A $1.7 million outdoor medicinal cannabis development approved by Northern Midlands Council could soon be home to the largest grow by area in Australia.
Hemp food company and agribusiness ECS Botanics estimates its three-stage 32-hectare development will potentially see up to 32,000 of dry flower grown each year.
The company announced the development in a statement to the ASX on Thursday.
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ECS Botanics managing director Alex Keach said the company hoped the development would reduce the cost of medicinal cannabis.
"If you have a development like this indoors you're paying the electricity for lights, you've got it on racks... you need to employ lots of people and you need all these systems," he said.
"It's less agricultural so it's always going to be a higher cost per square metre.
"We're dropping the price per gram significantly, our aim is to really drive down the cost of production to make patient access more affordable."
Mr Keach said under these plans ECS Botanics would be the first ASX-listed company to undertake commercial-scale cannabis cultivation outdoors.
"Tasmania is one of the best places in the world to grow plant-based pharmaceuticals," he said.
"Rather than recreating nature inside, we're harnessing nature and the natural environment which produces a very good plant."
ECS Botanics has an existing hemp food business based out of Northern Tasmania and the new development is the company's first foray into the medicinal cannabis market.
Mr Keach said the development would help meet a surge in domestic and global demand for medicinal cannabis.
"We expect that will go a long way to supplying the medicinal cannabis market for cannabidiol [CBD]," he said.
"Tasmania can be the poster child for the cannabis industry globally, it grows so well, it's a billion-dollar opportunity. We've got all the existing expertise and the best climate and we've proven that with the poppy market."
If ECS Botanics gets further regulatory sign-off and there are no unforeseen delays, Mr Keach says the first plants might be in the ground in December.
Stages two and three of the development will cost $1.2 million and include tetrahydrocannabinol and CBD plants.
ECS Botanics expects to complete the final stages in the next two or three years.
Mr Keach said the development could create up to 20 new jobs and more during construction.
"Because we're growing a narcotic and with the current legislation, the location has got to be kept secret," he said.
"The last thing anyone wants to see is attempted break-ins and the diversion of narcotic raw materials into the illicit market, so it will be a very secure facility."
The Tasmanian Government could further support the development of the industry and patients if it joined mainland states and participated in the Specialist Access Scheme which made it easier for the medicinal cannabis to be prescribed, Mr Keach said.