Canadian hemp stakeholders have formed a new body they hope will help pick up the country’s moribund hemp industry, financed by a collaborative “checkoff” program.
The Canadian Industrial Hemp Promotion Research Agency (CIHPRA) was formed to strengthen public awareness of hemp, boost consumer recognition, and fund research to advance the industry, organizers say.
“What it will do is allow mobilization of funds for market development purposes,” Clarence Shwaluk, chairman of the board at the Canadian Hemp Trade Alliance (CHTA), told Manitoba Co-operator (MC). The new agency is expected to work closely with the CHTA.
Blueprint for growth
By uniting stakeholders under a common banner, CIHPRA hopes to offer a blueprint for growth in the currently challenged landscape for Canadian hemp. Licensed hemp fields in Canada continued to shrink in 2023, reaching 11,861 hectares (29,309 acres), down from 13,589 hectares (33,579 acres) in 2022, hitting the lowest level since Health Canada, the government’s cannabis regulator, started tracking the crop in 2018. Canadian fields are one-fourth of what they were at a peak of 44,600 hectares (110,209 acres) in 2017.
Hemp producers from across Canada, as well as importers and exporters, were involved in forming the new agency. A survey of growers revealed strong support, with 90% of respondents favoring the checkoff system. However, privacy challenges meant only 60% of growers could be contacted, according to Don Dewar, a Manitoba farmer and CIHPRA’s inaugural board chairman.
Long time coming
CIHPRA’s checkoff funding mechanism is similar to those already operating in Canada’s pork and beef industries. Processors will collect a fee equal to 0.5% of all industrial hemp sales revenue in Canada, which will be used for such things as market development campaigns, research into new applications, and the creation of industry standards to streamline trade.
Estimates put the value of the Canadian hemp market between $175 and $200 million, meaning the 0.5% checkoff could yield CIHPRA between $875,000 to $ 1 million.
Forming CIHPRA required extensive groundwork, particularly given hemp’s niche status in Canada. Dewar said talks about establishing the agency started a decade ago. “We realized this project would have to be a national effort,” he said.
With reporting from Manitoba Co-operator (MC)
CIHPRA hopes to offer a blueprint for growth in the currently challenged landscape for Canadian hemp. Read More
