A Canadian company wants to build the biggest medical cannabis processing plant in the southern hemisphere at Casino, in northern New South Wales.

PUF Ventures Inc has announced a strategic partnership with the Richmond Valley Council to construct a 9.3-hectare greenhouse operation.

When operating at full scale, it could produce 100,000 kilograms of cannabis a year.

PUF's Australian spokesman, Michael Horsfall, said that figure could equate to an annual revenue of between $800 million and $1.1 billion.

"We wanted to take sort of a first-move advantage, especially in New South Wales," he said.

"Not too many applications have been approved at the moment.

"Obviously the Australian climate lends itself to growing, so we thought we'd jump in and be one of the first movers.

"So the next step now is to lodge applications with the Office of Drug Control here in Australia [and] we anticipate doing that in the next couple of weeks.

"I can't make any statement with regards to the amount of time it will take to step through the process, but with the team we've got on board, the experience, we anticipate that we'll move through the process hopefully within [a] six-to-12 month time frame."

Potential boon for region says council

General manager of Richmond Valley Council, Vaughan Macdonald, described the proposal as a game changer for the region.

"It's a great opportunity to extend our agricultural industry," Mr Macdonald said.

"They've approached us [and] we've got a good site available just on the edge of Casino.

"It's just an ideal site for what they need, and what we need in the Richmond Valley, which is new industry with the potential for 300 jobs.

"So this is a massive boon for Casino and the Richmond Valley."

The nearby Nimbin Hemp Embassy has been lobbying for the legalisation of cannabis for decades.

President Michael Balderstone said Australia was lagging behind the rest of the world in recognising the plant's medicinal qualities.

"It all changed with America allowing medical cannabis, and that happened about 20 years ago," he said.

"All the screaming and yelling from the Reefer Madness people turned out to be completely hollow; it's been a win-win for everyone.

"Everyone's waking up to it [although] it's a pity it's not an Australian company.

"Anyway, how dumb are all the hippies saying it's a good medicine all these years?"