BRUNO, Sask. – Hemp is replacing flax as the crop du jour in organic markets, says one industry analyst.
“We have incredible strength for hempseed,” said Duane Phillippi, systems manager for Farmer Direct Co-operative Ltd., a Regina firm that expects to sell more than $4 million worth of organic product this year.
He told growers attending the Organic Update 2006 conference they could expect 83 cents per pound at the farm for their 2006 hempseed crop as consumer demand for the product finally starts to heat up.
Emerging health food markets for dehulled hemp sold as a protein supplement and for meal used as a fibre supplement should support strong hemp oil sales in 2006.
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“That’s one hot market,” said Phillippi.
The co-op has 3,000 acres in its hemp pool and is looking to add more. The pool is one of many operated by the co-op on behalf of its 60 members.
One pool not looking for additional acres is flax. That market has been plunging for a while due to strong competition from cheap Chinese exports.
“Gold flax has been very, very slow for us the last year,” said Phillippi.
“I don’t think we’ll have any contracts for gold flax.”
He told growers that of the 40 buyers the co-op deals with on a regular basis, not one is looking for Canadian brown flax either.
Shifting from the oilseed outlook to cereals, Phillippi said there will be a strong market, as usual, for top quality cereal grains like 13.5 percent protein hard red spring wheat and 12.5 percent protein durum.
“If you don’t have that kind of quality it’s a bit of a slump. It’s hard to move your lower protein,” he said after the presentation he delivered at the Prairie Ursuline Centre in Bruno.
For instance, top quality organic durum will fetch $8 per bushel but whatever doesn’t make the sought after 12.5 percent protein grade will be sold as feed.
In some cases that might not be such a bad prospect. Organic feed markets have been strong ever since the United States Department of Agriculture implemented its National Organic Program in 2002.
The new labelling regime has given U.S. consumers confidence in organic dairy and meat products, which in turn is fuelling demand for Canadian organic feed wheat and barley.
“We see a really hot market for feed,” Phillippi told organic growers.
He expects organic feed barley and feed wheat to fetch around $3.50 per bu. in 2006.
There should also be good movement of feed peas at a price of about $6.50 per bu., although the rest of the pulse crop picture is weaker due to overproduction.
“I don’t know if I’d grow lentils on the spot market given the oversupply,” said Phillippi.
One niche market with some promise is the newly established biodiesel pool, where farmers will be growing crops like oriental mustard and Polish canola for the rapidly expanding biofuel industry.
In addition to his market advice, Phillippi had one caveat to pass along. Despite claims that worldwide organic sales are clipping along at 20 percent growth per year, he said finding buyers remains a tricky prospect.
“Do not get the illusion that our phone is just ringing off the hook,” he said.
