Red Mesa Innovates Hemp Supply Chain, Reducing Costs and Enhancing Quality
Direct relationships over brokers are the key to a more efficient supply chain. Red Mesa Science & Refining is leading the way in streamlining how minor cannabinoids enter the market.
By eliminating brokers and utilizing a continuous refinement process, Red Mesa aims to lower costs, guarantee product quality, and empower the actual producers of hemp—growers and refiners. “Collaborating directly with qualified, experienced farmers and extractors is essential to keeping costs low and quality high,” stated Jeff Applegate, president of Red Mesa. This direct model fosters trust and accountability at every level of the supply chain.
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Cutting Out Middlemen
According to Applegate, brokers can add extra expenses, sometimes increasing costs by as much as 15%. This not only squeezes farmers’ margins but also elevates costs for manufacturers, creating a precarious situation for both parties.
Red Mesa seeks to minimize these intermediaries, keeping their production costs competitive. “Maintaining low production costs is crucial for the industry’s success,” Applegate shared in an interview with Benzinga Cannabis. “Partnering directly with farmers and extractors is vital so that the cost of input becomes a strength rather than a burden.”
Applegate noted that reducing dependence on brokers is essential for a cost-effective system, ensuring farmers receive fair compensation while also connecting them directly with customers.
Challenges in Hemp Cultivation
Finding dependable and affordable raw materials has become increasingly difficult as the hemp market evolves. Applegate recalled the oversupply of hemp in 2019, which led to falling prices and a significant decrease in the number of active farmers.
“The 2018 farm bill sparked a surge of new farmers, but the market couldn’t support it all,” he explained. “Since then, we’ve watched the number of farmers dwindle.” He emphasized that hemp is challenging to cultivate, as it requires substantial processing before it can be extracted, unlike cannabis flower, which can be sold more straightforwardly.
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Inside Red Mesa
Located in Utah, Red Mesa’s facility was repurposed from a cabinet shop into a hemp refinement site, featuring essential high power capacity for their advanced machinery.
Applegate walked through their detailed production method that begins with crude oil intake and proceeds to distillation, leading to crystallization and chromatography. “The finished distillate is a light yellow to golden color, heavier than water, and syrup-like when warm,” he described.
Once crystallized, the process results in a fine, white powder ready for business-to-business sales. “We didn’t choose to become just another white labeler,” he asserted. “Our mission is to produce the most sought-after, consistent outputs to dominate the market.”
Leading the Way in Minor Cannabinoids
Red Mesa’s distinct method of botanical, non-synthetic refinement allows them to extract rare cannabinoids—such as CBN, CBT, and CBL—straight from hemp without any chemical alterations.
“Our approach emphasizes quality and sustainability, ensuring that the products we offer are both effective and responsibly sourced,” said Applegate. This commitment to exceptional standards positions Red Mesa as a prestigious player in the hemp industry.
Red Mesa Leads the Way in Hemp Refining Technology
Red Mesa is revolutionizing the hemp industry with its innovative botanical refining process. This method creates final products directly from the hemp plant, eliminating the need for chemical catalysts and acids.
Investment in Advancement: Pioneering Rare Cannabinoid Refinement
To be a leader in this field, Red Mesa has invested heavily. “To be the first refiner to offer rare minors such as CBN, CBL, and CBT at kilogram scale, we had to make significant investments in large-scale chromatography very early in the company’s history,” shared Applegate.
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Setting Quality Standards: ISO Certification and FDA Registration
Red Mesa emphasizes quality through what they call “The Red Mesa Standard.” Applegate explains, “We have an end-to-end certification from the beginning of our business to the end,” which distinguishes them from competitors that only certify certain areas. Furthermore, Red Mesa has chosen to register with the FDA as a food ingredient company, despite it not being mandatory.
24/7 Operations: A Strategy for Growth
Red Mesa’s 50,000-square-foot facility operates at about 45% capacity, indicating room for growth. “We operate 24 hours a day, seven days a week,” Applegate mentioned, explaining their evolution from single shifts to continuous operation.
In looking ahead, plans are underway for Red Mesa to enter the Japanese market in 2025 and set up regional distribution hubs for global customers.
While expanding is crucial, Red Mesa remains focused on legislative reform. Applegate stated, “The lack of clear rules for cannabinoid production is probably the biggest barrier we’ve seen to adoption.” He believes that a combination of efficient production and thoughtful regulation can reduce prices and improve access to cannabinoids.
This effort is aimed at broadening the market and making these products available to more consumers.
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