Government of Canada Investment to Help Hemp farmers and Processors Reach Full Potential

December 13, 2010

Winnipeg, Manitoba  - The Government of Canada is injecting more than $728,000 to help the hemp industry increase production capacity and make new inroads into the U.S. market. The Honourable Vic Toews, Minister of Public Safety, made the announcement today on behalf of Agriculture Minister Gerry Ritz.

"Canadian farmers and processors are finding tremendous success with hemp thanks to its many nutritional benefits and wide range of uses in pasta, salad dressings and frozen desserts," said Minister Toews. "This Government is proud to invest in this growing industry so that farmers can continue to expand their markets and develop more products."

The Government of Canada investment will support three groups:

• A $410,000 repayable contribution through the AgriProcessing Initiative for Fresh Hemp Foods to purchase and install new dehulling, oil pressing, and packaging equipment in its new 20,000 square foot state-of-the-art facility.
• A $300,000 repayable contribution through the AgriProcessing Initiative for Hemp Oil Canada to purchase and install new air classification milling and cold press oil expeller technology.
• A $18,625 investment through the AgriMarketing program for the Canadian Hemp Trade Alliance to enhance its website, hold a strategic planning meeting of its board of directors and take the first steps toward achieving Generally Regarded as Safe status in the U.S.

In 2009, exports of hemp seed and hemp products were valued at more than $8 million, with most exports going to the U.S.

The AgriProcessing Initiative, funded under the Agricultural Flexibility fund as part of Canada’s Economic Action Plan, provides support to existing processing companies for agri-processing projects that involve the adoption of innovative and new-to-company manufacturing technologies and processes that are essential to sustaining and improving the sector's position in today's global marketplace. For more information, visit www.agr.gc.ca/api.

The AgriMarketing program helps producers and processors implement long-term international strategies which include activities such as international market development, consumer awareness and branding and industry-to-industry trade advocacy. To find out more about this program, visit: www.agr.gc.ca/agrimarketing.