On-site testing might not be for everyone, but is it right for you? Plant pathogen testing is expensive. And not testing for plant pathogens is expensive in terms of lost profits. So, should you implement on-site plant pathogen testing? Or does it make sense to choose other testing options like mail-in lab testing or no testing?
Is on-site testing right for Example Cannabis Co?
You've been growing cannabis for some time, and you've got your grow conditions dialed in. Lighting, nutrition, pest prevention and mitigation, and a strong plant hygiene program are all in place.
But suddenly, you're not getting the yield that you used to. The flower mass is smaller and has lower trichome production. It's a less potent flower. Or you see symptoms of plant pathogens. If all your grow conditions are dialed in and you don't have pests, maybe it's time to start a testing program.
Our example company is a cannabis grower who recently had a series of crops that delivered lower yields and misshapen flowers with lower potency. They suspect HLVd and are looking into on-site testing equipment to eliminate pathogens from their grow space.
Is on-site testing equipment too expensive for their company size?
How to calculate ROI in growth cycles
You can estimate how long it will take for an investment to pay off by calculating your Return on Investment (ROI). For example, if a light bulb costs $100 and it saves you $50 a year in energy usage, the ROI is: $100 investment / $50 a year in energy benefit = 2-year ROI
You can do the same thing to estimate how long it might take for your investment in plant pathogen testing to pay off. ROI will be expressed in the number of growth cycles.
For example, let's look at Example Cannabis Co. To calculate their ROI, first gather critical facts about Example Cannabis Co:
Square feet of grow room: 10,000; Dry flower yield per square foot of canopy: 50 grams; Market price per pound of dry flower: $800 per pound; Pathogen infection rate without testing: 25%; Percent yield loss from infected plants: 20% reduced yield in impacted cannabis; Number of plants per square foot of canopy: 0.75; Percent of plants tested per grow cycle: 10%.
With caveats listed at the bottom of this article, here's how it is suggested Example Cannabis Co. calculates the growth cycles it will take to recoup the costs of the Amplifire Pro testing machine and AmplifyRP test kits for their cannabis plant pathogen testing program.
Click here to download the Agdia on-site plant pathogen testing ROI calculator and enter your own inputs. If the following link to the Excel document download doesn't work for you, please contact Agdia and the company can email it to you.
Example Cannabis Co's Investment: The cost of growth cycle one testing
Okay, let's get into the weeds and determine whether the cost of on-site testing is a good investment for Example Cannabis Co.
How much will Example Cannabis Co. invest in their testing for growth cycle number one, including one-time investments (Amplifire Pro) and ongoing expenses (Amplify RP test kits)?
Following is how researchers estimate Example Cannabis Co's year-one investment in plant pathogen testing:
Next, determining the potential lost profit from reduced yields due to undetected pathogen infection.
Example Cannabis Co's Benefit: The avoided lost profits from plant pathogen testing and mitigation efforts
The goal of plant pathogen testing is to catch problems early and to boost crop quality. Pathogens like HLVd and Fusarium oxysporum can cause misshapen buds and lower yields, resulting in lost revenue.
The benefit of cannabis testing is to avoid revenue lost due to plant pathogens.
The following is calculating Example Cannabis Co's estimated lost revenue due to plant pathogen infection:
Example Cannabis Co's ROI
To calculate ROI, take the investment divided by the benefit. So, is on-site plant pathogen testing a good investment for Example Cannabis Co.?
Following is how to calculate Example Cannabis Co's year one ROI in # of growth cycles:
Therefore, for Example Cannabis Co., testing equipment and testing kits would pay off by the end of one growth cycle.
Ongoing cost of AmplifyRP testing per grow cycle
Your costs may differ. The frequency and number of samples tested will impact your costs. Testing for multiple pathogens, such as Hop latent viroid (HLVd), Fusarium oxysporum and Lettuce chlorosis virus, will also increase costs.
After the first growth cycle, your ongoing testing costs will be much lower because you will own the testing machine.
What are the testing options?
While on-site testing equipment has many benefits, there are other options. For example, you can also choose mail-in plant pathogen testing.
Following are some key considerations when choosing whether on-site testing equipment or a mail-in lab is the right choice for your facility.
It is time to consider on-site testing equipment if you need results fast. On-site testing equipment allows you to pluck a sample off the plant and run testing almost right away, in about 30 minutes. With on-site testing equipment from a reliable plant pathogen testing provider, there's no need to wait and wonder. Test and know.
You're a genetic provider. You grow clones and genetic materials to be cuttings for other growers. Your reputation depends on providing healthy, quality cuttings. Fast, accurate plant pathogen testing may be a priority for you.
You're a medium to large-sized grower. With scale on your side, typically, it is more cost-effective in the long run to own your testing equipment on-site rather than to choose a mail-in lab. The up-front costs for a mail-in lab are more economical, but over the long run, your cost per test with on-site equipment is typically less expensive.
When a mail-in option might be right for you
You might want to consider a mail-in lab pathogen testing instead of on-site equipment if you are a small grower. If you only require low-volume, small-scale testing, sending samples to a lab might be more economical than investing in on-site equipment.
You don't need a fast turnaround. A mail-in lab option can work for you if you can wait several days between taking samples and receiving results.
There is a high-quality mail-in lab in your state. Sending cannabis plant material by mail across state lines is a legal gray area at best, even between states where cannabis is legal. If there is not a mail-in lab in your state, it's time to consider on-site testing equipment.
For more information:
Agdia
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