Health Canada, the overseeing body in charge of industrial hemp licensing and its regulations has just issued a new class exemption for cultivators of the plant within the Cannabis Act. Most of the world is focused on the legalization of recreational cannabis in Canada but, language within the bill will now open the door for positive changes for those involved in the cultivation, processing, and manufacturing of the industrial hemp plant into profitable products.
On October 17, 2018 farmers that hold valid licenses will be allowed to begin to “harvest and store flowering heads, leaves and branches of the industrial hemp plants cultivated during the 2018 growing season.” Companies will now also be able to transport, sell, import, and export any part of the industrial hemp plant legally. This opens up those involved in industry to take advantage of an entirely new product market utilizing hemp derived cannabinoids.
Extractors have found the flowers, leaves, and branches of hemp plant to be rich in cannabinoids, such as the non-psychoactive Cannabidiol (CBD) compound. CBD, which has gained a notable surge in popularity as of late, has been found by researchers to be effective in treating inflammation, anxiety, seizures, and chronic pain as well as a number of different ailments. This gave way to an increased demand from consumers for products containing CBD oil. The Hemp Business Journal indicates that the hemp derived CBD product market could generate $2.1 billion dollars by 2020.
This bodes well for public companies like Global Hemp Group Inc. (CSE: GHG) (OTC: GBHPF) (FRANKFURT: GHG) that over the course of the past few years has focused its efforts on the execution its multi-phased strategy to develop multiple hemp cultivation projects in North America.
Their objective is to develop hemp cultivation with the plan of extracting cannabinoids (CBD, CBG, CBN & CBC). The second phase of the plan will focus on the development of value-added industrial hemp products utilizing the processing of the whole hemp plant, as envisioned in the company’s Hemp Agro-Industrial Zone (HAIZ) strategy.
For this growing season in Canada, GHG has completed the planting of 125 acres of industrial hemp in the northeast portion of the New Brunswick province. This commercial hemp cultivation project is expected to be harvested this grow season, just in time for the new regulations to go into effect. The project will be heavily focused on the continued improvement of hemp cultivation techniques in order to increase cannabinoid yields in future grow seasons.
To keep updated and find more information on GHG’s hemp cultivation projects visit the company’s website: www.globalhempgroup.com