HEMP A GROWING INDUSTRY

Crop Not Only Grown For Food But Industrial Applications As Well

TAVISTOCK - A decade after it became legal to grow in Canada,
industrial hemp finally looks closer to delivering on its potential
as a wonder crop.

"It's growing rapidly but it's a delicate balance still in the growth
phase," Gordon Scheifele, former president of the Ontario Hemp
Alliance, said at a field trial open house held Saturday northwest of
Tavistock.

"We want to communicate ... that 'Hey, this is great stuff, it's
going to change our lives with regard to how it moves into the
industrial applications, the hemp grain for food,'" he said.

The former University of Guelph and Ridgetown College research
scientist has half an acre with a dozen varieties of hemp planted
beside a corn field on Line 33.

One trial, sponsored by the Canadian Adaptation Council, is looking
at hemp for grain in food products for people and animals. The other,
part of an Alberta Research Council project, is growing hemp for fibre.

Hemp is considered by many to be a wonder crop, with fibre suitable
for paper, animal bedding, garden mulch, insulation, construction
materials and car parts.

On the food side, the seed is a nutritional powerhouse. It contains
high levels of the recommended 3:1 ratio of essential omega 6 and
omega 3 fatty acids, which have been shown to reduce the risk of
cardiovascular disease, stroke, osteoporosis and diabetes. Hemp seeds
are also protein-rich and an excellent source of rare gamma-linoleic
acid, important for growth and development as well as providing
protection against degenerative conditions like arthritis.

Brian Holden opened Flour of Life on Downie Street in Stratford six
weeks ago, selling gluten-free baked products made with hemp flour
and a line of hemp-based products, including soaps and skin creams.

"I think once you get the education out there it's going to take off
and do very well because it's a very healthy plant, very versatile
plant - it can be used for just about anything," he said from his
booth at the open house.

But hemp also carries a stigma because it and marijuana both from the
cannabis family. However, hemp has an extremely low THC percentage,
the narcotic agent in marijuana, and doesn't produce a high. The
local field day coincided with Seattle Hempfest. The weekend
"protestival" was expected to draw more than 150,000 people who
support reforming laws pertaining to marijuana - especially
legalizing the domestic production of hemp.

"It's totally, totally coincidental," Mr. Scheifele said, laughing.

"We're not here for a party - we're here to communicate the
significance of this as a crop," he added.

At this point hemp is still a niche crop in Canada.

About 45,000 acres of hemp was grown in Canada last year, most of it
in Manitoba, Saskatchewan and Alberta. Ontario produced only a few
hundred acres.

This year, production is down to 10,000-12,000 acres nationwide.

Mr. Scheifele said the decline reflects last year's overproduction
when there is still a lack of market opportunities for hemp.

But that could change soon in Ontario.

Stemergy Renewable Fibre Technologies received $3.3 million in
funding from the provincial government in May for its proprietary
fibre refining technology. The Delaware-area plant is expected to
create 20 new jobs directly and impact as many as 100 through the raw
materials and supply sides when it begins production next year.

Company president Geof Kime brought examples of hemp-based products
at the field day, including a door panel from a Chrysler Sebring.

"Just about all the carmakers are using some kind of a natural fibre
technology. It just makes economic sense," he said.

"And now with oil being expensive, the idea of using plant-based
products to replace oil-based products just makes a whole lot of
economic sense," he said.

Cash cropper Kevin Preiss said he is interested in the potential for
hemp for farmers but is being cautious.

"The fibre is useful, it's a healthy plan, good for you and
everything . why hasn't it taken off," he said at the field trial.

Dairy farmer Alex Gibson grew one of the first two hemp crops in
Perth County in 1998, the first year the Canadian government allowed
industrial hemp to be grown.

Contacted Saturday, Mr. Gibson said it turned out to be a bust.

"Most of it never got to market," he said in an interview.

"Actually, I burned it in a big open area when no one was around," he
added with a chuckle.

Despite the failure, Mr. Gibson said he was glad to be part of the
hemp experience and still sees potential for the alternative crop.

He grew the hemp under contract to Hempline, the predecessor to
Stemergy also run by Mr. Kime.

"In retrospect, growing the crop is the easy thing. Taking it all the
way to market - there's challenges involved. When we got going, there
was no processing infrastructure and not a lot was understood about
the markets," Mr. Kime said.

"People don't appreciate what has to be done in the development of
the infrastructure," Mr. Scheifele said.

"There's been huge progress," he added.