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- Markets and Opportunities
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- Protein +/– 30%
- excellent dietary source of easily digestible, gluten-free protein
- Fatty Acids +/- 35%
- Essential Fatty Acids (EFA’s) +/- 30%
- 3:1 ratio omega-6: omega-3
- gamma-linolenic acid (GLA) +/-3%
- stearidonic acid (SDA)
- Carbohydrates +/- 35%
- insoluble fiber +/- 30%
- soluble fiber +/- 3%
- sugars +/- 2%
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- Oil
- Nutritional Supplement
- Salad dressings, etc.
- Seed Cake
- Hemp Nut – hulled hemp seed
- Nutrition bars
- Nut butter
- Frozen desserts
- Prepared foods (pesto, salsa, …)
- Hemp ‘milk’ products
- Whole Seed
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- Natural and Organic foods
- Natural and organic foods and beverage categories are growing at more
than 12%, outpacing sales of conventional grocery products by more
than 4 to 1.
- American shoppers spent more than $42.8 billion on natural and organic
products in 2003. Sales of organic products rose 19 percent in natural
products stores in 2003.
- Healthy fats replacing trans fats
- headline issues such as trans fatty acids and the obesity epidemic
have challenged consumer confidence in mainstream goods, contributing
to slack sales.
- by January 2006, under new U.S. Food and Drug Administration
regulations, all food marketers will have to disclose the level of
trans fats in their packaged products.
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- Health and Beauty Care
- conventional products at zero growth while natural products growing at
a more than 10%/year
- US Sales of organic personal care products grew by 81 percent in 2003
- Natural/organic skincare, haircare and cosmetics items broke the $3.9
billion mark (US retail) in 2003, and are projected to hit $5.8 billion
by 2008
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- OPPORTUNITIES
- Canada is the principal supplier of hemp seed and derivative products
to the US market
- good fit: EFA’s, protein, eco-friendly, organic production
- price becoming more competitive
- pent up demand for hemp products – especially CA
- hemp still has ‘wow’ factor – good PR opportunities
- RISKS
- Ongoing DEA opposition
- HIA’s successful court challenge of the DEA - decision permanently
blocks DEA regulations that attempted to ban nutritious hemp foods
- International competition
- Health Canada’s 10ppm THC limit benefits Canadian suppliers
- imported whole seed must be sterilized
- certified organic production
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- Hemp Seed Oil
- Personal Care Products
- claims that this accounts for about half of the world’s hemp
production
- Industrial Oil Applications
- Varnishes, paints (competes with linseed oil)
- Seed Cake & Whole Seed
- Livestock Feed
- Poultry – especially organic
- Bird Seed
- *** PRICE DRIVEN COMMODITIES***
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- Historically the cultivation of hemp primarily as an oilseed was largely
unknown, except in Russia.
- “The short oil-seed hemp with slender stems, about 30 inches high,
bearing compact clusters of seeds and maturing in 60 to 90 days, is of
little value for fiber production, but the experimental plants, grown
from seed imported from Russia, indicate that it may be valuable as an
oil-seed crop to be harvested and threshed in the same manner as
oil-seed flax.” Dewey, USDA (1914)
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- World Hemp Seed Production (1999-2003 average)*
- Area harvested 27,000 ha
- Production = 31,000 t
- Yield = 1150 kg/ha
- 80% China; 15% France
- Canadian Hemp Seed Production 1998-2004
- 1998 – 2400 ha
- 1999 – 14200 ha
- 2000 – 5500 ha
- 2001 – 1300 ha
- 2002 – 1500 ha
- 2003 – 2700 ha (10% of world total; organic seed sold out as of mid-year)
- 2004 – 6-8000 ha (estimate)
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- Canadian Flax Seed Industry
- since 1994, Canada has been the world leader in the production and
export of flax seed
- Canada produces approx. 40% of the world’s total flax production
- next largest producer is China at less than half the annual production
- Canada supplies approx. 60% of flax seed used in the US, and also has
significant exports to Europe, Japan and South Korea
- Canadian Flax Stats
- average Canadian production of flax (1999-2003) = 755,000 t, produced
on about 1.5 million acres (600,000 ha)
- Average yield = 1,137 kg/ha (approx 1,000 lbs/ac) vs. world average of
808 kg/ha (40% above average)
- Average price = U$242/t (ranging from U$193-$309/t)
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- Need for breeding
- European hemp varieties historically have been bred for fiber or to a
lesser extent dual purpose (seed & fiber)
- only 6% of varieties grown in Canada are Canadian bred
- average hemp yields are still low compared to other commodity crops
(i.e. flax)
- hemp has been less intensively bred than other crops and so retains a
high level of genetic diversity
- opportunities exist to breed for specific properties (i.e. GLA, SDA)
- Current breeding projects for seed and fiber in Ontario and Western
Canada
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- Breeding objectives
- Increasing yields
- population type
- selection of elite populations
- select for uniform maturity
- hybridization
- agronomics
- Minimize THC content
- Regionally adapted
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- Product (not producer) driven
- grow existing hemp category
- develop new products and sub-categories (recent examples: hemp protein
powder, hemp milk)
- focus on quality
- Co-operation
- continue to work together through trade organizations: Ontario Hemp
Alliance, Canadian Hemp Trade Alliance, Hemp Industries Association
- continue to build consumer awareness – trade shows, media (co-op ads,
PR, web)
- Explore new opportunities
- new markets (Europe, Asia,…)
- new applications (livestock feed,…)
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