A cannabis plant showcasing its leaves, bud, and stems, representing usable plant material (UPM) potential.

Maximizing UPM (Usable Plant Material) in the Cannabis Industry: A Path to Profitability and Sustainability

By /

Estimated reading time: 6 minutes

Table of contents

In the dynamic and competitive world of cannabis, the margin between success and stagnation is often razor-thin. A critical factor that can determine the trajectory of a cannabis business is UPM (Usable Plant Material). This term refers to the proportion of the cannabis plant that can be utilized for revenue-generating products. For cannabis businesses, understanding and maximizing UPM is not just an operational goal—it’s a financial imperative.

From the flower to the roots, every part of the cannabis plant holds potential. With the right strategies and tools, companies can tap into underutilized components, turning what was once considered waste into profit. This blog explores the financial significance of UPM, breaks down how to use every part of the cannabis plant, and provides actionable strategies for maximizing value while aligning with sustainability goals.

What Is UPM in the Cannabis Industry?

UPM (Usable Plant Material) encompasses all parts of the cannabis plant that can be processed into usable and sellable products. Traditionally, UPM focused primarily on flowers—the most lucrative portion of the plant. However, as the industry has evolved, so has the definition of UPM.

Today, UPM includes:

  1. Flower: The most potent and high-value part of the plant.
  2. Trim: The small sugar leaves and underdeveloped buds that remain after manicuring the flower.
  3. Fan Leaves: The large outer leaves, historically discarded but now used for edibles and beverages.
  4. Stems and Stalks: The fibrous material often considered waste but with applications in textiles, biofuel, and construction materials.
  5. Roots: Emerging as a valuable component in wellness products and research for medicinal applications.

The ability to transform these components into revenue streams is key to driving profitability and sustainability.

The Financial Case for Maximizing UPM

Cost Efficiency: Reducing Resource Waste

Cannabis cultivation is expensive. It requires significant investments in land, water, nutrients, labor, and energy. The more of the plant that can be sold, the better the return on these investments.

Example:
A grower harvesting 1,000 pounds of biomass with a UPM rate of 60% generates 600 pounds of sellable material. However, if the UPM rate increases to 80%, they now produce 800 pounds of sellable material—an additional 200 pounds that directly impacts revenue.

This efficiency reduces the effective cost per pound of usable product, improving overall profitability.

Revenue Diversification: Mitigating Market Volatility

The cannabis industry is susceptible to price fluctuations, especially for flower. By leveraging other parts of the plant, businesses can create diversified revenue streams that protect against market downturns.

  • Flower: Premium smokable products command top dollar.
  • Trim: A cost-effective input for concentrates, edibles, and infused pre-rolls.
  • Stalks: Processed into industrial products like hempcrete, rope, or textiles.
  • Leaves: Repurposed into teas, juices, and nutrient powders for edibles.
  • Roots: Used in specialty wellness products like topical creams or herbal teas.

 

Enhanced Sustainability and Consumer Appeal

Consumers and investors increasingly demand sustainable practices. Demonstrating a commitment to reducing waste and maximizing UPM aligns with these values, enhancing a company’s brand reputation.

Businesses that adopt sustainability certifications or eco-friendly initiatives can also attract a loyal customer base and secure investment from socially conscious funds.

Stat: According to The Nielsen Company, 73% of global consumers say they would change their consumption habits to reduce environmental impact.

Breaking Down the Cannabis Plant: Unlocking UPM

Let’s explore each component of the cannabis plant and how businesses can maximize its potential.

Flower: The Crown Jewel

The flower remains the most profitable part of the plant, prized for its cannabinoid potency, terpene profiles, and aesthetic appeal. High-quality flower is sold as a smokable product or for premium extracts.

Strategies to Maximize Flower Yield:

  • Use controlled environment agriculture (CEA) to optimize growing conditions.
  • Employ training techniques like SCROG (Screen of Green) to increase bud exposure to light.
  • Select genetics with high flower-to-leaf ratios.

Financial Impact: Premium flower can sell for $1,000–$3,000 per pound. Even a 5% increase in yield can translate to tens of thousands of dollars in additional revenue per harvest.

Trim: The Workhorse of Extracts

Trim may lack the aesthetic appeal of flower but is packed with cannabinoids and terpenes, making it ideal for concentrates, pre-rolls, and edibles.

Best Uses for Trim:

  • Solvent-Based Extraction: To produce high-purity oils and distillates.
  • Infused Pre-Rolls: Blended with flower for cost-effective smokables.
  • Edibles: Incorporated into butter, oils, or tinctures.

Financial Insight: Trim-derived concentrates can generate over $10,000 per kilogram wholesale.

Stems and Stalks: An Industrial Opportunity

While stems and stalks are low in cannabinoids, their fibrous structure opens opportunities in industrial markets.

Applications for Stems and Stalks:

  • Hempcrete: A sustainable construction material gaining traction in green building projects.
  • Textiles: Used for fabric, rope, and paper.
  • Biofuel: Converted into renewable energy.

Stat: The global hemp fiber market is projected to reach $12 billion by 2030 (Grand View Research).

Fan Leaves: A Nutritional Treasure Trove

Fan leaves, often discarded, are rich in nutrients and antioxidants. They can be used in:

  • Edibles: As an ingredient in teas or smoothies.
  • Beverages: Cold-pressed juices or infused drinks.
  • Topicals: Skincare and wellness products.

Emerging Trend: Cannabis leaf-based juices are becoming popular in health-conscious markets.

Roots: A Frontier for Innovation

Cannabis roots, rich in triterpenoids and alkaloids, are gaining recognition for their medicinal properties.

Potential Uses:

  • Topicals: Anti-inflammatory creams and salves.
  • Teas: Herbal remedies for digestive issues.
  • Research: Studying root compounds for new therapeutic applications.

Financial Insight: Root-based products, though niche, can command premium prices due to their novelty and wellness appeal.

Strategies to Maximize Usable Plant Material

Invest in Precision Cultivation

Use data-driven technologies like IoT sensors to monitor and optimize growing conditions, reducing plant stress and maximizing yield.

Upgrade Processing Capabilities

Invest in machinery that can efficiently extract cannabinoids from trim, stalks, and leaves, increasing overall UPM.

Innovate Product Development

Collaborate with R&D teams to create new products using underutilized plant components. Examples include hemp-based bioplastics or cannabis-root teas.

Focus on Sustainability

Adopt eco-friendly practices like composting unusable biomass and sourcing energy from renewable resources to align with consumer values.

Overcoming Challenges

While the potential benefits of maximizing UPM are clear, challenges remain:

  • Regulatory Compliance: Varying regulations on cannabis products can limit the use of certain plant parts.
  • Processing Costs: Advanced extraction and processing equipment requires significant capital investment.
  • Market Education: Educating consumers about non-flower products like hempcrete or root-based wellness items is essential.

Conclusion

Maximizing usable plant material (UPM) is a cornerstone of financial and operational success in the cannabis industry. By utilizing every part of the plant, businesses can create diversified revenue streams, reduce waste, and position themselves as leaders in sustainability.

The future of cannabis lies not only in high-quality flower but in the innovative use of trim, stalks, leaves, and roots. With the right strategies, companies can turn every ounce of biomass into opportunity, achieving profitability while meeting the growing demand for eco-conscious practices.

Ready to optimize your operations? Contact Catalyst BC to learn how we can help your cannabis business achieve peak efficiency and sustainability.

Additional Resources

Consulting Services For Cannabis, Hemp, Psilocybin, and Natural Medicine

Testimonials and Public Relations

Latest Articles

  • Modern interior design of a Nevada cannabis lounge with stylish seating and ventilation features
    Nevada Cannabis Lounge License Guide: What You Need to Know
    Nevada has enthusiastically embraced consumption lounges. In 2021, Governor Sisolak signed AB 341 authorizing the Nevada Cannabis Compliance Board (CCB) to license cannabis consumption lounges. After extensive stakeholder work, the CCB approved final regulations in late 2023. Lounges are split into two types: Retail Lounges (operated by licensed dispensaries or microbusinesses) and Independent Lounges (standalone sites).
  • Man smoking cannabis at a Missouri-style private lounge
    Are Missouri Cannabis Lounges Legal? Here’s What Entrepreneurs Need to Know
    Missouri’s adult-use legalization (Amendment 3, 2022) did not establish any state license for cannabis lounges. Consequently, there is no state-regulated consumption lounge for recreational cannabis at this time. Instead, an underground network of private, membership-only clubs has emerged.
  • Interior of a modern cannabis lounge similar to potential Minnesota cannabis events.
    Hosting a Minnesota Cannabis Lounge Event: Tips For Success
    Minnesota’s adult-use cannabis law (2023) does not create a permanent lounge license, but it allows temporary consumption events via a Cannabis Event Organizer license for up to four-day events (like festivals) where licensed retailers can sell cannabis and patrons may consume on-site. A licensed event organizer must obtain local approval and permits for each event.
  • Interior of a modern Michigan cannabis lounge with seating and ventilation systems
    Michigan Consumption Lounge Licenses: What You Need to Know
    Michigan law explicitly recognizes and licenses cannabis “Designated Consumption Establishments.” These are commercial venues where adults 21+ can legally consume cannabis products on-site. The Michigan Marijuana Regulatory Agency (MRA) issues Consumption Lounge Licenses to qualified entities. Pursuant to state rules (MRTMA and R 420.21(3)), any person or business that allows on-site cannabis use in exchange for a fee or membership must hold this license.
  • Interior of a modern Massachusetts cannabis lounge with sleek seating and proper ventilation
    Massachusetts Cannabis Lounge Licensing Preparation Guide
    Launching a cannabis lounge in Massachusetts requires more than just a great idea—it involves navigating a complex regulatory system at both the municipal and state levels. With the Cannabis Control Commission (CCC) finalizing rules in 2025, now is the time to get prepared. Whether you’re an existing license holder or a new hospitality operator, understanding the specific steps involved will set you up for success.
  • Interior of a modern Maryland cannabis lounge designed for safe on-site cannabis use.
    Maryland Cannabis Lounge Laws: What’s Coming and How to Prepare
    Maryland’s adult-use cannabis law (July 2023) authorizes on-site consumption lounges, but the regulations are still developing. The 2023 Cannabis Reform Act created “On-Site Consumption Lounge” licenses, akin to food-service venues, where cannabis can be consumed on premises. However, the Legislature has directed the Cannabis Administration (MCA) to delay issuing these licenses until local zoning is ready and the new rules are promulgated.

Explore Our Articles

Business Strategy cannabis applications Cannabis Bar Cannabis Business Optmization Cannabis Business Services cannabis careers Cannabis Compliance Cannabis Consumption Cannabis Consumption Bar Cannabis Inventory Management Systems cannabis jobs Cannabis Legalization cannabis licensing Cannabis Lounge cannabis marketing Cannabis Operational Procedures cannabis outreach Cannabis Regulations Cannabis Security Cannabis Software Cannabis Startup Cannabis Suppliers Cannabis Supply Chain Cannabis Technology Colorado controlled environment agriculture Cultivation cultivation facility Dispensary Design facility design Financial Planning Legal Update Legislation Medical Cannabis Minnesota Natural Medicine Nebraska New York Odor Control Oregon Psilocybin Psychedelics Recreational Cannabis Solventless Extraction Tribal Cannabis Licensing

Recent posts

Scroll to Top