Marijuana Company of America (MCOA) and Global Hemp Group (GHG) have undertaken the initial stages of ongoing agricultural hemp trials in northeast New Brunswick.
The trials mark the return of industrial hemp to the region where it was tried 20 years ago but scant market opportunities at the time meant progress to market meant projects at the time did not gain traction.
COMPLETION OF INITIAL PHASE
In this first phase of GHG and MCOA’s (the “Partners”) multi-phase hemp project in northeast New Brunswick (NB), the Partners have successfully cultivated industrial hemp during the 2017 growing season. For this phase of the project, the Partners only grew hemp for research purposes.
The Partners are preparing for the proposed changes to Canadian legislation expected in 2018 that will permit cannabidiol (CBD) extraction from industrial hemp. Health Canada is currently consulting industry representatives regarding the regulations that will accompany the new cannabis legislation expected by July 1, 2018.
The Partners are now focusing on the next season of crops. Farmers have been recruited and a minimum of 125 acres of hemp cultivation is planned for 2018, with the goal of increasing the acreage under cultivation to 1,000 acres by year three of the project. This first commercial crop will focus on CBD extraction. GHG is required to have a processing license to undertake this type of extraction and will be submitting an application to do so.
The Partners are currently considering sites in northeast New Brunswick to locate their processing facilities. In addition, discussions are underway regarding the purchase of extraction equipment for cannabinoids, and straw processing equipment for building materials. The companies expect the facilities to be in place and operational for the 2018 harvest in October.
CHANGING TIMES
These trials are part of the first of three phases in implementing the Company’s Hemp Agro-Industrial Zone (HAIZ).
The project focuses on the development of an industrial cluster around the hemp crop, which will ensure a market for farmers, year-round manufacturing job opportunities for the region, and a model for the Company to attract and develop additional HAIZ projects in other regions as well as provide a consistent potential revenue stream for both MCOA and GHG shareholders.
LOOKING FORWARD
The second phase of the project in 2018 will expand cultivation beyond trials to cover more than 100 acres and include a larger number of varieties. Pilot industrial activities will also be included in this phase.
The third phase of the project . Starting with the 2019 growing season, the project will embark on its final phase on the way to full agricultural and industrial deployment. Over the next three years, the area under hemp cultivation is expected to reach 9,000 acres and industrial facilities to process seed, straw, and flowers & leaves will be fully operational.
The New Brunswick HAIZ requires a total investment of $64.0 million over five years, with the majority of this investment coming in years four and five. The project will create hundreds of direct new jobs in both agriculture and manufacturing in the region
ABOUT NEW BRUNSWICK
New Brunswick is one of three Maritime provinces, on the east coast of Canada.
As of 2002, provincial gross domestic product is derived from the following : services (about half being government services & public administration) 43%; construction, manufacturing, and utilities 24%; real estate rental 12%; wholesale & retail 11%; agriculture, forestry, fishing, hunting, mining, oil and gas extraction 5%; transportation & warehousing 5%.
The US is the province’s largest export market, accounting for 92% of a foreign trade valued in 2014 at almost $13 billion, with refined petroleum making up 63% of that, followed by seafood products, pulp, paper and sawmill products and non-metallic minerals (chiefly potash).
More than 13,000 New Brunswickers work in agriculture, shipping products worth over $1 billion, half of which is from crops, and half of that from potatoes, mostly in the Saint John River valley. McCain Foods is one of the world’s largest manufacturers of frozen potato products. Other products include apples, cranberries, and maple syrup. New Brunswick was in 2015 the biggest producer of wild blueberries in Canada.
Ninety-two per cent of the land in the province, inhabited by about 35% of the population, is under provincial administration and has no local, elected representation. The 51% of the province that is Crown land is administered by the Department of Energy and Resource Development.
Most of the province is administrated as a local service district (LSD), an unincorporated unit of local governance. As of 2017 there are 237 LSDs. Services, paid for by property taxes, include a variety of services such as fire protection, solid waste management, street lighting, and dog regulation. LSDs may elect advisory committees[45] and work with the Department of Local Government to recommend how to spend locally collected taxes.
In 2006 there were three rural communities. This is a relatively new entity, and to be created requires a population of 3,000 and a tax base of $200 million.[46]
In 2006 there were 101 municipalities.
Regional Service Commissions, which number 12, were introduced in 2013 to regulate regional planning and solid waste disposal, and provide a forum for discussion on a regional level of police and emergency services, climate change adaptation planning, and regional sport, recreational and cultural facilities. The commissions’ administrative councils are populated by the mayors of each municipality or rural community within a region.
Source: https://en.wikipedia.org/wiki/New_Brunswick
Article: New Brunswick is Being Recognized for Its Approach to the Cannabis Sector
In November, the Province of New Brunswick was named the ‘Most Progressive Public Office’ in Canada as part of Lift’s 2017 Canadian Cannabis Awards. Opportunities NB (ONB) is excited to see the province recognized as a national leader in this rapidly-growing industry. Our team has made cannabis a priority sector for economic growth, actively aligning our efforts to ensure the economic, academic, and regulatory portions of the industry connect.
Steve Milbury, ONB Senior Director of Priority Opportunities, sat down with us to discuss the factors that led to New Brunswick capturing this award.
Tell us about New Brunswick’s approach to the cannabis sector, and why it has been recognized as the most progressive in Canada.
Milbury: In 2016, the New Brunswick government introduced its Economic Growth Plan. Among the priority opportunities identified was cannabis. The government of New Brunswick is committed to developing our cannabis sector, and ONB is driving that industry from an economic development standpoint. Having that support from the very top has been key for us.
In June 2017, the New Brunswick Working Group on the Legalization of Cannabis published its first report on cannabis legalization, which everyone should read. It addresses important issues like legal age, corporate social responsibility, impairment, public safety, and more.
ONB is a key stakeholder in both the Legalization Group and an industry working group. The latter is dedicated to ensuring there is a focus on the economic benefits the sector is bringing to the province. That industry group recognizes that being a national leader in this sector is vital; the province will see real, positive economic results from being first out of the gate. Both groups have consulted with licensed producers across Canada and internationally, and with provincial and U.S. state governments. That serves a dual purpose; it helps us learn best practices while letting people outside the province know that New Brunswick means business as it relates to this sector.
This province is well known for its farming, forestry, and fisheries. We have the value chain to support growing things, and the workforce with an expertise that has supported those industries here for generations. Add to that the research coming from our universities and colleges, as well as from partners like the New Brunswick Health Research Foundation, Research and Productivity Council, and BioNB, and everything is here for licensed producers.
I think we’ll see even more companies choosing New Brunswick and working with our team because of everything we’ve noted coupled with highly competitive business costs and affordable land. Legalization of adult recreational cannabis will accelerate the entire New Brunswick agritech sector.
It’s exciting to see the province recognized both inside and outside of Canada as a small region putting forth big efforts to lead in this space. We are not waiting for things to happen, we’re making things happen.
Source: https://blog.onbcanada.ca/2018/01/new-brunswick-cannabis-sector-recognized/