Dealing with Destruction (Inventory) in the Industry

Every industry has its share of loss—restaurants toss uneaten food, tech companies burn through peripherals—but when it comes to that good-good, the thought of destroying it can make any stoner cringe. For those who truly love the plant, the idea of tossing out perfectly good looking stuff feels almost sacrilegious. I’ll admit, ive used the five second rule before, especially if it was really dank. But once you’re a license holder, even the most tempting stash needs to go.

Learn from Example

Waste comes from every stage of the supply chain. In cultivation, failed plants or those hit by pests or mold become inevitable losses, or maybe your assistant man-handled the clones when tagging them, ruining half the nursery. Sometimes something as simple as a training issue can cause you serious loss.

In manufacturing, flawed packaging, bad COAs (Certificates of Analysis), or no COAs, mean products never make it to shelves. Even when that goes right, miss-filled carts can still wreak havoc with your production schedule. And sure those carts are usable, and great for samples. But employees pulling them out of the trash and trying to resale them is a more alarming issue.

At the retail level, the losses multiply—you get stuck with returns, recalls, bad packaging, and expired products. Each situation requires proper handling and compliant destruction to, again, ensure the waste doesn’t end up where it shouldn’t. With returns, be sure to log why the product was returned, in case you are entitled to a vendor credit. Use a compliance check list (available online) with each new product to make sure your not intaking non compliant product. And check expiration dates to make sure your newest order doesn’t have a short shelf life.

The Essential Guide to Product Destruction in New Mexico

In New Mexico, license holders must adhere to strict regulations when destroying products to ensure safety, compliance, and environmental responsibility. Whether dealing with expired inventory, failed tests, or recalls, the destruction process is carefully monitored to prevent misuse and maintain industry integrity.

Rendering Products Unusable

To prevent diversion or misuse, all waste must be mixed with at least 50% other material, such as compost, soil, or yard waste. Go the extra mile and destroy the packaging too; this ensures the product is rendered unusable and unrecognizable, meeting state compliance standards.

Secure Storage

Before destruction, products must be securely stored in a designated area for a minimum of 72 hours. During this time, license holders must document key details like batch numbers, weights, and plant codes, creating a clear audit trail.

Video and Tracking Requirements

The destruction process must be recorded on video, with footage retained for at least 120 days. Additionally, all destruction events must be logged in an electronic track-and-trace system, such as BioTrack, which tracks details like batch numbers, weights, and the disposal facility handling the waste. Don’t sit in these either, having inventory in your system digitally and not physically can lead to a bloated inventory, and compliance issues.

Notifying the Division

Within five business days of a destruction event, license holders are required to notify the CCD; this is usually done through your Traceability system, although 3rd party program users may need to take an additional step. This ensures transparency and allows regulators to verify that all waste is managed appropriately.

Environmental Responsibility

All cannabis waste must be disposed of in compliance with local, state, and federal hazardous waste laws. Make sure waste is stored in a secured area at all times, including dumpsters, the last thing you want is a product with your name on it ending up on the streets. These measures help protect public health and the environment by ensuring proper handling and disposal.

Conclusion

Handling waste isn’t glamorous, and it’s never easy to say goodbye to good bud. But it’s part of the job, and for this industry to grow responsibly, it’s a necessary step. Sometimes, you’ve just got to let it go—and move on to the next project.

Downloads

SOP template for Destruction:

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