Upstate New York eyed as potential “Silicon Valley” for hemp

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In New York, Canadian cannabis company Canopy Growth Corporation has become a Wall Street darling amid a cannabis “gold rush” and the company’s plans to build an upstate hemp industrial park.

Canopy Growth has received a hemp license in New York and is planning to build a $100-$150 million hemp industrial park—essentially turning the Southern Tier region of New York into a Silicon Valley of hemp.  Analysts say the investment will increase Canopy’s market in the US, with demand for many hemp-based products such as creams and oils not being adequately met by domestic cannabis companies.

“Dozens of small/medium-sized firms will likely earn moderate revenues and earnings,” in the US cannabis market, analyst John Zamparo wrote in a research note. “But only a handful will come to dominate the global market.” Canopy is considered a good buy because it is well-capitalized, well-managed, and has a good start on operations, he adds.