Introduction
Bast Fibres
Hemp Hurds
Hemp Seeds
Hemp vs. Marijuana
Hemp and the Environment
The Legal Status of Hemp in CanadaAgronomics
Hemp for Fibre
Operating Expenses
Projected Yields
Break-even Price for Whole Stalk (Farmgate $/tonne)
Operating Expenses
Projected Yields
Break-even Price for Seed Only (Farmgate $/kg)
Sensitivity Analysis of Break-even Points when
growing for Seed and Fibre
Additional Costs and Risks
Markets
Principal Uses of Hemp
1)Energy source (whole plant):
2) Building material (bast, core or whole plant):
3) Paper (bast, core or whole plant):
4) Textiles (bast):
5) Oil (seed):
1. Separation of Bast Fibres from Hurds
2. Whole Stalk
3. Seed Pressing
Conclusions
Expected Profitability of Hemp for Seed and Stalk
vs. Other Crops:
Recommendations
Introduction
In the past decade, hemp has been the focus of a great deal of attention
and speculation. Advocates of hemp have gone so far as to claim that hemp
can save the world, yet critics inevitably point to the plant's controversial
connection with marijuana and allude to hidden agendas. In recent years
world demand for hemp products has significantly increased, spurred in
particular by its popularity in North America and Western Europe. Hemp
as an industrial fibre crop unquestionably has significant environmental
benefits and innumerable potential uses, but is it economically viable?
The principal suppliers of hemp to the world market today are China and
Eastern Europe, where hemp production has never been prohibited, and low
wages make economically possible hemp's traditionally labour intensive
harvesting and processing. Enabled by changes in legislation, Western European
farmers have recently rediscovered hemp, but substantial E.U. subsidies
provide a significant economic incentive to cultivate this crop.
This paper is concerned with two principal questions. First, is the recent
pro-hemp movement a passing fad, or does hemp offer sustainable competitive
advantages as a commercial crop? In other words, for Canadian farmers,
can hemp compete economically with other agricultural crops? Secondly,
as a fibre source, can hemp economically compete against established commodity
fibres such as wood or cotton?
The paper starts with a brief overview of the hemp plant's properties,
its potential uses, environmental advantages and hemp's historical prominence.
The economic investigation commences with a detailed look at the costs
of growing hemp for fibre or seed in Canada based on hemp research done
in Canada in 1994 and 1995 and reports from around the globe. The results
are given as the break-even prices for fibre and seed respectively. The
profitability of growing hemp is dependent on market prices for the unprocessed
hemp above these break-even levels.
Next, the principal markets for hemp, and hemp's suitability and economic
viability in these varying applications when compared to established and
other emerging alternatives is examined. Hemp processing, in particular
fibre separation and seed pressing, is then explored in order to determine
the value of hemp's end products, and thus the realistic cost of hemp to
the end user. Since hemp requires considerable processing for certain applications,
the economic viability of these processes will be crucial. Pulling all
of these factors together, the paper's conclusions respond to the one overriding
question - does commercial hemp cultivation in Canada make economic sense?
What is Hemp?
Hemp is an annual herbaceous plant of the species Cannabis sativa, meaning
"useful hemp." It is a high yield commercial fibre crop which
flourishes in areas with temperate climates, such as Canada. Hemp grows
successfully at a density of at least 150 plants per square meter, and
reaches a height of two to five meters in a three month growing season.
Every part of the plant can be used commercially (see Exhibits 1 and 2).
The stalk of the hemp plant is harvested for its fibres. The fibre length
and the content of cellulose and lignin are important quality parameters
for raw material used in the cordage, textile, paper and fiberboard industries.
Hemp plants yield three different types of fibre:
Bast Fibres
Hemp has traditionally been grown for its valuable and versatile high
quality (primary bast) fibres. The production of these fibres has traditionally
been a very labour intensive process. After harvesting, the hemp stalks
are soaked with water to initiate a process of retting (the decompositional
separation of the bark-like bast fibres from the inner woody core). After
the retting process, the plants are dried and then the fibre must be separated
from the hurds, shaken out, and cleaned. Recently, alternative fibre separation
processes have been developed, using technologies such as ultrasound and
steam explosion, which as much less labour intensive. Once separated, the
bast fibres are ready for spinning and weaving into textiles, or for pulping
into high quality pulp. Because of their high tensile strength, bast fibres
are ideal for such specialized paper products as: tea bags, industrial
filters, currency paper, or cigarette paper.
Bast fibres come in two varieties:
1. primary bast fibres which are long and low in lignin. These fibres are
the most valuable part of the stalk, and are generally considered to be
among the strongest natural fibres known to mankind.
2. secondary bast fibres which are medium length and higher in lignin are
less valuable and become more prevalent when the hemp plants are grown
less densely (therefore less competition for light), and thus grow shorter,
fatter stalks.
Hemp Hurds
The hurds are the short fibred inner woody core of the hemp plant which comprises 70-80% of the stalk. They are composed of libriform fibres which are short and high in lignin. The hurds are essentially the by-product of the process of extracting bast fibre from the hemp stalks, and were traditionally considered waste. Though the fibres are shorter, the lignin content of hurds is similar to wood, so there are opportunities for using the hurds for tissue of newsprint pulp. Hurds can also be used to produce a wide range of products including rayon, biomass fuel, cellophane, food additives, and industrial fabrication materials.
Hemp Seeds
Hemp seeds are also a potentially valuable commodity. The seeds have exceptional nutritional value. They are second only to Soya beans as a source of complete vegetable protein and hemp seeds contain all 8 essential amino acids in the correct proportions humans require. Hemp seeds also contain 30-35% oil by weight. Hemp seed oil is approximately 80% polyunsaturated essential fatty acids (EFA's). Furthermore, the proportion of these oils in hemp seeds most closely match the ratios which have been determined to be most beneficial to human nutrition.[1] However, although the oil is very healthy, this high percentage of polyunsaturated fats also makes hemp seed oil somewhat unstable and so subject to fairly rapid rancidity unless preserved. Hemp seed oil can be extracted or expressed and used in cooking, or industrial uses such as paints, varnishes, detergents, cosmetics, and lubrication. The left over seed casings are a rich source of protein which can be ground into flour.
Hemp vs. Marijuana
The flowering tops and to a lesser extent, the leaves of the Cannabis sativa plant contain delta-9 tetrahydrocannabinol (THC). This chemical substance gives marijuana its psychoactive properties. Generally Cannabis sativa strains with a THC concentration of less than 0.3 % are classified as low-THC or "fibre" hemp. At this low concentration, the psychoactive properties of the hemp plant are nonexistent. Marijuana, on the other hand has an average potency of 5-15% THC. In any Cannabis plant, no THC is to be found either in the stalk or the seeds.
Hemp and the Environment
In both its cultivation and uses, hemp is considered an exceptionally
environmentally friendly crop. Hemp requires little or no pesticides as
it is naturally pest resistant. Hemp is also a natural herbicide known
for its ability to smother weeds when grown at a density suitable for producing
high quality bast fibre. Hemp also has a lower net nutrient requirements
than other common farm crops, since it can return 60-70% of the nutrients
it takes from the soil when dried in the field. However, prior to the nutrient
recycling, hemp extracts more nutrients per hectare than grain crops due
to its fast biomass production.[2] Its deep root system is also very beneficial
as it is effective in preventing erosion, cleaning the ground, providing
a disease break, and helping the soil structure by aerating the soil for
future crops, when it is grown in rotation with other crops.
Hemp is also a particularly high yield fibre crop. In fact, an acre of
hemp produces more biomass than most other crops. As a result hemp can
be used effectively in many applications as an alternative to wood or fossil
fuels. For example, hemp can be used as a renewable, low polluting source
of biomass fuel, or hemp pulp could potentially replace wood pulp in paper making.
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