HTTP/1.0 200 OK Content-Type: text/html Dauphin Lays Claim As Hemp Capital
Pubdate: Mon, 19 Sep 2005
Source: Winnipeg Free Press (CN MB)
Copyright: 2005 Winnipeg Free Press
Contact:  http://www.winnipegfreepress.com/
Details: http://www.mapinc.org/media/502
Author: Bill Redekop

DAUPHIN LAYS CLAIM AS HEMP CAPITAL

Region has huge crop, new fibre plant coming

DAUPHIN -- Hemp, hemp, hooray!

With 80 per cent of the continent's narcotic-free hemp grown here, and one
of the world's largest hemp fibre plants slated for construction next year,
Dauphin is laying claim as Canada's hemp capital.

"We hope to lead the way," said Don Dewar, a Dauphin-area grower and
president of Parkland Bio Fibre Ltd., a co-op of 50 growers who are behind
the processing plant.

The race is on, and growers here are poised to lead for several reasons.
First, there is little competition in Eastern Canada, where hemp can't
out-earn crops like soybeans and corn. Neither is there competition from the
United States, where it's illegal to grow hemp.

But U.S. companies can still buy hemp, so long as it's processed. That's
what the proposed $14 million Parkland Bio Fibre plant plans to do. A
company in Iowa is already negotiating to purchase processed hemp -- which
is an excellent home insulator -- to blend with a cement mix.

"The Americans want to purchase our hemp products. We believe we can build
an interest and be ahead of them," said Dewar. Another aspect of hemp that
Canadian farmers love is there are no subsidies in other countries to
compete against. It's also an inexpensive crop to grow, requiring few inputs
like farm chemicals. That makes it relatively easy to grow organically.

Hemp production was banned in Canada in 1938 because hemp and marijuana look
exactly the same. Narcotic-free hemp was legalized again in 1998.

There was considerable "buzz" about the legalization initially, with many
farmers growing small lots. Their enthusiasm came to a crashing halt when
Consolidated Growers and Processors Inc. of Monterey, Calif., which had
contracted production in Manitoba, went out of business. Farmers were left
with silos full of hemp fibre, especially in Dauphin where Consolidated
Growers promised to build a $25 million plant.

Trying to find buyers for their stored hemp taught farmers here a lot about
the markets, and they continued to grow the crop to take advantage of that
knowledge, said Dewar. They mainly sold hemp seed for food production in
Western Canada, Ontario and Quebec. The seed is used to make hemp oil, which
is high in fatty acids omega 3 and CLA that are essential to a healthy diet.

But with no market for the fibre, farmers would burn it off their fields
every year. The parkland around Riding Mountain National Park would smell
like a giant toker party every fall.

"It gives off quite an aroma. You can't tell the difference (from narcotic
marijuana)," said Dewar. "Or so I'm told," he quickly added. The drive up
Highway 10 into Dauphin gives a jolt to the nasal cavities. If you fail to
notice the fields of towering, two-metre high hemp swaying like trees beside
the road, you won't miss the pungent, incense-like smell.

The proposed processing plant will have an immediate market selling hemp for
paper and cardboard recycling. Recycled cardboard requires 18 per cent new
fibre, and hemp makes stronger product and increases the times it can be
recycled. The facility will also produce fibre mats, which hold more
moisture than existing mats, for hanging baskets for horticulture.

The farmer co-op is also dedicating funds to develop a hemp insulation. Hemp
absorbs moisture and breathes it out. It also requires less energy to
manufacture than fibreglass insulation.

"It looks and feels like fibreglass insulation, except it's not pink, and it
doesn't scratch or itch," said Dewar.

"If you look at fibreglass insulation, it has a cancer warning on it. With
hemp insulation, there's no dust, there's nothing toxic. It's natural
cellulose. It has huge market potential."

The plant will be able to process 36,000 tonnes of fibre per year, and will
require 20 full-time staff.

The facility is scheduled to open in about a year.
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