21 20050225131456 Hemp Fibre Study - Final Report

MARKET OPPORTUNITY
FOR
INDUSTRIAL HEMP FIBRE-BASED PRODUCTS
FINAL REPORT
December, 2000
Funding for this study was provided by the above organizations:
TABLE OF CONTENTS
Page
I. INTRODUCTION 1
II. HEMP FIBRE PRODUCT AND PROCESSING 2
III. CURRENT SUPPLY OF HEMP FIBRE 9
IV. CURRENT USE OF HEMP FIBRE 13
V. POTENTIAL USE OF HEMP FIBRE 22
VI. PRIORITY MARKET SEGMENTS 26
VII. KEY MARKETING ISSUES 41
APPENDICES:
A: Potential Nonwoven Products

B: Selected Product Development Activities
C: Pulp & Paper Manufacturers
Market Opportunity for
Industrial Hemp Fibre-based Products
I. INTRODUCTION
The Manitoba Industrial Hemp Association, Triple R Community Futures Development

Corporation, and the Manitoba Rural Adaptation Council have recognized potential
opportunity for hemp fibre-based products in North America. Hemp production has been
legalized in Canada since May 12, 1998 and many studies have since been completed
describing the potential uses of hemp fibre-based products. Provincial governments
across Canada and several U.S. states have been studying the feasibility of this industry
for their respective jurisdictions. Triple R is co-ordinating the study of fibre markets to
identify specific market opportunities for this start-up industry in Manitoba.
The overall objective of this project was:
• to identify and evaluate current and potential North American market opportunities for
hemp fibre-based products. This includes projecting market demand and pricing
structures potentially available to producers and processors.
More specific objectives were to:
• define the structure of the market in terms of the major players currently involved in the
production, processing, distribution and ultimate end-use of the product;
• identify the major flows of product throughout the above defined marketing system and
provide estimated values to the various segments identified;
• identify the key strategic issues facing Manitoba producers and Manitoba-based value-
added processors from the results of the overview of the market. Some examples may
include product specifications, standards and regulations, product quality control,
packaging, competitor behaviour, market development, market access, changing
consumer trends, transportation, pricing.
A two phased approach to the work plan was conducted. Phase 1 was focused on
preliminary data collection and analyses activities. Phase 2 involved more detailed
assessment of prioritized market segments and opportunities. Over thirty-five documents
and twenty-five hemp-fibre related Internet sites were reviewed, and fifty-eight industry-
related managers were contacted, in the conduct of the study.
1
II. HEMP FIBRE PRODUCT AND PROCESSING
Industrial hemp fibre is a bast fibre as are flax, kenaf and jute. The interior of the hemp
stalk is made up of short, woody fibres (hurds) and the outer portion of the stalk
contains the longer bast fibres. Each plant is made up of approximately 30% bast fibre,
60% hurd, and 10% dust and waste.
There are generally three types of bast fibres:

• primary bast fibre - long and low in lignin. These fibres are the strongest natural
fibres and are the most valuable;
• secondary bast fibres - medium in length and higher in lignin. More of these fibres
are prevalent when the hemp plants are grown less densely; and,
• very short fibre. This type of fibre is often referred to as tow.
Hurd is described as one category or type within the marketplace.
The following diagram illustrates the makeup of hemp stalk.
Epidermis
(thin outside protective layer)
Bast (Phloem)
(layer containing Cortex
bast fibres) (layer of thin walled cells
containing chlorophyll
but no fibre)
Pith / Hurd
(layer of thick
woody tissues) Cambium
(growth area –
produces hurds
on inside and
bast on outside)
Hollow Core
Source: USDA Abstact, Industrial

Hemp in the U.S., Status and Market
Potential. Note: Drawing not to scale.
2
There are no international standards for grading hemp fibre. One grading system used by
Hempline in Ontario separates the fibres into three grades. The ultra clean grade is 99.9%
clean fibre and is ½” to 6” long. It is used in nonwovens, textiles and composites.
Composite grade fibre is 96 to 99% clean fibre available in lengths of 1” to 6”. It is used for
composites in automotive, furniture, construction, and nonwovens. The general purpose
grade fibre is 50-70% clean fibre. It is used for hydro mulch, cement filler, insulation and
geo-matting.
FIBRE PROPERTIES
Various research and studies are being completed and published on the properties of
hemp fibres and hurd. The properties of hemp, compared to other materials that may be
substitutes in certain applications, are illustrated in the following charts. Hemp is
considered mid-range in terms of product stiffness and is similar to glass fibre.
Materials Young’s Modulus

(measurement of stiffness in GPa)
Wood:
Wood 10
Single Pulp Fibre (pulping) 40
Microfibrils (Hydrolisis & mechanical) 70
Crystallites (Bacterial cellulose & new 250
technologies)
Bast Fibres:
Flax 100
Hemp 69
Jute 64
Ramie 59
Synthetic Materials:
Rayon Carbon Fibre 34-55
Glass Fibre 70-85
Aramid Fibre, Kevlar 60-200
Silicon Carbide 190
Polyacrylonitrile Carbon Fibre 230-490
Source: Chum, Helena L., ed, Polymers from Biobased Materials, Noyes Data Corporation, 1989. Chawla,
K.K. Fibrous Materials, Cambridge University Press, 1998.
A second study on the properties of bast fibres indicates hemp’s relative performance
compared to flax, ramie and jute. Hemp ranks second in fibre length, ultimate fibre length,
aspect ratio, tenacity, tensile strength, breaking length, young’s modulus, and third in
cellulose content in comparison to other bast fibres.
Cellulos Lignin Mean Mean Tensile Young’s
e (%) Length of Width of Strength Modulus
(%) Fibre Fibre (mm) (psi*1000) (psi*1000)
3
(mm)
Cotton 85-90 .7-1.6 25 0.02
Flax – (Seed) 43-47 21-23 30 0.02 157 14,500
Hemp 57-77 9-13 20 0.022 131 10,005
Abaca 56-63 36-45 6 0.024
Coniferous wood 40-45 26-34 4.1 0.025
Sisal 47-62 7-9 3.3 0.02
Kenaf 44-57 15-19 2.6 0.02
Jute 45-63 21-26 2.5 0.02 123 9,280
Wheat Straw 33-39 16-23 1.4 0.015
Deciduous wood 38-49 23-30 1.2 0.03
Glass Fibre E 246-508 10,200
Glass Fibre S 290-653 12,325
Glass Fibre C 247-406 10,150
Kevlar Fibre 406 7,945 to
21,315
Carbon Fibres 270-638 33,350 to
78,300
Ceramic 247-429 14,500 to
60,900
Steel 406 29,000
Boron 508 60,175
Al-alloy 87 10,295
Nylon 145 870
Sources: consultants’ consolidation of industry data
Another study compares the properties to flax and cotton. The numbers illustrated below
from this study are not necessarily consistent with other published research on hemp
properties. There could be many reasons for this variation including the range of the
varieties and production and processing methods used.
Comparison of Fibre Properties to Hemp, Flax and Cotton

Fibre Hemp Cotton Flax
Cellulose (%) 67 83 64
Hemicellulose (%) 16 6 17
Lignin (%) 3 0 2
Fibre fineness (denier) * 3-20 1-3 2-16
Moisture Absorption (%) 8 8 7
Strength (g/dtex) ** 5-6 3-6 5-6
Extension at break (%) 2-3 3-7 3
* denier = mass (g) of 9,000 m of fibre
** grams force/unit linear density; dtex = mass (g) of 10,000 m of fibre
Source: Batra, S. 1985, PM. Lewin & E.M. Pearce, Fibre Chemistry, New York: Marcel Dekker
Flax is the dominant bast fibre crop being processed and used in Canada. The
following are the primary differences between hemp and flax as noted from discussions
with market participants:
4
• Hemp fibres can reach longer lengths although most processing methods and
machinery reduce the lengths of hemp fibre. New processing techniques for hemp
may be developed to enable fibre length to become an advantage in certain
applications.
• Flax is reported to have a “farm odour” when used in making composite board
whereas hemp exhibits little odour.
• A significant difference is the versatility and characteristics of hemp hurd verses flax
shives. The hurd has a longer fibre than shives. This longer fibre is able to add
strength to paper and perhaps other types of products.
• Hemp hurd is colourless.
• Less processing is required to produce long line flax fibre of textile quality. Hemp is
larger and the bonds are stronger to separate the fibres.
• Flax is thinner than hemp therefore retting is easier. This is an important issue and
is a critical factor affecting the quality of fibre.
• Flax is preferred to hemp in the textile industry, even in geographic areas, i.e.
Europe, where there have no restrictions on growing hemp.
HEMP FIBRE PROCESSING
Processing hemp fibre begins at harvest where the equipment used and the timing of
the harvest effects the quality and the potential applications of hemp fibre. The
schematic on the following page outlines fibre processing.
Key Processes
Retting
In order to use hemp fibre for specific uses such as textiles, the bast fibre must be
separated from the rest of the stalk. Retting describes the process of separating the
bast fibre from the hurd. Two traditional types of retting are field and water retting.
Basically, retting is a microbial (rotting) process that breaks the bonds in the stalk.
Water retting produces a more uniform and higher quality fibre but the process is time
consuming and costly and can pollute the body of water being used for the process.
Another process that may work in western Canada is green retting or mechanical
retting. This process uses a machine at the field to mechanically separate the fibre from
the hurd. Machinery for this process is currently being designed by various entities in
Canada, the United States and Europe.
5
Hemp Fibre Processing
Hemp Stalks in
Field
Retting: Mechanical, Dew, Water, Steam
Hemp Stalks at
processor
Fibre
Hurd
Decortication: Steam explosion, Mechanical,

Ultrasound
Hackling Sorting
Primary Fibre Secondary Fibre Tow
Further Processing
Paper Textiles Geotextiles Fillers Insulation
Composite Automotive Cordage Filtration Absorbents

Board Nonwoven
6
Hemp Core, a firm processing hemp fibre in the United Kingdom, emphasizes that the
quality of the fibre is quite dependent on the harvesting and retting activities. If hemp is
grown for seed, harvest does not occur until later in the season and this negatively
effects the retting process and therefore the fibre quality.
There are various opinions on the suitability of the western Canadian climate for optimal
retting of hemp and flax straw. Ontario is believed to have superior retting conditions.
Proper retting is critical to achieving high quality fibre for composites and other high end
applications.
Decortication
Decortication describes the process of separating the bast fibres from the hurd. This is
a very difficult process and research is ongoing into machinery and other methods to
reduce the cost of this traditionally mechanical process. Steam explosion, detergents
and ultrasound are possible other methods for decortication.
Processors of Hemp Fibre
There are two primary processors of hemp fibre in Canada: Hempline; and, Kenex. Fibrex-
Quebec and Durafibre currently process flax fibre and have experimented with hemp fibre.
Hempline from Delaware, Ontario, sells primary fibre and core (hurd). The hurd is sold for
animal bedding and garden mulch and is packaged primarily in 90 litre compressed bags.
Hempline is viewed as the leading North American company processing hemp fibre.
Hempline is expanding its operation with the construction of a facility with capacity of
producing 7.3 million kgs of composite quality fibre. This would require an estimated 6,000
to 7,000 acres to supply the raw fibre (assuming 30% fibre per tonne and 3-4 tonne per
acre yield). This plant is projected to be operational toward the end of 2001. The hemp
used in this plant will be fibre varieties in order to ensure the quality and physical properties
required for their target markets.
Kenex Ltd. from Chatham, Ontario, processes hemp fibre, hurd and manufactures a
nonwoven mat as well as a full line of hemp seed products including hemp oil and hemp
nut. Kenex uses a European-sourced decortication unit and has purchased used
equipment for manufacturing nonwoven mat product.
The following schematic lists the various processors of hemp and bast fibres in North
America.
7
Canadian Hemp Processors
Hempline Ltd., Kenex, Ltd.,

Ontario Ontario
North American Bast Fibre Processors
Can Ag
Durafibre Research & Fibrex-
(Cargill) Development, Quebec
Saskatchewan
Kafus
Industries International Acadia
KenGro
(in Receivership) Filler BioComposites,
Corporation
Corporation Inc.
Alpha Fibre, Danforth

Schweitzer-
Ltd. International
Mouduit
Biolin
Flaxtech Flax-Craft Inc.
Research, Inc.
Urban Forest
Ecusta Fibres Natural Fibres Recyclers, Inc.
of Canada
Dixie American
Manufacturing Wood Fibres
8
III. CURRENT SUPPLY OF HEMP FIBRE
Hemp fibre market can be described as a component of the broader market category of
natural agricultural fibre; therefore, this is a relevant starting point for assessing the
hemp fibre market. The following table illustrates the estimated supply of the
agricultural fibres and the relative position of hemp production.
World Production of Agricultural Fibre, Annual (in ,000 tonnes)

Natural Fibre Annual Range 1992 to 1996
Cotton 17,000 – 20,000
Jute 3,000 – 3,500
Flax 560 – 580
Sisal 290 – 300
Coir 120 – 130
Abaca 100 – 110
Kapok 100 – 110
Ramie 70 – 80
Agave 60 – 70
Others 420 – 440
Hemp 60 – 80
TOTAL 21,800 – 25,400
Source: Feasibility of Industrial Hemp production in the United States Pacific Northwest,
Daryl T. Ehrensing, Department of Crop and Soil Science, Oregon State University
World production of agricultural fibre continues to be approximately 24 million tonnes

per year.
Total area harvested world-wide for hemp fibre and tow has not varied significantly over the
past 6 years as seen in the following table:
9
Hemp Fibre and Tow, Area Harvested (hectares)
Year 1999 1998 1997 1996 1995 1994
World 56,140 54,686 57,317 58,857 56,479 58,738
Austria 14 14 14 14 14
Bulgaria 8 8 48 20
Chile 4,200 4,200 4,200 4,200 4,200 4,200
China 15,000 12,180 14,880 14,970 16,000 16,990
Croatia 14 14 14 14 14 14
France 216 247 154 4 130
Hungary 1,030 1,030 1,107 1,031 400 400
Korea 17,500 17,500 17,000 17,000 17,250 18,250
Poland 70 70 220 150 345 427
Romania 1,245 3,080 2,678 3,300 1,100 800
Russian Federation 13,000 12,500 13,000 14,000 13,000 13,010
Spain 1,500 1,500 1,500 1,499 1,285 577
Ukraine 2,000 2,000 2,000 2,000 2,000 3,000
Yugoslavia, Fed Rep 343 343 502 679 847 940
Source: United Nations Food and Agriculture Organization (FAOSTAT)

Note: Canada is not included in these statistics.
In Canada, three hemp crops have been planted and harvested since legalization in 1998.
The estimated acres planted in 1998, 1999 and 2000 are 5,000, 31,000 and 12,000
respectively over that period.
Canadian Hemp Production, Licensed Acres Planted
Total BC AB SK MB ON PQ Maritimes
2000 13,550 719 756 3,522 7,178 534 590 252

1999 35,074 556 1,862 7,640 21,948 2,524 212 331
1998 5,926 178 94 650 1,497 2,873 59 576
Note: The number of actual acres planted is less than
the number of acres licensed.
Source: Health Canada; Healthy Environment and Consumer Safety Branch
Very little hemp fibre has been sold or processed in Canada. The two processors,
Hempline and Kenex, both operate in Ontario. The total acres contracted by these
companies dropped considerably in the year 2000 as they had sufficient inventory of hemp
fibre to meet current demand.
10
Hemp can be grown for its fibre and / or seed. Although reported yields vary
significantly, fibre grown for seed in Manitoba yields between 1 and 2 tonnes per acre.
Hemp grown for fibre only is estimated to yield between 3 and 4 tonnes per acre since
the varieties grow taller and are grown more densely.
The majority of the hemp in Canada has been grown as a dual purpose (seed and fibre).
Assuming a fibre yield of 1.5 tonnes per acre and assuming 50% of the acres planted
resulted in harvested and stored fibre, the amount of fibre inventory can be estimated. The
number of total acres over the past two years is estimated at 31,000 in 1999 and 12,000 in
2000. Thus, 43,000 acres times 1.5 tonnes times 50%, or approximately 32,000 tonnes of
hemp fibre are currently being stored. Given that an estimated few thousand tonnes have
been processed by the fibre companies in Ontario, the total inventory of raw hemp fibre is
estimated at 30,000 tonnes. The majority of this fibre is located in Manitoba. Based on the
production and the amount of processing that has taken place in Canada, there is current
excess supply in Manitoba and in Canada.
This inventory estimate has been revised down further by Parkland representatives as
there is uncertainty as to the quality and how many producers may have burned their
bales. Further, the producers planting hemp in Canada have had very little experience in
harvesting, retting and storing hemp. In addition, varieties available for production may
have limited the quality of fibre production.
A second method to estimate hemp fibre supply is to identify and analyze imports and
exports. Canada’s exports to the U.S. in 2000 were 98 tonnes of processed hemp (by
July, 2000). Exports to the U.S. of raw or retted hemp fibre were 107 tonnes by July, 2000.
Even with the increase, total exports to the U.S. are insignificant. Total exports to the U.S.
may reach nearly 400 tonnes in the year 2000.
The following tables outline Canada’s exports of hemp fibre to the United States from 1997
to July, 2000.
Canada’s True Hemp Fibre Otherwise Processed But Not Spun:

Tow And Waste Of True Hemp. Exports To All Countries
HS code:
5302.9000 Value (Cdn $) Quantity (Kg)
1997 1998 1999 2000-Jul 1997 1998 1999 2000-Jul
United States 501 65,024 10,770 98,501 544 12,686 4,244 86,341
Source: Statistics Canada
11
Canada’s True Hemp Fibre, Raw Or Retted, Exports To All Countries

HS code:
5302.1000 Value (Cdn$) Quantity (Kg)
1997 1998 1999 2000-Jul 1997 1998 1999 2000-Jul
United States 0 9,925 153,413 107,362 0 4,152 182,694 102,505

Source: Statistics Canada
Canada imports approximately 340 tonnes of processed hemp from all other countries.
The majority of this (310 tonnes) is imported from Spain. The hemp pulp used by Domtar
and other hemp paper producers is imported from a supplier in Spain.
It is unknown how many tonnes processed by Hempline and Kenex are used in Canada.
However, neither company contracted any hemp acres in 2000. Both had inventory to
process and were aware of the excess supply in Manitoba. There were 2,500 total
licensed acres in Ontario in 1999 and 2,800 acres in 1998. The portion attributable to
these companies was less than 2,000 in each year. Therefore, acres of hemp fibre
designated for their processing facilities are estimated at less than 2,000 for each of these
two years. This infers a fibre supply of 2,400 tonnes (at 2 tonnes per acre and a 30% yield
of fibre) over a three-year period or 800 tonnes on an annual basis (including year 2000).
This level of production would also produce 4,800 tonnes of hurd.
Hempline’s planned expansion would significantly increase the supply of composite quality
fibre and hurd beginning in 2002.
12
IV. CURRENT USE OF HEMP FIBRE
2,000 to 3,000 tonnes of hemp fibre are currently being utilized per year in North
America. This fibre is being utilized in the market segments outlined in the following
schematic. The North American Industrial Hemp Council has an index of over 600
companies that are currently selling hemp products or products containing hemp fibre.
Each of the major market segments is further described in the subsequent pages.
Hemp Seed, Hemp Fibre

Nut, Oil
Pulp & Paper Textiles Geotextiles Fillers Insulation
Fine paper Clothing Erosion Plastics Building

Tea bags Shoes control Fibreglass Wire
Coffee Accessories Reclamation substitute
filters Carpet Concrete
Tapestries Plaster
Composite Automotive Cordage Filtration Absorbents

Board Nonwoven
Furniture Door panels Twine Water Horse

Cabinets Dashboards Rope Air bedding
Compression- Cat litter
molded parts
Filters
13
AUTOMOTIVE NONWOVEN
Nonwoven fabrics are created by interlocking layers of fibres and filamentary structures.
These fabrics are flat, flexible, porous sheet structures. Nonwoven product markets
are vast and suitable to bast fibres.
Europe is the leading geographic market in the use of natural fibre-based composites.
Over the past 5 years there has been considerable expansion of the use of natural fibres
and most European automobile producers now use natural fibres for interior components.
The type of fibre used is, to some extent, interchangeable and therefore depends on the
prevailing current fibre costs.
Using natural fibres in blended thermoplastic or resinated thermoset compression moldings

is now common for door liners, parcel shelves and boot liners. Natural fibres are used to
some extent by Volkswagen, Audi, Mercedes, Opel GM, Ford, Fiat, Renault, Peugeot and
Volvo.
Product development is being done with similar nonwoven and process technology on the
use of natural fibres in seatbacks, sunroofs, floorpan substrates and acoustic absorption
materials.
This same injection moulding technology may bring wider opportunities in the plastics
markets for items such as computer, audio and TV casings.
Estimated Automotive Consumption of Natural Fibre in Europe, in tonnes

Fibre 1996 1999 2000 (projected)
Flax 1,800 15,900 16,200 – 17,500
Jute 2,100 3,400 3,500 – 3,900
Hemp 0 1,700 1,800 – 2,100
Kenaf 400 900 900 – 930
Sisal 0 500 500-515
Totals 4,300 22,400 23,000 – 25,000
Source: Textile Consultancy Ltd. and Nova Institute GmbH (200 interviews in industry)
In Germany, most production and research efforts in recent years in the automotive
industry are focused on hemp fibre.
Numerous nonwoven fabric products fall within the major market segments. Additional
nonwoven fabric product market opportunities may also ultimately exist as illustrated in
Appendix A.
PULP & PAPER
The usage of paper and paper products in the U.S. is 70 to 100 million tonnes on an
annual basis. Production is approximately 130 million tonnes. The North American market
14
for speciality fibre requires approximately 125,000 tonnes of fibre per year. The majority of
this market can currently be met from flax fibre. The demand for “tree-free” paper is
currently estimated at 10,000 tonnes per year.
The market for hemp paper is limited to speciality paper, and as an additive to strengthen
paper made from recycling and high end quality papers. The majority of the hemp pulp is
imported from Spain. Crane & Co. is the only major company currently producing pulp
from hemp in North America. It is reported that a Canadian company is studying the
feasibility of producing hemp pulp and would like to supply Domtar and other hemp paper
producers. Domtar is expecting to produce between 300 and 600 tonnes annually. This
product, made from 85% sugar cane bagasse and 15% hemp, is sold as a high end
premium end paper to design agencies and for purposes such as annual reports etc.
In addition to Crane & Co., Living Tree Paper (U.S. based) and Eco Source Paper
(Vancouver based) produce paper with pulp containing hemp imported from Spain. Living
Tree Fibre uses mixtures of 10% hemp / 90% post consumer waste and 25% hemp / 75%
post consumer waste. The price for the 10% hemp paper is $7.80 per 500 sheets which is
a competitive price for this quality of paper.
Eco Source Paper imports pulp from Spain and the paper is produced in B.C.. The highest
level of hemp content is 40% hemp, 40% flax and 20% cotton. The price for this paper
ranges from $18.50 per 500 sheets for 20 lb paper to $56.00 per 500 sheets of cover stalk.
There is currently research underway to assess the benefits from including hemp to pulp to
improve the strength characteristics of the pulp. If adding 5% to 10% hemp fibre to the
mixture increases the strength, this would allow the paper mills to operate at higher speed
with fewer breaks. Significant economic benefits from using hemp fibre would result.
TEXTILES
There are many small retail companies that advertise clothing containing hemp fibre. In
addition, some larger companies, such as Levis, are now adding hemp to certain
clothing lines. The market for hemp fabric in the textiles industry is relatively small but
is high value.
An example of U.S. companies importing hemp product is Earth Goods. This company
imports fabric and cordage made with at least 55% hemp. This percentage content of
hemp ensures lower tariffs. The product is imported primarily from China and Eastern
Europe where it is grown and processed. It is estimated that this firm imports between 50
and 100 tonnes, (mainly fabric) on an annual basis.
U.S. imports of hemp fibre have increased dramatically over the 5 year period (1995 to
1999) from 115 metric tonnes in 1995 to 860 metric tonnes in 1999 (January to September
only). The following table illustrates two important points: first, the hemp fibre market in the
U.S. is growing quickly; second, the overall market is still relatively small.
15
U.S. Hemp Imports for Textiles, By Category, 1989-99

Year Raw Fibre Tow and yarn Yarn Fabric Total
waste
Pounds
1989 0 166,200 0 n/a 166,200
1990 0 74,697 542 n/a 75,239
1991 1,900 127,429 132 n/a 129,462
1992 904 15,410 88 n/a 16,402
1993 0 121 16,848 n/a 16,969
1994 403 6,089 11,570 n/a 18,122
1995 14,844 7,754 8,181 222,495 253,274

1996 72,991 43,568 12,899 291,517 420,975
1997 193,918 13,340 624,682 451,174 1,282,731
1998 708,918 73,471 149,447 522,789 1,454,625
1999** 1,587,674 35,170 65,927 201,650 1,890,421
** January to September
Source: U.S. Department of Commerce, Bureau of Census
These imports are used primarily for clothing and carpet backing.
Hempline is producing a fibre yarn for use on carpet backing. Presently, Flax-Craft is
working with Hempline and Interface, a major carpet manufacturer in the U.S., to
integrate natural fibres into Interface’s carpets.
ABSORBENTS
Using each of the hemp plant components for its highest and best use is critical to
achieving economic success for processors of hemp. One market that has emerged for
Hemp Core in the UK, as well as both Kenex and Hempline in Canada, is the use of
hemp hurd for horse bedding.
Performance racehorses are treated with extra care, including the type of bedding in
their stalls. Wood chips are commonly used for bedding high performance horses.
Hemp hurd is reportedly 3 to 4 times as absorbent as wood chips. In addition, there is
no dust that normally occurs with the use of wood chips. Finally, the waste
decomposes quicker than wood chips. Stable managers have also reported a reduction
in the labour required when using hose hurd because of is absorbency qualities.
Horse hurds are currently selling in the range of $10.95 Cdn for a compressed bag of
90-100 litres. This bag weighs approximately 15 kgs therefore the suggested retail
price per kg is $0.73. The cost of wood chips for this purpose ranges from $4.5 to $5.0
per bag or $0.11 to $0.16 per kg. Hempline is currently distributing this product through
TSC Stores across Ontario.
At the level of current fibre production in North America, there are adequate
performance horse markets for all hemp hurd produced.
16
The key market feasibility issue for a Manitoba hemp processor would be the distance
to market. Given that this is a bulky, light product, the shipping costs can be significant.
A 53-foot trailer can hold 950 bags or 14,500 kgs; product value is $9,000 to $12,000.
Shipping costs according to Kleyson’s Trucking would be approximately $0.0001 to
$0.00014 per kg per mile ($0.11 to $0.14 per kg for 1000 miles). With the markets for
high performance horses concentrated in the eastern seaboard and south eastern U.S.
regions, transportation costs of 20% to 30% of the value of the product would be
projected.
The total hurd market for high-end horse bedding in North America is estimated at 2.6
million tonnes.
COMPOSITE BOARD
Ongoing research by the Alberta Research Council and others continues in the area of
natural fibres in particleboard and Medium Density Fibreboard (MDF).
A recent survey of planned facilities in North America (see following table) indicates
planned use of over 700 thousand cubic meters of agricultural fibre in the manufacturing of
MDF and particleboard.
Although the survey indicates significant planned use, not all of these companies will begin
production. For example, Agra-Fibre Industry Ltd. was included in the survey as having
planned to begin production using agriculture fibres, however this facility is reportedly now
not proceeding.
17
Composite Board Facilities, Survey Results

Material Country Capacity
(thousand cubic meters)
Particleboard U.S. 9,350
Canada 2,845
Mexico 834
Total 13,024
Extruded Particleboard U.S. 41
Medium Density Fibreboard U.S. 3,363
Canada 1,236
Mexico 60
Total 4,659
Planned expansions MDF U.S. & Canada 2,434
Currently using Agriculture Fibres U.S. & Canada 298
Plan to use Agriculture Fibres U.S. & Canada 707
Source: 1999 North American Capacity Report
Survey by the Composite Panel Association, North America.
PLASTICS
Polypropelene use is expanding rapidly and in 1996 was projected to reach 49 billion
tonnes. Polyethylene world capacity is expected to be 104 million metric tonnes by 2000.
U.S. consumption of polymers (polyethylene, polypropylene, polyvinyl chloride) is
estimated at 72 kg per capita.
Fillers:
Over the 10 years leading up to 1996, the North American market for plastic fillers
increased to more than $23 billion. Fillers can reduce cost while enhancing properties
such as hardness, stiffness and impact strength.
The filler market is estimated at 7 to 8 billion pounds worldwide per annum.
The growth of plastics and the value of fillers make this market segment attractive for
natural fibres such as flax, hemp, kenaf and jute.
The Alberta Research Council is evaluating extruded plastics using plastic beads and
natural fibre as a filler. Currently processors of extruded plastics use the lowest cost filler.
However, the research is investigating the possible strengthening characteristics of hemp
to reduce “creep”.
Mixing natural fibres with polyurethane for composites provides an elastic material that
does not tear. The moulding cycle is very short (less than 60 seconds). Polypropylnene is
the best mixture since it is moulded at the lowest temperature of all the plastics. In
addition, there are estimates that polypropylene could fulfil the majority of plastic
applications for automobiles.
18
There are many ways of utilizing natural fibres with various polymers. Polymers are a high
growth market segment and new applications continue to emerge. Natural fibres will play
an important role in these products for high strength with low weight.
The following table summarizes these major current uses of hemp fibre as well as outlines
additional, less significant current markets.
19
CURRENT USE OF HEMP FIBRE

Market Estimated Market Hemp Current Significant Significant
Segment Volume of Primary Product Major Competing Competing
Market per Location Used Players Natural Fibre all Other Products
Annum Products
European
Interior Automotive 2,000 mt in Europe / High quality Processors / Kenaf, jute, flax Fibreglass
Plastic Moulding Europe / Germany clean fibre Hempline /
minimal in NA Lear / Johnson
Controls and
many other
automotive
suppliers
Spanish Co. &
Pulp & Paper Pulp imported Europe and Whole stock, Danforth Wood, flax, Recycled
200-500 tonnes North America fibre, hurd International / kenaf, cotton
Domtar/ Crane
& Co./Living
Tree Paper /
Eco Source
Textiles 800–1,000 mt Hundreds of High quality Earth Goods / Cotton, linen, Nylon, polyester
used in fabric in small players long fibre Hemp Textiles wool
NA throughout NA Int’l/ Pickering
International /
Dawtex
Textiles /
Over 100 retail
outlets, name
brands, levi,
armani, etc.
CURRENT USE OF HEMP FIBRE (Cont’d)

Market Estimated Market Hemp Current Significant Significant
20
Segment Volume of Primary Product Major Competing Competing

Market per Location Used Players Natural Fibre all Other Products
Annum Products
Composite Board Minimal Europe Tow, hurd Spanish Pulp Wood, cereal Polymer
Co. straw, flax
Industrial low end uses La Chanvriere / Kenaf, jute, flax,
(Fillers, Recycling, Minimal Europe Hurd or fibre Rohemp, wood flour, Talc, Calcium
Absorbents, Plastic) Austria / sawdust Carbonate
18,000 acres in
Insulation France supplies Europe Short fibre and French Co. - La Flax Fibreglass
all needs, plus hurd Chanvriere De
other segments’ L’Aube
needs
Cordage (rope) 50–100 tonnes Canada / U.S. Long fibre Earth Goods Jute, kenaf Nylon, polyester
in U.S. Importer
Horse Bedding Established Kentucky / Hurd Hempline / Cereal straw, nil

market in UK. Eastern Kenex / several wood shavings
Seaboard distributors in
500–2000 mt States / U.S.
Ontario
Mid Canada
Geotextiles Minimal North America Unprocessed Hydra Seeding, Jute, straw Polymers
stalk Manitoba
Carpet Minimal U.S. Long fibre Hempline, Flax, kenaf Nylon / polyester,
Interface Recycled
21
V. POTENTIAL USE OF HEMP FIBRE
Vast potential markets exist for natural agricultural fibres. However, significant product
specification and product development applied research is required for any agricultural fibre
to enter any of these market segments. While environmental considerations continue to
expand the attractiveness of utilizing agricultural fibres in manufacturing a wide range of
products, the product attributes and cost competitiveness of any new entry product needs
to be considered. This section outlines and qualifies potential markets for hemp fibre.
22
POTENTIAL USE OF HEMP FIBRE (infrastructure is further developed; assumed within 5 to 10 years)
Market Market Description Competitiveness
Segment
Estimated Market Current Hemp Hemp Competing Approx Environ- Proximity Summary
Size of Primary Product Product Product Natural Price mental to Market Comments
Market per Location Used Attributes Fibre per Regul- (local
Annum Product Processed ation market
Tonne suitability)
Fibre in 25,000 MT Europe, Plastic High High tensile Kenaf $500 to Mandatory Could be industry is huge
Interior Europe developing fibreglass, grade strength, Jute $25,000 25% competitive for high quality
Automotive 50,000 to in North Flax, primary similar to Flax inclusion in North and high value;
75,000 MT America, Kenaf, fibre flax; lighter natural fibre America highest potential
Plastic
in NA Ontario / Jute than in Europe value segment;
Moulding approx $900 Michigan fibreglass; very competitive;
million total 60% cost of 8 to 10% growth
fibre- per annum
glass
Pulp & Thousands North Wood Whole Strength Wood, Flax $900 to n/a Close Hemp pulp twice
Paper of tonnes America Flax stock, $3,000 proximity to the cost of wood
fibre, Annually pulp mills pulp- potential is
(total pulp & hurd renewable huge if hemp
Paper hurd adds
production – Possible strength to paper
130 million negative If research
tonnes) colour? shows value,
then potentially
large market
Industrial Thousands Local to Talc. Second- Strength; Kenaf, jute, $30 to $600 N/a Small local Significant
low end of tonnes North Calcium ary minimal flax, wood markets in product
uses America- carbonate, fibres, processing flour, sawdust Manitoba; development
(majority of wide many Tow, proximity to required – good
(fillers,
market is others Hurd larger potential to
absorbents, low cost industrial replace higher
plastic, residual centres value filler such
recycling) materials) required as fibreglass
23
POTENTIAL USE OF HEMP FIBRE (infrastructure is further developed; assumed within 5 to 10 years) (Cont’d)
Segment
Estimated Market Current Hemp Hemp Competing Approx Environ Proximity to Summary
Size of Primary Product Product Product Natural Price Mental Market Comments
Market per Location Used Attributes Fibre Point per Regu- (local market
Annum Product Processed ation suitability)
Tonne
Insulation Thousands Local to Fibreglass Short “green”; Flax $1,000 to n/a Limited local Tremendous
of tonnes northern flax fibre and Higher cost $3,000 manufacturing potential – needs
North hurd per R value research and
American than development
fibreglass
Horse Greater than Eastern Fine Highly Wheat straw, $150 to n/a Distant, Has proven
Bedding 2.5 million U.S wheat Hurds absorbent, wood $750 less transportation market in UK, is
tonnes in the seaboard straw, easily / shavings transportatio costs may limit being sold by
U.S. States, wood quickly n the market Hempline and
south to chips composts; opportunity Kenex into
Florida minimal Ontario and U.S
processing market
Cordage 300 –1,000 North Nylon, Long High tensile Jute, flax $400 to n/a Ontario, Smaller relative
(rope) MT in NA America jute, kenaf fibre strength $600 other market size
Filtration Thousands North Fibreglass High Possible Cotton $1,000 to n/a Limited local Highest
of tonnes America Cotton, grade negative $10,000 manufacturing projected growth
primary colour? Proximity to market for
fibre larger industrial variety of
centres filtration products
required
Textiles 45 million North Cotton, High hemp has Cotton, linen, $3,000 to n/a Limited local NA textile market
MT utilized America, linen, grade good wool $12,000 manufacturing is nearly non-
worldwide Europe, wool, primary charact- Proximity to existent due to
per annum Asia polyester, fibre eristics, i.e. larger high relative
nylon durability, international labour costs
resistance markets
to mould required
24
POTENTIAL USE OF HEMP FIBRE (infrastructure is further developed; assumed within 5 to 10 years) (Cont’d)
Segment
Estimated Market Current Hemp Hemp Competing Approx Environ- Proximity to Summary
Size of Primary Product Product Product Natural Price Mental Market Comments
Market per Location Used Attributes Fibre Point per Regul- (local
Annum Product Processed ation market
Tonne suitability)
Composite Several Numerous Wood, Hurd, tow Strength Wood, Cereal $1,000 to n/a Local Large
Board hundred facilities cereal straw $3,000 processor not development
thousand throughout straw in position to costs
tonnes NA consider hemp
(total market
– 19,000
metres3 per
year)
Geotextiles Several Reclamation Polymers Unproc- Biodegrad- Jute, cereal low price n/a Small niche Hemp is suited
hundred throughout ,Jute, essed able, straw product players locally for erosion control
thousand North cereal stalk composts matting – minimal
tonnes America straw easily processing – little
product
development
required to the
finished product
25
VI. PRIORITY MARKET SEGMENTS
The Committee determined at the conclusion of Phase 1 to focus remaining efforts of

the study on prioritized market opportunities. These market segments are:
• Nonwoven automotive; and,

• Pulp and paper.
NONWOVEN AUTOMOTIVE
The use of natural fibre composites for automotive interior components is a

phenomenon that has appeared and developed only during the last five years, primarily
in Europe. The principal fibres now being used for this purpose are the bast fibres: flax;
hemp; jute; and, kenaf.
The original processing technology is nonwoven (mainly needlepunch) technology,

which is the normal production precursor to compression moulding of components.
However innovations in process technology are now beginning to allow the use of
natural fibre granulate composites for injection moulding.
Nonwovens are being used more prominently in such automotive interior products as:
• headliner;
• trunk liner;
• kick and door panels;
• seat backs;
• seat padding;
• package trays;
• hoodliner;
• map pockets;
• air filters and,
• insulating materials.
The market for natural fibre composites has grown from zero to a considerable industrial
infrastructure during the past approximately ten years. Reports completed in Europe and
in the U.S predict continued growth in both existing and innovative applications and
processes.
Nonwoven automotive products, total a $700 million U.S. market in terms of annual global
roll goods sales. Annual consumption of nonwoven fabric is about 700 million yd²,
worldwide. Regionally, approximately 300 million yd² of nonwovens are consumed in the
U.S.; 200 million yd² in Europe; 150 million yd² in Japan; and 50 million yd² in Mexico. In
26
the U.S., an estimated 14.5 million cars currently contain nonwoven interior fabrics. The
annual growth projections for automotive nonwovens are 10%.
In 1998, it is estimated about 108 million m² of needlepunch nonwovens were used,

which represents 15% of all interior fabrics. Even the most mature automotive
nonwovens market, trunk liners, is expected to grow in excess of 5%.
Product Characteristics
Bast fibres are characterized as extremely strong and lightweight. Bast fibres are
replacing glass fibres in many applications and are achieving equal strength, increased
flexibility and lower weight. The following data provide a comparison of the primary bast
fibres being used in the automotive nonwoven market.
Fibre Type Length mm Width mm Composition

Average Average
(Range) (Range)
Hemi Cellulose Lignin Pectin
Flax Bundles (250-1200) 0.019 10-17 3-5 5-10
(0.004-0.6)
Flax Singles 33 0.005-0.038 10-17 3-5 5-10
(9-70)
Hemp Bundles 1000-4000 0.025 12-15 10-15 1
(0.01-0.05)
Hemp Single Fibre 25 - 12-15 10-15 1
(5-55)
Jute Fibre Strands 1500-3600 0.02 Higher
(0.01-0.025) than hemp
Jute Single Fibre 2-5 Higher
than hemp
P O Olesen/D V Plackett – Perspectives on the Performance of Natural Plant Fibres (1999).
Market Structure
The elements of the automotive components industry, that are relevant to natural fibre
supply, are:
27
OEMs (Original Equipment

Manufacturers)
the principal familiar car and
vehicle brands
Tier One Suppliers

suppliers of specialized
components for assembly by
the OEMs
Substrate Suppliers
mainly nonwoven producers in
the textile industry
Natural Fibre Suppliers

of flax, hemp, jute,
kenaf and sisal
Although the customers for natural fibres are the manufacturers of the nonwoven products,
the principal innovators in automotive components are the global Tier One Suppliers. Their
research and product selection decisions will be the main determining factor in the growth
of the natural fibre sector. German-based suppliers have a dominant market position in
terms of product innovation, research, and commercial production.
1. OEMs (Original Equipment Manufacturers)
The automotive industry is one of the truly global industries, and a high proportion of
product innovation is centred upon Europe. This is particularly evident in the case of
interior components based on natural fibres. OEMs that have used bast fibres include:
Adam Opel (General Motors) / Audi Volkswagen / BMW Group / Daimler Chrysler
(Mercedes) / Fiat Group / Ford / Honda / Jaguar / Nissan / PSA Group /
(Peugeot/Citroen) / Renault / Saab (General Motors) / Toyota Group.
Market Size: Global Automotive Production Summary 1998, total production of cars and
light trucks – 52.7 million units.
Market Growth: At present, approximately 10% of cars are produced in emerging

countries, but this is forecast to change radically in the next 5–10 years. In view of the
global economic slowdown, the overall market growth has been revised downwards to
4–5% up to 2005. However, growth rates in excess of 40% are forecast for Eastern
Europe, South America, India, and China.
28
The Nonwoven Car: Applications possible for natural fibre-based substrates are interior
components as listed in the introduction. Various estimates have been made of the
potential use of such substrates, ranging from 15 to 30 kg per vehicle. The potential
global market is therefore 800,000 tonnes assuming 53 million vehicles at the maximum
natural fibre consumption (for 50:50 natural:synthetics).
OEMs – Market Trends: This industry is characterized by:
• consolidations and mergers;

• assembly will continue to locate in low wage cost countries;
• OEMs are reducing the number of Tier One Suppliers, i.e. Chrysler has cut its
suppliers from 3,000 to under 1,000 in 3 years;
• for interior systems, which are relevant to natural fibres, there is an increasing
tendency to contract the entire interior to one major Tier One Supplier, who will then
subcontract individual items such as seats to a specialist “competitor”.
2. Automotive Tier One Suppliers
Tier One interior systems suppliers are critical to the widespread acceptance of natural
fibres in composites and nonwoven substrates. This industry has seen substantial
growth during the second half of the last decade.
Key Tier One Suppliers: The key suppliers are the following large companies:
• Johnson Controls Inc based in Milwaukee, U.S. owned. 1998 sales were $12.6
billion. The company has 275 plants worldwide. It specializes in auto seats,
headliners, batteries and integrated interiors.
• Lear Corporation based in Detroit, U.S. owned. 1998 sales were $9.1 billion. The
company has over 200 production plants and sales offices worldwide.
• Magna International is a Canadian-owned company, with 1998 sales of $9.19 billion
Cdn. It is active in the supply of interior and exterior moulded components,
instrument panels and window and door mechanisms. The company employs
40,000 in about 140 plants throughout North America and Europe.
• Rieter Group, based in Winterthur, is Swiss-owned and part of the Ciba Group.
Rieter has two divisions: Textile Machinery; and, Automotive. Automotive accounts
for nearly two thirds of group sales in 1998 of SF 2,640 million. The company
specializes in automotive carpeting / floorpans and automotive insulation materials
and integrated interior systems.
• Delphi Automotive Systems is based in Troy, Michigan, and is owned by General
Motors. Delphi sales exceed $12 billion, with 200,000 employees in nearly 200
plants. The group is primarily concerned with dynamics, propulsion and electronic
systems rather than moulded interiors.
29
• Bertrand Faure Group is based at Boulogne-Billancourt, France, and is 27% owned

by the PSA Group of Peugeot / Citroen. It is one of the world leading manufacturers
of automotive seats, with 1997 sales of nearly FF 3 billion.
Tier One Suppliers – Market Trends: This industry is characterized by:
• major growth in the last 5-10 years by merger, joint venture or acquisition;
• consolidation to specialized areas of expertise, by divesting non-core activities;
• the ability to offer complete interior modular systems;
• increasing concentration of R&D facilities in Europe; and,
• increasing interest in natural fibres.
3. Substrate Suppliers
Relevant Substrate Suppliers are the nonwoven producers who supply nonwoven mats
to the Tier One Suppliers for compression moulding into components. Nonwoven mats
for automotive use can be 100% natural fibre or blends with synthetic fibres. The
polymers most commonly used are polypropylene or polyesters, in varying proportions
depending on the required performance characteristics.
In Europe alone, there are well over 500 nonwoven producers. The industry is
characterized by a diverse product range serving many industrial sectors, even in the
output of an individual company. Very few producers specialize only in natural fibre.
The industry is predominantly based on synthetic fibres, and there is a general
reluctance to process bast fibres. Even with segregated lines and sophisticated
extraction systems, natural fibre is often perceived as “dirty”.
4. Natural Fibre Suppliers
Europe: The European market structure of the supply chain for hemp and flax is well
established. With growing interest in these crops, efforts are being put into improving
processing techniques.
The following table outlines the production supply estimates of flax and hemp from 1993
to 2000. Flax production has decreased since 1996; hemp has remained relatively
constant.
EU Production of Major Fibre Crops (hectares)

Year Flax Hemp Total
1993 2,188 405 2,593
1994 17,400 872 18,272
1995 16,897 1,103 18,000
1996 20,200 1,700 21,900
1997 19,174 2,322 21,496
1998 16,800 2,556 19,356
30
1999 15,052 1,517 16,569

2000 10,995 2,482 13,477
Note: 2000 figures based on estimates provided by the Fibre Processors in EU.
Source: Ministry of Agriculture Fish and Food, UK
European production of flax and hemp is estimated at 200,000 tonnes, of which 60 to

70% is flax and 30 to 40% hemp. Of this total, 62,000 tonnes is exported, mainly to
China and Eastern Europe for conversion to thread and traditional woven apparel fabric.
North America: The North American market structure for natural fibre is not well
established. Bast fibre from flax produced for linseed oil offers the most immediate
potential supply for this market. Approximately 800,000 hectares of flax were grown for
linseed oil in Manitoba and Saskatchewan in 1999. A portion of the flax fibre residual is
processed by Durafibre, Schweitzer-Mauduit International, Ecusta and Fibrex Quebec.
Kenex and Hempline, both located in Ontario are the only companies that have
processed hemp fibre since industrial hemp was legalized in Canada in 1998. Hempline
is considered by many as the North American hemp fibre market leader.
Other: World production of jute and kenaf amounted to 3.5 million tonnes in 1997/1998;
86% of this total is jute. The principal producer nations are Bangladesh, followed by
India, China, Thailand and Nepal. Most jute fibre is used in India, for traditional and
declining woven applications.
Product Research & Development
Much of the research and innovative commercial activity remains confidential and
inaccessible. However, dozens of studies have been completed and others are in
progress in European countries. A few of the more relevant studies, primarily being
completed on flax and hemp, are listed below:
• Annual Fibre Reinforced Polypropylene Composites for Industrial Applications:

Development of a Quality Controlled Fibre Production Chain;
• New Functional Biopolymer – Natural Fibre – Composites from Agricultural
Resources;
• Development of Thermoplastic Composites Based on Upgraded Ligno-Cellulose
Fibres for Improved Durability and their Processing for Components;
• Production of Fibreboard Through High-Speed Refining, Double-Wire Pressing &
High-level Intelligent Control;
• Development of High Quality Engineering Materials Based on Natural Fibre
Composites by Optimising the Interface Characteristics;
• Fibre and Pulp Production from Unconventional Biomass Fibre-Plastic Blending
Trials and Applications;
31
• High Performance Biocomposites with Improved Durability and Dimensional Stability

from Non-Toxic Chemically Modified Lignocellulosic Fibres;
• Use of flax fibres in friction linings. Development and testing of chemical and
thermal pre-treatment methods of flax fibres for use in brake and clutch linings;
• Use of flax in fibre-reinforced plastics and biopolymers. Modification of mechanically
processed short staple flax fibres for the use in reinforced plastics;
• Investigation of the technical and economical conditions for sustainable cultivation,
processing, and use of industrial hemp in Germany. The study concluded that about
10% of the total use of technical fibres in the automotive sector in Germany could be
replaced with hemp fibres within the next 10 years. This would require 8,000-10,000
ha to satisfy demand;
• Hemp fibre for automotive components. Quality management and quality assurance
in production and processing of hemp fibre. Participants are Johnson Control
Interiors and two German companies;
• Optimization of the fibre quality of hemp for use in technical parts (composites) and
insulation materials;
• The Hemp Product Line Project – development of product lines based on German
hemp – technical, economical and ecological aspects. The study concluded that
hemp fibres for automotive applications may be produced for 0.50-0.60 Euro per kg.
At this price, hemp fibres are competitive with other natural fibres and also synthetic
fibres for automotive interior applications – under economical as well as technical
aspects. The study anticipates that within a time period of about five years about
4,000 tons of fibres per year could be replaced with hemp fibres in the automotive
sector;
• Investigations regarding the use of hemp fibre-reinforced components in
automobiles by Ford. Results of the life-cycle-analysis indicate environmental
advantages for hemp fibre-reinforced components compared to glass fibre-
reinforced components. Also, the testing of mechanical properties showed promising
results. However, one of the biggest obstacles for the use of hemp fibres in interiors
is their particular odour and the persisting drug-image of hemp;
• Currently, the use of hemp fibres is being tested for an exterior application as a
protective covering of the underside (cover undershield) of the new FOCUS;
• Future prospects of epoxy-resin bonded, pressure-moulded components with natural
fibres; and,
• Prospects and risks of natural fibres for automotive interiors. Compared to glass
fibres, there are considerable advantages for natural fibres with respect to price and
potential for light-weight constructions. But there are also disadvantages regarding
risks due to the inconsistent and irreproducible quality of natural fibres.
Prices
Competition, or availability of substitute product, is the primary factor driving prices of

bast fibres in the automotive industry. In North America, the main competing bast fibres
are derived from kenaf and flax. Pricing for the automotive nonwoven market is being
32
directed by the prices Durafibre is asking for high grade flax fibre. This price currently
ranges from $0.25 to $0.35 per lb.
Summary of Market Prices for Natural Fibres (European Market)

Fibre Main Sources Market Price
Range Cdn$/lb
France, Spain, Belgium, 0.27 – 0.36
Flax Lithuania, UK
Jute Bangladesh, India 0.29 – 0.38
Hemp Germany, UK, France 0.30 – 0.36
and possibly Romania
Kenaf Bangladesh 0.30 – 0.36
Sisal South Africa, South 0.36 – 0.38
America
The bast fibre prices are competitive relative to the glass fibres. Glass fibre product
ranges from $0.60 to over $1.00 per lb.
33
Principal Market Issues
Fibre Suitability for Automotive Process Technology
• Quality and consistency are critical to the acceptance in the automotive industry.
• The retting process for hemp (and flax) is one of the most important steps to
producing high quality fibre.
Fibre Characteristics
• The availability of basic fibre is not a significant issue; the consistency and
sustainability of dedicated industrial grades is the significant issue.
• Jute, flax, hemp and kenaf are all lignocellulosic fibres with global production
estimated at 4 billion tonnes, about 60% from agricultural crops and 40% from
forests. These fibres represent a vast and sustainable raw material resource. In
practical terms, production of the European indigenous fibres, flax and hemp,
amounted to about 200,000 tonnes of fibre in 1998/1999, including EC production
and imports.
• Subtropical production of jute and kenaf, mainly in Bangladesh and India, is about
3.5 million tonnes.
• Kenaf is no longer commonly used in the European market. It was found to be
dusty, extremely short fibre structure, the fibre was sandwiched between two
needled layers of polypropylene. It is no longer in common use and is produced by
only one German manufacturer, J J Marx.
• The cellulosic microfibrils of bast fibres provide enormous tensile strength (at best
similar to Kevlar).
• The principal differences between the individual fibres are:
• Fibre qualities – Use of inferior grades (cuttings and recovered or “pulled” fibre)
has diminished the recent reputation of jute in automotive circles
• Processed kenaf fibre is very short staple, and contains much dust.
• The equivalent secondary processing method for flax and hemp is decortication,
and despite recent improvements in processing, flax and hemp generally contain
up to 1-2% “shive” or woody content, which is considered a drawback in some
quarters where smoothness of the moulded component is important.
• Lignin content – Jute has a significantly higher lignin content than flax or hemp.
This may be a factor in the distinctly inferior performance of unprocessed jute-
based mats in automotive. The lignin content gives rigidity and a degree of
hydrophobia. Lignin also becomes thermoplastic, softening at 90°C and flowing
at about 170°C..
• Odour – all bast fibres have a residual smell, but anecdotally, flax is generally
agreed to be worse than hemp or jute.
• Natural/synthetic fibre interface – Flax, hemp and jute are all reported to have
periodic problems of compatibility with intimate binding with polypropylene.
34
Standards and Regulations
• Jute has an internationally recognized quality grading system. Flax fibre and hemp
fibre have no credible international standard of measurement and grading. This
means a lack of confidence in the consistency of quality from batch to batch.
• There is also no agreed system of measuring fibre quality. The USA has now taken
the lead by setting up an ASTM Committee to determine reproducible standards for
trash (shive) content, colour, and fibre strength, length and fineness.
• Emissions are the greatest problem for the bast fibre group, comprising mildew
growth and odour.
• Odour is also a problem, particularly for flax. Johnson Controls reported that flax/PP
mats retain a distinct smell for 2–4 weeks after delivery.
• Impact strength has also been a problem for natural fibre substrates, occurring quite
unpredictably.
• Recycling issues present real challenges for natural fibre composites in the new
millenium, particularly in view of forthcoming European legislation (Directive for
Recycling End-of-Life Vehicles). The policy aims to “depollute” all scrapped cars –
about 10 million each year, avoid hazardous waste, and reduce landfill to a
maximum 5% per car by 2015.
• There is no strong interest in the automotive industry for the use of recovered or
secondary plant fibre waste materials. The reasons cited are supply uncertainties,
and issues related to quality – lack of reproducibility, indeterminate composition, and
possible contaminants such as dyes etc.
Summary
The research and development being completed in the automotive nonwoven industry is
leading the way for other bast fibre applications in other nonwoven applications.
The development that has been completed in Europe can be transferred into the North
American market and this will reduce the time required to incorporate bast fibres into
these markets.
The infrastructure to supply bast fibres to the North American automotive industry
currently does not exist. Potential end users will not enter into contracts until samples
of bast fibres can be tested and prices are determined. In addition, they must be
assured that a steady supply of high quality, consistent fibres will be available in the
future at a reasonable price.
PULP & PAPER
The pulp and paper industry is an extremely large industry in North America. In 1998,
the U.S paper and paperboard production totaled 85 million tonnes operating at 92% of
capacity. Canadian production was an additional 30 million tonnes. Of this production,
35
approximately half is used for paper and half is used for paperboard. This industry
represents over $16.0 billion of economic activity in Canada.
Wood is the primary product used for pulp to make paper and paperboard. Recycled
paper is the next most significant. The Canadian pulp and paper industry consumes 4.7
million tonnes of recovered paper each year. Canada currently imports 2.3 million
tonnes of recovered paper from the U.S. to fill this demand.
The majority of pulp is used for newsprint and other bulk commodity papers. There is,
however, a market for specialty papers that includes, cigarette paper, tea bags and high
end marketing papers (e.g. annual reports, promotional brochures).
The pulp and paper industry is characterized by low margins and high capital costs.
Large mills can cost hundreds of millions of dollars to construct. Even small specialty
mills can cost $20 to $40 million. Mills are currently designed to accommodate wood
chips as the raw material.
Product Characteristics
Primary hemp fibre can be used to make thin strong paper such as cigarette paper and
currency. Lignin content and the resulting strength of the product largely enables this
product.
Hemp hurd has very different properties than the hemp fibre, as seen in the following
table. Hemp hurd closely resembles hardwood in terms of its physical and chemical
properties; this is important in assessing the potential use of hemp in pulp production.
The lignin content of hemp hurd compared to wood is much lower. Removing the lignin
is one of the more expensive tasks in the pulping process.
Chemical Composition of Hemp and Selected Wood Species

glucan xylan manna lignin
Spruce 4.3 7.6 3 8.6
Pine 4 7.2 7.6 7.8
Birch 7.5 4.6 0.5 9.5
Hemp hurd 7.7 6.7 1.2 2.1
Hemp fibre 6.7 1.5 1.9 4.0
Wheat straw .4 12.2 0.4 9.9
1 - Nordkvist, E. H. Graham, 1989. Soluble lignin complexes isolated from wheat straw.
2 – Rydholm, S.A 1965. Pulping processes.
The hemp hurd “fibre length” is longer than flax shive. Research is currently being
conducted to determine if the addition of hemp hurd to commercial pulp operation can
add economic value by strengthening the paper. This added strength would reduce the
number of tears and allow the mill to operate at a faster speed.
36
Market Structure
Canadian-made paper is primarily made from wood chips. This lumber by-product
accounts for 50% of the content of the paper, another 25% comes from recycled paper
and the remainder from roundwood (logs that are too small or unsuitable for making
lumber). The pulp and paper industry is characterized by a small number of large
vertically integrated companies. Many of the companies own the rights to forests, log
these forests, produce lumber, use the wood chips in pulp and make paper products.
The next largest source of raw material is recovered paper and other post consumer
waste products. Other raw materials that are used for pulp and paper include natural
fibre crops such as hemp, flax, kenaf, abaca, cotton, sugar cane bagasse and ramie.
Cotton fibre paper production was 98,000 tonnes in the U.S. in 1998. The production
data of other natural fibre papers are consolidated. This category totaled 2.0 million
tonnes in 1998. A small market exists for commodity papers made from non-wood raw
materials suited for those consumers who are striving to reduce logging of forests.
There are over 30 pulp and paper companies and over 60 mills in Canada that produce
pulp and / or paper. This represents between 25-30% of the North American pulp and
paper industry. Appendix C provides a listing of the pulp and paper industry participants
in Canada and a selected listing of significant world-wide companies.
There are approximately 10 mills in the western world that currently use hemp in their
specialty papers. These mills are much smaller that the normal pulp mill using wood
and thus have higher costs of hemp pulp compared to wood pulp.
The majority of pulped hemp used in North America comes from Europe and China.
There is currently interest by Canadian firms to produce a hemp pulp in Canada and sell
to these paper manufacturers.
The closest paper mills to Manitoba hemp producers are: Pine Falls Paper Company,
Pine Falls, Manitoba, owned by Tembec in Quebec; Abitibi Consolidated, Kenora,
Ontario; and, Tolko Industries Ltd.; The Pas, Manitoba.
The following is a brief profile of those industry participants whom have utilized or
marketed hemp product:
• Crane & Co., Inc., makers of fine cotton papers for business and social
correspondence. Crane uses hemp, flax, kenaf and cotton for specialty papers such
as banknotes and industrial use;
• Domtar, a major North American manufacturer of fine papers, pulp and forest
products. Owns a 50% interest in Norampac Inc., Canada's leading containerboard
and corrugated containers business. Domtar recently added a product line
producing paper from 15% hemp and 85% sugar cane bagasse;
37
• Danforth International, broker and part owner of the largest processor of flax and
hemp based in France and other countries such as China and Eastern Europe;
• Living Tree Paper, small paper manufacturer based in Oregon, U.S. Use post
consumer waste and hemp pulp to make high quality commercial paper. Currently
source their hemp pulp from Danforth International;
• Ecosource, based in British Columbia. Market papers made from hemp and other
natural fibres.
Market Access Issues
The lack of proper processing technology for non-wood fibres is a significant

impediment to the use of the fibre in pulp production. The paper mill technology is
geared toward processing wood fibre. Until the technology is perfected to process
agriculture residual products, companies are reluctant to invest money into equipping
their mills for these types of fibres.
Supply is another issue to paper mills. These mills require sufficient amounts of fibre to
meet customer demand year around. Most residual crops are seasonable crops. Hemp
grown as a fibre crop to supply a mill brings the uncertainty of supply as farmers can
choose each year to grow or not grow the crop.
The specialty paper markets are specific and it is not necessarily possible to substitute
the non-wood pulps for each other. For example, flax is used in cigarette papers and
abaca is used in tea bags. It is not possible to simply replace abaca with another fibre
such as hemp once the mill is set up to process abaca.
Fibre crops such as flax and hemp are used to make paper that will last much longer
and are much stronger than paper made from wood pulp. U.S. currency for example is
made from flax pulp.
It would be costly to construct a mill designed for hemp. Generating a return on this
capital expenditure would require a long time horizon. Most industry participants
currently consider the capital expenditure to be too high given the level of uncertainty of
markets.
Finally, there is uncertainty with respect to the paper properties from fibre crops and its
ability to be recycled numerous times as can be done with wood paper products.
Product Research and Development
Research has been undertaken to study the possibility of using hemp and other natural
fibres to make paper. Research sponsored by governments and privately is being
completed in various countries around the world to studying the properties of hemp and
the technologies that would be used to incorporate hemp into the paper making
processes.
38
Companies using both hemp and flax advise that the two products have similar
properties with respect to the processing methods and quality of paper that results from
the fibres. Crane & Co. currently use flax for U.S. currency. There is some research
being completed in other countries studying hemp as a material for making currency.
The Canadian Pulp and Paper Association has stated its interest in non-wood fibres for
paper. However, this interest is primarily restricted to research and development
activities by universities and research organizations.
Pricing
The primary influence on the price of hemp pulp is the cost of growing and processing
the hemp. This is higher than wood pulp because wood pulp is a residual product from
the lumber producing process. On a relative basis the amount of hemp pulped is very
small and does not benefit from the economies of scale that wood pulp and recovered
paper pulp can achieve.
Although hemp pulp is one of the highest priced pulps, it is used to produce high quality
and therefore higher priced specialty papers.
Material Prices ($US)

Wood pulp 300-700
Cotton pulp 900-1,200
Flax Pulp 1,800-2,500
Hemp Pulp 1,800-3,000
The cost of raw materials are in the range of $100 to $140 per tonne for dry softwood
delivered and $60 to $100 per tonne for raw recycled paper.
Principal Marketing Issues
• Hemp fibre and hemp hurd are distinct products with different physical properties
and must be treated individually when considering their attributes.
• There are no companies in Canada that currently pulp hemp.
• The pulp and paper market in North America is very large. This is the primary
reason why hemp producers and other natural fibre producers are interested in this
market.
• There is a small current market for non-wood commercial paper products.
• There is a niche market for specialty paper products where hemp and other natural
fibres offer distinct advantages over wood pulp in terms of physical properties
required for those products. (less than 1% of pulp and paper market)
• Hemp pulp costs from 2 to 5 times as much as wood pulp.
• Mills are not designed to handle hemp fibre or hemp hurd and capital costs required
to re-vamp mills are significant. (millions of dollars)
39
• Additional research is required to determine the specific properties or applications

where value can be captured.
• There has been some research that indicates positive attributes to paper from
adding a small percentage (5-10%) of hemp hurd to the pulp.
Summary
• A pulp and paper mill would have to be assured of a consistent supply of consistent
quality product in order to process hemp pulp. Currently, the infrastructure and
grading system does not exist in Canada or the U.S. that could supply a pulp mill
with hemp or hemp hurd.
40
VII. KEY MARKETING ISSUES
Preliminary observations of the product describe hemp as being a natural fibre with
significant tensile strength, relatively low weight, and broad potential market applications.
Hemp products may be seen as “trendy”, however there is also real market growth in North
America. Hemp products are achieving success as they fill a growing niche market for
those consumers who are looking for environment friendly products. There is significant
interest in natural, agricultural fibres as an environment friendly alternative in many different
industries. The “natural fibre revolution” continues primarily from environmental
considerations.
The agricultural fibre industries generally, and the hemp fibre industry specifically, is
currently very dynamic. Many initiatives are being undertaken throughout North America to
further investigate product development and marketing opportunities. Significant market
hype was generated with the legalization of the production of industrial hemp three years
ago in Canada; oversupply has resulted while market development activities are now
beginning.
Several marketing issues important to Manitoba-based hemp fibre producers have been
identified in this assessment, as follows:
PRODUCT DEVELOPMENT
Significant product research and development is required to enable hemp fibre to be

utilized in most of the product opportunities identified. Detailed product attributes must be
identified. Credible independent product evaluation of Manitoba-grown hemp would be
beneficial in outlining the product specifications to prospective users of hemp fibre. Major
investment and expenditures will be necessary for research in most areas. Companies and
public institutes in North America are dedicating resources to research various products
that can be manufactured from hemp fibre (see Appendix B).
DISTRIBUTION AND INFRASTRUCTURE
Although there is a high level of excitement and hype associated with the development of
hemp products, the industry is young and the distribution channels are not yet formalized.
The infrastructure, for growing, processing and delivering a consistent high quality product
to the end users, does not exist. There is no uniform grading and quality system for
hemp and flax fibre. Companies looking to process hemp fibre and produce hemp-based
products require consistent supply of known raw product quality. This cannot be delivered
by the industry at this time. Further, there is currently no decortication and processing
equipment infrastructure in western Canada.
41
COMPETITIVENESS
Competitive Supply
Flax fibre is the main competitor in North America. Flax fibre is a waste product from
growing flax for linseed. There is excess agricultural fibre produced each year in western
Canada from producers growing flax for linseed. This fibre is available at a low cost and is
a substitute for hemp in many potential markets. Fibre produced as a residual of a seed
crop may not meet specifications required by high end applications
Yield
Hemp yields more per acre than flax and is therefore more productive than other sources
of natural fibre in Canada. However, there are other sources of agricultural fibre that may
be more productively grown in North America.
Location
Manitoba is well positioned geographically to supply the U.S. market relative to other hemp
producing nations such as Europe or China. Manitoba may have a comparative advantage
over other regions due to the favourable conditions for producing volume of hemp fibre.
Unfavourable conditions may exist for the more cost competitive natural retting process.
PROCESSING INDUSTRY COMMITMENT
Processors that may be in position to incorporate hemp into their products are uncertain
about the prices that will be required to ensure a sustainable supply of fibre.
In some instances, such as pulp and paper where the mills have been designed to handle
wood, significant capital expenditures will be necessary in order to accommodate a fibre
product. The costs of retrofitting a mill to accommodate the use of hemp fibre could
exceed $200 million.
Potential high users of hemp are uncertain of the prices they can expect to pay for
hemp fibre and hurd.
42
Appendix A:
Potential Nonwoven Products

Market Opportunity for Appendix A: Potential
Industrial Hemp Fibre-based Products Nonwoven Products
Disposable Nonwoven Products
Hygiene products Healthcare products Home/ Office Products

• Diapers • Surgical caps, masks, • Vacuum bags
• Sanitary napkins gowns • Tea Bags
• Training pants • Surgical sponges • Polishing cloths
• Dry and wet wipes • Wound dressing • Fabric softener sheets
• Cosmetic applicators • Bandages • Mops
• Lens cleaners • Medical wipes • Napkins
• Headrest covers • Dental bibs • Ironing board pads
• Airline pillow cases • Bedding underpads • Washcloths
• Examination gowns • Maps & Signs
• Blood filters • Floppy disk liners
Durable Nonwoven Products
Geotextile Uses Industrial Products Clothing products

• Ashphalt overlay • Industrial and air • Interlinings
• Soil stabilization conditioning filters • Padding
• Drainage layers • Semiconductor • Shoe components
• Erosion control polishing pads • Clothing and glove
• Pond lines • Industrial wipes insulation
• Road and railroad • Protective apparel
beds • Face masks
• Cable insulation Home Furnishings
• Absorbents • Cushions and
Construction Products • Packaging mattress fill
• Roofing underlay • Conveyor belts • Padding materials
• Acoustic material • Paper making felts • Dust covers
• Insulation • Acoustic felts • Quilt backing
• Housewrap • Blankets
• Pipe wrap • Wall covering
• Shingles Automotive products backings
• Trunk liners • Acoustic wall covering
• Parcel shelf covers • Pillows and pillow
Agricultural uses • Door trim panels cases
• Crop covers • Synthetic leather • Window dressing
• Root bags backing • Carpet backing
• Capillary matting • Headliners • Artificial leather
• Turf protection • Insulation materials
• Weed control fabrics • Acoustic materials
• Seat padding
• Oil filters
• Car and boat covers
Market Opportunity for Appendix A: Potential
Industrial Hemp Fibre-based Products Nonwoven Products
The magnitude of selected nonwoven market applications is illustrated in the following

table:
Disposable Market Size per Projected Annual

Applications Annum Growth
World Wide
Diapers 9% annual
$19 billion world wide historically
Over 2 billion sq. meters expected to slow
after year 2000
Adult Incontinence $4-5 billion annually world 8-30% growth
wide projected
Feminine Hygene $12 billion 2% in western world

10-15% in Asia &
Eastern Europe
Medical Products $7 billion 5-7%
5.5 billion sq. yards
Wipes (personal car, $2 billion 7%
industrial, 4 billion sq yards
household)
Durable
Applications
Filtration $1.5 billion 6%

Protective Apparel $1.2 billion 4%
2 billion sq. yards
Interlining Apparel $1.0 billion 3-6%
2 billion sq. yards
Home Furnishings $700 million 5%
Geotextiles $800 million
Nonwoven $700 million 8-9%
Automotive 500 million sq. yards
Appendix B:
Selected Product
Development Activities
Market Opportunity for Appendix B: Selected
Industrial Hemp Fibre-based Products Product Development Activities
The following is a list of product development activities that have been identified in
discussion with industry participants. This list should not be considered a complete
index of activities. Most product development is completed in order to find a competitive
advantage within a market sector. Research that is being completed by the private
sector will be largely confidential.
Pulp
• Industry sources have indicated that Domtar and other paper manufacturers have been
approached by a potential Canadian supplier in a first step of selling hemp pulp for use
in manufacturing paper product. Kenex is looking at using a mill in the U.S. to pulp
hemp that would then be sold to Domtar and other hemp paper producers such as
Living Tree Fibre.
• Domtar completed over two years of product development to determine the
appropriate mix of sugar cane bagasse and hemp fibre for their line of environment
friendly paper.
• Wade Chute of the Alberta Research Council has been researching the strength
benefits from adding 5-10% hemp hurd to the pulp mixture. He expects to begin mill
trials early in 2001.
• Crane & Co. is using hemp and combinations of hemp with other pulps to create
specialty papers for the U.S. market.
Automotive Non-Woven
• Dailmer-Benz is working with a range of natural fibre – jute, sisal, coconut, hemp
and flax as reinforcing fibre in high quality polypropylene components.
• A German machinery manufacturer has developed the process for the Long Fibre
Injection.
• Ford is focused on bast fibres – hemp, jute, ramie and flax and polypropylene.
• Kafus Bio-Composites’ plant in Michigan will have capacity to produce 4.5 million
square meters of non-woven mats from kenaf fibre, bonded with polypropylene.
Uncertainty exists however, as Kafus is reportedly in Receivership.
• Visteon will press-mold door panels, seat back and package trays.
• Several automotive manufacturers are doing research looking at various mixtures of
fibres and polymers using different heating and processing methods.
Composite Boards
• Isobord indicated that any composite using hemp fibre would require several
hundred thousand dollars and 2-3 years of research prior to placing it into
production. Isobord is not in a position to begin research of this nature.
• Four companies in Alberta announced, in 1998, plans for construction of strawboard
plants. Agrafibre, Compak Forrestburg, Alta,. Alta Goldboard and Fieldboard
International. None of these plants are reportedly producing crop fibre board at this
time.
• Researchers at Kansas State University are exploring other manipulation of fibres to
increase workability and custom applications in composites. This same university is
i
exploring the use of wheat straw and other ag fibres in the manufacture of low resin
composites or agriboards.
• University of Southern Mississippi is looking at advanced applications and
performance-based industrial hemp fibres materials. These groups are funded by
the USDA and the Defense Department.
• A furniture manufacturer at Greensboro is making a chair from hemp and using resin
from soybean. It will be on the market shortly.
• Wayne Wasylciw from Alberta Research Council has done many research projects
on bast fibres. He is now looking at the possible benefits from using fibre in
extruded plastics to reduce “creep” or strengthen the plastic components.
• Wayne Wasylciw is also researching the use of hurds and fibres in panels. He is
completing mechanical testing on the structural strengths, swell, screw withdrawal
and internal bonds.
Reclamation
• Biohemp Products, Craig Alder, has sold some hemp hurd and flax shives to the oil
patch companies for their use in reclamation.
Textiles
• At the University of California, research is proceeding into the strength of developing
fibres and the origins of non-dyeing fibres. This work is being done with cotton but
will be transferable to hemp, flax and other fibres.
• Hempline and others are looking at various combinations of fibres to provide
different textures and strengths of fabric.
Carpets
• Interface has annual sales over $1.2 billion in the area of commercial floor
coverings. Many or most of their products are environment friendly, i.e. natural fibres
and recycles textiles. Interface has been working with Flax-Craft and Hempline to
research how hemp fibres can be used in carpet-backing.
Equipment
• Stover Equipment Company, Corpus Christi, is developing processing equipment for
bast fibres including industrial hemp.
• John Deere is working on hemp and kenaf harvesting machinery.
• The German, Institute of Ag Engineering, Christian Furell, has developed a machine
for green decortication.
• University of Manitoba, Jean Louise Gratton has been working on the design of a
green decorticator.
• Tornado Pulper, Dan Danforth, has developed machinery for use in hemp
processing.
• Steam explosion technology being used for decortication and processing.
Insulation
ii
• Owens Corning, the world leading fiberglass producer, has developed an interest in
the potential use of long agricultural fibres.
• Thermal and acoustic insulation are being processed by HP Chemie Pelzer, based
in Germany.
• Reter Automotive is using natural fibres in a sophisticated mix of material for use in
its ultra light concept for vehicle noise management.
• Wayne Wasylciw from the Alberta Research Centre has completed work on the
insulative r-values of bast fibres.
Feed
• University of Alberta, Stan Blade, has shown some real value for silage compared to
barley and oat silage in their early research. The high protein is the primary reasons
for continuing work in this area.
General
• Many universities and private companies are doing research on bast fibres that will
be easily converted to hemp fibres. Examples include the University of Minnesota,
University of Alberta, University of Southern Mississippi.
• Cargill and Dow Chemical have created a resin made from soybeans and corn stalk.
Over 2 billion lbs of this resin are expected to be manufactured in the next 2-3 years.
• Durafibre processed a few tonnes of hemp in their mill in Canora, Saskatchewan,
primarily to test the abilities of the processing equipment.
• Nancy Kerr from University of Alberta, is looking at the effect of maturity on the
strength of fibres.
• Can Ag Research & Development Inc., located in Saskatchewan, is a health food
nutraceutical company that is interested in making use of the entire hemp plant. This
company has been working with a former engineer from Durafibre and they may be
involved with research in the use of hurd for reclamation and the use of hemp in pulp
and paper.
iii
Appendix C:
Pulp and Paper Manufacturers

Market Opportunity for Appendix C: Pulp & Paper
Industrial Hemp Fibre-based Products Manufacturers
CANADIAN PULP & PAPER MILLS
Company Products Location of Mill(s)

Abitibi-Consolidated Kraft papers, Grand Falls & Stephenville, Newfoundland; Fort
Inc. newsprint, printing Frances, Iroquois Falls,
and writing papers, Kenora and Thunder Bay (Fort William), Ontario;
specialty papers and Alma, Beaupré Chandler, Grand-Mère, Kénogami, La
by-products Baie, Shawinigan, and Trois-Rivières, Québec
Alberta-Pacific Forest Market pulp Boyle, Alberta
Industries Inc.
Alliance Forest Newsprint, printing Dolbeau and Donnacona, Québec
Products Inc. and writing papers
Bennett Fleet Inc. Boxboard, Chambly, Québec
containerboard and
specialty boards
Bowater Pulp and Market pulp, Gold River, British Columbia; Dalhousie, New
Paper Canada Inc. newsprint, printing Brunswick; Thunder Bay,
and writing papers Ontario; Gatineau, Québec
and by-products
Canfor Corporation By-products, kraft Prince George, British Columbia
papers, market pulp,
and specialty boards
Cariboo Pulp & Paper By-products, and Quesnel, British Columbia
Company market pulp
Cascades Inc. Boxboard and kraft Kingsey Falls and East Angus, Québec
paper
Crestbrook Forest Market pulp Skookumchuck, British Columbia
Industries Ltd.
Domtar Inc. Boxboard, by- New Westminster, British Columbia; Cornwall,
products, kraft Espanola, Ottawa, St.
papers, market pulp, Catharines, and Toronto,Ontario; Hull, Lebel-sur-
printing and writing Quévillon and Windsor, Québec
papers, and specialty
papers and boards
F.F. Soucy, Inc. Newsprint and Rivière-du-Loup, Québec
Printing and writing
papers
Fletcher Challenge Containerboard, Campbell River, Crofton & Mackenzie, British
Canada Limited market pulp, Columbia
newsprint and writing
papers
Howe Sound Pulp Market pulp and Port Mellon, British Columbia
and Paper Limited newsprint
J. Ford & Co. Ltd. Kraft, Sanitary and Portneuf, Québec
Specialty papers
Kruger Inc. Boxboard, New Westminster, British Columbia; Toronto, Ontario;
containerboard, Bromptonville,
newsprint, sanitary Crabtree, Hull, Lennoxville, Montréal, and Trois-
papers and printing Rivières, Québec
and writing papers
Louisiana-Pacific Market pulp Chetwynd, B.C.
Canada
Minas Basin Pulp and Boxboard and Hantsport, Nova Scotia
Market Opportunity for Appendix C: Pulp & Paper
Industrial Hemp Fibre-based Products Manufacturers
Power Co. containerboard

Nexfor Inc. Edmundston, New Brunswick; Thurso, Québec;
Norampac Inc. Containerboard Mississauga, Red Rock and Trenton, Ontario;
Cabano, and Kingsey Falls, Québec
Pacifica Papers Inc. Market pulp, Port Alberni and Powell River, British Columbia
newsprint, and
printing and writing
papers
Papier Masson Ltée Newsprint Buckingham, QC
Pine Falls Paper Newsprint Pine Falls, Manitoba
Company Limited
St. Anne-Nackawic Market pulp and by- Nackawic, New Brunswick
Pulp Company products
Sonoco Limited Boxboard Brantford and Glen Miller, Ontario; Montreal, Québec
Spruce Falls Inc. Newsprint and Kapuskasing, On.
printing papers
Stora Enso Port Market pulp and Port Hawkesbury, Nova Scotia
Hawkesbury newsprint
Tembec Inc. Boxboard, market Témiscaming, Québec
pulp, specialty boards
and by-products
Tolko Industries Unbleached kraft The Pas, Manitoba
paper
Weldwood of Canada Market Pulp Hinton, Alberta
Western Pulp Limited Market pulp Port Alice and Squamish, British Columbia
Weyerhaeuser Market pulp, printing Grande Prairie, Alberta; Kamloops, British Columbia;
and writing papers Prince Albert,
and by-products Saskatchewan; Dryden, Ontario

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MARKET OPPORTUNITY

II. HEMP FIBRE PRODUCT AND PROCESSING 2

III. CURRENT SUPPLY OF HEMP FIBRE 9

IV. CURRENT USE OF HEMP FIBRE 13

V. POTENTIAL USE OF HEMP FIBRE 22

VI. PRIORITY MARKET SEGMENTS 26

VII. KEY MARKETING ISSUES 41

A: Potential Nonwoven Products

The Manitoba Industrial Hemp Association, Triple R Community Futures Development

The overall objective of this project was:

More specific objectives were to:

II. HEMP FIBRE PRODUCT AND PROCESSING

There are generally three types of bast fibres:

Hurd is described as one category or type within the marketplace.

The following diagram illustrates the makeup of hemp stalk.

Source: USDA Abstact, Industrial

Materials Young’s Modulus

Comparison of Fibre Properties to Hemp, Flax and Cotton

HEMP FIBRE PROCESSING

Hemp Fibre Processing

Retting: Mechanical, Dew, Water, Steam

Decortication: Steam explosion, Mechanical,

Primary Fibre Secondary Fibre Tow

Paper Textiles Geotextiles Fillers Insulation

Composite Automotive Cordage Filtration Absorbents

Processors of Hemp Fibre

Canadian Hemp Processors

Hempline Ltd., Kenex, Ltd.,

North American Bast Fibre Processors

Alpha Fibre, Danforth

III. CURRENT SUPPLY OF HEMP FIBRE

World Production of Agricultural Fibre, Annual (in ,000 tonnes)

World production of agricultural fibre continues to be approximately 24 million tonnes

Hemp Fibre and Tow, Area Harvested (hectares)

Year 1999 1998 1997 1996 1995 1994

World 56,140 54,686 57,317 58,857 56,479 58,738

Source: United Nations Food and Agriculture Organization (FAOSTAT)

Canadian Hemp Production, Licensed Acres Planted

2000 13,550 719 756 3,522 7,178 534 590 252

Canada’s True Hemp Fibre Otherwise Processed But Not Spun:

Canada’s True Hemp Fibre, Raw Or Retted, Exports To All Countries

United States 0 9,925 153,413 107,362 0 4,152 182,694 102,505

IV. CURRENT USE OF HEMP FIBRE

Hemp Seed, Hemp Fibre

Pulp & Paper Textiles Geotextiles Fillers Insulation

Fine paper Clothing Erosion Plastics Building

Composite Automotive Cordage Filtration Absorbents

Furniture Door panels Twine Water Horse

Using natural fibres in blended thermoplastic or resinated thermoset compression moldings

Estimated Automotive Consumption of Natural Fibre in Europe, in tonnes

PULP & PAPER

U.S. Hemp Imports for Textiles, By Category, 1989-99

1995 14,844 7,754 8,181 222,495 253,274

Composite Board Facilities, Survey Results

The filler market is estimated at 7 to 8 billion pounds worldwide per annum.

CURRENT USE OF HEMP FIBRE

CURRENT USE OF HEMP FIBRE (Cont’d)

Segment Volume of Primary Product Major Competing Competing

Horse Bedding Established Kentucky / Hurd Hempline / Cereal straw, nil

V. POTENTIAL USE OF HEMP FIBRE

VI. PRIORITY MARKET SEGMENTS

The Committee determined at the conclusion of Phase 1 to focus remaining efforts of