RE:Link to BNN Video of Russ Crawford - 6.5 minutes long......
A little background info is always useful.
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“Rock34” said “Russ is the President of the Canadian Hemp Trade Alliance so he is representing the industry and
not specifically NSP.” Agreed but isn’t it nice to have the President of the Canadian Hemp Trade Alliance as a
Director of NSP!
At the end of December 2015 there was a glut of hemp seed in Canada (see item 1. below), so much so that
Manitoba Harvest announced it would not contract for the 2016 crop. In hindsight I think Manitoba Harvest wish they had contracted for the 2016 crop.
Then along came South Korea. The glut from 2014/2015 got gobbled up in pretty quick fashion.
Contrary to anything a couple “keyboard warriors” might say,
Goodwin was successful in getting Purchase Orders to Date (July 21st) Exceeding $9,200,000 CDN resulting in Gross profit for the second quarter of 2016 amounting to $1,596,383 (2016 YTD: $1,676,736) and net income of $885,301 (2016 YTD: $427,009). I am pretty sure it doesn’t end there.
The items posted below IMO provide some useful background info to the 6.5 minute discussion with Russ Crawford on BNN. Read it or not – your choice!
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“Living in the sunshine”
Always DYODD
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Background items:
Item 1. Hemp glut in Manitoba - 12/26/2015
HEMP, the new Cinderella crop, is in for a major hiccup after Manitoba Harvest announced it will not contract the crop in 2016.
Winnipeg-based Manitoba Harvest, with its recent acquisition of Hemp Oil Canada in Ste. Agathe, buys about 75 per cent of the hemp crop in Western Canada. Its announcement will put the brakes on production in the new year.
"It's so much of a Cinderella crop that we were finding incredible yields on the Prairies," said Kelly Saunderson, Manitoba Harvest spokeswoman.
The yield was so great in 2015 that Manitoba Harvest doesn't require any new crop in the new year. That's even though its sales are increasing by 30 to 40 per cent annually, Saunderson said.
Manitoba Harvest contracts on a per-acre basis. When average yields started coming in at 1,000 pounds per acre last year, instead of the 200 to 500 pounds per acre projected, Manitoba Harvest realized it couldn't keep pace. The glut of hemp is mostly stored on farms.
Hemp is projected to be the next Cinderella crop, a label used for canola until it one day rivalled wheat as the dominant crop on the Prairies. Hemp production was banned in Canada in 1938 because it looks exactly like marijuana. Narcotic-free hemp production was legalized again in 1998. Hemp has extraordinary potential as a health food (high in protein, and omega 3 and 6) and for its fibre, but it's still banging at the door of food markets and clothing manufacturers.
There are fears a freeze in hemp production will be a setback and allow Americans to catch up to Canada. Regulations are starting to loosen up in the United States regarding hemp production.
Saunderson doesn't see it that way. For one, growers have a very big lead over any newcomers. That's why production has skyrocketed so quickly. As well, Manitoba Harvest has invested $8 million in recent years upgrading its processing facilities, including more automation.
If U.S. farmers do start producing hemp, it will only grow the market, said Dauphin-area hemp grower Bruce Rampton.
"The tide raises all boats," maintained Rampton, who grew 100 acres of hemp last year and has grown up to 600 acres.
"If Americans can legalize it and get production going there and get the marketplace going, we are ahead on production and know-how, like combining, drying and handling the crop, fertilizing and seeding rates. That's all figured out," Rampton said.
Manitoba Harvest's announcement wasn't a big surprise to many farmers, he said. "I've never grown a crop that makes me as much money as hemp, but I've never had anything as unpredictable as hemp," he said. "I've always told everyone when growing hemp, hemp is profitable but don't confuse profitability with cash flow."
Don Dewar, another Dauphin-area farmer, said he will still grow hemp in 2016. He contracts his crop with the Parkland Industrial Hemp Growers Co-op, which has not announced any cuts in contracting. The co-op, started in 2002, processes hemp for bulk sales of grain and fibre.
Item 2. Canadian producers working to meet growing overseas demand for 'superfood' hemp seeds - Sep 20, 2016
Saskatchewan hemp growers and processors have been working to meet the exporting demand for the multi-use crop.
Hemp is used in all kinds of products from paper to clothing but has found its calling for its use in nutrition and supplements.
The market has been expanding in Europe and Asia and thanks to some hemp infomercials in South Korea, the product has made its way to the store shelves in various forms.
With the product being on shelves, it opens up a new range of consumers who don't have time to sit around and watch infomercials on TV, Garry Meier, president of
Hemp Productions Services
, said of the growth overseas.
Nutritional uses
Meier says there are "tremendous benefits" when it comes to nutrition.
The crop's biggest demand is seen in the sale of hemp hearts, which are just shelled hemp seeds. They can be added to food for an added source of protein, omega-3 and omega-6.
Hemp is also used to make protein powders and as a replacement supplement for fish oil tablets.
The amino acid and fatty acid composition in hemp has been identified as similar to fish by nutritionists, Meier said.
"The demand quickly outstrips that supply," Meier said of fish market limitations.
"Hemp is a very, very palatable, tasty way to substitute that, what they view is going to be a missing food group in their diet," Meier said of the expanding demand for hemp in Asian markets.
The perception of North American food as "pristine" has helped stabilize the flow of hemp products, Meier said.
"We anticipate that demand is going to continue to grow and we are making movements within the company on our processing side and also on our grower base side to try and grow to meet that demand."
Hemp hearts, shelled hemp seeds, are high in protein and omega-3 and omega-6 acids which make it a suitable substitute for fish oil supplements. (CBC)
Hemp demand
Dr. Andr Magnan, an associate professor of sociology at the University of Regina, is more cautious when it comes to the demand for hemp products.
Magnan also attributes hemp's Asian popularity to greater global food fads.
"At the moment, in places like South Korea, people are really looking to the health benefits of hemp seed and this is why there was quite an important sale of hemp products from Saskatchewan to South Korea," he said.
Magnan classifies the hemp seeds as belonging to a group of "superfoods"— foods that become trendy in different markets such as kale, goji berries and chia seeds.
"Any time there's a big sale or new market opportunity, it's always a positive signal to Saskatchewan farmers," Magnan said.
The challenges of agriculture mean farmers often have to predict a season ahead of time which crop will be in demand, Magnan said.
Hemp hearts, shelled hemp seed, is largely responsible for the bulk of the demand due to its simplicity and diversity. (Hallie Cotnam/CBC)
"They might do that on the hunch this market is going continue to grow but there's no guarantee demand will be as high as one predicts," he said of new products or newer form of production.
Despite the risk, Magnan said he thinks it's still a positive signal.
Despite being a very tiny part of Saskatchewan's agricultural production, hemp can act as a new tool in the repertoire of farmers.
"I see it continuing to be a small niche but as the market becomes larger and demand increase, I think you'll see that form of niche production growing."
The numbers
According to Agriculture Canada, hemp exports have been increasing in the west for several years. Hemp exports from Saskatchewan grew by $1.2 million from 2014 to 2015.
Manitoba has been the biggest exporter of hemp. There was more than $67 million worth of hemp exported from Manitoba in 2015.
Saskatchewan exported more than $6 million and Alberta exported more than $2 million. Together, the western provinces made 89 per cent of Canada's hemp exports in 2015.
Saskatchewan exports of hemp have been up for the second consecutive year, after some down years in 2012 and 2013. The province's hemp exports in 2011 were worth more than $5 million before dipping to $2 million and $1.5 million in those years. They jumped back up to $4.8 million in 2014 and increased again in 2015.
Magnan says it's not uncommon for niche crops such as hemp to fluctuate in demand.
"Demand is quite unpredictable, even though there are some signals it is increasing," he said.
With a niche crop, which only accounts for a small fraction of Saskatchewan's production compared with big crops like canola, will see large swings in production over a short period of time, Magnan said.
******
Item 3. Hemp opportunities seen for grower, value-added - Oct. 20th, 2016
The last couple of years have been problematic for Canada’s hemp industry because of an over-production of seed, stagnant acreage growth, the potential of U.S. competition and excessive regulations.
Yet, despite the difficulties, many people in the sector remain confident about the future of hemp, a crop that has been legal to grow in Canada for nearly two decades.
“I’m even more convinced at this point in time, than I ever was, that the hemp crop could be a significant revenue opportunity, both in terms of return to the producer and processing, value-added,” said Russ Crawford, president of the Canadian Hemp Trade Alliance president.
Crawford is optimistic because hemp seed cultivation and production of hemp food, such as oil and protein, has grown from a tiny industry in Canada to one that was worth more than $100 million last year.
Hemp food consumption and exports are up, but acreage is flat in Western Canada.
The industry was expecting acres to rise to 250,000 by 2018, up significantly from recent levels of 70,000 to 100,000 acres, but farmers produced more seed than food processors needed in 2014 and 2015, resulting in a glut.
The industry has been working through the excess thanks in part to increased sales to South Korea.
Canada’s hemp trade will gather at a conference in Saskatoon in November to discuss production, exports and the state of the industry.
The number one point of discussion will likely be Health Canada regulations that govern the production of hemp, such as testing for THC, the active ingredient in marijuana.
The alliance wants the government to modernize hemp regulations because it believes many of the rules are extreme, outdated or unnecessary.
“As an example, you’re not allowed to leave grain (hemp seed) in the seeder over night,” Crawford said. “The seed needs to be left under lock and key.”
Those sort of regulations, plus the burdensome paperwork, deter some farmers from cultivating hemp.
The alliance is asking the government to ease back several rules, such as:
- reduce testing for THC content
- reduce criminal record checks for growers
- permit use of the whole plant, including flowers, and leaf material
The last one could be critical because there is booming interest in cannabinoids, which are phyto-chemicals found in the flowers and tissue of hemp plants.
Health Canada prohibits the harvest of hemp flowers and tissue to extract such compounds. Evidence suggests that cannabinoids could be used for pain relief and anti-inflammatory and anti-seizure treatments.
“We are asking for total crop utilization because we can’t make something as benign as essential oils because we can’t work with the flowering parts of the plant,” said Anndrea Hermann of Ridge International Cannabis Consulting.
“We can’t make hemp tea like our colleagues in Europe can.”
Crawford envisions a future where cannabinoids could be a significant source of revenue for hemp growers.
“My gut tells me there’s going to be more value coming out of industrial hemp from the cannabinoids than the food and the fibre combined,” Crawford said. “There is a medicinal application for this that could be global in nature.”
However, Canada is falling be-hind other jurisdictions that permit extraction from hemp and testing of cannabinoids.
“Ironically, in the United States they’re allowed to do that kind of testing … (but) here we are, standing on the outside, watching all this happen,” he said.
“We (Canada) are doing a good job on food, we’re doing a terrible job on (hemp) fibre and we’re doing zero … on any kind of therapeutic or medicinal applications of the plant.”
Crawford and others are concerned about Ottawa’s position on the whole plant use of hemp. Prime Minister Justin Trudeau has committed to legalizing marijuana use, and hemp might be ensnared in those regulations.
“I have a fear they are going to bring the two (hemp and marijuana) closer together,” said Gary Meier, president of Hemp Production Services, a hempseed production company.
“I think there’s a complete lack of understanding at the federal level … that there is a significant difference between industrial hemp and marijuana…. There seems to be a thought process that they have to regulate the cannabidiol business and combine (it) with the THC business.”
Crawford has heard similar rumours.
“It’s our understanding that they’re wanting to treat the cannabis plant as a single entity. Whatever you do for marijuana it applies to hemp,” he said.
“We (the hemp trade) don’t want that for a whole bunch of reasons.”
The CHTA is a relatively small group, so it’s looking for allies who may have influence in Ottawa.
Crawford said Alberta Agriculture Minister Oneil Carlier has provided a letter of support, and the alliance has reached out to agriculture ministers in Manitoba and Saskatchewan for similar help.
Crawford also sent a letter to federal Health Minister Jane Philpott in the spring but hasn’t heard back yet.
*****
Item 4. Growing industrial hemp in eastern Canada: A new frontier - October 19, 2016
What if there was one crop that could produce a variety of really useful products? Growing this crop would probably seem like a no-brainer. Unless this crop is industrial hemp.
Industrial hemp, one variety of the plant
Cannabis sativa, can produce a wide variety of products.
However, because hemp is a relative to marijuana, growing the crop is still illegal in many countries.
In Canada, growing
industrial hemp was legalized in 1998. Eighteen years later, producers still face many challenges. Farmers first have to get a license from the government to grow hemp. Then they can only plant the seeds of specific
cultivars, or types, of hemp. These specific cultivars have been approved by the Canadian government because they contain minimal amounts of THC. (THC is the psychoactive component found in marijuana.) Finally,
farmers in eastern Canada face an additional challenge because very little is known about how to grow hemp in eastern Canada.
Industrial hemp grows best in drier soil conditions, like those in western Canada. Farmers know which cultivars grow best in the west. But they don't know which of the 45 approved cultivars are best suited for growing in the wetter conditions of the east. These farmers often have to rely on consulting with other local producers and trial and error.
Coming to the aid of eastern Canadian hemp producers is Philippe Seguin, associate professor at McGill University, Montreal, Quebec, Canada. Seguin wants to help farmers in eastern Canada learn more about which hemp cultivars work best in their environment.
He and his team of researchers selected 11 cultivars and planted them in seven different environments in Quebec. Seguin kept detailed records of when the seeds were planted and how much fertilizer was used. The plants were then harvested, and the amounts of biomass and seeds produced were measured. Biomass is the plant material that is used for making textiles, insulating materials, and other fiber products. The hemp seeds are used for food products and as a source of oil.
Former graduate student Marie-Pier Aubin in an experimental field of industrial hemp. Credit: Philippe Seguin.
The researchers discovered the amounts of biomass and seeds the cultivars produced varied in the different environments. They also found the cultivars performed differently in eastern Canada than they do in western Canada. Some cultivars performed consistently across the environments in Quebec. It means some of the cultivars can adapt to conditions in the east. "This finding is promising for local producers," Seguin notes.
The cultivars that appear to be best suited for growing in eastern Canada include Ferimon, Anka, and Jutta. Seguin found that these cultivars consistently produced high yields of both biomass and seeds. These cultivars have the potential to produce moderate amounts of biomass compared to western Canada. He also found that these cultivars may have the potential to produce high amounts of seeds compared to western Canada.
Even with these discoveries, there is still plenty to learn about growing hemp in eastern Canada. Research can now look at specific recommendations for growing hemp in eastern Canada: the best times to plant the seeds, how much fertilizer to use, and the best times to harvest. And there are still other environments within eastern Canada to explore. Cultivars specifically for the environments of eastern Canada are needed.
Overall, Seguin is optimistic. "Unlike many 'new' crops, industrial hemp has demonstrated its potential in the past; it only remains to be 'rediscovered.'"
With the help of Seguin and his team, farmers will be able to rediscover industrial hemp in this new frontier of eastern Canada.