Hemp businesses in Minnesota struggle with lab bottleneck

Testing requirement could smother MN cannabis business

The testing requirement for recreational cannabis could hurt business, as there are only two testing facilities in the whole state. FOX 9's Corin Hoggard has the latest. 

MINNEAPOLIS (FOX 9) - Minnesota's hemp industry is grappling with new testing regulations, causing significant concerns among businesses.

Testing requirements for hemp products

Big picture view:

Starting Jan. 1, hemp businesses in Minnesota will be required to use licensed labs within the state for quality control testing. 

Currently, there are only three such labs, and only two can conduct all necessary tests. This change is causing anxiety among industry players, as many have relied on labs outside the state for years.

Steven Brown from Nothing But Hemp expressed concerns about the potential delays, "The problem is, there's over 6,000 businesses in the cannabis hemp field. And that means that we could be up to eight weeks, 16 weeks for testing time, and that just doesn't work in production," said Brown.

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A ban on hemp-derived products is having an impact on CBD products in Minnesota as labs struggle with a testing backlog.

Potential backlog and industry concerns

What they're saying:

Carol Moss from Helmuth & Johnson highlighted the risk of a significant backlog, "What we expect to see is a significant logjam where products are not gonna be able to get tested and therefore not be able to get onto the market," said Moss.

The project manager at Legend Labs mentioned they are already experiencing delays, with a four-week backlog. They noted that the state needs at least eight labs to handle the demand. A fourth lab, which was in the process of getting licensed, decided to withdraw due to unclear guidance from the Office of Cannabis Management (OCM).

Industry insiders believe the OCM can extend the deadline without new laws, but the office maintains that the date is set in current law.

What we don't know:

It is unclear if the OCM will extend the January 1 deadline despite industry pressure.