PLANNED HEMP FACILITY A FIRST

$6-M Plant Expected To Create About 30 Jobs, Open Doors By July '99

A $6-MILLION hemp processing plant will be up and running in rural Manitoba
by next July. Douglas Campbell, general manager of Consolidated Growers and
Processors of Canada Ltd., said the company has harrowed it down to three
or four locations in rural Manitoba, and will announce its choice by
November. The new plant will be 112,000 sq. ft. and employ about 30 people.
Campbell could not say how much the jobs will pay, although he said about
two-thirds of them will be low-tech positions. Campbell said it would be
premature to discuss details concerning the financing of the project.

He said at this point, to government money is involved.

But that could change, he added. "Obviously if we are eligible for
(government) programs we want to look at that." he noted. CGP is made up of
a group of North American and European investors. The federal government
lifted the ban on growing hemp in March. Production was prohibited in 1938
because hemp is a member of the cannabis family and contains the substance
THC which gives pot smokers their high. The potential uses of the plant are
broad, ranging from clothing to plastics. Hemp oil can be used in cooking
or for burning in automobile engines. Campbell said the Manitoba facility
will produce fibre for insulation and paper-making. "The intention would be
to run three shifts with one processing line," he added. The new Manitoba
plant is part of a larger plan which will see three to four facilities
built in Western Canada over the next couple of years. Campbell said they
would like to branch out into secondary processing. "All of our facilities
are being designed for future expansion to produce value-added products,"
said Campbell. He said CPG chose Manitoba as the site for their first plant
because there isn't enough hemp being grown in other western provinces to
justify a facility. CGP's main objective right now is to get farmers
interested in growing the plant, Campbell said, adding that because of the
sooner-than-anticipated lifting of the ban, only 1,200 acres of hemp were
planted in Manitoba this year. "Many growers did not receive adequate
notice," he noted. CGP has contracts with about 30 growers in the province.

The first fibre crop was harvested last week in La Riviere. Campbell said
the remaining crops should be in by the end of September or early October.
The fibre will be stored over the winter and processed in July. Campbell
said that involves separating the inner fibre from the outer fibre. "It's
like peeling the skin off a banana," he explained. Agricultural Minister
Harry Enns said having a processing plant in Manitoba will help convince
farmers that hemp is a viable alternative. "This sends a very strong signal
to farmers," said Enns. Campbell said farmers could gross in excess of $400
per acre.