| | Following several years in a downwards spiral, industrial hemp production seems to be on the rebound.
"In 1998 commercial production (including cultivation) of industrial hemp became legal in Canada under licenses and authorization issued by Health Canada,' says Nabi Chaudhary, senior economic analyst, Alberta Agriculture, Food and Rural Development. "It soon looked as though the industrial hemp was well on its way to becoming the 'Cinderella' crop in Canada. However, this all changed in 1999 with the collapse of a prospective hemp processing company in Manitoba."
The sudden demise of Consolidated Growers and Processors (CGP) Inc. of California left a large number of hemp growers in Manitoba sitting with a huge crop and nowhere to market it. This left the hemp producers with a huge surplus of hemp seed and fiber hanging over the market. This surplus was stored in warehouses and farmers' bins, awaiting bankruptcy settlement. A considerable portion of the hemp crop did not get sold and producers had to absorb the losses.
This incident sent the industry into a downward spiral for the next few years.
However, it appears that interest in producing industrial hemp is again gaining momentum. In Alberta, for example, the area for hemp production has almost tripled over 1999 and is expected to increase in the years to come. There is a renewed interest in hemp being used for medicinal, pulp and fiber purposes.
"The downturn in hemp cultivation during the last three to four years is buoyed by a steady increase in the processing of hemp, and the development of many small businesses engaged in developing new products and marketing of these products," says Chaudhary. "In Alberta, work is well underway at Alberta Research Council and Alberta Agriculture to evaluate hemp as a potential source of producing pulp and fiber."
Currently, there are many small regional Canadian companies working to develop products mostly based on hemp seed. These companies are involved in hemp seed processing and in producing a wide range of products. These are snack foods, hemp meal and flour, edible oil, shampoo and conditioners, moisturizers, commercial oil paints, beer and aromatherapy and cosmetic products. Most of the companies are reporting good growth.
"Another trend worth noting is that much of the hemp food industry has switched to certified organic production because of strong demand," notes Chaudhary. "A few industry experts estimate that around one third of Canadian hemp seed production is certified organic."
A further development revolves around Canada's Olympic team. "The National Research Council of Canada (NRC) is collaborating with a manufacturer of hemp clothing that has promoted the idea of using hemp fabric for the uniforms of Canada's 2010 Olympic team," says Chaudhary.
Under this partnership, the manufacturer is working with the NRC Institute for Biological Sciences (NRC-IBS) to commercialize NRC developed enzyme technology for processing hemp fabric (enzymes are used widely in industrial applications for everything from pulp bleaching to meat tenderizers). The technology promises dramatically improved fiber quality (softer, whiter fabric) using environmentally friendly methods.
Contact: Nabi Chaudhary (780) 422-4054 |
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