Hydrofarm Holdings Group Inc (NASDAQ: HYFM) CEO Bill Toler touted the benefits of indoor cannabis farming, on CNBC.
The company is a leading distributor and manufacturer of controlled environment agriculture equipment and supplies. It supplies its products to the cannabis industry as well.
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The Pennsylvania-headquartered company went public in December 2020 in a $100 million IPO. The shares are up nearly 14% since the IPO and are currently trading at $59, giving the company a valuation of $2.35 billion.
Benefits of indoor cannabis farming
According to Toler, most cannabis will be grown indoors over the short run and also over the long run. Indoors, you can get four or five crops a year, in general. You get to control quality, consistency, environment, nutrient feeds and lighting.
“You are going to be growing indoors because that’s the best way to protect your crops, you are going to get the maximum amount of quality and consistency and that’s (Indoor cannabis farming) really how this industry is going to evolve,†he said.
How it benefits the farmers?
The farmers get higher yields for their crops in such controlled environments. They can sell their produce to the whole network that feeds into the consumer dispensary in the marijuana industry.
Recent trend
The company has seen strong growth in the last twelve months and the CEO added that people have been growing indoors more than they ever have in the past.
Growth has been broad based across all the states, even markets that haven’t yet passed the marijauna legalization laws. This speaks to the incredible opportunity of growth that lies ahead for the company and capitalize on the people’s fondness for farming.
