cannabis or hemp based on proven evidence.

CBD (cannabinoid) is a natural compound found in marijuana and hemp that has therapeutic properties. However, this compound is sought out by those in the medical community because it does not deliver the intoxicating feeling as THC (tetrahydrocannabinol), which is the most active ingredient in marijuana or hemp. The THC is what recreational marijuana users seek for that ‘high’ feeling and CBD is absent of that.

CBD (cannabidiol) products are hitting the market and flying on shelves in dispensaries and online stores. People are in need of these products for various illnesses, including reducing depression and anxiety, alleviating cancer ailments, and preventing psychotic episodes.

There are several factors to determine the price of CBD oil. Learn everything you need to know about the production process by visiting the Ananda Hemp website for information. The company focuses on the production, education, and legalization of CBD products made for a healthy body, mind, and spirit.

Soil Quality

A marijuana enthusiast like yourself already knows that growing a quality product starts from the ground. Getting possession of a product grown from healthy soil means everything in this industry. The best way to create better quality CBD products during production is to focus on manipulating various aspects of processing.

The first step is to avoid using harmful materials that will damage the soil. Another step is letting the hemp dry so the soil is properly nourished. Moreover, raining the soil could have extra benefits when creating a balanced PH level. Any PH level between 6.0 and 7.0 is good.

Free of Contaminants

Quality hemp should be free of contaminants. The fewer contaminants mean the more money you will make. So make sure to carefully monitor the production process to prevent low-quality CBD oil from slipping through the cracks. Always ask the right questions about the quality because if you do make the proper checks the next distributor will and recognize the subpar growing methods.

One important piece of information regarding CBD oil is that the THC is less than 0.3%. Preferably, 0%. This is one reason the CBD oil is so sought out. The filtration and winterization process create a pristine condition. If this does not happen the quality will decrease, which means a decrease in the amount you can sell.

Always make sure to check if the hemp or oil products are processed by accredited laboratories. This means a scientist should have taken the responsibility for detecting heavy metals, microbial elements, mold, and other things that could make a CBD oil user sick.

Understand that hemp and marijuana could become contaminated during the farming process. To avoid this, pay close attention to how the extraction process executes. Farms that use toxic materials like propane and butane should be written off the list of providers. Although they are affordable, they decrease the value of the product which affects your customers.

Types of Products Sold

There are many types of CBD oils in the market. Obviously, pills and capsules are more valuable than salves which are less valuable than tinctures. CBD vape pens are mostly affordable and very popular, but some studies say that they are potent to consume. One rule of thumb is to always purchase products made of organic CBD oil.

Some CBD products cost about 0.05 per milligrams but others are more expensive. For example, Green Mountain products cost $0.05 per milligram but Mary’s Nutritionals Elite costs $0.60.


Always take a look at the origin of the product. For instance, Chinese based manufacturers grow their products in contaminated soil because of the absent government oversight. Therefore, the quality will be severely affected and the price will naturally drop. In fact, China is one of the leading cultivators in the world because of the cheap price that attracts the business of many distributors. Surprisingly, European and Canadian sources are also low-quality and cheap as well. It’s all about making the highest amount of profits in a demanding industry. Regardless of the price, your customers will know the difference in quality!

Extraction Process

Make sure to look for CBD oil extracted with CO2 than butane. Ask for the processing lab’s testing information and facility certifications to ensure you are getting a top-grade product. The more you know about the extraction process the better. Below are some costs of each compound after the extraction process.

CBD crude material – $.0039 – $.0045 per mg

CBD distillate material – $.0065 – $.0086 per mg

CBD Isolate material – $.00725 – $.00925 per mg

Fortunately, the more processes hemp goes through when extracting the CBD oil, the more value is added.

Is the Materials Isolate or Full-Spectrum?

Always ask, does the CBD soil have the proper isolate? When isolate is present that means you will get a 99% quality CBD product; however, it lacks many medicinal compounds. On the flip side, a full spectrum process normally consists of using an entire plant but also has important vitamins and minerals.

Isolate properties are popular largely due to the lack of THC and the easy process of incorporating into other products such as beverages or cosmetics. This is a high-quality extraction without all the waste.

CBD isolate costs about $7 USD per kg depending on the origin and location.


One major determining factor of producing top-grade hemp or marijuana based CBD oil is doing the proper research. This article is limited in the information it can cover by only touching the tip of the iceberg. It should be used as an introductory course. However, doing hardcore research about every aspect of CBD oil production along with marijuana and hemp will give you the best information for determining the price. Moreover, it will keep you from getting involved with scammers in the industry since you are now knowledgeable about different things to look for in the production of CBD oil.

Check Also

CBD Benefits for the Skin

No matter what age we are, we are taught to practice good health habits. If …

Medical Marijuana Blog

Accessibility Tools