Source: thegrowthop.com
Haney predicts 2019 to 2021 “will see the arrival of new seed varieties that will be optimized for higher levels of CBD, followed by additional acres designed first for CBD production, and second for food.” p_saranya/ iStock / Getty Images Plus
Not everything is known about the future of the cannabis industry, of course, but hemp looks to be charting a defined course thanks to the growing interest in, among other things, cannabidiol (CBD).
Canada’s Industrial Hemp Regulations define hemp as cannabis containing no more than 0.3 percent delta-9-tetrahydrocannabinol (THC); CBD is a non-intoxicating cannabinoid present in both cannabis and hemp, but often found in the latter at levels ranging from about 1.5 percent to 3 percent by weight to the flowering heads.
Restrictions on THC and CBD content have a decades-long history, with rules in 1923 applying to all forms and variations of the cannabis/hemp plant, regardless of the cannabinoid profile.
Only in 1998 did Canada adopt the industrial hemp exemption, allowing hemp farmers to produce “plants with less than 0.3 percent THC in the flowering heads,” says Ted Haney, executive producer of the Canadian Hemp Trade Alliance (CHTA). Prior to that, “the only two legal products that could be harvested were the seed and the strip stalks for fibre.”
This meant a full 70 years of “plant breeding, innovation and industry development was lost in hemp,” Haney contends.
That opened the door for European and Asian countries, including China, now the world’s largest producer of hemp, to seize the global lead. A focus on fibre production for textiles and fractions, also known as extractions, preceded Canada, which has focused over the last 20 years solely on producing food, feed and fibre.
But times are changing and industry players are looking to explore new avenues.
CBD holds great promise
If Canada has traditionally lagged the global market in fibre production and innovation, how then might hemp be the future of the cannabis industry? Simply put: CBD.
Prior to the Cannabis Act, there had been no focus in industrial hemp on producing strains with higher levels of CBD, which creates a stickiness in the plant that is not favourable for harvest by combine.
As of August 10, 2018, though, “farmers were allowed to harvest the flowering head material and store it on their farms,” Haney says. Effective October 17, the Canadian market for hemp fractions opens its doors, allowing hemp farmers “to sell [these plant materials] to licensed marijuana producers,” he says.
“Now, as an industry, the seed breeders are looking at adjusting the genetic capabilities of strains to produce more resin that contain higher levels of CBD, without the accompanying THC,” Haney reports.
For hemp producers to extract the CBD from the plants themselves, though, they must undertake the rigorous process of becoming a licensed marijuana producer. Already, the country is witnessing commercial partnerships forming between hemp producers and marijuana producers in a bid to realize mutual benefits.
Naturally Splendid Enterprises, a commercial hemp producer in Pitt Meadows, BC, had applied under the old legislation to become a licensed cannabis producer in order to extract hemp-derived cannabinoids, mainly CBD.
The third, and arguably most important, food ingredient the company will be producing after protein isolate and encapsulated omega is cannabidiol.
Russ Crawford, director of Naturally Splendid Enterprises and president of the CHTA, forecasts the incorporation of CBD into hemp-based health food products, as Canadian legislation permits.
Health Canada’s current regulations allow hemp farmers to “produce and harvest the flowering heads and leaves,” Haney says. Come October 17, farmers will be able to sell to the licensed marijuana producers, who can, in turn, extract the CBD, he says.
“This will be for sale in the medical marijuana sector or the provincially licensed retail networks, and only in the form of CBD in carrier oil,” he reports.
CBD, THC risk profiles differ
Currently within the Cannabis Act, “THC and CBD are being treated the same,” says Haney. “Our belief is that hemp-derived CBD does not represent the same risk profile as THC because it is non-intoxicating.”
Citing the reported health benefits, coupled with what is believed to be no risk of habituation or dependency, “we do believe that the regulations should reflect that, which would eventually allow for extraction to occur outside a licensed marijuana producer.”
Should regulation eventually reflect this change, and hemp-derived CBD is removed from Canada’s controlled substance list, it is clear hemp could ultimately become a significant player in the future of the cannabis industry. The promising and highly touted wellness compound could advance Canada’s efforts to surpass current front-runners and, as is the case with marijuana production, become the global leader in industrial hemp and CBD production.
Haney predicts 2019 to 2021 “will see the arrival of new seed varieties that will be optimized for higher levels of CBD, followed by additional acres designed first for CBD production, and second for food.”
Health Canada statistics show there are 1,236 licensed hemp growers in the country, with 138,000 acres, or 55 000 hectares, of land for hemp cultivation. The CHTA’s strategic plan for 2018-2023 notes this equates to a Canadian industry worth roughly $180 million, projected to hit sales of $1 billion come 2023 to 2025.
Canada’s current hemp industry consists of “about half a dozen major certified seed producers, all required to be members of the Canadian Pedigreed Seed Growers Association,” Haney says. The bulk of commercial hemp growers are in Alberta, Saskatchewan and Manitoba, including Fresh Hemp Foods in Winnipeg, Naturally Splendid in Pitt Meadows, BC, Hempco, which has already attracted investment from Aurora Cannabis, and Hemp Production Services in Saskatoon.
Innovation occurring in Canada, worldwide
Russ Crawford says hemp is being used in innovative ways both at home and abroad. For example, Naturally Splendid Foods is producing a hemp protein isolate food ingredient, and an encapsulated omega supplement.
The microencapsulation of hemp omega is a sustainable replacement for fish-derived omega supplements, and offers omega 3, 6 and 9 in “perfect balance and ratio in the human body,” says Crawford. He describes these products as “functional foods” that are healthy, beneficial and balanced in their approach.
Other global innovations in hemp fibre relate to automotive, because “hemp fibre is literally as strong as steel,” Crawford says. The idea is that hemp fibre could replace the metal and plastic components of vehicles, such as door paneling or the dashboard.
“It is lighter, stronger and more cost-effective,” he points out. This method of production is “already well-established in Europe, and is being implemented by companies like BMW and Mercedes Benz.”
Crawford also references bioplastics and the potential for hemp fibre to replace the plastic industry. Other innovations in the tech industry are seeing effective hemp replacements for grapheme and even batteries powered by hemp.
“Imagine a building made of glass and brick,” Crawford says. “Solar panels comprise the glass, and the bricks are made up of batteries able to store energy. This would be an entirely self-sufficient building by the materials that is it made from… these are the kinds of things people are investigating.”
Noting that hemp has a “natural SPF factor of 15,” Crawford further points out it has a “natural pest-resistance component, from a genetic point of view.” That being the case, he expects opportunities exist in the development of natural and organic, plant-derived pest management agents.
With regard to fibre processors in Canada, “it really is precompetitive,” Haney suggests, adding things are just beginning to unfold. Expansion of innovative products in the fibre industry are expected to increase in the coming years, including seeing available products like high-flame-retardant insulation, fiberglass and other materials like hemp bricks, blocks, plywood and other household items.
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