Maximum Yield's Industry News | Vol. 18 Issue 03 2019

SOUTH CASCADE ORGANICS: AWAKENING NATURE’S POTENTIAL

LEARNING AND GROWING TOGETHER SINCE 1998

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CYCO’S

PLATINUM SERIES

Utilizing the latest technologies and sourcing only the best pharmaceutical-grade ingredients for its plant products, Cyco Platinum Series is the industry’s premier range of nutrients, additives, and mediums.

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Electrolyzed Water Treatment System Treat and Prevent Plant Diseases without Damaging the Environment Ushio’s NaOClean™ Electrolyzed Water (E-Water) system is a cost-effective solution and a worthwhile investment in the long term for treating and preventing plant diseases.

The NaOClean E-Water system produces neutral water with pH 7.0 - 7.5 levels to improve plant growth and potentially suppresses certain diseases, powdery mold and mildew that are harmful to plants.

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Feature & Contents

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Cyco Platinum Series One of the world’s leading nutrient companies, Australia’s Cyco manufactures and distributes the Cyco Platinum Series brand. Owner Shaun Jones tells us how his company became so successful.

First Feed

Groundbreakers

12 From the Editor

38 South Cascade Organics

14 Good to Grow

44 The Growth of Urban Farming in the US

24 Industry Buzz

48 Green Lighting Healthy Hemp in America 52 Fusarium Wilt 54 How Good is Your Front Line?

56 How to Market Your Business

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VOLUME 18 NUMBER 03 March 2019

Maximum Yield Industry News is published monthly by Maximum Yield Inc. No part of this magazine may be reproduced without permission from the publisher. The views expressed by columnists are personal opinions and do not necessarily reflect those of Maximum Yield or the editor.

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Wake up every day and do what you love, love who you do it with, and love who you do it for.”

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from the EDITOR TG Toby Gorman

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n our December 2018 issue of Industry News, our customer service expert Donald Cooper mentioned something in his article “The Myth of the Glamorous Job” (December 2018, page 56) that I took note of. He said people have a glamorous job when they love what they do, love who they do it with, and love who they do it for.

In this issue of Industry News, our two features underline the importance of these values. When working with Cyco (page 32), and South Cascade Organics (page 38) to put these features together, a common thread became apparent: they all love what they do, who they do it with, and who they do it for.

In the case of Cyco, it was a long, difficult, and often lonely road for owner Shaun Jones in the early days of building his company.

“They were very difficult times. Being based in Australia, it meant wherever in the world I traveled promoting Cyco, I knew it was going to be a long, time consuming, and expensive journey. For a young man with an equally young family, I was often away from home for weeks and months at a time living out of hotel rooms and suitcases,” he says.

In time, Shaun’s persistence and love for what he does paid off. Cyco Platinum Series is successfully distributed in countries around the globe, and he now gets to work alongside his wife Sasha and sisters-in-law Rachel and Holly.

Newton Hayes, founder of Oregon-based South Cascade Organics, found staying home working with his wife and four children worked better for him. When asked about his favorite day on the job, he beamed: “Has to be when my daughters would help bottle samples (on the front porch) and at the same time pretending the bottles were people getting ready for work – drinking (filling), then putting their “cap” on, getting dressed (label) and getting on the bus (boxing).”

Seven years after starting South Cascade Organics, the Hayes family is still growing the business and loving what they do and who they do it for. “For the most part, customers in this industry have huge hearts.

They really care about each other and the businesses they decide to partner with,” adds Hayes.

There are many ways to measure success in business. But if you can wake up every day and do what you love, love who you do it with, and love who you do it for, it doesn’t get much better than that.

@Max_Yield /maximumyield /MaximumYieldMagazine /maximumyield /maximumyield

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1 | Growlite Black Box

Control System

A new, highly anticipated control system from Growlite by Barron Lighting Group, the Black Box system is the horticultural industry’s first large-scale lighting controller coupled with environmental monitoring and complete data logging. Growers can input all information via a touch screen and access control remotely. It features 16 individually controlled zones or rooms with the capacity to handle up to 3,072 fixtures. Industrialgrade environmental sensors accurately measure ambient temperature, relative humidity, CO2, and vapor-pressure deficit.

— growlite.com

2 | Active Aqua Chillers

A line of great products for taking control of your reservoir temperature, Active Aqua chillers have a microprocessor control system along with a user-friendly control panel to enable a stable temperature in your reservoir. Active Aqua’s updated chillers now feature a boost function which accelerates the chilling process for quick establishment of initial nutrient temperature.

Other features include an extremely efficient and reliable high-quality compressor, surge protection, and a digital temperature memory system that remembers your settings in case of a power interruption.

— hydrofarm.com

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3 | Cyco Platinum

4 | Drip Garden

Series Swell

Swell (1-5-3) is a lateflowering-stage nutrient for plants. The phosphorus in Swell plays an essential part in photosynthesis and assists with plant maturation, while helping fight against stress. Potassium helps enhance fruit quality.

It also has magnesium to activate enzymes needed for growth. Swell is recommended in the later stages (final three weeks) of flowering for maximum effect. With complementary potassium levels, Swell brings sugars to the various parts of the visible plant, allowing for a naturally sweeter harvest.

— cycoflower.com

Automatic Watering and Fertilizing System An ideal watering solution for small-space gardening, the Drip Garden is touted as the first patented automatic watering and fertilizing product that’s programmable via a digital timer. It’s perfect for backyards, urban rooftops, balconies, and decks. It can help grow up to 36 plants in a compact 4x4-foot area. It features adjustable hanger arms for plant growth and can accommodate large plants. The Drip Garden is easy to assemble and has a foldable design for winter storage.

— dripgarden.com

CLEAN CROPS FROM THE START Providing Hemp and High-Value Crop Growers with Virus-Free, Pesticide-Free, True-to-Type Plants Solve your supply chain challenges with: • Clean Stock® hemp plants and feminized seed • Clean Stock® nursery services • Virus-free, pesticide-free certifications • Genetic storage and production

Download our brochure at frontrangebio.com/cleanplants SALES@FRONTRANGEBIO.COM WWW.FRONTRANGEBIO.COM

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5 | BIOS Icarus

Vi LED Grow Light

An industrial-grade grow light, BIOS’s Icarus Vi LED fixture is only 1.5 inches high and is available in both high-output and low-output models.

It boasts HID-equivalent PAR levels and uniform lighting across the crop canopy. With an optimized broad-lighting spectrum, the Icarus Vi maximizes photosynthesis, plant growth, and yields. The fixture has tempered glass covering the LEDs, making it easy to clean and able to handle humid conditions.

The cost-efficient Vi comes with a guaranteed five-year warranty.

— bioslighting.com

6 | Grassroot Biotics

The Secret Garden

The Secret Garden is an automated cultivator that makes growing at home easy and stylish. With its unique design, growers have the option to add or remove side panels so the plants can be viewed from all angles. The lighting system consists of blue-tinted side lighting that promotes the vegetative growth of plants and LED lighting that is optimized for flowers and fruit production.

The Secret Garden includes an app allowing for remote monitoring of humidity, temperature, and plant height.

— grassrootbiotics.com

8 | American Hydro

7 | Humboldt’s Secret

Plant Enzymes

Plant Enzymes, a supplement from Humboldt’s Secret, is a highly concentrated enzymatic formula with a guaranteed content of 7,000 units per milliliter of active enzyme. Plant Enzymes clean roots by breaking down cellulose, dead root material, and salt buildup. This product is especially helpful for those growing in coco, deep water culture, and aeroponics and requires only one milliliter per gallon. It’s available in sizes from eight ounces to 55 gallons. Plant Enzymes works in all grow media.

— humboltssecret.com

Epic Nutrients

American Hydro’s new Epic nutrient series should be used in combination for fast-growing flowering annuals during all stages of growth. Gromagnon (106-17) is a growth nutrient formulation that pushes flowering plant productivity (including cannabis) during the high growth stage. Big Bang Bloom (15-0-17 and 0-23-26) is a two-part powdered formulation for hydroponic and plant cultivation. For use in soils, inert media, and water, this formula is made for all plants in the flowering stage. Epic Boost (1-4-6) has one goal: to increase the formation and size of trichomes.

— hydrofarm.com

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9 | Fritsch Pulverisette 19

Optimized for cannabis production, the Pulverisette 19 boasts a high throughput of up to 60 pounds per hour.

With a variable speed motor, it can work at a range of 300-3,000 RPM, quickly cutting through cannabis. It’s efficiently designed so material is automatically moved and cut into increasingly fine samples by the shearing forces between the knives.

The negative pressure in the cyclone ensures continuous flow through the cutting rotor. The Pulverisette 19 is designed with minimal dead space, and exchangeable sieve cassettes make for easy operation and cleaning.

— fritsch-international.com

10 | South Cascade

Organics SLF-100

SLF-100 is a 100 per cent organic OMRI-Listed and Clean Green-certified enzymatic formula designed with system health in mind. The goal with SLF-100 was not to produce an enzymatic product that would target one specific material, but to provide a well-rounded plant product that would tackle many different obstacles. Some enzyme products can damage microbial populations, however, SLF-100 will not and the shelf life of this product is unlimited. It will keep your hydroponic system running smoothly and free of toxic buildup.

— socascade.com

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11 | Schaefer High-velocity

12 | Reiziger Grow

Greenhouse Fans

Hydrofarm introduces Schaefer high-velocity greenhouse fans. These uniquely designed horizontal air flow fans circulate air in a coherent horizontal pattern, creating a gentle “racetrack” air flow. This helps maximize heat distribution and humidity control by mixing the air from ceiling to floor.

Schaefer fans are built to last, with corrosionresistant, powder-coated steel guards and mounting brackets, ultra-quiet operation, and multiple mounting options. Proudly made in the USA, VersaKool circulation fans utilize a deep guard design and matched high-quality motors and blades.

— hydrofarm.com

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Food A&B

Reiziger’s Grow Food A&B is a full-spectrum nutrient designed without compromise to enhance the cultivation of all crop specific strains. Grow Food A&B is free of contaminants and derived from pure nutritive ingredients.

It helps stabilize pH, guarding your crops against fluctuation stress and nutrient deficiencies. The balanced formula provides macro, secondary, and fully chelated micronutrients plus innovative and revolutionary patented phosphorus facilitates better absorption by the roots. Reiziger Grow Food A&B nutrients are designed for use in all hydroponic growing media, both recirculating and nonrecirculation systems.

— reiziger.com

13 | MedXtractor

14 | HighOnLove —

CO2 Cannabis Oil Extractors

MedXtractor’s small-scale CO2 -based cannabis oil extractors are ideal for craft marijuana growers. These wellpriced products allow craft growers to produce high-value, residualfree cannabis extracts from trim, flower, and rosin chips without breaking the bank.

Using patent-pending technology, MedXtractor oil extractors are well built and feature stainless steel construction with no mechanical pumps and don’t leave any hydrocarbon residue.

MedXtractor can ship their extractors anywhere around the world.

— medextractor.com

MEDXtract r

Dark Chocolate Body Paint

The art of play and making love takes a new meaning with HighOnLove’s Chocolate Body Paint. Designed as an aphrodisiac, this luscious and rich dark chocolate is made with premium-grade hemp seed oil, giving couples a satisfying taste for more.

The effects of Chocolate Body Paint take intimacy to a whole other level by releasing euphoric sensations and pure delight. Inspired by the distinguished chocolatiers in Brussels, this product is crafted with 100 per cent natural ingredients.

— highonlove.ca

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15 | Left Coast Wholesale —

ECOMAX

ECOMAX (6-1-2) is an OMRI- and CDFAcertified vegan organic plant nutrient derived from neem, a renowned herb that’s been a part of traditional natural remedies for almost 5,000 years. ECOMAX is a slow-release plant nutrient that’s rich in protein, carbohydrates, macronutrients, and trace micronutrients that not only supports plant nutrition but also improves soil health and provides microbial nutrition. It also enhances uptake of other plant nutrients through chelation with macro and micronutrients in the cultivation medium.

— leftcoastwholesale.com

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16 | ClearWater Tech

C1 Mobile Disinfection System

ClearWater Tech’s C1 mobile disinfection cart provides ozone-enriched water for surface disinfection of cannabis production facilities.

Wash down floors, walls, equipment, rinse barrels and tanks with the push of a button and be assured you receive the ozone you need to get the job done.

Easy to maneuver, the cart replaces traditional hot water and chemicals with safe disinfection on contact. The C1 cart is best when ozone disinfection is needed in multiple locations within a facility, different buildings, larger facilities, or when you simply want the convenience of mobility.

— cwtozone.com

Industry BUZZ US Organization Petitions USDA over Hydroponic Organic Certification

The Center for Produce Safety is looking to get the US Department of Agriculture to prohibit organic certification of hydroponic agricultural production. The group has petitioned the USDA to remove the organic label from any produce that isn’t grown in soil. The Center for Produce Safety argues hydroponic crops do not meet federal organic standards and violate organic law, which requires that organic farming include soil improvement and biodiversity conservation. The group says hydroponic systems cannot comply with the organic standard’s vital soil standards because hydroponic crops do not use soil at all. The filing was endorsed by more than a dozen other organic farmer, consumer, retailer, and certifying organizations, including the Organic Farmers Association, Northeast Organic Dairy Producers Alliance (NODPA), and the Cornucopia Institute. In January 2018, the USDA reaffirmed that hydroponic, aquaponic, and aeroponic operations can still be certified under USDA organic regulations.

Industry Pioneer Brite-Lite Celebrates 50th Anniversary

The maker of Optimum Hydroponix is celebrating half a century of successful operations.

The Brite-Lite Group turns 50 this year and has come a long way since the early days in 1969 when a group of young Montreal entrepreneurs created an environmentally friendly business to recycle, recondition, and resell used fluorescent light fixtures. From those humble beginnings, Brite-Lite has grown to become an industry leader in specialty horticulture and urban gardening. Based in Laval, Que., the company services a network of its own retail stores, while the wholesale arm also distributes products across Canada and the US including Optimum Hydroponix nutrients, one of the best-selling Canadian brands.

These products, along with Mo’Koko coco substrate, were developed by Brite-Lite Group through its ongoing commitment to research and development. In celebrating 50 years, the company attributes its longevity to its ability to change with the times.

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Verdesian Life Sciences Launches “Keep it in Your Plants” Campaign

A satirical marketing campaign from Verdesian Life Sciences is aimed at educating growers on the importance of nutrient use efficiency (NUE). It also shows how Verdesian’s NUE solutions help growers and farmers make better use of their fertilizer dollars by boosting plant nutrient uptake. “This campaign is an engaging way to help farmers learn more about how nutrient use efficiency can work to make their farms more profitable,” says Paul Beck, Verdesian’s vice-president of global marketing.

Nutrient loss is a common issue that negatively impacts farmers’ profitability. It also is bad for the environment through unnecessary use of fertilizer. By making use of NUE solutions, farmers can maximize nutrient uptake, lessen their input costs, and minimize impact on their soil. The highly entertaining and hilarious campaign video can be seen at keepitinyourplants.ag.

Cura Partners Hires Former Apple Executive

Jason White, who formerly worked with Beats by Dre (an Apple company), is the new chief marketing officer at Cura Partners. White was the global head of marketing with Beats and will oversee the development of Cura’s family of brands, specifically Select oil and Select CBD, two of Cura’s best-selling cannabis products. White brings more than 19 years of experience in business management and marketing expertise. “Cannabis is an industry deeply rooted in culture and collaboration, and there is no one better suited to solidify our brand Select’s role in the future of this community than Jason White,” says Cura president and CEO Cameron Forni. White brings with him vast experience challenging social constructs through innovative ideas at companies including Beats and Wieden + Kennedy, where he served as Nike global account director and then managing director for the Shanghai office.

Photo courtesy of @jackdavis360

HydrofarmCommercial.com

Industry BUZZ GrowGeneration Purchases All Chlorophyll Assets

GrowGeneration has added another hydroponic store to its portfolio after purchasing the assets of Chlorophyll.

In buying Chlorophyll, GrowGeneration acquires a 20,000 sq.-ft. super store with retail and warehouse space in Denver, CO. It’s the sixth store for GrowGeneration in Colorado. “This transaction marks our first acquisition in 2019, adding eight million in revenue to our company,” says GrowGeneration CEO Darren Lampert. The acquisition adds to GrowGeneration’s growing asset list of 20 stores which are located in Colorado, California, Michigan, Nevada, Washington, Rhode Island, and Oklahoma. “We are excited to be part of the GrowGeneration portfolio of companies.

As the largest hydroponic store in Denver, CO, our customers will benefit with more product offerings, competitive pricing, and expanded professional services,” says Lee McCall, Chlorophyll’s co-founder, who will continue working in a sales and business development role. GrowGeneration sells the full suite of hydroponic products from soil to nutrients to lighting.

Tilray Partners with Authentic Brands Group in $100-million Deal

Authentic Brands Group (ABG), the owner of Nine West shoes and Juicy Couture makeup, inked a deal with Canadian cannabis company Tilray that will focus on developing cannabisinfused foot creams, cosmetics, and other products. Tilray has agreed to pay $100 million and up to $250 million in stock and cash (depending on how well the venture works out) to create and distribute cannabis products as ABG’s preferred supplier. “They own over 50 iconic brands, they have the products in over 100,000 points of sale, over 4,500 free standing and shops around the world,” says Tilray CEO Brendan Kennedy. The two firms will focus on launching cannabis products in Canada and CBD products in America. The deal gives Tilray a guaranteed minimum payment of up to $10 million annually for a decade and the right to receive up to 49 per cent of the net revenue generated from the new cannabis products.

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Parabel USA Inks Distribution Deal for LEINTEIN Commercialization

Parabel recently announced a distribution agreement with CK Ingredients for the commercialization of LEINTEIN plant protein in the nutraceutical sector in Canada. Parabel produces plant protein ingredients and LEINTEIN has just gotten full regulatory approval in Canada, where CK Ingredients is firmly established. “CK are the perfect match for us,” says Habbo de Vaere, Parabel’s vice-president of global sales.

LEINTEIN is derived from the lemniodeae water lentils (duckweed), which has been dubbed the world’s most complete food source.

The protein ingredient has the highest levels of essential amino acids of all plant protein, is non-GMO, free of major allergens, and fully sustainable. “Parabel’s innovative LENTEIN plant protein perfectly complements our existing raw material portfolio,” says CK Ingredients president Michael Chernyak. Parabel, which is based in Vero Beach, FL, grows (via hydroponics) and processes duckweed into LENTEIN plant protein.

BioSafe Systems Announces New VP of Sales

Jeff Kline is the new vice-president of sales for agriculture and professional products at BioSafe Systems, the company recently announced. Kline was promoted from his former position as market segment manager. “Jeff has been a valuable part of our business over the past 10 years,” says Rob Larose, CEO and president of BioSafe Systems. “We are expecting him to help BioSafe Systems continue to grow in the next 10 years.” Kline has been with the firm since early 2007. “I am excited to work with our team and partners to continue providing high-quality products that protect our customer’s brand,” Klein says. BioSafe is a Connecticutbased company that manufactures biodegradable disease-control products. It began selling its flagship product ZeroTol, a broadspectrum bactericide/fungicide, to the horticulture industry in 1998. BioSafe sells pest control solutions in the agricultural, industrial, and consumer markets.

Global Nematicides Market Set for Strong Growth

According to analysts at Transparency Market Research (TMR), the nematicides market is going to enjoy healthy growth over the next few years. TMR projects the global nematicides market is likely to grow at a 3.30 per cent compound annual growth rate for the period ending in 2025. Back in 2015, the market size was valued at $995 million and TMR forecasts it will reach $1.3 billion by the end of 2025 spurred on by demand from fruit and vegetable growers. Additionally, the market should see an influx of new product launches (both organic and chemical) over the next several years as rival companies try to better each other’s products.

Look for organic products to lead the way from companies like Nufarm Ltd., Bayer AG, DowDuPont, FMC Corp., and Syngenta International AG. Nematicides are pesticides used to kill plantparasitic nematodes; natural forms include neem.

Hydrofarm Appoints New Chairman and CEO

Independent hydroponic wholesaler and manufacturer Hydrofarm recently announced Bill Toler would take the reins as CEO and board chairman. Former CEO Peter Wardenburg continues to serve the company as a board member and in a fulltime operational role within Hydrofarm. Toler brings more than 35 years of executive leadership experience in supply chain and consumer packaged goods, including serving as CEO of AdvancePierre Foods and President of Pinnacle Foods. Toler most recently served as president and CEO of Hostess Brands from April 2014 to March 2018. “Our mission since Hydrofarm’s founding 40 years ago is to empower growers and provide value to our customers,” says Wardenburg. “Hydrofarm is in great hands under Bill’s proven leadership and poised to continue to deliver on our mission as we further evolve as a company and execute our long-term growth plans.” Hydrofarm has nine distribution centers across North America.

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Industry BUZZ Canopy Growth Awarded Hemp License in New York

Canadian cannabis corporation Canopy Growth is getting its foot in the door of the US hemp industry thanks to receiving a license from the state of New York to process and grow hemp.

Hemp recently became legal in America with the signing of the Farm Bill in December. Canopy plans on investing between $100-150 million to establish the Hemp Industrial Park. “In New York, we see an opportunity to create products that improve people’s lives. In the process, we will create jobs in an exciting, highly profitable new industry,” says Canopy co-CEO Bruce Linton. Canopy Growth will be the anchor business in the broader Hemp Industrial Park, where third parties can join an innovative hemp ecosystem focused on every potential application of the hemp crop, from fiber, to seed, to cannabinoids. Canopy plans to source hemp exclusively from American farmers for its American operations and believes the Farm Bill has the power to create a thriving new industry.

Barrons Lighting Group Hires Growlite Sales Manager

Mark Thomas has been hired as the new sales manager for Growlite, a subsidiary of Barron Lighting Group. Thomas will take on the role and help accelerate the continued growth and ongoing sales of the Growlite business team, while shaping the brand and its product offerings. “We are excited to add Mark to our team. He brings a strong sales and marketing background, and a commitment to excellence in the horticulture lighting industry,” says Alan Tracy, president of Barron Lighting Group. “At Barron, our commitment has always been to provide best-in-class customer service while providing industry-leading products. With the addition of Mark as sales manager, this will allow us to expand our efforts and capabilities for the Growlite line of horticultural lighting products.” Thomas went to Youngstown State University and, prior to joining Barron Lighting Group, was director of sales and marketing with Eye Lighting International.

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OPTEC International Signs Exclusive Distribution Deal with Pro-Sun LED

Pro-Sun LED horticultural grow lamps will be distributed in North America by OPTEC International after the two companies signed an exclusive distribution contract.

OPTEC announced the first shipment of the ProSun LED grow lights were delivered to its Carlsbad, CA, facility in January. In December 2018, US Congress passed the Agriculture Improvement Act of 2018 (the Farm Bill that legalized hemp across America). As LED lighting is widely used in the cultivation of hemp, demand for LED grow lighting is expected to increase. The global LED plant lighting market reached about $224 million in 2018. Lighting industry experts estimate the market for LED plant lighting will reach $633 million by 2022. Pro-Sun LEDs are one of the few passively cooled LED lighting solutions for cannabis and hemp growers. They use a series of proprietary diffusion lenses which simulate natural daylight and enhance the grow cycle.

Argus Control Systems and Hydrofarm Announce Partnership

Hydrofarm and Argus Control Systems have launched a strategic partnership where Argus will provide advanced environmental systems and services for horticultural production in Canada and the US. “Argus and Hydrofarm are aligned in our deep horticultural history and passion for technological advancement,” says former Hydrofarm CEO Peter Wardenburg. “Together with Argus, we are able to provide clients with a customized controls solution that will enable them to achieve their goals.” Argus provides advanced environmental control systems customized to each grower’s needs. Hydrofarm, based in Petaluma, CA, is a leading independent manufacturer and distributor of more than 4,600 hydroponic products. High growth and increased needs for services are anticipated within the industry this year. Argus, which is based in Surrey, B.C., and Hydrofarm have strategically aligned to meet the needs of this challenging growth. Hydrofarm has seven distribution centers in the US and two in Canada.

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Industry BUZZ Green Life Farms Announces Head Grower for Massive Greenhouse

An under-construction hydroponic greenhouse, Green Life Farms, has hired Gregory Graft as its head grower. Based in Boynton Beach, FL, Green Life will have a 100,000-square foot greenhouse that will produce baby leafy greens. Graft will play a major role in helping the fledgling operation begin preparing commercial operations in the immediate future. “Gregory is a seasoned expert in all aspects of the hydroponic industry,” says Mike Ferree, Green Life Farms’ vice president. “His 17 years of hands-on experience in managing a hydroponic greenhouse makes him a vital addition to the Green Life Farms team, as we work to establish ourselves as an industry leader in sustainable farming practices.” As head grower for Green Life Farms, Graft, a former marine, will oversee the facility and lead the day-to-day operations. He will be directly involved with growing operations and maintaining the greenhouse’s infrastructure and hydroponic equipment.

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Aphria Board Rejects Hostile Takeover Bid

Canadian cannabis producer Aphria’s board of directors has recommended rejecting a hostile takeover bid from upstart American firm Green Growth Brands.

Aphria announced the Green Growth bid “significantly undervalues Aphria relative to its current and future worth,” and would result in Aphria shareholders effectively giving Green Growth Brands shareholders a 36 per cent interest in Aphria in exchange for shares in a company with limited operations or other experience in the cannabis industry. Green Growth offered Aphria shareholders 1.5714 shares of Green Growth for each Aphria share.

“Regardless of their brazen attempts to suggest otherwise, GGB is asking Aphria shareholders to accept a substantial discount on their shares, as well as delisting from both the TSX and NYSE, resulting in a vast dilution of their ownership in Aphria,” says Irwin Simon, Aphria’s chairman of the board. “By virtue of our strong platform and competitive advantages, Aphria has multiple nearterm opportunities to profitably grow.”

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Cyco owner and director Shaun Jones answers our questions. cycoflower.com | info@cycoflower.com

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@cyco_nutrients

Prior to starting Cyco, I owned and operated a chain of hydroponic stores in Australia. At the time they were industry leading stores; it was in these stores that I saw an opening for an analytical, pharmaceutical-grade, and food grade product in the market.

HOW DID YOU GET INTO THIS INDUSTRY?

7 O’Çonnor Ct., Gepps Cross, South Australia 5094 +011-61-1-8359-8732 • 10 years in business

cyconutrients

WHAT DID YOU AND YOUR PARTNERS DO BEFORE STARTING CYCO PLATINUM?

MrCycoflower

I recall it vividly. I was 21 years old and freshly married, driving to my day job, and when I put gas in, I noticed I had $7 in my bank account. That day I drove past the local hydroponic store and saw people gathering to get in (back in the 1990s, Australia had huge growth with hydroponic stores and demand). I drove straight to the bank and borrowed $20,000 with which I opened my first hydroponic store. It was a huge success for me — 18-hour days, seven days a week for 10 years and we had a thriving hydroponic chain.

WHEN AND WHERE DID CYCO BEGIN? Cyco Nutrients started in 2008.

WHAT WERE THE START-UP YEARS LIKE?

They were very difficult times. Being based in Australia, it meant wherever in the world I traveled promoting Cyco, I knew it was going to be a long, time consuming, and expensive journey. For a young man with an equally young family, I was often away from home for weeks and months at a time living out of hotel rooms and suitcases. The travel sounds glamorous at first but after hundreds of flights you really do get very tired of it all, but it is something you have to do. I still fly out to quite a few expo/trade shows per year and don’t look forward to the long flights, but its great reconnecting with friends I have met along the journey.

HOW DOES YOUR COMPANY PHILOSOPHY TRANSLATE TO OPPORTUNITIES?

Connection with our customers: We will truly understand their needs better than any other company as we are all industry descending and have experienced retail, wholesale, and cultivation first hand.

Focus on the job at hand: In order to do a good job and fulfill our clients’ needs we must eliminate all of the unimportant situations that arise in day-to-day business and focus on our job at hand in the current moment — which is to provide the best product and service possible.

Represent: I have learned in business that people do judge a book by its cover. We may have the best product possible, the highest-quality product possible, etc., but if we present them in a careless manner, they will be perceived as slapdash products.

If we present them in a creative, professional manner, our clients will see and understand the quality, effort, and passion we apply to our business.

WHAT DID CYCO FIRST PRODUCE?

We first produced the core range of Cyco products for the Australian market and, as the line expanded into global markets, more products were developed to suit each country and the different growing methods they utilize.

WHAT WERE SOME OF YOUR STRUGGLES AS YOU STARTED THE BUSINESS? HOW DID YOU OVERCOME THEM?

Cyco Nutrients started as a small family business and as it grew, there was a magnitude of struggles; entering international trade and being recognized by international distribution was the hard part. Registering products in each country and each state, then having to explore those markets to see if it was possible to grow sales in each country and what marketing and support would be needed to do so. I feel we have succeeded in brand building and recognition, and now it’s a steady climb consisting of great business manners, relationships and loyalty amongst our distribution channels, retailers, and end users.

“

CYCO NUTRIENTS STARTED AS A SMALL FAMILY BUSINESS AND AS IT GREW, THERE WAS A MAGNITUDE OF STRUGGLES; entering international trade and being recognized by international distribution was the hard part.”

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“

OUR COMPANY IS ONLY AS GOOD AS THE PEOPLE SELLING OUR PRODUCTS

and I am very proud of the distribution channels and retailers we have aligned ourselves with.”

From Left: Morgan Sumner, Luke Gillan, Nathan Hunter, Holly Mail, Sasha Jones & Rachael Maur

HOW DID CYCO GAIN MARKET SHARE AND RECOGNITION?

Cyco Nutrients has always been at the forefront of the tradeshows, online marketing platforms, and magazines to our own forum and help center. In 2018, we participated in 20 trade shows and a magnitude of customer appreciation days. All aiding in the product support and in return helping our retailers, which relayed onto our end users.

HAS CYCO MOVED OR EXPANDED SINCE THE BEGINNING?

Cyco Nutrients has been moved four times in its growth cycle, as we grow out of each facility within a few years.

I simply did not think we would ever become the size we are; in saying that I am hoping the last move is hopefully our last. The latest facility we purchased has ample room for expansion as we built an extra facility next to the current one to allow for extra international growth, as I learned my lesson with the first few times. We brought the current facility in 2013 and revamped it for the purpose of fertilizer manufacturing.

The facility has the capacity to produce 30,000 bottles a day of all sizes and hold 3,000 pallets of back-up stock, giving our clients minimal wait times for their orders to sail.

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WHAT IS CYCO’S CURRENT PRODUCT LINE?

We have the original “Cyco Platinum Series” line of liquid products that has served our end users well over the years and I’m sure will remain our go-to product for most hydroponic growers. In 2018 we launched the “Outback Series” of dry fertilizers aimed at the outdoor/ greenhouse growers, and our latest product is the “Commercial Series” — a one-part powder solution which we developed with larger commercial grows in mind… look out for that one in the first quarter of 2019.

WHERE DO YOU DISTRIBUTE?

We distribute through leading distributors in each country; some of these distributors distribute into several countries which lightens our load and makes handling such a large market easier for us at head office. In Australia, we self-distribute and have Accent Hydroponics aid us in national distribution. In the United States we have the Hawthorne Gardening Co., and in Canada we have Hydrotek. In Spain we have Hortitec, and in England we have Eden Horticulture, and the list goes on. From our distribution channels, the Cyco products are then shipped to leading hydroponic stores in approximately 40 countries.

We found having strong relationships with our distributors works the best for our company and brand. I have never wanted to self-distribute as I was a store owner and understand the politics of manufacturers selling direct. We pride ourselves on working closely with our distributors and the trust we show each other as they know we will not sell direct to their hydroponic store clients, nor to the end users keeping our hydroponic retailers safe and making money — which I think is crucial to maintain a solid long-term product reputation and, for me, trust and relationships is everything for gaining growth and good business.

HOW MANY PEOPLE NOW WORK FOR CYCO?

Thirty in Australia and another 11 offshore giving us a total of 41.

WHAT ARE YOUR COMPANY’S STRENGTHS?

The quality of our product being the first and most important. The Cyco products are manufactured with the highest-grade inputs, our products are manufactured with analytical/pharmaceutical inputs which is perfect in a medical/recreational market resulting in its growing popularity in the medical recreation markets not to mention the numerous awards and growers cups it has won for its purity. Our second-most important strength is we manufacture all our own products in house — liquid nutrients, dry fertilizers, and rooting hormones, giving us full control of our own quality control and ensuring we deliver the best possible product to market and of the highest grade possible, time after time.

The third-most important is the staff we have and the representative team. I hand-picked all our representatives after years of studying the market. Each staff member has their own unique skills and strengths to help service our customers, so our clients can be assured our reps are all from this industry and know all aspects of retail and growing.

WHAT ARE SOME OF YOUR PROUDEST MOMENTS?

My proudest moments are most definitely the three beautiful children I share with my wife, Sasha, but as far as my proudest industry moments go, that is hard as there have been many! I think the one moment that really stands out was when my product, Cyco Platinum Series — the same product I had traveled all over the world promoting with many sleepless nights, ridiculously long plane rides, and many lonely nights away from my beautiful family — finally started becoming recognized as a top-shelf, high-quality product that I knew it to be. This led to Cyco being picked up by my first major distributor in the USA, an extremely proud moment for me after so many people had turned me away during the journey. This one event alone made it all worthwhile and I knew right there and then that Cyco as a business would never be the same again… We were playing with the big boys now. To further that proud feeling, in 2017 we secured our Canadian distributor, Hydrotek. Hydrotek has been a true pleasure to work with and has continually grown our Cyco customer base. It has been an absolute pleasure working with these guys on a day-to-day basis.

In July 2018 we were picked up for distribution in the United States by Hawthorne Gardening Co. (formerly Sunlight Supply). This made me extremely proud as in my eyes they are the mecca of US distribution and after working with them I truly understand why; their everyday professionalism, customer service and staff’s commitment is refreshing. A true joy to work with and we look forward to a strong healthy relationship in the years to come.

Watching the line grow with our distributors makes me extremely proud as the hard work we have all poured into the line for many years is now supported by the biggest distributors on the planet and what I call our working family.

Our company is only as good as the people selling our products and I am very proud of the distribution channels and retailers we have aligned ourselves with. As a result, the Cyco brand is a global leader, with full service across the US, Canada, Australia and Europe.

“

OUR SECOND-MOST IMPORTANT STRENGTH IS WE MANUFACTURE ALL OUR OWN PRODUCTS IN HOUSE — liquid nutrients, dry fertilizers, and rooting hormones.”

The list of proud moments is endless, and the journey of good business and growth are continuing for Cyco and we thank our global distributors in each country for making this a reality.

WHAT SIGNIFICANT THINGS HAVE YOU LEARNED SO FAR ABOUT THE INDUSTRY?

I have been in this industry for over 20 years and, in that time, I have seen the industry cycle multiple times. All the markets are as they have always been with exception of the United States. As the US industry corporatists, it becomes susceptible to commercialization.

This saturates the margins on the finished product, creating a need for stores to become market savvy and the idea of more online and commercial will become a reality, enabled by new product technology and often at a lower cost. Think portable calculators versus computers, Amazon versus bookstores, Netflix versus Blockbuster, or digital cameras versus film — Cyco versus the rest.

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WHAT HAVE YOU LEARNED ABOUT STARTING AND GROWING A COMPANY?

Where do I start with this one… I have learned that nothing good in life comes easy or everyone would have the same outcome. No success comes without a magnitude of work hours and a positive mind; coming to work each day for me is a lifestyle not a job, which I believe is the difference, giving me the stamina and mental strength to propel the company forward. To start a new company needs strengths in all aspects of the director’s life’s, and part of my success is due to the team I have around me and the family which allows me to work as many hours as I need, and still receive the hugs of my loving family.

I have always said if my products are better, my service is better, my trading hours longer, then how can I fail?

From left: Warren Hefferan, Shaun Jones, Angela Sabordo, Ben Trigg & Barry Martin

WHAT MAKES YOUR TEAM SO AWESOME? HOW DOES YOUR TEAM BOND?

The team at Cyco are located all over the globe. The main headquarters where all research, development, manufacturing, and shipping of the product to the rest of the world takes place is Australian-based. Our Australian retailers are serviced

by Ben T., our operations and sales manager, along with Barry, our national sales representative — two great guys. Accounts is taken care of by Angela, and we have our own in-house genius media guy, Warren.

Our manufacturing starts with Danny in the mixing tanks with a team of gents. Ben B. and Morgan run the bottling line with the line team. The bottling area is managed by Nathan, and international picking and loading is managed by Sasha (my wife), Rachael, and Holly (my lovely sisters-in-law) as they take care of final packing and shipping. It really is a family business, even my princess Olivia, my beautiful daughter, helps out during her time off schooling. Our US staff includes Chris (vice-president of sales and marketing), Brandon (national sales manager), as well as John, Velvet, and Jake, our US sales representatives. Gilles is our FrenchCanadian sales rep taking care of things in Canada (he is also a pretty good artist from what we hear), and Hugo is our man on the ground in Spain. In the UK and Ireland, we have Diarmuid (Dermott) — he takes care of everyone in the United Kingdom and Ireland… and the list goes on.

All these people make Cyco what it is today, and they are in fact… awesome.

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From left: Chris Keck, Brandon Conner, Velvet Loving, John Higby & Jake Armstrong

“

ALL THESE PEOPLE MAKE CYCO WHAT IT IS TODAY, and they are in fact… awesome.”

WHAT WORDS OF WISDOM CAN YOU SHARE ABOUT THE BUSINESS, THE INDUSTRY, OR THE FUTURE OF THE INDUSTRY?

It’s been said many times before and it’s become a bit of a mantra of mine that I impart to anyone willing to listen: “you can’t sell a secret.” You have to get out there and take your product, service, and sometimes even yourself to the people that need to see it. Also, be a hard worker and put in those long hours. There will be times when you think it is never going to happen and you feel like giving in, but you have to keep going. It’s those qualities that lead to success — that “never give up attitude” will take you a long way in this world. A goal is just a dream with a plan. If you can dream it then you can achieve it.

CUSTOMER THANK YOU!

I would like to thank our global distribution partners, retailers, and end users for the loyalty and support they show us day in day out. Our company and products are only as good as the people promoting them, so I am grateful for the very best brand ambassadors that support the Cyco line. I am extremely proud of what we have achieved all together!

Thanks for giving us the opportunity to grow with you, from my family to yours.

Respectfully, Shaun Jones at Cyco Nutrients.

Director / owner

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What were you doing before starting South Cascade Organics?

AWAKENING

Nature’s Potential

South Cascade Organics is a family business dedicated to bringing quality organic products that not only enhance gardens and farms but also enhance our environment. Newton Hayes explains the business’s humble beginnings, managing growth, and the joys of working with his wife and children.

Po Box 1557, Grants Pass, OR 97528 1-541-244-1802 • 7 years in business socascade.com 38

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We were farmers and gardeners. We managed an organic vegetable farm in the Applegate Valley here in Oregon. We grew seed for various companies and provided a diverse market stand of heirloom fruits and veggies at our local Saturday Grower’s Market. It was an amazing opportunity to meet amazing people and to give back to the community. We still have that passion for growing and continue to have a rather large garden every year at our homestead.

What prompted you to get into this industry?

We saw a gaping hole in the industry for a product that could effectively and safely break down salts and allow them to be utilized. All the products we saw that dealt with salts helped to flush salts out of a system by immobilizing the nutrients, rendering them useless. So, the previous answer was the same company that sells me salt-based nutrients sells a product that binds up the original product to flush it all out of my system? That seemed backwards. Why not utilize those salts. SLF-100 has many other useful side effects but breaking down salts effectively and safely is where it shines and that was our intro into the industry.

It was a simple operation to start, wasn’t it?

In January of 2012 my wife and I started SCO in our rented ’65 mobile home on 2.5 acres, with our four kids. We all bottled in an extended porch area off our house. Our kids were young at the time, so our back stock would get an occasional run by coloring.

The stress of starting a business really took a toll, didn’t it?

Our first couple years were quite a trial. I was struggling with Crohn’s disease and the stress of starting a new business really got to me the first year. In early December 2012 I woke up to excruciating pain in the middle of the night. I had pain like this regularly from Crohn’s but this time seemed a bit different than the others. After a rather long ride to the ER we found out that my intestines had ruptured and shortly after I was in exploratory intestinal surgery. I lost 22 centimeters of my small intestine and remained in the hospital for 10 days recovering.

The stress of starting a new business is real. After my surgery I began a journey for my own personal health and the health of my family. I really learned that food and lifestyle choices can have a large impact on the way you handle stress. I have had close to no issues from Crohn’s disease since my journey began.

How does family factor into SCO’s philosophy?

Our company philosophy is really family first and improving our environment.

Our first environment is our family.

There are so many broken families today — I come from one — and it’s been my goal to change that, at least in my personal space. Beyond our emotional

environment is our physical environment and a lot of what we decide to put in to our physical environment doesn’t seem to translate into health. SLF-100 is our only product and it was created to clean, stabilize, and remediate issues in our environment. It goes hand-in-hand with our personal beliefs. This philosophy creates healthy environments. Healthy land produces healthy food and healthy food makes healthy people that can create opportunities for growth instead of a dependency on health care. If we all play our part, we can reclaim this ground.

What products do you make?

SLF-100 is our first and only product to date.

Were there any bumps in the road early on?

Our biggest struggle in business was realizing who our friends were. We are farmers, not business people. We really didn’t have an idea the lengths people will go to take advantage of others.

We trust people maybe more than we should. We haven’t lost our ability to trust people, we’ve just gotten better at recognizing the weeds.

“

Our company philosophy is really

family first and improving our environment.”

Considering the learning curve on trust, how did you gain market share?

We gained market share through correct education, honesty, and samples. We believe in our product and know that if someone can just try it, they’ll see it.

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“

The gardening industry is so vast, yet we tend to focus on one crop when

there are so many different angles for anyone to journey down.”

There’s so much consumer de-education through marketing designed to make the consumer feel like they’ve learned something new. When, in fact, they’ve been de-educated and duped into a marketing ploy. It all started with Bernay’s Public Relations (propaganda) in the 1920s and its only gotten worse since. We believe that our customers are smarter than we are, and product sampling is a way for them to use their expertise to come to a conclusion.

We suspect you’re not hand-bottling on the front porch anymore?

We have moved several times, each time moving to a larger facility. We’ve needed to expand since the demand for SLF-100 has increased. Bottling by hand isn’t an option anymore. We’ve automated but not to a point that we don’t need hands-on and I don’t imagine us ever getting to that point.

Where does South Cascade Organics distribute?

We currently distribute only in the US. We have labels arriving any day now for Canada and hope to have product there early 2019 and eyes on the UK. We will see what 2019 has to offer.

Are the kids still helping out?

Currently we have four people working for the company. My wife and I and our four kids.

What is a vital asset required when starting a company?

Patience.

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What are SCO’s strengths?

Our strength as a company has to be our relationships with our customers.

The involvement with our customer base makes South Cascade Organics what it is and without them we are not a company. We want to be involved with our customers, we want to answer questions through email or phone calls.

We want to treat our customers the way we would want to be treated.

Any proud moments you want to tell us about?

Recognition from customers has to be our proudest moments. Every once and a while we receive an email thanking us for saving a garden or thanking us for creating a product that works so well.

Being able to connect with so many people around the country and participate in their lives means the world to us.

Finding some of the best honey through a customer on the coast of Oregon, some of the best coffee from customers in Hawaii and going to dinner with friends in Massachusetts. These are the proudest moments in business.

What have you learned about the industry over the past few years?

That for the most part customers in this industry have huge hearts. They really care about each other and the businesses they decide to partner with.

Also, the diversity of the industry is huge, I can be talking to a 20-year-old cultivator in Michigan about her issues in hydroponics one minute and the next a 70-year-old organic gardener in the Pacific Northwest about his bees.

Top Photos Lettuce by verdegreens Bottom Photos Microgreens by High Hill Hydro

. . wwwwsocascadeecom

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Maximum Yield is excited to announce that Maximum Yield Cannabis is now available on select magazine stands across Canada and the USA!

“

The involvement with our customer base makes South Cascade Organics what it is and

without them we are not a company.”

Any words of wisdom you’d like to share?

The gardening industry is so vast, yet we tend to focus on one crop when there are so many different angles for anyone to journey down. Don’t get held down by one crop — diversify. Even if that one crop is the bread winner, choose to grow other things especially if you’re in soil. The diversification will only lead to an improved environment for you and your family and for your bread-winning crop. Let’s learn from the monocropping industry and find ways to improve agriculture, horticulture, or just simple gardening.

Share a favorite story from a day on the job.

Has to be when my daughters would help bottle samples and at the same time pretending the bottles were people getting ready for work – drinking (filling), then putting their “cap” on, getting dressed (label) and getting on the bus (boxing).

It must be great getting to work with your family.

growing with you since 1998 maximumyield.com

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I can be direct with them and they don’t quit.

We love getting lunch together and we really work together very well (a crossover from farming together). Every box that goes out gets a prayer, not only that they would survive shipping, but that they’d come with a blessing to each distributor, store owner, and customer.

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THE GROWTH OF URBAN FARMING IN THE US

by Kent Gruetzmacher

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While still a nouveau industry in America, urban farming is gaining traction and slowly garnering more attention from investors and policy makers. With companies like Plenty leading the way, urban farming is making strides in the US.

T

he US urban agriculture movement can be traditionally defined as anything but mainstream. Urban farming finds its roots in hyper-localized communities looking to produce fresh food within urban centers as well as in the somewhat obscure confines of the indoor gardening tradition. With these notions in mind, the question of whether the urban farming industry is growing in America should be met with a resounding “yes.”

Last year was a momentous year for the movement, as government entities and large-scale investors alike showed unquestionable interest in both the financial and societal benefits of urban agriculture. To tie it all together, rapid progressions in cultivation technology have made certain commercial applications of controlled environment agriculture (CEA) profitable for the first time. Yet it’s still fairly difficult to pinpoint how this forward momentum will sustain itself, and just how fast the industry is growing overall.

“ All in all, Plenty’s jump into the limelight of Wall St.-level finance speaks to the growing attention the urban farming sector is receiving on a number of levels.”

Funding and Growth

Sophisticated investment parties are increasingly looking to the urban farming sector for viable financial growth opportunities. Plenty, a vertical farming corporation, received unparalleled capital in August 2017. The San Francisco-based company received $200 million in Series B funding, making the deal the largest agriculture-tech funding round in history.

Behind the massive financial backing is the Softbank Vision Fund, a financial operation representing some of the world’s savviest investors. All in all, Plenty’s jump into the limelight of Wall St.-level finance speaks to the growing attention the urban farming sector is receiving on a number of levels.

In the highly money-driven culture of modern America, large-scale funding efforts, like seen with Plenty, set the stage for additional public interest. Along this line of thought, sophisticated investment parties are generally more in the know than the average US citizen concerning business trends, including trends tied with food procurement. On this note, industryleading business people and intellectuals alike feel the investment makes indoor agriculture even more commonplace. Interestingly — and seemingly against the profit-driven norms of large-scale financial interests in America — the Plenty funding situation infuses capitalist economics with a movement rooted in solving global issues about healthy eating, food sustainability, and environmental awareness. That being said, this situation might present a rare case where keeping up with the Joneses means developing an appreciation for local, sustainable food production. If the financial figures surrounding the Plenty deal are any indication, vertical farms could become a standard source of produce in years to come.

Government Policy

The urban farming movement has also gotten the attention of key US political figures. In September 2016, Michigan Senator Debbie Stabenow introduced the Urban Agriculture Act to US Congress. This unprecedented legislation set forth to amend the USDA’s Farm Bill by implementing government programs within the urban farming sector, essentially giving them similar rights and perks as traditional farms. While Stabenow’s bill expired, Ohio Congressional Representative Marcy Kaptur kept urban farming legislation alive in the current session of Congress with sponsorship of the Urban Agriculture Production Act of 2017. Yet, many experts don’t see urban farming as a major priority for the conservative decision makers currently dominating Congress, which seriously lessens the chances the bill will get voted into action. Nonetheless, the simple fact the urban agriculture movement has gained the attention of US policy makers speaks to its overall advancement into a mainstream industry.

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or business owner who could make a real difference.

Not to mention, I don’t see any of the bold-type vertical farming companies doing anything significantly different, like introducing any new varieties, reducing prices, or increasing nutrient density.

I also think it’s placed unrealistic expectations on the industry and I don’t feel that the (venture capitalist) metrics work in agriculture. In my opinion, business is meant to be cash-flow positive and the operator needs to be realistic, passionate, curious, dedicated, and focused on what they’re doing. Raising money should come after you’ve proven your business model.

How does the US vertical farming industry compare to the industry in Europe?

“ I see a steady increase in urban farming, vertical farming, and controlled environment agriculture in the future.”

Q & A WITH AN URBAN FARMING INDUSTRY LEADER: GLENN BEHRMAN

Industry News reached out to vertical farming authority Glenn Behrman to gain a clearer understanding of exactly what sort of evolutions the US urban agriculture industry is undergoing. Behrman is the founder of GreenTech Agro LLC, a vertical farming technology company best known for the development of the Growtainer and the Growrack. Both progressive pieces of equipment function as inclusive indoor gardening structures, with the Growtainer providing a totally comprehensive cultivation environment. Behrman is also the founder of CEA Advisors, which is a group that was developed as a vehicle to move CEA to the next level. Here is what Behrman had to say:

What sort of changes have you seen happening in the vertical farming industry in the past 10 years?

First of all, I’ve seen a growing interest in this quickly-evolving method of production. CEA production is not looked at in the same way as traditional agriculture because vertical farmers have unlimited harvests and can operate outside the constraints of weather and seasonality. Also, modern growers don’t need to find land when they can simply rent a warehouse in town.

Finally, farming today has become a lot less labor intensive and a lot more scalable. Vertical farmers have a lot more choices for their operations as well as a lot more access to products such as crop specific fertilizer blends, substrates, control systems, soil mixes, and wavelength-specific, energy-efficient LED lighting. Also, they have access to different types of production systems such as hydroponics, aeroponics, or aquaponics.

How has an influx in investor money, as seen with the $200 million Plenty received in summer 2017, affected the industry?

I’m not so sure it’s a good thing. First of all, funding is not a business model. Also, these inflated amounts of investor money might scare away the small investor 46

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I’ve done projects in Holland, Spain, Germany, and the UK, and I have a lot of friends in every facet of the international horticulture industry, including entrepreneurs, growers, and suppliers. I think the EU vertical farming industry is slower growing, and based on a lot less hype and a lot more reality. Pioneers in vertical farming in the EU seem to be entrepreneurial but more focused on the business case and trying to fill a value-added need. I also think EU vertical farmers are more creative, self-sufficient, and realistic.

Thus far, urban farming has been organized by grassroots efforts or state-sanctioned research and funding programs. How would the passage of the Urban Agriculture Production Act of 2017 in the US Congress change the industry?

The bill, if passed, could be a positive thing for urban ag — if it gets some fine tuning. But, the prognosis for its passing (is) not good. After reading the bill, I’m also concerned that it doesn’t open the door wide enough for the entrepreneur. I feel that it has too much of a bureaucratic government point of view because it lacks input from the potential beneficiaries in urban farmers.

I also wish that there was reference to forgiving student loans to students in agriculture programs. I think the government bill can encourage young people to consider farming as a career, but it doesn’t quite go the last mile.

Looking forward, what do you see as the future of urban farming in the United States?

I am optimistic. I see a steady increase in urban farming, vertical farming, and controlled environment agriculture in the future. There will be a few industry hiccups and some high-profile failures, but that’s normal business in a developing industry. On the positive side, I see more interesting, creative, and innovative projects being developed. I want to think that entrepreneurs’ attitudes in the space today are slowly beginning to mature and become more focused on best use, innovation, and economics.

The ebb and flow of America’s urban agriculture industry is indicative of a marketplace that is still largely in start-up phase. That being said, there are exciting opportunities and prospects related to both investment interests and government programs. However, as eluded to by Behrman, how the stability of these developments will affect the overall industry progress largely remains to been seen. Either way you cut it, the simple fact urban farming is receiving the attention of mainstream demographics in the US speaks to an industry experiencing growth.

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GREEN LIGHTING HEALTHY HEMP IN AMERICA

by Lee Allen

With the passing of the new Farm Bill, the hemp industry is expected to explode in the US. Lee Allen looks at what it means for America, and how hemp has impacted a small business in Arizona.

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fter being in limbo for nearly 100 days past its expiration date, the twice-in-a-decade A legislation that guides the future of America’s

breadbasket finally got its latest renewal in mid-December with final congressional passage of the latest Farm Bill.

The New York Times called the measure “one of the most politically sensitive pieces of legislation that balances demands of urban legislators with rural lawmakers seeking to protect farmers,” adding a quote from senate agriculture committee member Debbie Stabenow, who indicated “It’s a good bill for farmers, and everyone who eats.”

The 807-pages of legislation does many things like lifting a 100-year-old prohibition on commercial hemp, authorizing production of, and ending the legal ambiguity of hemp cannabidiol (CBD), thus freeing up the product as a supplemental and alternative crop.

Above: Senator Mitch McConnell Below: Governor Doug Ducey

Even Kentucky Senator Mitch McConnell, who stalwartly opposes the legalization of cannabis, became a champion of industrial hemp in the belief it could replace tobacco as a key crop for his state’s farmers. He tweeted: “My provision to legalize industrial hemp is one step closer to reality,” as he signed the bill — with a pen made from hemp.

As written, the Farm Bill fully removes industrial hemp from the list of controlled substances as long as the crop contains less than 0.3 per cent of (tetrahydrocannabinol) THC, the psychoactive chemical responsible for a marijuana high.

Both wacky tobacco and hemp come from the same species of plant (Cannabis sativa) and both contain THC and CBD with each plant its own unique strain.

Hemp plants are higher in CBD which boasts several therapeutic benefits. The bill may not be the answer to all the vagaries involved in the controlled substances world (marijuana is still a Schedule 1 drug, while cocaine is Schedule 2 in the US), but it is expected to unleash a pent-up potential marketplace for hemp products that are high in CBD — an estimated $1 billion industry which is predicted to more than double by 2022.

“After being prohibited for so long, we believe American industry is trending towards bio-sustainability and hemp will play a critical role in the establishment of this new economic paradigm.

We are committed to shifting the perception of

IT I S E X P E C T E D TO UN L E A S H A PENT-UP POTENTIAL MARKETPLACE FOR HEMP PRODUCTS THAT ARE HIGH IN CBD

— an estimated $1 billion industry which is predicted to more than double by 2022.”

hemp from an ‘alternative crop’ to a mainstream commodity,” reports the non-profit National Hemp Association in Washington.

“Currently the infrastructure to process raw hemp is almost non-existent throughout the US and we import hemp fiber, hurd, and hemp seed while the United States represents 90 per cent of the worldwide market for hemp products, a market that grows 10 per cent per year.

Industrial hemp is a business, an agricultural and an environmental story about a sustainable crop that requires no pesticides or chemical inputs, is drought tolerant, and could provide a source of tens of thousands of jobs in the US.” Colorado has been a leader in hemp circles with upwards of 300 growers producing plants at 400 sites over the last four years representing more than 6,000 acres planted and more than 1.25 million square feet of indoor production. That state also became the first in the nation to develop certified seeds for industrial crops that can be made into a wide variety of food products like bread and milk, used as livestock feed, or found in the fabrication of textiles, paper, plastics, solar panels, and biofuel. Those certified seeds are not only free of weeds and disease, they also comply with the crucial under-0.3-per-cent THC requirement.

Anticipating ultimate federal approval, Arizona Governor Doug Ducey signed legislation, in May 2018, authorizing farmers in that state to grow hemp, giving them new income options from a product likely to grow well in a desert environment.

In a prepared statement, the governor noted his action “opens the possibility of a new agricultural product that could have a positive economic impact.”

The law, which takes effect in Arizona this summer, precludes anything with a THC concentration of more than 0.3 per cent and limits product growing to those certified by the state Department of Agriculture.

Because hemp uses 90 per cent less water than cotton, one of Arizona’s favorite staple crops, it should be well-received because farmers can anticipate up to four cuttings a year.

According to the National Conference of State Legislatures, more than three dozen other states are joined with Arizona in passing laws related to the cultivation of industrial hemp.

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Chris and Andi Martin, Hempful Farms

TH E R E I S A H U G E C H AI N O F E V E NT S TAKING PLACE AND, AS A PATIENT, A BUSINESSMAN, AND A HUMAN BEING, I’m ecstatic to be a part of it.”

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Under the mission of proving hemp can heal, Chris Martin and wife, Andi, run Hempful Farms in Phoenix, a business with a backstory.

A professional chef with some health problems of his own, Martin had been involved in the opening of 10 restaurants, like the infamous Zonka Bars, aimed at showing the world the healing power of cannabinoid-infused food and drink. It was an endeavor that ran afoul of what he called ambiguous medical marijuana laws that resulted in him becoming ‘a Guest of the State’ for misinterpreting those statutes. “I used my daily 15-minute phone call to raise money and bring in partners, anything that would help make my businesses grow,” Martin says.

After paying the price for that misunderstanding, Martin opened the Hempful Farms and Paw Puddy Store in Phoenix (and Chico, CA) in January 2018 to dispense CBD products, marketing more than 100 offerings “for people, pets, and pain management.”

Concerning the new Farm Bill, he says: “There’s a huge chain of events taking place and, as a patient, a businessman, and a human being, I’m ecstatic to be a part of it. To see where we are now is super exciting by any measure, and I’ve got seed and cultivar waiting to go when applications are invited a few months from now. We’re staging ourselves to be at the front of that line when the door is opened.”

Currently, the Martins buy raw hemp from small family-owned farms in Colorado and Oregon and have a couple of 30-acre parcels in Arizona under consideration for self-grow. “We hope to franchise nationally and I’d like to see a farm in every state pumping out product for their stores,” Martin says.

In the meantime, Hempful Farms Café, the state’s first hemp-infused restaurant, is slated to re-open attached to the retail product store. “We’re kind of like a Cracker Barrel of Hemp — order your food, go shopping, and both healthy plate and healthy products will be available at the same time,” says Martin.

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51

FUSARIUM WILT:

Unwanted

& Unwelcome Feared because it is virtually impossible to get rid of, fusarium wilt is wreaking havoc on lettuce and other field and greenhouse crops. Lee Allen explains how the fungus is being studied, and if there is any hope of stopping it.

F

usarium wilt, a soilborne pathogen, is like that relative you just can’t stand — the one you aren’t happy to see when he shows up because you know once he arrives, he’s going to be around for a long time.

That unwelcome arrival was first reported in Japan in the 1950s before it started to spread, arriving in California (primarily Fresno, Monterey, Santa Cruz, and southeastern Imperial County) in the early 1990s. Then it hit the western Arizona lettuce fields, where it was first spotted in 2001 before it really began to branch out. “It’s marching around the world,” says Barry Pryor, a researcher at the University of Arizona (U of A).

Fusarium wilt is dreaded by those who farm open fields as well as those who grow under glass. It will attack tomatoes and can render iceberg and romaine lettuce unmarketable.

“It’s boxing growers into a corner, unable to meet market demand at certain times of the year,” says Paul Brierley of the Yuma Center of Excellence for Desert Agriculture (YCEDA), where fusarium wilt on lettuce management techniques is their top priority.

“Other soilborne diseases are treatable. Fusarium wilt of lettuce is not,” Brierley warns. “Once you’ve got it, it’s there to stay because we don’t yet know a good way of getting rid of it.”

The aggressive pathogen causes disease in lettuce but may be sustained on the roots of many plants, according to researchers from the University of California. It exists in three categories — Race 1, Race 2, and Race 3. Race 1 is found in lettuce and favors high soil temperatures.

Once introduced into a field, the fungus will probably remain indefinitely.

While lettuce and tomatoes are susceptible to Race 1, Race 2 and Race 3 will attack a variety of crops like peppers, soy beans, eggplant, and potatoes, which are especially vulnerable to Race 3.

Field Trials Ongoing

by Lee Allen photos courtesy of JV Farms

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The U of A and YCEDA began a public-private partnership more than three years ago, collaborating with lettuce growers in Yuma — where 90 per cent of America’s winter leafy green vegetables come from — to figure out what to do with the disease that causes so much loss. Researchers say about $9 million in lettuce is lost annually in Yuma fields alone.

Brierley’s researchers have been examining several different angles involving the pathogen by working with it in trials in heavily infected fields. “You need trials to be ongoing with current seed varieties and soil combinations as well as current biological and chemical products, which, to date, have been discouraging to be honest,” says Brierley. “We haven’t found anything to be effective yet.”

Steaming infected garden beds and breeding resistance into seeds are two methods being discussed, as is genomic analysis. “We’re working with a start-up company on genomic sequencing and DNA analysis of the soil, so they can tell in a single analysis what different types of soilborne diseases might be present, as well as different pressures expected for the disease,” says Brierley. “That would offer advanced indication of what kind of pressure you’d have for Fusarium wilt as you decide where to plant your lettuce.”

“FUSARIUM WILT IS DREADED

by those who farm open fields as well as those who grow under glass. It will attack tomatoes and can render iceberg and romaine lettuce unmarketable.”

Dependent on Heat

Fusarium wilt is dependent on heat, a big problem in the Yuma area. “The problem is mainly in our fall crop planted in September when it’s still 100°F-plus in the field,” Brierley says. “When we plant winter lettuce in the November timeframe with cooler temperatures, we have virtually no problem at all.”

But avoiding the hot months when planting isn’t an option. “We plant every day because lettuce is a perishable commodity that requires daily delivery.

Waiting until temperatures drop a bit would be nice, but the product is driven by market demand and existing contracts,” added Brierley.

Seed companies are also involved in the trial research, seeing if they can breed a variety that will fight Fusarium.

In one field trial, Fusarium wilt had a 98 per cent kill rate, but there were two seed varieties from one company that mostly survived it. If those seeds can withstand further testing, they may become a commercially viable option.

Type of soil is another area to study as some soils holding plants with Fusarium didn’t lead to actual plant damage.

Researchers are experimenting with fumigation — killing everything in the soil to eliminate disease — and biome build-up, creating a stronger, healthier environment in the soil to naturally fight off disease.

Mike Matheron and Barry Pryor split Fusarium research duties — Matheron in the open field, Pryor doing greenhouse research. “I focus on variety of product rather than the soil it’s grown in. I’m looking for head lettuce cultivars that are resistant to the disease,” says Matheron.

“There aren’t many that are… and that’s the problem.”

Currently studying the disease and its relationship to different types of soils, Pryor is using polymerase chain reaction-based technology and loop-mediated isothermal amplification methods to determine how long it takes the lettuce to become infected after pathogen exposure.

“The great thing about these methods is we can now have detection in the field in as little as 20 minutes,” he says.

While wilt research continues with a hint of hope, Yuma lettuce farmers contend with today’s realities. Matt McGuire of JV Farms, which has more than 5,000 acres of iceberg and 3,000 acres of romaine, says farmers have become more production- and schedule-oriented in volume and timing of harvest. “We need the right volume on a consistent basis because our product isn’t storable like grains or dry goods,” he says.

Top: A closeup of diseased lettuce plants, showing yellowing and stunting. Above: The image shows (from the right) rows of dead and diseased head lettuce plants, then two rows of much healthier head lettuce (each row contains one of the resistant varieties mentioned), then the next two rows contain healthy romaine lettuce. Below: Aerial photographs of lettuce field photo shows how certain areas of the field can be infected (brown patches) while others are fine.

McGuire says cultural practices, seed treatments, chemical treatments, and field rotation have yet to show any positive effects. Only the seemingly resistant seeds and DNA soil testing that identifies infected fields are maintaining hope. “We should see more new items like this in the coming years, but those, presently, are the only things that give me optimism,” says McGuire.

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HOW GOOD IS YOUR

? e n i L t n o Fr Your front-line employees can make or break the experience your customers receive, and that experience has a big impact on your bottom line. Donald Cooper highlights the importance of the frontline staff and how to keep them motivated.

By Donald Cooper

Y

our front line, whether it’s faceto-face, over the phone, or by email is where customer relationships are developed or destroyed.

You can have all the best intentions at the top of your organization and you can create great marketing programs, but the folks who deal with customers can trash it all.

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Last week my brother Robert received an email from Harvey’s (a large Canadian hamburger chain) wishing him a happy birthday and offering him a free hamburger. All he had to do was to present the email to his local Harvey’s location.

His celebratory hamburger was okay but not super yummy. In fact, it was cold and didn’t come with the toppings he ordered, and the employee who served him was miserable to the point of being insulting.

Harvey’s went to a lot of trouble and expense to build a relationship and a loyal customer and it was all destroyed on the front line.

So, here are five “Reality Checks” for your business or department: REALITY CHECK 1:

Are your front-line people effectively screened for aptitude, attitude, and values, or are they chosen at random or, even worse, out of desperation?

These people are delivering your brand promise one customer at a time, every day. If they’re the wrong raw material in the first place, you’re in big trouble.

REALITY CHECK 2:

REALITY CHECK 4:

Do you acknowledge, thank, celebrate, and reward success? And, are you dealing effectively with non-performance by inviting poor performers to move on? One of the biggest problems in many businesses today is the failure to deal with non-performance.

REALITY CHECK 5:

Have you created a business environment in which frustrated employees feel comfortable coming to you with their concerns and ideas? Or are they taking their frustration out on your customers and driving them away?

When I run into crappy service, I gently ask the front-line staff, “Why do you do that?” and the response often is, “We know it’s wrong and we keep telling our bosses, but they won’t listen!”

They always say this with great sadness and frustration. In this kind of business environment, the good people leave and the bad ones stay and take “I don’t give a damn pills” and hope that you don’t notice.

So, using the five Reality Checks above to jump-start your thinking, what will you do to create a powerful frontline team that has the personality, information, desire, and incentive to build value-added relationships with your customers? Sit down with them and ask what help, support, and tools they need to be effective brand ambassadors in your business.

Do you have clear and specific sales, service, or other performance commitments for your front-line staff, along with clear standards of behavior? In other words, do these people know exactly what’s expected of them and why? Were they involved in setting those commitments and standards?

Do they embrace them? If not, why? Do you share with them how they’re doing, individually “ ARE YOUR FRONT-LINE PEOPLE and as a team, PROPERLY TRAINED ON AN compared to ONGOING BASIS? REMEMBER, where they need to be to deliver TRAINING IS A PROCESS, their revenue, service, and other commitments?

not an event.”

REALITY CHECK 3:

Are your front-line people properly trained on an ongoing basis?

Remember, training is a process, not an event. Are they given the information, processes, policies, and empowerment to do their job effectively with as little stress as possible? I’ve seen surveys showing that 70 per cent of employees believe that they’ve not been properly trained to do the job that they’ve been given.

Is that happening in your business?

Donald Cooper, MBA, CSP, HoF, has been both a world-class manufacturer and an award-winning retailer. Now, as a Torontobased international management speaker and coach, he helps clients rethink, refocus, and re-energize their business to sell more, manage smarter, grow their bottom line, and have a life. Donald can be reached at 416-252-3703 or by email at donald@ donaldcooper.com. For more info or to receive his free ‘straight talk’ management blog, go to donaldcooper.com.

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55

MARKET YOUR BUSINESS How to

Two years ago, Forbes named Grant Cardone the top marketer to watch going forward.

He shares his insights on some of the best ways to market your business.

by Grant Cardone

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I

n 2017 I was named Forbes’ number one marketer to watch, and since that time I’ve grown as a marketer and I want to share with you how to market your business better. Marketing is not difficult, but it does take commitment.

Your Most Effective Marketing Tool

When most people think of marketing, they think flyers or commercials or some sort of paid ad and then don’t think about people being a marketing tool.

The most important and effective marketing tool in your company are the people in your company. The fact that you don’t demand of yourself or them to market is the error.

The world is spending unbelievable amounts of time on the internet doing research or using social media platforms.

The more those sources are being used to reach and communicate, the more valuable the personal contact becomes.

You should absolutely dominate your market using virtual marketing to keep your clientele thinking about you, but don’t let that be your sole dependence when you think “marketing.”

What about making a personal visit or writing a personal letter? Don’t use one avenue to market, use them all, even old school: “John, I am five minutes away and wanted to stop by and say hey.”

The Most Important Marketing Tool You Have is You and Your People

You are in the people business, not the billboard, social media, or YouTube business. You want to be everywhere.

Send emails, make phone calls, do personal visits, and dominate with other traditional and non-traditional means of marketing. Taking a few minutes to just see how someone is doing will guarantee you a much higher chance of earning their business down the road.

Remember, if you take a smart, consistent, personable, and aggressive approach to marketing you and your business, you are guaranteed to find success.

You are a Business

How do you market and brand yourself and your business to have massive growth? Some business owners think that if they have a product or service then, like magic, customers will come and they’ll be a success. But real entrepreneurs just don’t sit around or rely solely on advertising to build a brand. A fundamental quality of

“THE MOST IMPORTANT AND EFFECTIVE MARKETING TOOL IN YOUR COMPANY ARE THE PEOPLE IN YOUR COMPANY.” successful entrepreneurs is the mindset and willingness to do whatever it takes to build a company that makes money and changes the world.

A while ago I had the great privilege of working with Joan Rivers. You may remember her for a TV show called, How’d You Get So Rich. Unless you had ever met Ms. Rivers you would only know her for what you had seen on television — a bold, brash, raunchy comedian with no boundaries. When I met Joan Rivers I realized how little I knew about her.

She showed up at my home in Hollywood at the age of 79 after a full day of work and a cross-country flight from New York to Los Angeles. She showed up face-lift positive, with the attitude of a 20-year old in love, grateful to be working, and demonstrated a whatever-it-takes work ethic. At Joan

Rivers’ funeral a few years later, her friends talked about her as more than just Joan Rivers but as though she had become a symbol or a brand for them.

This got me to thinking about branding. The Merriam Webster Dictionary defines branding as, “the process involved in creating a unique name and image for a product in the consumer’s mind, mainly through advertising campaigns with a consistent theme.” But does branding always require advertising? Does advertising always require you to spend money? I don’t think so. Joan Rivers proved that branding and advertising were a result of her actions, not what she spent. What is the brand you are creating?

Your Brand is the Most Valuable Asset You Have

Your brand will determine your value in the marketplace. Your brand ultimately determines your success. So, figure out what you offer and what you stand for.

What’s your special “thing?”

Spend time on your brand every day, enhance it; reinforce it to let the world know through your actions that is who you are.

Grant Cardone is an international sales expert, New York Times bestselling author, and radio show host of The Cardone Zone.

He has founded three companies: Cardone Enterprises, Cardone Real Estate Holdings, and the Cardone Group. He has shared his sales and business expertise as a motivational speaker and author of five books: Sell to Survive; The Closers Survival Guide; If You're Not First, You're Last; The 10X Rule; and Sell or Be Sold. Article Source: grantcardone.com.

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