Following years in a downward spiral, industrial hemp production seems to be on the rebound.
“In 1998, commercial production of industrial hemp became legal in Canada under licences and authorization issued by Health Canada,” said Nabi Chaudhary, an economic analyst with Alberta Agriculture.
“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 Inc. of California left many hemp growers in Manitoba sitting with a huge crop and nowhere to market it and a huge surplus of hemp seed and fibre hanging over the market.
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This surplus was stored in warehouses and farmers’ bins, awaiting bankruptcy settlement. A considerable portion of the hemp crop was not 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, the area for hemp production has almost tripled since 1999 and is expected to increase. There is a renewed interest in hemp being used for medicinal, pulp and fibre purposes.
“In Alberta, work is well underway at Alberta Research Council and Alberta Agriculture to evaluate hemp as a potential source of producing pulp and fibre,” Chaudhary said.
Small regional Canadian companies are working to develop products, mostly based on hemp seed. These include snack foods, hemp meal and flour, edible oil, shampoo and conditioners, moisturizers, commercial oil paints, beer, 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,” Chaudhary said.
“A few industry experts estimate that around one-third of Canadian hemp seed production is certified organic.”
Further development revolves around Canada’s Olympic team.
“The National Research Council of Canada 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,” Chaudhary said.
The manufacturer is working with the NRC Institute for Biological Sciences 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.
