GROWERS BREEDING NEW HEMP

HEMP growers in the Dauphin region are going back to some of the
original hemp breeds in the area from the 18th century to come up
with new varieties.

Unlike more commercially acceptable grains like wheat and barley,
commercial hemp growers must register and certify the seed they use
every crop year. That is largely a result of regulatory pressures,
mostly from the United States, about concerns over the control of
marijuana which is another type of hemp.

Joe Federowich, chairman of Parkland Prairie Hemp Growers Co-Op, said
it takes several years to certify and register new varieties of hemp
seeds. If the region is ever to be successful in developing an
industrial hemp processing plant, it is going to need a much larger
supply of seeds to feed the plant with fibre, he said.

"We've been breeding since 2001," he said. "You can't use seed from
the bin. You need high pedigree seeds."

That's why the Dauphin group is now using some of the seeds from the
original 18th century plants to cross breed with other hemp seeds
that have proven to be successful in Manitoba to create new and
better varieties. Over the years, it has been able to register
several new varieties.

Federowich said he believes the tight regulatory controls might relax
over time, but plant breeding is still a long-term process.

"In my mind I see this as a 25-to-30 year project," he said. "It has
to be there to maintain a seed supply."

Parkland Prairie Hemp Growers Co-Op (PPHG) just received $55,000 from
the Agri-Food Research & Development Initiative (ARDI) to examine the
heritage varieties.

ARDI is a research and development granting program jointly funded by
Agriculture and Agri-Food Canada and Manitoba Agriculture, Food and
Rural Initiative. It has an annual budget of about $2.5 million.

It funds up to 50 per cent of agri-food development projects.

The latest grant to research new hemp varieties is another example of
ARDI's long-standing support for the development of a commercial hemp
industry in the province. Over the last 10 years it has invested
close to $600,000 in several different hemp-related projects.

Lori-Ann Kaminski, an ARDI program officer, said, "Hemp is one of
Manitoba's strengths. The oil from its seeds is used in food and
cosmetics and sold all over the world. But we have to start taking
advantage of hemp fibre."

None of the fibre is used in the commercial processing of the seeds
used in all sorts of food products by companies like Winnipeg's
Manitoba Harvest Hemp Foods and Oils and Hemp Oil Canada Inc. of Ste. Agathe.

Kaminski and Federowich agree that what the industry is still lacking
is a major processing operation.

Last year PPHG was unsuccessful in closing an equity offering of
about $4 million to go towards a proposed $18 million fibre processing plant.

Federowich said he believes the business plan -- which includes the
production of insulation material using hemp fibre -- is solid and it
is just a matter of time before it will be successful.

"It has all the right pizzaz," he said. "But the problem is this will
be the first plant of its kind in North America and the venture
capital investors all said they were interested and to come to see
them when we built our second one."