Cannabis to emerge as future for tobacco farmers switching to Hemp

The US manufacturer of Marlboro cigarettes Altria Group Inc. has made an investment worth $1.8 billion in Cronos Group Inc. This was done to discover new US growth paths when the US rates in smoking are on the verge of rapid decline. This new partnership may start a business from a scratch that might not involve tobacco but marijuana or cannabis instead. The entire rug dependency will shift its focus from tobacco to cannabis thereafter. This can get possible if the cannabis growth at home is legalized, mentioned Mike Gorenstein, the chief executive officer of Toronto-based Cronos.

Altria has a really good relationship with the local farmers who are ready to grown cannabis instead of food. This will certainly prove a great deal of help for the company. The farmers would be asked for an immediate transformation of the agriculture land to a cannabis cultivation area said, Gorenstein.

Altria is in very good terms with thousands of farmers and the company trusts them, and values the relations, stated Altria spokesman Steven Callahan. It is the farmers who decide the fate of the company. Cronos Inc. has its own farm, situated 80 km from Toronto. Though at a very far off place, the best deal with the company is the quality, genetics involved in cultivation, and the intellectual property. The shares of the company are as much as 22% in the deal signed by Altria, thus claiming the position of being the fourth largest company in the pot-market. The market shares of Cronos are about $2.3 billion.

Yet another group of farmers has decided to bring up Hemp in their field. Hemp is a variety of cannabis that does not get high. These farmers in the US tobacco belt, Kentucky, will continue to shift till the Hemp growth is legalized through bill enacts.

Cannabis can also prove as an alternative for the soybean farmers in the USA. These farmers have been hit badly by the Chinese tariffs in the trade war mentioned the Bloomberg Intelligence analyst, Alvin Tai said in a report.

Like Cronos. CannTrust Holdings Incis also trying to make a pact with the farmers of Niagara, Ontario, who have expressed their wish to grow cannabis as well, said the CEO of the company, Peter Aceto. Therefore, it is not just the Cronos which is trying a way to deal with the situation, but others as well. All the companies depend completely on the will of the farmers who want to switch.

Leave a Reply

Your email address will not be published. Required fields are marked *