Cannabis Portugal

How Much Does it Cost to Grow Cannabis Indoor?

 

Indoor cultivators produce year-round and can generate 4 to 10 harvests per year.

 

Cannabis Cultivation Business Setup, sample

Warehouse 800 square meters for about 1,000 plants with estimated yield of 150 kg., 4 harvests a year. The expected market price per gram of unprocessed dried plant should start at 2.70 euros per gram

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​Cannabis Cultivation Initial investments:

 

Warehouse rent – 50,000 euro

Build out, improvements – 60,000 euro

Growing equipment – 150,000 euro

Lighting system – 120,000 euro

Alarm & Security System – 45,000 euro

Licensing & legal fees – 55,000 euro

Direct costs (first months before profit) – 200,000 euro

Administrative expenses – 50,000 euro

Other expenses, incl. salaries – 100,000 euro

Total = 830,000 euro.

 

Cannabis Cultivation Direct & Operating Costs

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Direct expenses include electricity, water, labor and packaging costs.

Good lights are one of the most important factors when growing cannabis indoors. You can achieve yields of around 1.3-1.5 gram per watt of light.

Let’s try to calculate how much electricity does it take to grow cannabis indoors for our scenario:

 

Cost Electricity – $0.147/kWh

Number Hours: 1,680 light hours:

Vegetative Stage 720 hours: 40 days of 18/6 schedule

Flowering Stage 960 hours: 80 days of 12/12 schedule

Wattage: We supposed to use 125,000 W system.

$0.147 kWh x 1,680 hours x 125 kW = 30,870 euro

 

However, one thing that’s very important to remember when doing any estimations is that although your grow light may account for a lot of your electricity bill, fans and pumps and other things in your grow room also take electricity. These other items cost 3/4 as much electricity as the grow light. It will be plus about 23,150 euro.

 

So, total electricity costs will be about 55,000 euro. Water costs will be no more than 700 euro.

 

Growing solutions, including nutrients – 7,000 euro

Cloning – 1,500 euro (excl. labor and electricity)

Lab testing – 5,250 euro

Packaging, transport & storage – 3,000 euro

Grow Light Bulbs – 1,500 euro

Other Supplies – 1,750 euro

Direct labor – 7-8 employees 50,000 euro

Taxes – about 55,000 euro

Thus, the direct cost of growing the cannabis will be around 180,700 euro  or 1000 euros per kg (42% of wholesale price). It doesn’t include administrative, marketing, distribution costs and taxes, which varies depending on the location.

 

Cannabis Cultivation Annual Gross Profit, sample

Sales are about 650kg per year:

 

Revenue + 1,750,000 euro

Direct costs – $750,000 euro (42.8%)

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Gross Profit = $1,000,000 euro (57.2%)