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Pot shops say testing rules are hurting extract sales Brie Malarkey of Breeze Botanicals in Ashland holds a marijuana extract that has recently come under stricter testing regulations for residual solvents and pesticides. Mail Tribune / Denise Baratta Sunday Feb 5, 2017 at 2:31 PM Feb 5, 2017 at 2:31 PM By Damian Mann For the Tidings Local cannabis dispensaries have denounced strict new state testing standards for extracts that have cut sales by up to 50 percent and reduced the amount of product on the shelves. "They took a robust industry, and they've killed it with massive overregulation," said Michael Monarch, owner of Green Valley Wellness in Talent. The problem, local dispensary owners say, is the amount of testing required of cannabis extracts, a process that uses butane, carbon dioxide or other solvents to pull out the active ingredient from marijuana flowers. Monarch said he's got ample supplies of cannabis flower on the shelves, but not the products derived from extracts, which makes up 50 percent of his sales. Since December, he's seen sales drop 30 to 50 percent because he doesn't have extracts that include "shatter," which looks like a honey-colored, translucent material that is heated and smoked. Since new testing requirements came into play last October, Monarch said, it has put a bind on the whole industry, from production to retail. In addition to testing for tetrahydrocannabinol, the substance that provides the high, and residual solvents, the state requires testing for about 60 pesticides, Monarch said. One of the pesticides, DDT, is no longer used in the U.S., he said. Monarch said the old testing protocols were a lot less onerous. Mark Pettinger, spokesman for the Oregon Liquor Control Commission, said his agency is following rules set by the Oregon Health Authority to determine the kind of testing required. "We are required to abide by them," he said. He said that last October, some of the rules were modified to make the testing requirements a little easier and to reduce the cost of testing. Pettinger said the Legislature will be considering multiple bills regarding marijuana legalization this session, including putting the medical marijuana program under the oversight of OLCC, which currently oversees only the recreational marijuana market. He said OLCC has heard from cannabis retailers about the issue. "Since October, there have been complaints by retailers, but to the degree that they have increased or gone down, I can't say," Pettinger said. He said a major focus for OLCC recently has been to license not only marijuana retailers but also labs that conduct the testing of cannabis products. Brie Malarkey, owner of Breeze Botanicals in Ashland and Gold Hill, said her extract business died off in November and December, which she blames on the new testing requirements. However, with more labs getting accreditation by the state, she now has more extracts on the shelf. "For me it is getting better," Malarkey said. "Am I back to where I was last summer? No, I'm not." She said that for 100 grams of cannabis extract oil, eight samples must be tested for potency, residual solvents and pesticides. The pesticide testing is the most expensive part of the procedure, which costs about $1,400, Malarkey said. "I understand the need for eight different potency tests, but you don't need eight different pesticide tests and eight different residual solvent testing," she said. Malarkey said she's always tested her products for residual solvents and pesticides even before the state testing protocols were developed. Prior to the new requirements, Malarkey said, extracts sold for about $20 to $50 per gram, depending on the quality. "Now the starting price is $60. It's pretty much double for consumers." Once the labs get up to speed and the industry settles down, Malarkey expects prices will go down. Brent Kenyon, a marijuana grower and activist who also owns The Wharf and Southern Oregon Alternative, met with legislators in Salem this week and said the testing requirements are on their radar. "Edible testing is a big problem, too," he said. He said the testing process for cannabis is too restrictive, and he's pushing for the same testing protocols that are used for blueberries and other crops in the state. He said agriculture inspectors go to fields while the crops are growing and take samples. "By the time you harvest, it has been approved after testing," he said. "Cannabis should be treated like other agricultural crops." — Reach reporter Damian Mann at 541-776-4476 or [email protected]. Follow him on www.twitter.com/reporterdm.