Toll processing services are becoming increasingly common within the botanical extract industry. These types of services are already in use by many industries, and you’re likely consuming products manufactured by toll processors without even knowing.
From product separation to solvent recovery, quality improvement, and refinement there are several ways extractors can benefit from toll processors in the field of food, cosmetic and pharmaceuticals among others.
What is Toll Processing?
Toll processing goes by many names. You may have heard it referred to as toll manufacturing, tolling, toll conversion, or contract processing. All of these refer to the same process. It involves outsourcing a third-party processor to handle specific stages of a business.
When it comes to the botanical industry, toll processors are usually contracted to assist with extraction, packaging, distribution, lab testing, or more. Processors charge fees for the use of their equipment, expertise, and business network.
Benefits of Toll Processing
Research involving toll processing has identified numerous benefits for the botanical industry. “Toll manufacturing is an attractive route for chemical companies to outsource their chemical-manufacturing needs without investing heavy sums of capital on purchasing equipment and setting new facilities from the ground up”. [1]
Toll processing allows for mass production of extracts without a huge upfront investment. This is great for companies who have raw materials, but not the capital to invest in extraction and testing equipment. Tolling also “can generate valuable data for scaling-up processes, developing new products, and assessing market response”. [1]
As for the future outlook on tolling services in the botanical industry, it looks like they’re only likely to expand. They also look like an excellent option for businesses without excess capital to invest in equipment. Tolling provides a very cost-effective way to turn what may be unmarketable raw materials into marketable and profitable extract products.
References:
[1] Arora A, et al. Process systems engineering applications, challenges and opportunities in the toll manufacturing industry. Journal of Advanced Manufacturing and Processing. 2020. 2:e10040. [Journal Impact Factor = 1.338]
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