The federal government has committed $4.9 million to help build a hemp processing plant employing about 12 workers in Waskada, Man.
The cash will allow Farm Genesis Group, a co-operative started by farmers in southwestern Manitoba, to achieve its dual goals of building the plant and community, said Keith Hannah, company president.
“Our group, 32 local farmers, have explored and cultivated this demand (for hemp) through intensive international marketing over the last two years and we are now ready to build the commensurate processing facility,” said Hannah in a release.
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“This will help create sustainability for our family farms and future generations …. This is a great day for Waskada and the RMs of Brenda, Arthur and Winchester.”
Project funding will come from the federal Economic Action Plan, and $75,000 contribution from the provincial government.
“The construction of this value-added hemp processing plant will be a strong link in Manitoba’s food industry,” said Stan Struthers, Manitoba’s agriculture minister.
For the last three years, farmers in the Waskada region have grown and sold hemp to Farm Genesis, which has developed a line of products including HempMoo, a milk replacement beverage, hemp seed, oil and protein.
The company has customers in Europe and Canada for its hemp products, which are processed at a plant in Winnipeg.
The co-operative’s plan was to build its brand and related market demand before constructing a plant, Markus Schmulgen, Farm Genesis’ chief executive officer, told The Western Producer last April.
“Development costs are expensive, production costs are fairly expensive, but all of these pale in comparison in what you have to invest in terms of marketing,” he said.
Construction of the new facility is expected to start in February.
Total cost is estimated at $6.5 million.
