There was a sense of relief at an industrial hemp conference last week.
There was none of the hand-wringing that might be expected given Canada’s largest contractor of industrial hemp had announced only two days earlier that it will seek bankruptcy protection.
And despite massive surpluses of hemp left in the wake of Consolidated Growers and Processors Inc., hemp farmers and buyers seemed as enthusiastic as ever about the future of their crop.
Few seemed surprised at the company’s demise. In fact, almost everyone at Hemp 2000 had a story about the often controversial CGP Inc.
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The outgoing president of the Manitoba Industrial Hemp Association said CGP’s departure gives the industry a sense of closure.
“I think people always knew something was going to happen,” said Brian McElroy, a seed grower from
Darlingford, Man.
“The most amazing thing is that the mood to grow industrial hemp is still alive,” said McElroy, who contracted with CGP in 1998 but switched to a company he felt more comfortable with in 1999.
Now, Canadian entrepreneurs and farmers are able to take the reins of the industry, he said: “We’ve got this ball in our own hands and whatever we do with it is up to us.”
Shaun Crew, president of Hemp Oil Canada, said CGP Inc. hogged the spotlight from smaller but more viable concerns.
“In a roundabout way, the demise of CGP has been good for us,” Crew said.
Wally Empson said he was pleasantly surprised that CGP’s announcement failed to dampen enthusiasm for the industry.
He and a group of seven farmers in the Emerson, Man., area had contracted with CGP last year.
While they say they are out about $100,000, the growers involved with Emerson Hemp Company hope to form a co-operative and build a fibre plant, he said.
“I think there’s no question the farmer has to be involved in this processing now and in the future if they’re going to get any returns,” Empson said.
He blamed the company’s failure on “big ideas, no money and arrogance.”
Province blamed
Empson said he was offended by the parting shots volleyed by CGP director Mark Kaeller against the province in a Feb. 28 press release.
In the statement, Kaeller said, “It’s too bad we had to set up business in Manitoba.
“CGP will now join the endless list of other companies who have lost millions of dollars doing business in Manitoba, Canada.”
Jean Laprise, president of Kenex Ltd., said he thought it “disgusting to see management blaming the Manitoba people and government for (CGP’s) management decisions.
“That was totally uncalled for,” Laprise said.
Manitoba’s agriculture minister pledged her government’s support for industrial hemp in Manitoba.
“I want to see that potential grow into a reality here in Manitoba,” said Rosann Wowchuk, who told industry leaders her door is open to them.
CPG had a high turnover rate. Firings were common.
But at least eight of the company’s former staffers mingled at the conference, including former president Gero Leson, former Canadian president Doug Campbell and founder and former vice-president Martin Moravcik.
