The Canadian Hemp Trade Alliance 20032005

1
The Canadian Hemp Trade Alliance2003-2005

• Arthur Hanks
• March 11th, 2005, Guelph

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Hemp in Canada

• More than 90 grown in Prairie provinces.
• Virtually all production for seed - little
  utilization of fibre.
• More than 60 of acreage is certified organic
  and targets food market.
• Profitable crop in Prairie provinces. Estimated
  Gross Organic 455 US/acre Conventional
  297/acre

2004 Hemp farming area by ProvinceSource Health
Canada, 2004
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Canadian Hemp Production 1998-2005

• (hectares) (acres)
• 1998 2700 6,671
• 1999 14,200 35,088
• 2000 5500 13,590
• 2001 1300 3,212
• 2002 1530 3,780
• 2003 2733 6,753
• 2004 3531 8,725
• 2005 4200 (est.) 10,378 (est.)

4
Grain MarketPrices0.85/lbC.O. FOB
Clean0.45/lbConventionalFOB Clean Bushel
Price (44 lbs per bu) 37.04 C.O, 19.80 Con
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Food Market is Growing

• 2003-2004 SPINS research showed Hemp Foods Sales
  reached 3.5 million US, up form 2 million the
  year before
• Estimated 10 million NA market created after 5
  years
• Some companies report 20-40 growth in this
  period
• US export market is open Federal Ruling
• Certified organic production demand, but also
  demand for quality conventional

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Market

• Hemp food sector now featuring increased variety
  of packaged products

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Hemp Grain Market Challenges

• Not a mainstream market
• Still small market enough growing opportunities
  to meet farmer interest?
• Contract or Speculation?
• Steady but small volume buyers
• THC trace amounts
• Prices will maintain?
• Current Undersupply
• Insufficient Science

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CHTA Background

• Need for a national organization
• Hemp is (still) a new industry
• Antecedent work performed by SHA, OHA. HIA, other
  groups
• Problematic US situation led to discussions
• A working group established in Fall 2002
• Discussion with AAFC began supportive
• Registered with Industry Canada March 2003
• First Funding secured Summer 2003

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CHTA Membership

• 52 members, 90 Canadian, representing
• 80 farmers
• 13 processors
• 15 distributors
• 8 retailers
• 12 researchers / consultants / labs
• 2 Associations
• 7 Board members represent all industry sectors.

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Mandates

• Helping develop both domestic fibre and seed
  industries
• Promotion of the best interests of Canada's
  industrial hemp industry
• Developing and executing marketing and export
  promotion programs
• Facilitating research needed to advance the
  sector
• Public education of hemp's benefits and potential
  
• Helping to develop policy in support of the
  Canadian hemp industry

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Current Initiatives Three Pillars

• Marketing
• Research
• Strategy All interdependent

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Marketing

• Web www.hemptrade.ca www.infochanvre.ca
• Brochure
• Develop co-op media/marketing Trade Shows, PR
  firms, ongoing media dialogue, and ad buying
• 2003-04 Hemp Foods PR Campaign in USA market

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PR Results

• Market Advocacy Campaign in The United States
  2003-2004, publicity outreach for 7 press
  releases generated 25 plus articles and TV
  coverage at WABC-Los Angeles
• Food samples from CHTA member companies
  distributed to 51 media outlets.

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ResearchTwo Current Priorities

• Establish, validate and disseminate information
  on nutritional benefits of hemp foods
• Maintain and further reduce THC levels in hemp
  foods

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The Science on Hemp FoodsStatus and Needs

• Science of hemp foods based on scattered
  compositional data
• No scientifically sound assessment of variation
  in composition with variety and location
• Very few clinical studies on nutritional benefits
  of hemp
• gt CHTA embarked on Hemp Food Research agenda in
  2004.

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CHTA Hemp Food Research

• Protein characterization, micronutrientsCost
  US45 K
• Expert panel on hemp foodsCost US30 K
• Stability of hemp foodsCost 30 K
• Total Cost 105 K
• Canadian Govt. programs fund US60 K
• Balance to be raised by Industry

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Strategy

• Work with other associations where possible ex
  EIHA trip
• Prioritize and Champion food and fibre needs
• Work with Ottawa to represent industrys best
  interests
• Annual Convention-- Winnipeg, October 24th, 2004
• Next Year Winnipeg, 2005

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Policy Initiatives

• Code of Conduct
• Fibre plan- we need to priorities
• Customs Codes-accurate measurements needed

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Conclusion

• 7 years in, a good opportunity CHTA has come in
  at the right time.
• Continued participation/support to continue
  successes
• Strong associations create strong industries

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• Thank You
• arthur_at_hemptrade.ca
• [phone]