FIBRE PROCESSING PLANT

PIHG Co-op Ltd. (Parkland Industrial Hemp Growers Co-op Ltd.) has worked towards the building of a fibre processing facility in Dauphin Manitoba. A business plan was completed in November, 2001.

Processing equipment and technology is available that is capable of processing the raw fibre into a variety of value added products. This initiative is in support of the grain processors industry in Manitoba.

Funding is being arranged with plans for construction of the facility to start in 2003. Funding for the plant is currently being worked on. The plant will process fibre for bulk sales as well as non-woven matting. This plant will be the state of the art and the largest of four Industrial Hemp Fibre Processing Plants in the world.

The processing plant will initially require approximately 20,000 to 25,000 acres of Industrial Hemp to be grown to supply the processing requirements when under full production.

The vision for the industry indicates a fibre-processing plant like this could be established every 100 to 200 miles. As the markets for products grow, the seed requirements will also grow.

PRODUCTS produced from the Bast or long fibre will be for uses like paper, and non-woven matting. The matting will be in thickness from approximately 1/4 to 8 inches. Markets are for the horticulture industry (liners for wire handing baskets) to insulation. The Hurd (short fibre) has a market for horse breeding. There is no waste from the plant. The dust, fines and small branches are compressed into a brick that has burning properties similar to coal. This will be used for heating the plant and bulk sales.

Standing Hemp

Plant Breeding Project A plant breeding project has been initiated by PIHG Co-op Ltd. that will also support the growth and development of the new Industrial Hemp Industry. Variety selection and breeding emphasis is on low THC, large seeded, high yielding varieties grain production and low THC, high fibre producing varieties for the fibre industry. This initiated is in support of the Grain Processing Industry in Manitoba namely Fresh Hemp Foods (Winnipeg) and Hemp Oil Canada (Ste. Agathe). These existing Manitoba Oil Crushing plants contract approximately 2000 acres per year.

Opportunity exists for export of the seed to other markets in Canada and elsewhere.

PIHG Co-op has been instrumental in arranging a market for the surplus of 4 million pounds of Industrial Hemp grain that has been in producers bins for the past 3 years. Export markets have been secured for a bird seed for almost 2 million pounds. Movement of grain will be completed by the end of 2002. This uses up most of the surplus grain that has been in producers bins.

Industrial Hemp Production

Manitoba Producers have been very innovative and resourceful in successfully growing and harvesting Industrial Hemp.

Existing conventional equipment used by Producers has been modified and used to successfully plant and harvest industrial hemp for grain and for fibre.

A sizable inventory of hemp fibre bales are on inventory with P.I.H.G. Co-op. Some of the bales are up to 3 to 4 years old. They have been tested, processed and are still suitable for processing for Non-Woven Matting and other potential products the Dauphin Plant will manufacture.

Industrial Hemp- The ECO Friendly Crop

Industrial Hemp in crop rotation contributes to an economical sustainable farm sector. For both consumer and producer it is ecologically and economically beneficial. It is extremely renewable resource, as it can be planted year after year on the same field. Industrial Hemp fibre added to other products as a value added component strengthens the availability of the end product.

Industrial Hemp in the growing process pulls carbon out of the air (carbon sequestering), which enhances the quality of the air we breath. Bio-mass conversion to fuel has proven economically feasible in lab test and pilot field tests. Every part of the plant is used, seed, grain, and fibre.

The unlimited potential of the Industrial Hemp Industry will not only benefit Agriculture, but also consumers, all levels of government, and value added companies. As the Industry grows, Rural Canada will experience a resurgence of growth, as new jobs will create a positive ripple effect in all areas from production to value added processed products.