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Hemp Organic Market Opportunities

Explore the market opportunities of hemp, a sustainable and versatile crop. Learn about its benefits, from being chemical-free to its potential in various industries. Discover how the new Cannabis Act will transform the hemp industry in Canada.

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Hemp Organic Market Opportunities

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  1. February 10, 2018 Red Deer, AB Lori-Jo Graham, Biomaterials – Lead Alberta Agriculture and Forestry Hemp Organic Market Opportunities

  2. An Environmental Super Star Hemp is… • the first and strongest natural fibre cultivated. • the second fastest growing land plant on earth. • unlike cotton, it can be grown without chemicals or pesticides. • processed mechanically without the use of chemicals, no effluent. • valuable in rotations, it helps control disease & adds to nutrient cycling. • due to its strong tap root, it is beneficial to disturbed or impacted lands. • carbon negative -sequesters 5 X more than equivalent acres of forest.

  3. Canada Hemp Acres Based on Provincial Hemp Production Permits: 1998 - 2017

  4. Hemp Processing in Canada Today STALKS SEEDS Hurd Fibre Protein Hulls Oil Dust Fraction

  5. New Cannabis Act • In April, Health Canada introduced Bill C-45, the Cannabis Act. • The Act will cover medical and recreational cannabis and industrial hemp • Act is expected to be enacted in July, 2018. • It will lead to Transformational Growth for hemp in Canada • Modernization of regulations – reduce obstacles for growers/ processors • Whole plant utilization - opens door to new market opportunities - CBDs - natural health and pharmaceutical opportunities • Encourage inflows of capital – research, promotion & standard development

  6. Canadian Hemp Industry Blueprint • Goal: By 2023 hemp will be a $1B industry in Canada. • Canadian Hemp Industry is $ 340 M Today (CHTA 11/2017) • Four Pillars: • Food – well developed in Canada, and still growing • Fibre– lots of interest, but to generate momentum • Feed – need to gain regulatory approvals with CFIA • Natural Health Products – tight restrictrictions of Industrial Hemp Regulation Act

  7. Grain Products • Canada is the world’s largest • producer of food-grade hemp. • Hemp exports $146 M in 2016. • Organic market statistics not available- production is 47%. • US market for all hemp product imports was $78 M in 2015. • Majority of seeds produced in Alberta exported to the United States (often via Manitoba). 95% of the hemp seed US imports come from Canada. Alberta companies Gold Top Organics, GFR ingredients, Hempco • Growing global demand- Asia growing. • Global competition expanding: China, India and now Australia

  8. Hemp is a “Super Food” - Organics in Demand

  9. “A Wonder Ingredient” Personal Care & Cosmetics “The cannabis skin-care universe is growing by leaps and bounds as long-established companies including the Body Shop and Dr. Bronner's Magic Soaps expand their product lines, while newcomers hustle to make their mark in this budding beauty segment.” Los Angeles Times 04/17 • Omega benefits include soothes, restoring skin & locks in moisture • Protein and hemp waxes in demand • GLA potential as natural sunscreen • Protein and hemp waxes • Hemp is naturally antibacterial • Industry wants to organic sourcing

  10. “A Material of Interest” Fibre/Bio Industrial • First established in Europe • US Hemp fibre imports - US $3 M 2016 • Oil Seed: biocleaners, biodiesel, bioresins • Hurd: livestock bedding, horticulture & absorbents • Fibre: automotive,construction, paper, absorbents & erosion, textiles, Will we see organic hemp textiles in same market space as organic cotton? • Driven by multiple factors • Lightweight, excellent weight to strength ratio • High tensile and flexural strength • Anti-microbial and UV resistant, non-toxic alternative • Fast growing/ rapidly renewable • Organic production side stream opportunity

  11. Hemp Fibre / Bio Industrials: Processing & Manufacturing Expanding

  12. Bio-Actives – CBDs & More CBD Oil Creations Englewood, CO • CBD’s are non psychoactive cannabinoids • Found in hemp leaves and flowers thought to trigger healing and have a pain killing effect • CBD enriched health foods, tinctures and oil may become the next revolution in natural health products & medicines – organic sourcing • Requires significant regulatory approval and research to establish safety and efficacy

  13. Hemp for Feed? Not Yet… People can eat it! You can feed it to your pets! You may not feed to livestock; not an approved livestock feed.

  14. Funding

  15. Getting Started in Growing Hemp • Grow only with a CONTRACT!! • Demand depends on the market • Check for grain contractors on CHTA website and with other growers in your area • Global Competition in this Emerging market • Ebb & flow of demand affects your production • Can affect your crop rotation plans • Need to learn how to grow, manage and store crop • CHTA Hemp Production eGuide, Ag-Info Centre at 310-FARM & other growers to mentor you – need more organic agronomy info

  16. You Need a Health Canada License to Grow Hemp AND Store & Process Seed • Contact the Industrial Hemp Section for a copy of the Application for an Industrial Hemp Licence • hemp@hc-sc.gc.caIndustrial Hemp SectionAuthorizations Division161 Goldenrod DrwyAL 0300BOttawa ON K1A 0K9

  17. Questions ? Lori-Jo Graham lori-jo.graham@gov.ab.ca 403-556-4244 agriculture.alberta.ca/bio-industrial|

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