The suspense may soon end for communities hoping to land a processing plant for industrial hemp fibre.
Consolidated Growers and Processors said last week it will build the $6 million plant somewhere in Manitoba. Out of 20 locations, CGP had narrowed its options down to the Dauphin area of western Manitoba, the Manitou area in south-central Manitoba or Portage la Prairie west of Winnipeg.
Consolidated Growers hopes to make a final decision by the end of January, said Martin Moravcik, an executive with CGP. The plant could swing into production by the end of this year.
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CGP International is a publicly traded company backed by North American and European investors. It’s promoting the expansion of hemp production on the Prairies.
The hemp plant, expected to employ a dozen people, will be designed for future expansion. It’s the first of many that CGP wants to build in Western Canada.
About 1,000 acres of hemp were grown in Western Canada last summer under contract with CGP. The company signed contracts with 30 growers in Manitoba and Saskatchewan. Moravcik expects that to increase five-fold for 1999.
Hemp fibre from this year’s crop will be stored until the new processing plant kicks into production. As the supply of industrial hemp increases across the Prairies, more processing facilities will be built, Moravcik said.
A variety of hemp-based products can be made from the crop’s fibre, including insulation, boards and carpet backing.
Growers contracted with CGP also produced 400,000 pounds of hemp seed this year. The dehulled seed can be eaten or used as an ingredient in breads and other baked goods, said Stuart McMillan, agricultural co-ordinator for CGP.
Oil pressed from the seed can be used in salad oils and margarines, or as a base for cosmetics.
Consolidated Growers has the seed pressed by independent processors. The company wants to eventually establish its own plant to extract hemp oil.
Cheques started going out last fall to farmers who produced the seed under contract with CGP. Some of those farmers saw yields as high as 1,400 pounds per acre, McMillan said.
There were crops, however, that had to be used for silage or plowed under due to poor growing conditions. In some areas, it was too dry, in other cases, heavy rains hampered crops on poorly drained land.
Question marks still remain about how to best grow the crop, said Bruce Brolley, a new crops agronomist with Manitoba Agriculture. Research is needed into things such as weed control and plant varieties . Market development is also needed, he said.
Last year was the first time in 60 years the crop could legally be grown in Western Canada. Unlike its cousin marijuana, hemp’s THC levels are too low to have intoxicating effects.
Joe Federowich seeded 73 acres of hemp on his farm near Gilbert Plains, Man. The crop yielded up to 800 pounds of seed per acre. While he agreed there are challenges to growing the crop, he plans to grow it again this year.
“I could see good potential from this stuff,” said Federowich, who expects to net about $500 an acre from this year’s hemp crop. “I feel confident now that we can go through 300 acres and not have a problem.”
