THE HEMP COMMERCE & FARMING REPORT, Part Two

Volume 1, Issue 3, July 25th, 1999
(c) 1999 AHEM, ARTHUR HANKS.



The HCFR Interview:

Gero Leson on Markets and Technology development

The HCFR recently approached noted industrial hemp consultant Gero Leson for an update on market developments and needed technological innovations. This interview was conducted by email in mid-July 1999.

Q1. Where does Canada stand in relation to the international hemp community right now? Where are we behind and where are we ahead?

A1. The status of industrial hemp in Canada is best compared to the countries in the European Union (EU) which have developed the same processing route for fibre. This includes the harvesting and modern processing of the field retted stalks into "whole fibre," as compared to the traditional water retting, followed by separation into long-line fibre and tow.

Over the last 5 years, Canadian farmers have, in particular, developed extensive experience with the growing, harvesting and processing of hemp for seeds. Despite frequent problems encountered, such as combines catching fire, successes are reflected in the, at least locally, extraordinary seed yields of up to 1.5 tonnes/hectare (1 t/ha is considered a good yield in the EU). Canada is also moving quickly towards establishing and registering new varieties which have been bred for specific goals, such as high seed yields, short growth and a specific fatty acid spectrum. Finally, thanks to the existing focus of Canadian agriculture on oil seed crops, there is sufficient and varied capacity for the production of high-quality cold pressed hemp oil, even in smaller quantities.

Canada is now also moving ahead of the EU in the development of raw materials and products for the fast growing natural products market. Despite the variety and high quality of products, this market is somewhat limited in the EU, while in North America it is now extending beyond the traditional "health food customer".

The implementation of processing capacities and products for hemp fibre has been slower and is lagging behind, compared to the EU where several hemp processors now offer various grades of hemp fibre for pulp, nonwovens and coarse textiles. While hemp stalks are being processed into fibre by the two relevant Canadian fibre processors, Kenex and Hempline, their capacities are limited. Also, operating efficiency and fibre quality still seem to require improvement. Furthermore, there are bottlenecks in the value-added processing of the bast fibre. This applies, in particular, when compared to Germany where a number of matting facilities now operate lines dedicated to the processing of natural fibres into mats for use in automotive panels, insulation materials and erosion control mats. The installation of Kenex's matting line is intended to improve that situation.

What's definitely missing is a large-scale decortication/refining unit for the processing of the large amounts of hemp straw to be produced in Manitoba this year. While most European decorticators also feature low throughputs (~2 tonnes of straw/hour), groups in France and Holland have built decorticators with throughputs of 8-10 tonnes/hour, producing hemp fibre of a quality at least sufficient for pulping, if not for non-woven mats.

Q2. In your opinion, what value-added industries is the Canadian hemp industry best positioned to explore? What’s close?

A2. Given the availability of hemp seeds and know-how on oil crushing and hulling, the current growth in demand for healthy and tasty foods in North America, the use of hemp seeds for foods is, in my own opinion, the most promising short-term market for Canadian hemp. While I do not see the need for technology quantum leaps in seed processing, several technical hurdles need to be overcome on the production side. The quality of hemp oil, particularly for food, requires more consistency with respect to flavour, colour, free fatty acids and peroxide values. Market penetration by hulled seeds will require improvements to hulling techniques, which would result in both higher yields and cleaner products. Finally, there is need for research to elucidate the characteristics of hemp protein and, in particular, to resolve the issue of THC residues in seed products and their implications for employee drug testing in the US.

Markets for hemp fibres in composites (see above) are not well developed in North America. While there are niche markets which can be supplied by the existing processors, the development of new markets will require work in several areas. As mentioned above, the largest technological/economic bottleneck will be the implementation of larger units for mechanical processing and value-added processing of fibres, such as matting, which achieve better economies of scale, thus reducing the premium that customers currently have to pay for a natural fibre product, and often won't.

Q3. A lot of noise is made about hemp being a dual use crop. While dedicated fibre crops are the source of premium fibres that we see in high-end uses like textiles, most hemp in Canada is grown to maturity and the fibre is clearly a secondary product. In some producer cases, it’s just ag-waste. In you opinion, what are the best uses for fibres originating from an oilseed crop?

A3. Due to the lignification of mature fibre and the difficulties of properly removing hurds residues, the use of dual-purpose stalks as a source for pulp, where fibre fineness and cleanness is less important, seems most appropriate. Whether such stalks can be used successfully in nonwovens for automotive panels, insulation and other mats depends crucially on the performance of the primary processing technology (decortication and refining) and the customer’s need. The fact that French groups have grown dual-purpose crops and are now marketing their fibre for non-pulp applications suggests that this can be achieved.

Q4. Various companies and entrepreneurs in Canada are chasing a wide range of product objectives. Are there any overlooked markets that should be explored?

A5. I do not claim to be aware of all ongoing market development activities in Canada. Based on observations in Europe, I believe that the use of hemp mats for agricultural/horticultural/erosion control applications have particularly good promise since these markets appear to be expanding and since mats from natural fibres combine good structural properties with biodegradability. As in other markets, hemp must compete with other domestic fibre sources, such as flax and kenaf.

Q.5. Overproduction of hemp is a valid concern of many players and observers. How do you think farmers can protect themselves from the scenario of falling prices in the future?

A5. I expect that prices, particularly for hemp seeds, will gradually come down, due both to competition between a growing number of suppliers, as well as improved economics of hemp farming. In fact, some decrease in seed prices will be necessary to expand markets for hempseed products. There is the risk of dramatic price declines if production jumps ahead of market development. The only way for farmers to protect themselves against their impacts is to expand acreage cautiously and grow under contract with established and realistic processors.

Dr. Gero Leson has 15 years of experience in environmental research and consulting, primarily for US industry. This includes various projects for the wood products, petroleum and chemical industries. He is an acknowledged expert in the area of "biological air pollution control." Since 1994, he has also been involved in numerous research and implementation projects related to the use of fibre plants for technical applications, with a focus on industrial hemp. In 1997-98 he was president of Consolidated Growers and Processors. His firm, Leson Environmental Consulting, located in Berkeley, CA, provides services related to all relevant aspects of the hemp "value chain." He is currently co-ordinating a study to evaluate the correlation between hemp food ingestion and the likelihood of failing employee drug tests.



Farmers: Keep Your Workers Happy!

By Jon Cloud

Earthworms are one of the great soil-building forces of the universe. They eat the soil, digest it, and condition it. Aristotle called them "the intestines of the soil." To a large extent, our topsoils in Ontario have been made by earthworms during the last 150 years. Before that, there were no earthworms in Eastern Canada.

In an acre of healthy soil, there will be from three to five species (19 varieties can be found in Ontario alone) which burrow horizontally or vertically as they feed. They provide a natural drainage system which can soak up great amounts of rainfall.

According to Bruce Bowman of Agriculture Canada’s London Research Centre, water can flow rapidly through the cracks, fissures, and channels created by earthworms and decaying roots. Such pores can account for up to 90% of the water conducted through a soil profile during times of intense rainfall. These burrows also let in more oxygen to speed decomposition of plant residues and enhance uptake of potassium. The aerating tunnels increase the air capacity in the soil by 60-75%. Less fertiliser leaches as the burrows allow crop roots to reach deeper into the soil and to intercept nutrients that might otherwise escape.

Earthworms plough close to home, depositing large amounts of soil on the surface in their casings. A healthy soil may contain tons of castings per acre. The casting contributes five times more available nitrogen, seven times more available phosphorus and 11 times more exchangeable magnesium than the soil the earthworm ingested.

The castings have much greater productive value for plant growth than other soil because the nutritional elements have been concentrated in them in water-soluble form and in a more balanced condition. The castings produce a topsoil that is practically neutral, with increased organic content; they favour bacterial multiplication and functioning, decompose vegetable matter and greatly enhance the productive value of the soil. In its passage through the worm, the mineral subsoil undergoes chemical changes making it immediately available for plant nutrition.

Earthworms vary in their habits and food requirements. Some require high carbon content like that found in manure or muck. Some make vertical tunnels a metre deep.

To gain the benefits of a good earthworm population, you need eight to ten earthworms per square foot, six to eight inches deep. Take a shovel and dig some samples at half a dozen test sites per field, six to eight inches down and 12 inches square. Check your results against fields that you have winter cropped or where you have worked green manure into the soil. These samples should show you the advantages of cover cropping and green manure to increase your earthworm population.

If no worms are present but conditions are favourable, earthworms can be inoculated intro the soil. However, simply "seeding" them is not enough. The worms need to find the right conditions. They require an environment with lots of crop residue and a calcium-rich soil. All the biological end products of life ¾ kitchen and farm waste, stubble, dead vegetable, manures, dead animal residues ¾ constitute the cheap and ever-renewed source of earthworm food for soil building. Worms like the shaded conditions of a cover crop or sod field to keep the residue moist.

Earthworms are among the hardest workers on organic farms and everyone knows that you have to feed your help if you expect them to stay around.

This is the second of Jon Cloud’s four-part series on the soil fertility cycle that began in the HCFR #2; Jon Cloud is the principal of Cloud Mountain Inc. of Toronto, Ontario.

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Cloud Mountain Inc. contracts with certified organic farmers for hemp grain and fibre production to produce hemp oil as well as a line of hemp, and hemp cotton socks and sweaters.
Everything is Canadian Made.
Check out the Iron OX fibre and fabric line at 416 762 0940.
US dealers and representatives wanted.
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Testing, Testing

By Arthur Hanks

THC testing for crops is a basic license requirement. This involves field sampling and testing by a "qualified" or licensed laboratory.

Last year, Health Canada licensed 16 individuals across the county for field sampling. This year’s list will be available in the next few weeks, according to Health Canada’s Niels Hansen-Trip. Keep an eye on their website for this and other soon-to-made-announcements (http://www.hc-sc_gc.ca/hpb-dgps/therapeut.htmleng/hemp.html).

When to call in the sampler: when the seeds are beginning to mature. Sampling must be performed when 50% of the plant’s first seeds resist compression. Depending on your choice of cultivar and when you planted, this could vary — 80-90 days from seeding is a reasonable benchmark. Regulations require, at minimum, 30 samples to be taken from each field. These must be dried (which can take up to two weeks) before being sent to a qualified laboratory for testing.

In 1999, there are a number of qualified laboratories licensed across the country —with up to 25,000 acres and 600 growers licensed for hemp farming this year, it’s good to have some market choice.

The designated method for testing THC in hemp is by gas chromatography. This is a process that "cooks" the test subject (leaf in this case, pre-prepared in a solution), which causes it to change form into a gas. The gas is fed through a microthin coil or column and "sticks" to the side of it. Analysis of this residue produces data, which if graphed, produces various "peaks." Through reference of these peaks, the chemist can quickly identify the composition of various elements, including THC, EFA’s, protein content etc.

While it may chafe to have THC tested for your crops, it does necessitate a relationship with a qualified laboratory. Develop this relationship. It’s not enough just to grow or sell hemp oil; outside of the issue of THC testing, buyers are sophisticated and will want to know the nutritional content and analysis of your crop.

Testing labs

Here’s a quick list of some qualified (and licensed) laboratories that have made themselves known to the HCFR over the last few months. (Health Canada’s official list will be released soon.)

Hedron Analytical (Vancouver, BC)

With a focus on herbs and nutraceuticals, Hedron is assisting the return to the root of health in search of preventative methods with little or no side effects. With a background of 20 years study of human biology and medicine using state-of-the-art equipment, they are committed to supporting insight and self-regulation within the natural health community. As well as hemp product certification and THC testing, Hedron offers herbal and nutraceutical analysis, herbal marker identification, herbal fingerprinting and standardisation, research and more.

Contact: Paul Hedron, 1650 Pandora Street, Vancouver, BC, Canada, V5L 1L6, Tel: (604) 251-3363. Fax: (604) 258-9497 Email: paulh@istar.ca, http://www.hedron.ca

Meatherall Consulting (Winnipeg, Manitoba)

Dr. Robert Meatherall, Ph.D. is a diplomate member of the American Board of Forensic Toxicology, a Toxicologist, Laboratory Medicine, St. Boniface General Hospital and an Associate Professor in Clinical Pharmacology, University of Manitoba. Meatherall Consulting focuses on THC testing in hemp tissue and in hemp seed oil, grain and seed cake. Testing is done as part of the Health Canada Regulations and for research purposes.

Dr. Meatherall was an invited participant to stakeholders meetings organised by Health Canada in Ottawa during 1997 and 1998.

Contact: Robert Meatherall, 133 Augusta Dr., Winnipeg, MB, Canada, R3T 4N6 Phone: (204) 269-0630; fax: (204) 275-1420; email: meather@cc.umanitoba.ca

Norwest Labs (locations across Western Canada)

Norwest Labs provides full range analytical services to the agricultural and food industry with locations across Western Canada. Services include licensed THC testing, and Ag soil and tissue analysis. Norwest Labs also offers a comprehensive food program with analyses for manufacturers, processors, suppliers, retailers, as well as the restaurant industry. Norwest is accredited by the Standards Council of Canada (SCC), the Canadian Food Inspection Agency (CFIA), and the National Institute of Standards and Technology in the USA.

Contact: Norwest Labs, Agricultural Services Complex, #203, 545 University Crescent, Winnipeg, MB R3T 5S6, Tel: (204) 982-8630 or 1-800-483-3448, fax (204) 275-6019. http://www.norwestlabs.com

RPC (Fredericton, New Brunswick)

Research and Productivity Council, RPC is a testing laboratory licensed by Health Canada to provide THC testing services. Clients are served by qualified technicians and scientists committed to providing timely, high quality results at competitive rates. Accredited and/or certified by the Canadian Association of Environmental Analytical Laboratories (CAEAL) and/or the Standards Council of Canada (SCC).

Contact: RPC, 921 College Hill Road, Fredericton, New Brunswick CANADA
E3B 6Z9, Tel: 506-452-1212, Fax: 506-452-1395, Email:
info@rpc.ca, http://www.rpc.ca

SGS Canada (Locations across Canada)

General Testing Laboratories, a division of SGS Canada Inc, is licensed by Health Canada to perform THC testing. Each SGS Canada branch office specialises in areas of independent testing, inspection and certification services. SGS Canada is certified or accredited by a wide variety of independent, third party programs, such as Agriculture Canada, The Standards Council of Canada, and ISO 9000.

Contact: Peter Taylor, Kent Corporate Centre, #50-655 West Kent Avenue North
Vancouver, BC, V6P 6T7, Tel: (604) 324-1166, Fax: 604-324-1177, email:
Peter_Taylor@sgsgroup.com, http://www.sgs.ca

PDK (Winnipeg)

PDK specialises in rapid oil or seed product quality testing using near-infrared spectroscopy (NIRS), which has been used with great success to analyse protein in Canada's export wheat crops. PDK provides seminars, and consults on quality standards, test composition and quality. While not licensed for THC testing, PDK’s methodology and tech has direct application to the hemp industry (see "Making Light Work" in HCFR #2)

PDK Projects, Inc., 365 Wildwood Pk., Winnipeg MB R3T 0E7 Tel: 204-475-2899, (Fax): (204) 475-6090, email pdk@mb.sympatico.ca, http://www.pdk.com

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When you require THC testing on your product, call us: (604) 251-3363.
Hedron, The Hemp Laboratory.

We also test for pesticides, metal contamination, GLA analysis, fatty acid profiles, and nutritional labelling.
Visit our web site at http://www.hedron.ca.
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