RAND 25 MILLION HEMP FOR AFRICA INITIATIVE

A R 25-million, five-year project to introduce and develop new cultivars of
hemp for South Africa will reap significant rewards for the country, and
place it at the forefront of international hemp research and development.

Cultivars will be the first adapted to subtropical growing conditions that
will yield a high fibre and low drug content crop for local fibre and seed
production.

"Demand for hemp products worldwide has increased by 233% over the past two
years, and yearly South African hemp imports have grown from R500,000 to
R1-million in the last year," Southern Africa Hemp Company (SAHC) director
and international expert James Wynn tells Engineering News exclusively.

"Given the recognized demand for fibre products, particularly tree fibre,
and the limited availability of forest land in South Africa, the development
of a viable hemp industry in South Africa will help boost the economy and
empower rural farmers," he argues.

The project will involve the cross-breeding of local cannabis varieties with
hemp cultivars certified by the European Union (EU) to lower the
tetrahydrocannabinol (THC) or narcotic content, and will yield a new
certified high-fibre crop, suited to the South African climate, that can be
grown year-round.

Existing European cultivars can be grown only during a four-month growing
season in subtropical climates. European countries are expected to fund the
project, which will expand the production of existing EU hemp cultivars.

This will involve specific breeding, development and adaptation of the
cultivars in cooperation with scientists and students, as well as the
transfer of knowledge and technical know-how to students, researchers,
farmers and regulatory authorities.

Already PG Bison and Masonite Africa, leaders in the South African panel
products industry, have provided funding of R300,000 to kick start the
breeding programme, and a license has been granted by the Department of
Health to grow hemp at Rustenburg in the Nort West Province. A hemp, flax,
sisal & kenaf cluster comprising representatives from the government,
industry, trade associations and research institutions has also been formed
to further advance the local development of these strategic resources.

This follows on from the formation of the South African Bast Crop Consortium
(SABCC) last year to introduce and develop bast or fibrous bark crops such
as hemp, flax, kenaf and sun hemp for the local agricultural industry.

Present members include the Agricultural Research Council's Tobacco and
Cotton Research Institute, PG Bison, Masonite Africa and the Southern Africa
Hemp Company.

Despite the actions being taken to launch a local hemp industry, and the
support from local and foreign private investors, the project is being
delayed by legislation and bureaucratic processes within the Department of
Health regarding the issuing of permits, warns Wynn.

Any researcher or farmer wishing to grow and process hemp must be granted
permits by both the health and agriculture departments, as well as the
Medicines Control Council.

"As the council meets only once every six weeks, hemp-permit applications
can get pushed aside for issues deemed of higher priority such as new
medicines and health policies," explains Wynn. "A whole season can be missed
because it takes months before a permit is cleared," he asserts. "This, in
turn, affects potential foreign investment, as we require permits before
funding can be secured." Wynn adds that the existing legislation could cost
the country its competitive advantage in this lucrative sector.

In the 1920s, South Africa outlawed the entire cannabis plant due to its
narcotic effects, but since 1964 scientists have learned to monitor drug
levels in different cannabis plants, and today low THC hemp cultivars are
grown in more than 30 countries.

Hemp seed and fibre are used in the manufacture of food and beverage
products, building materials, textiles, cosmetics, fuels, paper, and
automotive components (Engineering News November 21, 1997).

Although the SAHC has been granted a permit to grow hemp at Rustenburg, it
is still waiting for approval of a permit to grow the crop in the Eastern
Cape.

The SABCC, together with the Department of Agriculture, plans to conduct
commercial scale trials at Stutterheim at the end of next month, and has
targeted areas in the Eastern Cape and Western Cape for future hemp
production due to the favorable climate there.

This component of the project has already elicited interest from
international companies, including the leading national French hemp
co-operative, which hopes to introduce French hemp cultivars to South
Africa. Funding proposals have already been submitted to this organization,
as well as to the EU.

Interest has also been expressed by the Department of Agriculture, which
seeks to ensure the accessibility of the newly-developed seed to local
farmers.

The five year research programme will require funding of R5-million each
year to expand the commercial agronomic trailson a nationwide basis. (END)

This message was received from James Wynn: Director, Southern Africa Hemp
Company sahc@icon.co.za Manager, South African Bast Crop Consortium
www.hemp.co.za

Checked-by: Don Beck