Canadian Hemp Trade Alliance Strategic Business Plan April 2019 - March 2020
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Canadian Hemp Trade Alliance
Strategic Business Plan
April 2019 – March 2020
(Final, 16July2019)
th
200, 6815 – 8 Street NE, Calgary, Alberta, Canada T2E 7H7
Tel: 403-219-6266 | Fax: 403-291-1090 | Info@hemptrade.caTABLE OF CONTENTS
Page
I. EXECUTIVE SUMMARY 1
II. EVOLUTION OF SUCCESS
a. Vision 4
b. Mission 4
c. Priorities 4
d. Market Profiles and Goals 4
III. KEYS TO GROWTH
a. Industry and Its Capabilities (SWOT) 6
b. Market Readiness 6
c. Alignment with Industry Priorities 10
IV. PROGRAMS
a. Governing with Excellence 11
b. Government Relations 11
c. Research Program 11
d. Standards Program 12
e. Market Development Program 13
f. Industry Engagement Program 14
V. OPERATING BUDGETS
a. Projected Revenues 15
b. Projected Expenses 16
VI. CONCLUSION 17
Appendix I: 5-YEAR BUSINESS PLAN 18
Appendix II: COMMITTEE PRIORITIES, GOALS AND TACTICS 19
Appendix II: PERFORMANCE MEASURES 25
th
200, 6815 – 8 Street NE, Calgary, Alberta, Canada T2E 7H7
Tel: 403-219-6266 | Fax: 403-291-1090 | Info@hemptrade.ca-1-
I. EXECUTIVE SUMMARY
The CHTA is a federally-registered not-for-profit industry association. It was incorporated in 2003 and
has developed a strong membership base and program of work over the past 15 years.
The business of CHTA is directed by the Board and implemented by management with the support of
committees. The CHTA Standing Committees include: Executive; Finance and Audit; and Governance.
The CHTA constitutes Ad Hoc Committees to support the organization and its members. The current
CHTA Ad Hoc Committees include: Convention; Government Relations; Market Development; Research;
and Standards. The Canadian hemp producers have organized themselves under the PRA Committee,
which is hosted by CHTA.
The organization currently has 358 members, which fall into the following categories: Producers (189);
Manufacturers/Processors (83); Wholesale/Retail (25); Research (11); Hemp Breeder/Seed Supplier (6);
Governments (16); Consultants (18); and Other (10). Our membership is geographically located across
Canada (334) and internationally (24).
The CHTA enjoys membership from 9 Provinces across Canada. The majority of domestic members have
full voting rights within the organization, including being able to nominate and be nominated to the
Board of Directors. The Board Directors are elected (half each year for two year terms), at the
organization’s annual general meeting (AGM). Officers are elected by Directors at the organizational
meeting of the Board following the AGM.
Canadian Hemp Trade Alliance Membership (December 2018)
Member Category BC AB SK MB ON QC Atl Int'l Total %
Producers 11 53 63 42 9 7 3 1 189 53%
Manufacturer/Processor 22 17 9 10 9 3 2 11 83 23%
Wholesale/Retail 6 5 0 0 7 0 3 4 25 7%
Research 3 2 2 3 0 0 0 1 11 3%
Hemp Breeder/Seeder Supplier 1 1 0 0 3 0 0 1 6 2%
Governments 0 9 0 3 3 1 0 0 16 4%
Consultants 1 4 1 3 3 3 1 2 18 5%
Other 1 2 1 2 0 0 0 4 10 3%
Total 45 93 76 63 34 14 9 24 358 100%
% 13% 26% 21% 18% 9% 4% 3% 7% 100%
The Canadian hemp industry has shown remarkable resilience in recent years considering its
dependence on the food market and associated export market disruptions. With the anticipation of
new revenue streams being developed for livestock feed, fibre and fractions
(flowers and leaves), the industry is positioned for expansion.
Demand for hemp food has been slowly growing in Canada and the USA. While market penetration is
small, the role of plant-based protein in household diets is becoming well established. New industry
growth is also expected in the processed food sector, where hemp provides health protein and energy
options. The official launch of the Diversified Field Crops Cluster (DFCC) and Protein Industries Canada
(PIC) supercluster will encourage innovative collaborative research to this end.-2-
The confidence and commitment of Canada’s hemp industry has inspired the CHTA members to set the
goal for increasing total industry sales from $138 million (2018, est) to $1 billion (2023). The Canadian
hemp industry is strongly export oriented, with approximately 70% of total sales moving to international
markets.
Canadian Hemp Industry: History and Growth (C$, M)
Year Grain Oil Protein Fibre Feed Fractions Total
2011 6.76 1.02 3.96 0.01 0.00 0.00 11.75
2012 13.90 1.62 5.31 0.03 0.00 0.00 20.86
2013 28.59 2.75 7.37 0.02 0.00 0.00 38.73
2014 32.48 3.72 11.57 0.10 0.00 0.00 47.87
2015 72.34 6.55 23.52 0.13 0.00 0.00 102.54
2016 123.21 8.12 14.45 0.13 0.00 0.00 145.91
2017 95.00 13.00 22.00 0.50 0.00 0.00 130.50
2018 94.00 14.00 23.00 2.00 0.00 5.00 138.00
2019 175.00 25.00 42.00 10.00 6.00 27.00 285.00
2020 256.00 36.00 60.00 18.00 11.00 48.00 429.00
2021 337.00 47.00 79.00 26.00 16.00 70.00 575.00
2022 459.00 64.00 107.00 38.00 23.00 102.00 793.00
2023 581.00 81.00 134.00 49.00 29.00 134.00 1,008.00
Source: Industry Estimates (Statistics Canada does not report hemp revenue)
The CHTA actively pursues and interacts with governments and various organizations to improve market
access and conditions for hemp products and the corporate marketing environment for our members.
The CHTA’s cooperative market development strategy will provide our members, trade partners, end-
users and consumers with the confidence of knowing that Canadian hemp stands for leadership in plant
health, food safety, and quality systems that delivery outstanding quality for the most discriminating
customers. The CHTA will invest considerable time and effort to build equity in the Canadian hemp
brand.
Supporting the development of the Canadian Hemp Promotion and Research Agency will result in long
term stable industry funding to build the industry. Seeking policy and regulatory renewal will open new
domestic and international markets for Canadian hemp. Research will support the development of new
genetics (national field trials), support market access (heavy metal update), expand the feed market for
hemp seed and its derivatives (livestock feeding trials), and develop new SOPs to support the
development of hemp-derived cannabinoid (CBD) markets. Developing national food, feed, fibre and
fractions standards will support fair trade practices. International adoption of Canadian standards will
optimize the international trading environment for Canadian hemp products. Trade show events are
used to support members and distributors with information about Canadian hemp and to strengthen
existing relationships throughout the distribution channels. Seminars are used to bring identified
market leaders together to learn more about the Canadian hemp advantage and to foster stronger
marketing commitment and trade relationships. Marketing materials, primarily for distribution at trade
shows and seminars, will tell the Canadian hemp story while providing contact points for follow-up.
Industry engagement and communication will create strong working relationships, avoid duplication of
effort, and maximize program efficiency.
These tactics work to support and create sales success through communication of the value proposition
that Canadian hemp brings to the table and the equity and brand awareness of the Canadian hemp-3- brand as markets are opened and sales grow. These activities will deliver long-term growth within the distribution channels and create consumer demand based on both quality and confidence. Our optimism for future domestic and export sales increases is based on five basic principles. Economic stability and growth in the regions is expected to continue for at least the next two decades – creating new demand for high quality hemp products. High quality plant-based protein demand is being driven by cost, health and environmental expectations – generating new client needs. Market access for Canadian hemp will continue to liberalize in the domestic and many export markets – opening that demand to our industry. Capacity expansion in the Canadian hemp sector will continue – improving our ability to serve. New service standards are being developed by our industry to meeting the needs of key global clients – closing on new opportunities. The 2019-2020 business plan of the Canadian Hemp Trade Alliance is designed to: increase consumer awareness of plant-based protein benefits; provide hemp processors the knowledge and tools to increase use of hemp products; stimulate the expansion of trade to selected international markets; develop international standards to reflect Canada’s health and safety strengths; register hemp seed and its derivatives as livestock feed ingredients in Canada; and, more fully engage the Canadian hemp industry (producers and processors) to ensure that current and future programming reflect verified industry challenges and opportunities. Private sector revenues include: memberships; voluntary producer levies; sponsorships; and conference registrations. Canadian hemp producers continue to pursue the creation of a Promotion Research Agency to administer a future mandatory/refundable national levy on all farm sales of hemp grain, fibre and chaff. The CHTA’s budgeted market development program expenditures are forecast to increase in 2019-2020. Program and budget management will be vital to ensuring that the financial health of the organization is maintained and enhanced. Selected research projects may be deferred to future years in order to match resources. The Canadian hemp industry has focussed its long term development targets on increasing and diversifying domestic and export sales.
-4-
II. EVOLUTION OF SUCCESS
a. Vision
CHTA will become the “go to” organization for industry, government, and consumers looking for
expertise and insight into Hemp Food, Feed, Fibre, and Fractions in Canada, creating a $1B industry by
2023.
b. Mission
To champion a diverse and robust Canadian hemp industry which benefits all stakeholders along the
value chain.
c. Priorities
1. Governing with Excellence – Board Governance and Committee Structure
2. Government Relations – Clear Communication and Advocacy Goals
3. Promotion and Research Agency Support – Administration Support
4. Public Trust – Education and Awareness
5. Membership – Inform, Communicate and Grow
6. Research Development – Science and International Market Development
7. Risk Management – Standards and Grades
d. Market Profiles and Goals
In the Industrial Hemp Regulations, industrial hemp includes Cannabis plants and plant parts, of any
variety, that contains 0.3% tetrahydrocannabinol (THC) or less in the leaves and flowering heads.
Industrial hemp also includes the derivatives of industrial hemp plants and plant parts, excluding the
flowering parts or the leaves. There are multiple market opportunities available to the Canadian hemp
industry:
Canada is a global leader in the hemp food sector, with dehulled seed (hearts), oil and protein
leading the way.
CHTA is working with the government of Canada to register hemp grain and its derivatives
(whole grain, screenings, hulls, hearts, cake, oil and protein) as approved ingredients for
livestock feed in the coming year.
The fibre decortication (separation) sector is set to significantly increase its capacity over the
next two years. Value added fibre processors will continue to increase their capacity and range
of products. Continued decortication capacity expansion will lead to a viable market for
harvested hemp straw, which today is typically disposed of after harvest.
Harvest of chaff (flowers, leaves and stems) by hemp producers first occurred in 2018. Sale of
these products is restricted to Licensed Processors (LPs) operating within the Cannabis Act. Only
LPs are allowed to extract the cannabinoids (primarily CBD), from the hemp chaff. Expansion of
this trade will create a new and viable market for chaff, which today is typically disposed of in
the field.-5-
The Canadian hemp industry will grow and prosper by seizing the value of the whole plant. Our industry
has developed on the back of a single revenue stream – food. The addition of multiple revenue streams
(feed, fibre and fractions) will reduce (diversify) risk and increase producer returns. The addition of new
revenue streams will stimulate increased seeded acreage and total hemp production, and thereby
increase the total revenue stream from the hemp sector from the current level of $138 million in 2018
to over $1 billion by 2023.
Canadian Hemp Industry: History and Growth (C$, M)
Year Grain Oil Protein Fibre Feed Fractions Total
2011 6.76 1.02 3.96 0.01 0.00 0.00 11.75
2012 13.90 1.62 5.31 0.03 0.00 0.00 20.86
2013 28.59 2.75 7.37 0.02 0.00 0.00 38.73
2014 32.48 3.72 11.57 0.10 0.00 0.00 47.87
2015 72.34 6.55 23.52 0.13 0.00 0.00 102.54
2016 123.21 8.12 14.45 0.13 0.00 0.00 145.91
2017 95.00 13.00 22.00 0.50 0.00 0.00 130.50
2018 94.00 14.00 23.00 2.00 0.00 5.00 138.00
2019 175.00 25.00 42.00 10.00 6.00 27.00 285.00
2020 256.00 36.00 60.00 18.00 11.00 48.00 429.00
2021 337.00 47.00 79.00 26.00 16.00 70.00 575.00
2022 459.00 64.00 107.00 38.00 23.00 102.00 793.00
2023 581.00 81.00 134.00 49.00 29.00 134.00 1,008.00
Source: Industry Estimates (Statistics Canada does not report hemp revenue)
The Canadian hemp industry will make tremendous economic contributions to the Canadian economy as
it grows.
Key Performance Indicators 2018 Baseline 2023 Projected
Sales $138 million $1,008 million
Jobs Payroll $94 million $689 million
Number of Jobs (FTEs) 1,311 9,576
Annual Invested Capital $53 million $389 million
Seeded Acres 78,000 450,000
R&D Investment $7 million $40 million-6-
III. KEYS TO GROWTH
a. Industry and Its Capabilities (SWOT)
The CHTA leadership conducted its last strategic review in 2017. At that time, an industry development
path was identified, based the industry’s Strengths, Weaknesses, Opportunities and Threats.
Strengths – Canada is recognized as the global leader in hemp food production. There has been an
accumulation of knowledge and experience since implementation of the Industrial Hemp Regulation in
1998. The sector is: industry driven and industry focused with a high level of entrepreneurial energy.
Weaknesses – The Canadian hemp sector is small, and therefore has limited resources to progress the
many challenges to industry growth. The lack of stable funding – industry and government – for
industry development is a limiting constraint.
Opportunities – The market demand for many hemp-derived products continues to emerge. Revenue
streams from feed, fibre and fractions (i.e. CBD) are beginning to supplement traditional revenue from
seed and grain sales. Investor interest has been stimulated by market and regulatory changes. Ongoing
cannabis discussions at the federal level are positive and demonstrate renewed political interest in the
development of the Canadian hemp industry.
Threats – The Canadian hemp industry is still small and emerging, with limited consumer awareness.
There is increased foreign competition – currently from EU and China – in the Canadian and
international food markets. American production will begin to increase, reducing the window of
opportunity for sector leadership by Canada. There remains confusion in the cannabis space – fighting
to distinguish between hemp and marijuana.
Internal Scan of CHTA External Scan of CHTA
Strengths Opportunities
Breadth of skills, strong leadership Market demand
Strong Board Government Funding (AMP and Clusters)
Staff and Board Commitment Investor Interests and Value-Added
Voluntary Industry Funding Hemp-Cannabis Legislation
Private Sector Investments Political Climate
Weaknesses Threats
Too many priorities Foreign Competition
Lack Levy Funding Lax Import Regulations
Governance: Board Succession Hemp-Cannabis Regulatory Environment
Governance: Policy Manual Need for Education and Awareness,
Governance: Committee Structure Volatile Funding
Not All Sectors Represented.
b. Market Readiness
Industrial hemp is a worldwide crop. Seeded acreage is growing, propelled by food, feed, fibre and
fractions. World Total acreage has increased since 2010 by seizing the value of the whole hemp plant.-7-
In 2018, the Canadian hemp industry estimated its total sales at $138 million; $96 in export and $42 in
the domestic market. The majority of these sales were based on food (processed grain) products. Some
value added fibre and chaff (fractions) sales were also generated in 2018. Our industry estimates its
2018 expenditures on wages at $94 million and invested capital at $53 million to support its production
and sales.
Worl dwi de Hemp Acrea ge
Ye a r Ca na da Europe USA Chi na Othe r Tota l Cda %
2003 9,667 44,766 0 48,976 84,688 188,097 5.1%
2004 10,321 29,317 0 73,934 87,408 200,980 5.1%
2005 30,868 35,929 0 53,943 87,453 208,193 14.8%
2006 50,179 34,555 0 83,778 86,159 254,671 19.7%
2007 15,367 29,897 0 88,019 85,856 219,139 7.0%
2008 8,053 26,117 0 58,267 89,299 181,736 4.4%
2009 13,843 40,439 0 29,208 89,074 172,564 8.0%
2010 31,273 27,140 0 25,229 85,321 168,963 18.5%
2011 47,619 20,542 0 28,195 84,601 180,957 26.3%
2012 56,823 35,242 0 26,094 87,723 205,882 27.6%
2013 64,940 40,038 0 29,275 87,393 221,646 29.3%
2014 108,502 47,424 0 29,601 89,185 274,712 39.5%
2015 84,661 63,321 0 27,789 88,733 264,504 32.0%
2016 76,332 82,222 9,770 22,091 91,550 281,965 27.1%
2017 138,015 115,326 25,541 23,000 91,000 392,882 35.1%
2018 77,928 116,139 50,000 23,000 91,000 358,067 21.8%
Source: HC, EIHA, US Congres s Res erch, FAO (Chi na Unders ti ma ted)
Canadian licensed hemp production was first approved for research purposes in 1998. Significant
commercial production began in 2003. Licensed acreage began to expand in 2010, reaching a high of
138,000 acres in 2017. An estimated 78,000 acres of hemp were licensed in 2018.
Canadian Hemp Licensed Hectares
Year BC AB SK MB ON QC Atl Total Acres
2003 94 485 1,279 1,408 618 20 8 3,912 9,667
2004 18 639 1,004 2,300 183 11 22 4,177 10,321
2005 189 1,109 3,882 6,930 260 103 19 12,492 30,868
2006 77 2,043 6,105 11,655 354 69 4 20,307 50,179
2007 21 1,455 2,350 2,088 119 182 4 6,219 15,367
2008 5 582 1,537 993 8 134 0 3,259 8,053
2009 84 782 2,061 2,435 132 92 16 5,602 13,843
2010 1,864 2,086 4,214 3,799 372 321 0 12,656 31,273
2011 21 6,679 4,560 7,272 404 323 12 19,271 47,619
2012 16 5,493 10,214 6,280 433 560 0 22,996 56,823
2013 48 6,380 13,429 5,905 62 443 14 26,281 64,940
2014 17 10,343 21,609 11,052 352 532 5 43,910 108,502
2015 72 9,940 15,335 8,079 284 506 46 34,262 84,661
2016 351 12,937 8,531 7,298 767 869 138 30,891 76,332
2017 80 18,083 22,760 12,085 474 2,038 334 55,854 138,015
2018 215 12,142 10,975 4,674 1,402 1,546 583 31,537 77,928
Source: Health Canada-8-
The annual variation of acreage in Canada, although trending up, has been attributed to the reliance on
Food as a sole revenue stream. Our industry believes that lower marketing risks associated with
incorporating Feed, Fibre and Fractions revenue streams will support continued expansion with less
annual volatility.
Canadian hemp exports accelerated after 2015, with grain – primarily dehulled grain for food - leading
the way. Total 2018 exports are estimated at C$96 million, an increase of C$3 million from 2017.
Canadi an Hemp Exports (C$ '000)
Year Grai n Oi l Protei n Fi bre Total
2011 67,600 1,020 3,960 10 72,590
2012 13,904 1,625 5,313 31 20,873
2013 28,591 2,748 7,366 15 38,720
2014 32,483 3,720 11,566 97 47,866
2015 72,338 6,549 23,522 133 102,542
2016 123,210 8,116 14,453 135 145,914
2017 63,626 11,349 17,467 514 92,956
2018 63,191 17,545 15,640 82 96,458
Source: Statistics Canada
Canada’s largest hemp exports, accounting for approximately 65% of total value, are comprised of grain
(dehulled or for processing) and seed (for planting). Hemp oil and protein exports are also significant,
each contributing almost 20% of total export value. Hemp fibre exports have been increasing, but
currently only account for about 1% of total export value.
Canadian Hemp Exports (C$'000)
Country 2013 2014 2015 2016 2017 2018 #1
USA 36,160 42,343 93,001 83,442 75,569 85,017 Seed/Grain
Australia 138 160 71 227 387 2,511 Seed/Grain
South Korea 4 221 819 44,943 5,741 2,502 Seed/Grain
Netherlands 0 144 1,232 6,477 2,559 1,296 Seed/Grain
United Kingdom 527 908 933 1,420 2,290 1,233 Seed/Grain
India 555 2,132 2,128 1,516 1,541 868 Protein
Japan 344 538 1,701 1,111 798 763 Protein
New Zealand 31 177 100 108 168 669 Oil
Germany 188 333 753 352 782 362 Oil
Slovakia 78 203 227 1,491 833 304 Oil
Italy 50 125 470 545 522 206 Seed/Grain
Finland 102 0 215 373 489 128 Seed/Grain
South Africa 20 61 29 132 110 120
France 0 64 51 894 268 107 Protein
Belgium 0 1 7 539 122 92 Oil
Costa Rica 33 36 91 25 66 73
Spain 0 1 1 256 80 35 Seed/Grain
Ireland 294 116 12 344 99 0 Seed/Grain
Poland 80 41 640 764 312 0 Seed/Grain
Others 166 262 61 955 220 172 Seed/Grain
Total 38,770 47,866 102,542 145,914 92,956 96,458
The United States is responsible for more than 80% of Canada’s hemp exports, leading in all product
categories. South Korea was a major export market in 2016, and currently is responsible for about 3% of
total exports. Other markets of interest are Australia, the Netherlands, United Kingdom, India, Japan,-9-
and New Zealand. Changes to domestic and international regulations will open new markets to
Canadian hemp products over time.
Hemp grain (dehulled or for processing) is Canada’s largest hemp import product, accounting for over
50% of total export value. Hemp seed (for planting) and hemp oil are also significant, each contributing
over 15% of total value. Hemp fibre imports have been increasing, and currently account for less than
10% of total import value.
Canadian Hemp Imports (C$'000)
Country 2013 2014 2015 2016 2017 2018 #1
USA 200 126 111 106 726 844 Grain
Netherlands 12 99 4 4 141 363 Seed
China 22 10 122 107 149 219 Grain
"Canada" 7 26 28 82 177 165 Grain
France 15 61 39 61 42 93 Fibre
Lithuania 0 1 1 163 450 19 Grain
Poland 0 0 0 0 852 1 Oil
Mexico 25 4 158 29 6 0 Grain
Others 73 86 108 205 70 60 Grain
Total 354 413 571 757 2,613 1,764
Source: Statistics Canada, "Canada" = Reimports
The United States is the source for about 50% of Canada’s hemp imports. The Netherlands (seed) and
China (grain) each supply Canada with about 15% of total imported hemp by value. A significant share
of Canadian hemp imports is actually reimported Canadian hemp; grain that has been value added
(dehulled or crushed) in the USA.
c. Alignment with Industry Priorities
The four pillars of the $1 Billion Canadian Hemp Industry Blueprint are:
Food: Well developed in Canada, still growing, developing standards, domestic and export food
ingredient opportunities (GRAS);
Feed: Need regulatory approval with CFIA;
Fibre: Need critical mass to attract sufficient decortication and valued added capital investment
(capacity) to create a functioning national market for hemp straw; and,
Fractions: Tightly restricted due to current Cannabis Act and Industrial Hemp Regulations.
The Canadian hemp industry’s Blueprint for a $1 Billion Canadian Hemp Industry is based on the
following five tactics:
Enable all four market opportunities (food, feed, fibre and fractions) through research,
education and market development (promotion);
Influence cannabis policy and regulations to liberalize hemp-derived cannabinoid (i.e. CBD)
extraction and sale;
Establish standards for the industry – starting with food and then proceeding to feed, fibre and
fractions;- 10 -
Create a stable funding platform for industry development:
o Cooperate/collaborate with future PRA
o Establish strategic relationships (i.e. DFCC, PIC, CAP and Prov.)
o Enhance member funding resources;
Establish a Long Term International Strategy (LTIS) and associated Strategic Business Plan (SBP).- 11 -
IV. PROGRAMS
CHTA Business Plan focusses on six primary activities:
Government Relations – Communicate industry needs for specific regulatory reform to enhance
industry competitiveness and wealth generation.
Research – Supporting the development of new hemp genetics and revision of feed and
cannabinoid regulations. Supporting the expansion of hemp as a food ingredient (i.e. GRAS, PER
and PDCAAS);
Standards – Developing domestic and international standards for hemp food, feed, fibre and
fractions;
Market Development – Promoting hemp food and fibre products at key domestic and
international trade shows. Promoting the consumption of hemp food as part of a healthy
balanced diet;
Industry Engagement – Developing enhanced working relationships with domestic and
international industry and regulatory players to facilitate the removal of barriers to industry
expansion; and,
a. Governing with Excellence
The CHTA will provide secretariat and operational support to Canadian hemp producers in their work to
establish a Promotion and Research Agency (PRA) operating under the Farm Product Council of Canada
(FPCC).
i. PRA Support $10,000
The CHTA will provide support to the development of the Canadian Hemp Producers’
Promotion and Research Agency. Working with Justice and Agriculture and Agri-Food
Canada, CHTA will support the regulatory development of the new Agency.
b. Government Relations
The CHTA Government Relations Committee leads the planning and oversight for all advocacy activities.
The organization arranges meetings with key federal and provincial elected officials and government
bureaucrats. From time to time, the organization will hire the services of advocacy experts to facilitate
policy positions and advocacy strategies in support of industry goals. The goals of this program are to:
make government officials aware of industry policy and regulatory requirements; seek change in
regulations to improve industry outcomes; and move hemp jurisdiction from Health Canada to
Agriculture and Agri-Food Canada
i. CBD Regulation Reform $28,500
Coordinate policy objectives and advocacy resources with like-minded industry partners.
Seek regulatory change to allow CBD to be used as a food ingredient and natural health
product (dietary supplements, topicals and cosmetics) in the Canadian market.
c. Research Program
The CHTA acts as the clearinghouse for possible research projects which might be eligible for
government funding. Possible projects which might enhance opportunities for new or existing products
to new or existing export markets will be considered. Additionally, projects which solve problems which- 12 -
might act as trade barriers such as toxicity levels or the presence of unwanted plant characteristics will
also be potentially favourable research projects over the period of the LTIS.
i. SC and KTT (DFCC) $9,000
Complete Science Coordination (SC) and Knowledge Translation and Transfer (KTT)
activities in support of the DFCC-supported research program. These activities will
include the National Field Trials, Heavy Metal Update (Innotech Delivery), and Livestock
Feeding Trials (Nutrient Analysis) projects.
ii. National Field Trials (DFCC) $121,000
Generate production data on existing hemp cultivars to assist hemp producers in
selecting cultivars that meet their production goals. Trials will also include new cultivars
seeking registration. Consideration will be given to calculate nuclear magnetic
resonance (NMR) and near‐infrared (NIR) spectroscopy coefficients to allow for
assessment of hemp protein and cannabinoid content. CHTA will conduct $25,342 in
Science Coordination (SC) and Knowledge Translation and Transfer (KTT) activities
associated with this project.
iii. Post Harvest Management (AAMP) $149,000
Complete research on the standard operating procedures (SOPs) related to the harvest,
preparation and storage of hemp seed and chaff (flowers and leaves). This data will be
used to develop and communicate Good Agriculture Collection Practices (GACPs) for the
maintenance of post-harvest product quality.
iv. Minor Use $2,500
Contribute annually to the Minor Use Pesticides workshop at Agriculture and Agri-Food
Canada’s Pest Management Centre. Canadian hemp producers require effective tools to
manage pest problems like weeds, insects, diseases, and nematodes which can threaten
the quality, value and yield of the crops they produce. A "minor use" of a pesticide
refers to the use of crop-protection treatments (like herbicides, insecticides, fungicides,
and nematicides) on low acreage, high-value crops, or, where pest control is only
needed on a small portion of the overall crop acreage. These pesticides are usually used
in such small quantities for these uses that manufacturers find the sales potential is not
sufficient to justify investments required to register that particular use in Canada.
d. Standards Program
The development of a science based, globally certified set of standards and protocols is essential to the
advancement, acceptance and sustainability of the hemp industry. This goal paves the way for universal
acceptance of hemp as a food and ingredient as well as safe and effective health product ingredient.
Standards for fibres will certify hemp as a superior building material and source of countless building
products from fibre to oils to concrete.
i. National Hemp Standards Development and Adoption $45,000
Led by the CHTA Standards Committee, national standards are being developed for
hemp food, followed by feed, fibre and fractions. Once established, industry players are
encouraged to adopt the standards. Once critical mass has been achieved, CHTA will
begin offering a certification program similar to the FeedRight program offered by the
Animal Nutrition Association of Canada (ANAC). These standards can then be used as a- 13 -
basis for domestic and export commerce. National hemp standards developed in
Canada will be integrated to the ASTM (Committee D37.07) for consideration and
adaptation for eventual international adoption.
ii. Livestock Feed Ingredient Registration $100,000
Led by the CHTA Standards Committee with support of the CHTA Government Relations
Committee, livestock feed ingredient applications will be developed and submitted to
the Canadian Food Inspection Agency (CFIA). The hemp seed products identified for this
process include: whole seed, screenings. dehulled seed (hearts), hulls, seed cake, oil and
refined protein. Registration will be sought for the following animal groups: dairy cattle,
laying hens, beef cattle, poultry (broilers), and swine. Utilization as animal feed will
create a new a viable market for hemp seed products outside of the human food
market. Hemp producers will have a local cash market for seed that does not meet
food standards (i.e. weight and colour) and for inventory product. Hemp seed
processors will have a local cash markets for processing by-products and inventory
product. The creating of a livestock feed market will reduce industry risk and create a
new revenue source.
e. Market Development Program
The CHTA will work with the Canadian federal government’s AgriMarketing Program’s National
Association Component and other Federal and Provincial government programs to access targeted trade
shows around the world in order to promote Canadian hemp food, fibre and natural health products to
diverse destinations.
i. Trade Show Program $54,000
The CHTA will participate in key domestic and international trade shows in support of
domestic and export hemp food and fibre market expansion. A combination of food-
and fibre-focused trade shows will be completed in order to support trade expansion of
both sectors. Priority food-focused shows include Natural Products-East (USA), ANUGA
(Germany), FOODEX (Japan), Seoul Food and Hotel (South Korea), and Natural Products-
East (USA). Priority fibre-focused shows include The Buildings Show (Canada),
Greenbuild Canada (Canada), and Greenbuild International (USA). A review of priority
shows will be completed after 2 years, with the intention of confirming value in each
location.
ii. Seminar Program $32,000
The CHTA will hold hemp seminars for targeted clients in conjunction with participation
within the AAFC Canada Pavilion program. Lists of qualified invitees will be developed in
conjunction with Canadian posts abroad. Additional invitees will be identified during
the first days of each trade show. Presentations will be made by Canadian officials, the
CHTA, and participating members. The result of this program will be to: solidify
potential client relationships; explore buyer-seller opportunities; and increase market
penetration.- 14 -
iii. Promotional and Educational Material $10,000
The CHTA will develop a limited number of information resources for its members, with
a special focus on research outcomes and market development opportunities. The
materials will be developed for use as printed and/or electronic distribution.
f. Industry Engagement Program
Informing, supporting, and engaging the Canadian hemp industry is vital to ensuring that the industry is
contributing to the program design and delivery of the CHTA. An informed and engaged industry will
support the CHTA in deriving value to producers and other industry players.
i. Engagement and Communication Services $100,000
The CHTA will procure the services of a dedicated industry engagement and
communications expert. The project will cover both the service provider and all
associated costs, including travel. This resource is needed to reach out to hemp
producers and processors in Alberta (and nationally). Strong industry expectations have
been expressed for the CHTA to engage producers and processors to ensure that their
opportunities and constraints are more clearly reflected in the organization’s work.
Further, enhanced communication from the CHTA will ensure that industry players are
kept abreast of recent research and market developments in the industry.
ii. National Convention $285,000
The CHTA’s National Convention represents the only national gathering of the Canadian
hemp industry – including producers, processors, traders, researchers, and
governments. The agenda addresses the most topical issues facing the industry, serving
as a valuable engagement and information resource. A portion of the conference will
include an international theme which might include invited (and sponsored) speakers,
an update from our members who have made inroads in new destinations of strategies
to address market access restrictions or trade barriers. The accompanying trade show
allows for industry service providers to present their products and services to
prospective clients. The CHTA will also engage attending members and guests in
identifying emerging opportunities and constraints to be addressed in future business
plans.
iii. Newsletter and Website $10,000
The CHTA will continue to maintain and develop its newsletter and website resources.
The combined goals of informing members about emerging issues (newsletter) and
industry-wide developments (website) will be addressed. All research outcomes will
also be made available to members.
TOTAL PROGRAMS $956,000- 15 -
V. OPERATING BUDGETS
PROJECTED REVENUES
Source 2019-2020 2018-2019
1. Memberships $95,000 $95,000
2. Producer Levies
Voluntary Levy 142,000 120,000
Hemp PRA 0 0
3. National Convention(s) 305,000 275,000
4. Industry Research Contributions
National Field Trials 69,000 40,000
Post Harvest Management 77,000 0
5. Government Funding
DFCC: Administrationc SC and KTT 21,000 20,840
DFCC: National Field Trials 59,000 50,000
AAMP - Post Harvest Management 72,000 0
SCC: National Hemp Standards 45,000 0
AF: Feed Registration and Communication 150,000 0
AAFC: Market Development 53,000 0
AAFC-CAAP: Strategic Development 0 85,000
Manitoba-AAMP: Strategic Development 0 42,000
TOTAL PROJECTED REVENUES $1,088,000 $727,840- 16 -
PROJECTED EXPENSES
Us e 2019-2020 2018-2019
1. OPERATIONS BUDGET
Audi t, Lega l a nd Cons ul ti ng $9,500 $19,800
Ba nk Servi ce Cha rges 8,850 8,850
Couri er a nd Pos ta ge 850 850
Meeti ngs 3,000 3,100
Dues , Fees a nd Subs cri ptoi ns 500 2,700
Hos ti ng Expens es 350 350
Ins ura nce 2,500 2,500
Offi ce Occupa ncy Cos ts 15,000 10,000
Offi ce Expens es 1,250 1,250
Members hi p Communi ca i ons 10,500 10,500
Offi cers ' Expens es 0 0
Ma na gement Cos ts 150,000 82,000
Tra vel 6,000 6,000
TOTAL OPERATIONS BUDGET $208,300 $147,900
2 PROGRAM BUDGET
a . Governi ng wi th Excel l ence $10,000 $107,000
b. Government Rel a ti ons 28,500 21,000
c. Res ea rch 281,500 90,540
d. Sta nda rds 145,000 55,000
e. Ma rket Devel opment 96,000 0
f. Indus try Enga gement a nd Communi ca ti ons 395,000 232,000
TOTAL PROGRAM BUDGET $956,000 $505,540
TOTAL PROJECTED EXPENDITURES $1,164,300 $653,440
TOTAL PROJECTED REVENUES $1,088,000 $727,840
TOTA PROJECTED MEMBERS' SURPLUS/{DEFICIT) -$76,300 $74,400- 17 -
CONCLUSION
The Canadian Hemp Trade Alliance (CHTA) will actively pursue policy, research and promotion priority
outcomes on behalf of the Canadian hemp industry. Our strategic plan is designed to identify the
opportunities and constraints of: providing stable industry funding; liberalizing hemp regulations;
delivering strategic research (genetics, contaminants and feed utilization); developing domestic and
international hemp standards, including the registration of hemp as livestock feed; marketing Canadian
hemp products in new and existing markets; and, engaging and informing national stakeholders.
SUMMARY OF PROGRAMS 2019-2020 2018-2019
A. Governing with Excellence $10,000 $107,000
B. Government Relations 28,500 21,000
C. Research 281,500 90,540
D. Standards 145,000 55,000
E. Market Development 96,000 0
F. Industry Engagement 395,000 232,000
TOTAL OF ALL PROGRAMS $956,000 $505,540
The CHTA will continue to focus its energies toward assisting our members become effective in pursuing
business opportunities in Canada and key export markets. This business plan further endorses the
philosophy that individual company sales activities will produce new market opportunities for the entire
industry when channelled through and combined with the CHTA’s programs. Industry sales success is
created at the company level. The removal of regulatory barriers and increased business activity of
individual members is the most effective way to: produce market success in all markets; demonstrate
Canada’s dedication to our trade partners; and, improve the knowledge and image of Canadian hemp
products worldwide. This is the path that will allow our industry to reach and exceed its long-term
goals.- 18 -
Appendix I: 5 YEAR BUSINESS PLAN
PROJECTED REVENUE
Source 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
1. Me mbe rs hi ps $95,000 $100,000 $105,000 $110,000 $115,000
2. Produce r Le vi e s
Vol unta ry Le vy 142,000 168,000 0 0 0
He mp PRA 0 0 300,000 350,000 450,000
3. Na ti ona l Conve nti on 305,000 320,000 336,000 353,000 371,000
4. I ndus try Re s e a rch Contri buti ons
Na ti ona l Fi e l d Tri a l s 69,000 72,000 62,000 65,000 0
Pos t Ha rve s t Ma na ge me nt 77,000 86,000 54,000 0 0
5. Gove rnme nt Fundi ng
DFCC: Admi ni s tra ti on, SC a nd KTT 21,000 22,000 23,000 24,000 0
DFCC: Na ti ona l Fi e l d Tri a l s 59,000 62,000 51,000 54,000 0
AAMP: Pos t Ha rve s t Ma na ge me nt 72,000 81,000 51,000 0 0
SCC: Sta nda rds De ve l opme nt a nd Adopti on 45,000 45,000 45,000 0 0
AF: Fe e d Re gi s tra ti on a nd Enga ge me nt Se rvi ce s 150,000 75,000 75,000 0 0
AAFC-AMP: Ma rke t De v. a nd Communi ca ti on 53,000 98,000 102,000 107,000 113,000
Tota l Re ve nue $1,088,000 $1,129,000 $1,204,000 $1,063,000 $1,049,000
PROJECTED EXPENSES
Us e 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024
1. Ope ra ti ons 's Budge t $208,300 $218,715 $229,651 $314,633 $330,365
2. PROGRAM BUDGET
Gove rn wi th Exce l l e nce
PRA (CAAP/AAMP) 10,000 10,000 0 0 0
Gove rnme nt Re l a ti ons
Pol i cy a nd Re gul a ti on Advoca cy 28,500 11,000 12,000 13,000 14,000
Re s e a rch Progra m
SC a nd KTT (DFCC) 9,000 10,000 11,000 12,000 0
Na ti ona l Fi e l d Tri a l s (DFCC) 121,000 127,000 105,000 110,000 0
Pos t Ha rve s t Ma na ge me nt (AAMP) 149,000 167,000 105,000 0 0
Mi nor Us e 2,500 2,500 2,500 2,500 2,500
Sta nda rds Progra m
Na ti ona l He mp Sta nda rds De ve l opme nt 45,000 45,000 45,000 0 0
Fe e d Re gi s tra ti on 100,000 0 0 0 0
Ma rke t De ve l opme nt Progra m
Tra de Show Progra m 54,000 121,000 126,000 131,000 137,000
Se mi na r Progra m 32,000 50,000 51,000 53,000 55,000
Promoti ona l a nd Educa ti ona l Ma te ri a l s 10,000 11,000 12,000 13,000 14,000
I ndus try Enga ge me nt Progra m
Enga ge me nt a nd Communi ca ti on Se rvi ce s 100,000 100,000 100,000 0 0
Na ti ona l Conve nti on 285,000 299,000 314,000 330,000 347,000
Ne ws l e tte r a nd We bs i te 10,000 11,000 12,000 13,000 14,000
Tota l Progra m Budge t $956,000 $964,500 $895,500 $677,500 $583,500
TOTAL PROJECTED EXPENDI TURES $1,164,300 $1,183,215 $1,125,151 $992,133 $913,865
TOTA PROJECTED MEMBERS' SURPLUS/{DEFI CI T) -$76,300 -$54,215 $78,849 $70,867 $135,135- 19 -
APPENDIX II: COMMITTEE PRIORITIES AND TACTICS
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2020 Committee: Governance Chair: Diane Jang
Nathan Nieboer
Priorities: Effective Governance and operation of the CHTA
Create and Maintain a governance structure that facilities an effective
organization that serves our member needs and goals.
Goals/Deliverables: - Evaluation of the Board
Year 1 - Review a selection of By-laws
- Review Committee Responsibilities
Tactics to Achieve - Conduct Independent Board Assessment
Goals/Deliverables: - Conduct Member Survey
Year 1 - Completion of Terms of Reference for all committees
Budget: Year 1 $3,000
Goals/Deliverables: - Annual review of By-laws.
Years 2-5 - Completion of Board Self Assessment every 2 years.
- Completion of Skills/ competency matrix every 2 years.
Tactics to Achieve - Contracting of Consultant to conduct Independent board self Assessment
Goals/Deliverables: every 2 years
Years 2-5
Budget: Years 2-5 $3,000 every 2 years.
Notes:- 20 -
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2020 Committee: Government Chair: Keith Jones
Relations
Priorities: Identifying government funding resources and opportunities which can support
CHTA’s programs and strategic tactical activities, with focus on federal resources
but supporting access to provincial/municipal resources where appropriate
Clarifying and streamline industrial hemp and CBD regulatory framework through
dialogue with Health Canada
Engage federal ministries of Agriculture and Agri-food Canada, Western Economic
Development, Small Business and Export Promotion, and Industry, Science and
Economic Development in the Canadian hemp industry
Goals/Deliverables: Remove CBD from PDL, and pursue opportunity for hemp-derived CBD in natural
Year 1 health products and food supplements
Enable exports of hemp material containing CBD along with streamlined exporting
of food, feed, fibre and seed
Tactics to Achieve Complete CAAP Project in 2019, and establish application for new version of
Goals/Deliverables: program
Year 1 Use CBD white paper to launch and promote advocacy campaign in partnership
with Canadian Health Food Association’s “GetWellNotHigh” campaign
Ottawa ministerial meetings with key Liberal ministers Blair, Bibeau, Goodale,
Pettipas-Taylor, Bains, and Ng
Budget: Year 1 Communications resources: print/website material development and press
releases, media relations $5,000
Travel: Five Ottawa trips for ED, Three Ottawa trips for 2 Board members $10,000
Evidence gathering/research activity in support of federal ministry engagement
(eg. Supplemental info for CBD white paper, etc.) $3,500
Meeting co-ordination in Ottawa with Global Public Affairs $10,000
Goals/Deliverables: Transfer primary responsibility for hemp file from Health Canada to Agriculture
Years 2-5 and AgriFood Canada
Launch international market development campaign/program in collaboration
with Market Development Committee
Support Canadian regulatory endorsement of global standards established via
ASTM D37 by embedding quality standards in Canadian regulatory requirements
Tactics to Achieve To be determined by committee
Goals/Deliverables:
Years 2-5
Budget: Years 2-5 To be determined by committee in consultation with ED
Notes:- 21 -
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2023 Committee: Market Development Chair: Diane Jang
Priorities: Build brand equity for Canadian Hemp
Increase member revenues by stimulating the expansion of trade with a focus on
international markets.
Increase the use of hemp seed derivatives.
Goals/Deliverables: Increase consumer awareness of the hemp industry with a focus on hemp-based
Year 1 foods.
Develop a strong brand for Canadian hemp which members can utilize to increase
revenues.
Participate in joint international trade shows with Canadian Agri-Food Trade
Mission in 2019.
Tactics to Achieve Redesign and build a more user friendly website that supports CHTA’s vision,
Goals/Deliverables: mission and goals and the priorities of the Committees.
Year 1 Develop materials and encourage membership participation at tradeshows.
Create marketing programs and materials which support CHTA initiatives and
assist in driving opportunities and revenues for members.
Budget: Year 1 $206,000
Goals/Deliverables: Build on CHTA’s vision as Canada’s leading organization for industrial hemp and
Years 2-4 resource for industry, government, and consumers looking for expertise and
insight into Hemp Food, Fibre, Feed and Fractions, creating a $1 Billion industry by
2023.
Expand number of CHTA domestic and international trade shows.
Increase membership through diversity and international expansion.
Tactics to Achieve Further expansion of Year 1 Initiatives.
Goals/Deliverables: Expand initiatives for fibre, feed and fractions.
Years 2-4 Revisit and revise priorities and goals annually.
Budget: Years 2-4 2020/21 - $293,000
2021/22 - $301,000
2022/23 - $210,000
Notes: Budget includes Trade Shows, Seminars, Promo/Edu Materials, Communications/
Engagement, and Newsletter/Website.- 22 -
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2020 Committee: Research Chair: Jeff Kostuik
Priorities: Fertility and its effects on CBD
Literature review on past research – Prioritize needs for fibre, grain and CBD
Producer led research review
Growing hemp in very Northern climate – Yukon Effects on CBD
Key components for quality – East and West Infrastructure
Goals/Deliverables: Variety Trials
Year 1 Fine tune the CHTA mandate on research – CHTA members input
Tactics to Achieve Approach machinery developers for discussion – CHTA meeting
Goals/Deliverables: Adaptive agronomy recommendations for all agronomists
Year 1 Participate in the Minor Use Working Group
Funding: Year 1 Industry
Goals/Deliverables: Meetings to ID research needs and priorities
Years 2-5 ID researchers interested and qualified
Group researchers and member to apply and receive funding
Improve residue mgmt with better combine choppers
Compile farmer information on residue management
Train the trainers – Agronomists CCA
Tactics to Achieve Survey
Goals/Deliverables: Meetings – townhall meetings organized by CHTA membership/affiliates
Years 2-5 Participate in the Minor Use Working Group
Funding: Years 2-5 Checkoff
Notes:- 23 -
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2020 Committee: Standards Chair: Clarence Shwaluk
Priorities: Development of new international ASTM standards on hemp: take a leadership
role in global hemp standards development by using details from the Canadian
Standards Plan to participate in the ASTM International D37.07 subcommittee
Facilitate the registration of hemp and hemp processing by-products for use in
animal feed
Goals/Deliverables: Development of multiple standards to ASTM format from the Standards Plan
Year 1 Analyze hemp and hemp by-products for nutritional and anti-nutritive content;
determine fit for inclusion in various livestock species and production stages
Tactics to Achieve Participate in ASTM workshops and meetings in Rome (February), Denver (June)
Goals/Deliverables: and Atlanta (Feb. 2020); encourage committee and industry members to
Year 1 participate in balloting activities; utilize consultant to facilitate the workload
Alberta Innovates analytical testing of hemp and hemp by-products, U of S
analytical testing and formulations; U of M expert recommendations for support
Budget: Year 1 2019-20: Standards Council of Canada; hemp food standards - $45,000
2019-20: Feed analysis, anti-nutritive testing, formulations - $100,000
Goals/Deliverables: Develop and adopt standards for fiber and fractions for the Canadian industry
Years 2-5 Initiate a certification program for standards adoption to be used as the basis for
domestic and export commerce
Tactics to Achieve To be determined by the committee
Goals/Deliverables:
Years 2-5
Budget: Years 2-5 2020-21: Standards Council of Canada- $45,000
2021-22: Standards Council of Canada - $45,000
Notes:- 24 -
CHTA Committee Priorities, Goals and Tactics
Period Covered: 2019-2020 Committee: National Convention Chair: Jan Slaski
Priorities: National CHTA Convention, Calgary, November 2019
Pacific Rim International Conference, Beijing, September 2019
Goals/Deliverables: Organize a successful annual meeting of CHTA
Year 1 Contribute to organization of the event in China
Tactics to Achieve Hire a professional, experienced event organizer
Goals/Deliverables: Identify topics currently relevant to CHTA membership
Year 1 Launch efficacious sponsorship campaign
Select outstanding speakers delivering informative talks
For the Chinese event, promote Canadian speakers and topic pertinent to national
4F approach
Budget: Year 1 Approximately $150,000* (Complete budget TBD)
Goals/Deliverables: Organize a successful annual meeting of CHTA
Years 2-5
Tactics to Achieve Hire a professional, experienced event organizer
Goals/Deliverables: Identify topics currently relevant to CHTA membership
Years 2-5** Launch efficacious sponsorship campaign
Select outstanding speakers delivering informative talks
Budget: Years 2-5 TBD
Notes: *Please note that final budget largely depends on # of registered delegates and
sponsors
**CHTA conventions are recurring events- 25 - APPPENDIX III: PERFORMANCE MEASURES The following performance measures will be reported on a gross basis. Licensed Hemp Hectares Total Canadian licensed hemp hectares decreased by 24,317 hectares in 2018, from 55,854 hectares to 31,537 hectares. Domestic Hemp Sales No data currently exist on domestic sales of Canadian hemp products. This measure will be estimated annually, based on industry interviews. Total 2018 domestic sales were estimated at $42 million, an increase of $7.5 million from 2017. Export sales Total 2018 exports are reported at C$96.5 million, an increase of C$3.5 million from 2017. Project Completion Project completion will be reported through the fiscal year.
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