South Dakota Hires Firm to Track Cannabis From Seed to Sales

The South Dakota Department of Health has hired a New York-based software company to help monitor the flow of marijuana in the state’s legal medical marijuana market.

The Argus Leader reports the contract with Metrc was finalized this month. Metrc will use “radio-frequency identification” to track cannabis from seed to sale.

The company will monitor and record the life stages of all cannabis plants and the products they eventually end up in. The process was called for as a public safety precaution within the voter-approved initiated measure that legalized medical marijuana.

All licensed cannabis businesses in South Dakota, from dispensaries to cultivators, are required to participate in the health department’s tracking program. They can use different software, but must interface with Metrc.

So far, the Department of Health has certified 32 dispensary licenses, one manufacturer license and 10 cultivator licenses.

Metrc’s contract with the state runs through 2027. The company will be paid $320,000.

South Dakota is the 20th governmental entity in the United States to partner with Metrc for seed-to-sale tracking. The company uses software to collect data from growers, testers and distributors. The data used by state regulators to ensure program rules are being followed.