• • • •

Profile Statistics Associations Links

Profile Canada's Industrial Hemp Industry As the world's premier renewable resource, hemp has been the source of food and fibre for the past 10,000 years. Hemp fibre has been used to make clothing, ropes, and paper; the grain has been stewed, roasted, and milled for food; and the oil derived from the grain has been used for cosmetics, lighting, paints, varnishes, and medicinal preparations. Like the marijuana plant, industrial hemp belongs to the species Cannabis sativa L. However, unlike marijuana, it only contains small quantities of the psychoactive drug delta-9 tetrahydrocannabinol (THC). Nevertheless, the cultivation of both marijuana and industrial hemp were banned in Canada in 1938. Since 1994, a small number of Canadian companies, as well as Canadian universities and provincial governments have researched industrial hemp production and processing. Due largely to their initiative, the 60-year ban was lifted and the commercial cultivation of hemp was authorized in Canada in 1998. The Industrial Hemp Regulations came into effect on March 12, 1998, and cover the cultivation, processing, transportation, sale, provision, import, and export of industrial hemp. Since its legalization, hemp has sparked much interest among Canadian farmers. The Government of Canada has been very supportive of Canada's re-emerging hemp industry through changes in legislation and regulations, and through market development funding. Today, hemp is enjoying a renaissance, with the global hemp market becoming a thriving, commercial success. More than 100 Canadian farmers are currently taking advantage of the vast market potential for hemp and are growing this crop in most provinces, primarily in central and western Canada.

Stringent Regulations

The regulatory system for the commercialization of industrial hemp is strict; however, it is crucial to protect the health and wellbeing of Canadians, to abide by Canada's international commitments against illegal drugs, and to contribute to the production and export of safe food products. Administered by the Office of Controlled Substances of Health Canada, the system operates by issuing licenses for all activities involving hemp. It ensures that all industrial hemp grown, processed, and sold in Canada contains no more than small amounts of THC, at levels far below those found in marijuana. For example, the upper limit in Canada for THCin the industrial hemp plant is 0.3% of the weight of leaves and flowering parts, while marijuana plants often have a THC level of 5% or more. In addition, Canada has set a maximum level of 10 parts per million (ppm) for THC residues in products derived from hemp grain, such as flour and oil.

Uses Like flax, wheat, corn, canola, and other major cultivated species, hemp is a crop that can be grown for food and non-food purposes. Whole hemp seed is composed of approximately 45 percent oil, 35 percent protein and 10 percent carbohydrates and fibre. As a result of the numerous nutritional benefits, many new food products containing hemp seed and its oil are finding their way onto the Canadian market, including pasta, tortilla chips, salad dressings, snack products, and frozen desserts. Recent scientific research indicates that essential fatty acids (EFAs) cannot be manufactured by the human body and deficiencies can cause undesirable chronic conditions such as obesity, cardiovascular disease, osteoporosis, and eczema. Therefore, hemp seed and its by-products can be used to supplement diets poor in EFAs in order to maintain health. One by-product, hemp seed oil, contains 30% of its weight in EFA-rich oil, delivering an ideal combination of omega 3 and omega 6 fatty acids for long term use. Hemp seed oil may have potential health benefits for diabetes, cancer, lupus, asthma rheumatoid arthritis, depression and hypertension. Hemp is one of only two plants that contain both EFAs as well as gamma linolenic acid (GLA). GLA has been found to have many properties ranging from anti-inflammatory to anti-depression. It can lower cholesterol and help to correct dyslexia, dyspraxia, and hyperactivity (ADHD). Approximately one-third of the population lacks the enzyme to metabolize GLA from omega 6 and must take GLA from an outside source to maintain good health, and hemp is an excellent way for them to do so. Hemp oil has traditionally been used for industrial functions such as lamp oil, paint, and varnish, but today is finding major new markets in the cosmetic and functional food industries. One of the fastest growing sectors for hemp seed oil is the body care products market. The EFA content of hemp oil makes it an ideal topical ingredient in both leave-on and rinse-off body care products. The EFAs in lotions and creams help to soothe and restore skin, while their content in lip balms, conditioners, shampoos, soaps, and shaving products are emollient and provide a smooth after-feel. With cosmetics companies taking advantage of the moisture-retention qualities of hemp oils, the functionality and marketability of industrial hemp oil is expected to

continue to increase steadily. Increased consumer awareness and product availability are also expected to help expand the markets. Hemp fibre contains no measurable amounts of THC, and is renowned for its resistance to rotting and wear and tear, as well as for its high tensile properties that make it durable and strong. These qualities have been recognized through real life applications over thousand of years. The stalk of the plant offers two distinct types of fibre: The outer portion of the hemp stem contains the bast fibres, the strong, long, and slender fibres that provide the strength and quality attributed to hemp. Bast hemp fibre excels in durability and absorbency, has anti-mildew and anti-microbial properties, and is in demand for certain applications, such as car panels in the automobile industries in the U.S. and Europe. The panels have the advantage of being stronger, lighter, and relatively less expensive than traditional car panels. • The core fibre, sometimes referred to as the hurds, is derived from the sturdy, wood-like stalk of the hemp plant. Similar to the bast fibre, the core fibre possesses anti-mildew and anti-microbial properties. It is currently being used for animal bedding and simulated cedar shakes, as it is twice as absorbent as wood. It is also used for manufacturing hemp paper, although only small quantities are currently being produced in North America. •

Additional hemp uses are listed in the following table: Table 1: Examples of hemp uses Hemp Seed Product Uses • • • • • • • •

Confectionary Beer Flour Feed Dietary Fibre Snacks Non-dairy Milk and Cheese Baking

Hemp Oil Product Uses •

Cooking

• • • • • • •

Salad Dressing Dietary Supplements Body Care Products Fuel Detergents Spreads Paint

Hemp Fibre Product Uses • • • • • • • •

Fabric Insulation Carpeting Paneling Pulp and Paper Recycling Additive Automobile Parts Animal Bedding and Mulch

Production An annual fibre plant adapted to temperate regions, hemp has been genetically selected into dozens of varieties. As a result of their proven low THC content, Health Canada has approved 27 cultivars or varieties of industrial hemp for the 2006 growing season. Cultivated plants usually consist of a single main stalk and a growth of leaves, with the potential to grow up to 7 metres (21 ft) in height. However, hemp plants usually reach heights between 2 and 4.5 metres (6-15 ft), with a period of seeding to harvest ranging from 70 to 140 days, depending on the purpose, variety, and climatic conditions. One hectare of hemp can yield an average of 800 kg of grain which in turn can be pressed into 200 litres of oil and 600 kg of meal. The same hectare will also produce an average of 6 tonnes of straw which can be transformed into approximately 1.5 tonnes of fibre. For more information on hemp cultivation, please consult your provincial ministry of agriculture. Hemp has been the subject of much interest in rural communities, mainly because farmers are under pressure to find alternatives to traditional commodities, and also because the possibilities of industrial hemp have sparked so much interest.

Economics Experts indicate that production costs can be lowered by exploiting hemp as a dual-purpose crop, using both the grain and fibre from the same plant. Of the 27 varieties legally authorized for cultivation in Canada in the year 2006, some are best-suited for the production of fibre; others are outstanding in the production of grain, while certain varieties are ideal for a dual harvest of grain and fibre. Moreover, there is great interest in developing varieties with the lowest THC content possible. Growers tend to be clustered in loose alliances and co-operatives, or are geographically close to processing facilities in order to keep transportation costs low. The first challenge for hemp growers is to find a buyer who can guarantee, through contract, the purchasing of their harvest. Hemp processors investigate and promote viable applications of hemp products in order to create new markets domestically and abroad. The re-introduction of hemp as a legal crop and the development of markets is a slow process and the hemp sector will need to expand carefully to ensure that supply and demand are harmonized. As the hemp sector continues to grow and as new technologies are applied to production and processing, more commercial possibilities will become feasible.

Conclusions Hemp's agronomic and environment attributes are remarkable: it can be grown without fungicides, herbicides and pesticides, it absorbs carbon dioxide five times more efficiently than the same acreage of forest and it matures in three to four months. Hemp can be used to create building materials, textiles, clothing, inks, and paints and has potential use in other non-food products. These advantages are in tune with the environmental and health preferences of today's North American public. The growing curiosity of consumers, the interest shown by farmers and processors, and Canada's excellent growing conditions for industrial hemp allow optimistic views for its future.

Statistics Industrial Hemp Statistics For the latest market information and analysis available from Agriculture and Agri-Food Canada, please consult the following publications:

• • •

Canada: Outlook for Principal Field Crops Bi-weekly Bulletin Drought Watch

Associations Canadian Hemp Trade Alliance (CHTA) P.O. Box 188 225 Pembina Trial Ste. Agathe, MB R0G 1Y0 Email: [email protected] Tel: 1-800-289-4367 Fax: 204-882-2529 Ontario Hemp Alliance (OHA) P.O. Box 776 Tavistock, Ontario N0B 2R0 Email: [email protected] Tel: 519-352-9355 Fax: 519-633-5070 President: Gordon Scheifele Parkland Industrial Hemp Growers Association (PIHG) #3, 126 Main Street North Dauphin, Manitoba R7N 1C2 Email: [email protected] Tel: 204-629-HEMP (4367)

Fax: 204-629-4368 Manager: Sue Schlingerman Saskatchewan Hemp Association (SHA P.O. Box 24007 Regina, Saskatchewan S4P 4J8 Email: [email protected] Tel: 306-757-HEMP (4367) Fax: 306-757-4365 Executive Director: Duanne Phillippi General Manager/Editor: Arthur Hanks List of Approved Cultivars for the 2013 Growing Season

Links Hemp Production in Saskatchewan Saskatchewan Agriculture and Food Industrial Hemp Production Manitoba Agriculture, Food and Rural Initiatives Industrial Hemp Enterprise Alberta Agriculture, Food and Rural Development Hemp in Ontario Ontario Ministry of Agriculture, Food and Rural Affairs A Maritime Industrial Hemp Product Marketing Survey Nova Scotia Department of Agriculture and Nova Scotia Fisheries and Aquaculture

Other Useful Links

North American Industrial Hemp Council Vote Hemp The Hemp Report The Hemp Industries Associ

Information on available statistics such as Canadian farm cash receipts, harvested area, imports and exports, production and yield as well as Canadian export share by country.

Canada: Total Number of Hectares Licensed For Hemp Cultivation from 1998 to 2007

Yea r

Canad a

BC

AB

SK

MB

ON

QC

NB

NS

PE I

Yuko n

1998

2,400

72

38

263

606

1,16 3

24

21 4

19

0

0

1999

14,202

22 5

754

3,09 6

8,889

1,02 1

86

4

12 6

4

0

2000

5,485

29 1

306

1,42 6

2,902

217

23 9

1

10 2

2

0

2001

1,312

96

113

392

472

209

30

0

0

0

4

Canada: Total Number of Hectares Licensed For Hemp Cultivation from 1998 to 2007

Yea r

Canad a

BC

AB

SK

MB

ON

QC

NB

NS

PE I

Yuko n

2002

1,530

20 0

123

449

597

142

19

0

0

0

0

2003

2,733

7

153

672

1,468

397

13

4

18

0

0

2004

3,531

18

639

1,00 4

1,655

183

10

4

18

0

0

2005

9,725

0

916

3,42 9

5,018

251

74

19

18

0

0

2006

19,458

11

2,10

6,02

10,70

398

91

8

18

0

0

Canada: Total Number of Hectares Licensed For Hemp Cultivation from 1998 to 2007

Yea r

2007

Canad a

4,684

BC

AB

SK

MB

1

3

5

5

43

605

2,07 8

1,728

ON

53

Source: Health Canada Statistics are preliminary and subject to change.

Canada: Industrial Hemp Total Imports and Exports

QC

NB

NS

PE I

17 3

4

0

0

Yuko n

0

Year

Imports

Quantity (tonnes)

Value (Cdn$)

Exports

Quantity (tonnes)

Value (Cdn$)

1998

61

74,038

17

74,949

1999

349

351,441

187

164,183

2000

56

235,777

389

407,233

2001

88

95,395

212

238,774

2002

209

260,538

230

274,099

2003

276

272,000

134

201,821

Canada: Industrial Hemp Total Imports and Exports

Year

Imports

Quantity (tonnes)

Value (Cdn$)

Exports

Quantity (tonnes)

Value (Cdn$)

2004

210

351,288

88

142,906

2005

204

403,470

124

188,940

2006

416

637,349

383

2,121,545

2007

363

530,162

876

3,454,149

Export statistics prior to 2006 are for hemp fibre only Source: Statistics Canada, May 2008

Canada: Industrial Hemp Fibre Imports and Exports

Year

Imports

Quantity (tonnes)

Value (Cdn$)

Exports

Quantity (tonnes)

Value (Cdn$)

1998

61

74,038

17

74,949

1999

349

351,441

187

164,183

2000

56

235,777

389

407,233

2001

88

95,395

212

238,774

2002

179

214,321

230

274,099

Canada: Industrial Hemp Fibre Imports and Exports

Year

Imports

Quantity (tonnes)

Value (Cdn$)

Exports

Quantity (tonnes)

Value (Cdn$)

2003

263

255,537

134

201,821

2004

205

314,248

88

142,906

2005

181

373,980

124

188,940

2006

411

625,549

85

110,344

2007

353

510,471

99

102,003

Source: Statistics Canada, May 2008

Canada: Industrial Hemp Seed Imports and Exports

Year

Imports

Exports

Quantity (tonnes)

Value (Cdn$)

Quantity (tonnes)

Value (Cdn$)

1998

0

0

n.a.

n.a.

1999

0

0

n.a.

n.a.

2000

0

0

n.a.

n.a.

2001

0

0

n.a.

n.a.

2002

30

43,739

n.a.

n.a.

Canada: Industrial Hemp Seed Imports and Exports

Year

Imports

Exports

Quantity (tonnes)

Value (Cdn$)

Quantity (tonnes)

Value (Cdn$)

2003

13

13,738

n.a.

n.a.

2004

0

693

n.a.

n.a.

2005

21

22,310

n.a.

n.a.

2006

4

6,888

256

1,555,430

2007

10

17,130

700

2,656,276

Export statistics prior to 2006 are not available Source: Statistics Canada, May 2008

Canada: Industrial Hemp Oil Imports and Exports

Year

Imports

Exports

Quantity (tonnes)

Value (Cdn$)

Quantity (tonnes)

Value (Cdn$)

1998

0

0

n.a.

n.a.

1999

0

0

n.a.

n.a.

2000

0

0

n.a.

n.a.

2001

0

0

n.a.

n.a.

Canada: Industrial Hemp Oil Imports and Exports

Year

Imports

Exports

Quantity (tonnes)

Value (Cdn$)

Quantity (tonnes)

Value (Cdn$)

2002

0

2,478

n.a.

n.a.

2003

0

2,725

n.a.

n.a.

2004

4

36,347

n.a.

n.a.

2005

2

7,180

n.a.

n.a.

2006

1

4,912

42

455,771

Canada: Industrial Hemp Oil Imports and Exports

Year

2007

Imports

Exports

Quantity (tonnes)

Value (Cdn$)

Quantity (tonnes)

0

2,561

77

Value (Cdn$)

695,870

Export statistics prior to 2006 are not available Source: Statistics Canada, May 2008

Canadian Industrial Hemp Exports 1998-2007

Description

– Canadian Industrial Hemp Exports 1998-2007 2007 Canadian Industrial Hemp Exports

Description – 2007 Canadian Industrial Hemp Exports