EASTERN CAPE HEMP PILOT PROJECT INITIATIVE (ECHPPI)

Presents

“Hemp Seminar”

15 March 2013

Monde Sotana

Project Manager

c/o Eastern Cape Dept. of Rural Development & Agrarian Reform

1

Phase 1 (1999 to 2005)

1. Name : Eastern Cape Hemp Pilot Project Initiative (ECHPPI)

2. Objectives: Conduct industrial hemp trials to determine whether it can grow in the Eastern Cape province.

3. Action plans: Determine agricultural feasibility of hemp (Phase 1).

4. Timelines: Phase 1 (1999 to 2005). 5. Deliverables: Publish a hemp production.

guideline booklet to mark end of Phase 1 6. Commence : Phase 2 - Commercialisation

Max Mamase, 1. Father of Hemp in SA 2. Political champion &

patron 3. MEC – Agriculture (1997-

2005)

2

Establishment - Policy:

1. Eastern Cape Hemp Pilot Project Initiative

2. Project came as result of 1997/1998 policy speech by Hon. MEC for Agriculture Mr Max Mamase

3. Declared hemp as specialized high value crop

4. In 1998 a task team appointed to explore hemp production and industry

Father of Hemp in SA

Political champion & patron

MEC – Agriculture (1997-2005) 3

Phase 1 -1999 to 2005(Cont…) 6. Key performance indicators: a) Focus on improved hemp cultivars low THC

and high fibre yield, b) Determine optimum cultivation practices, c) Identify agro-ecological zones, & d) Determine industrial applications for market

& awareness. 7. Resources: (a) HR – HFSA board, Project Manager, & 15

extension officers (b) Technical group – ARC-IIC, UFH, Fort Cox

College, CSIR & Dept. of Agric. (c) Marketing group – House of Hemp &

other private sector companies (d) Legal team – lawyers (e) R15m budget (f) 15 farms & respective farmers

Inspector R Chepape Taking THC samples in 2007

4

Establishment - Hemp Plant

1. Hemp is in Cannabinaceae plant family,

2. Cannabis sativa L. plant species

3. Banned in SA as from 1928 due to high tetrahydrocannabinoid (THC) content

4. Differentiate – hemp vs dagga or marijuana or ganja

5

Eastern Cape Hemp Pilot Project

160 farmers involved

Dohne

Addo

Tsolo

Fort Hare

Fort Cox

Qamata 10ha

Mthiza 10ha

Libode 10ha

Maluti

Qumbu

Bizana

On station sites

Community sites

• High value for small scale farmers • Cultivar evaluations • 15 community sites / farms • 6 research sites

6

Materials & Methods

Agricultural feasibility (Exp 1-11) Experiment 1

• Hemp cultivar adaptation trials Novosadska [Yugoslavian], Kompolti [Hungarian], & Futura [French]

Objective:

• To evaluate adaptation and suitability of exotic Hemp cultivars to local conditions.

Materials and methods:

• Exotic hemp cultivar treatments will be compared at two successive planting dates (early/mid October and early/mid November). They will be planted at about 50 kg seed/ha, (25cmX4cm) row spacing and replicated four times.

• Experiment 2 : Hemp spacing and density trial (12.5cm, 25.0cm, and 50.0cm)

• Experiment 3 : Hemp weed control trial (Accotab, Basagran, Gallant Super, Afolan SC, Frontier, Dual S, Removing weeds manually and Control – no weed removal).

• Experiment 4 : Hemp phosphorus fertilization trials and pH (0, 40, 60, 80 and 100 kg Phosphorus /ha)

• Experiment 5 : Plant water relations and irrigation requirements (dryland, medium moisture regime, and high moisture regime.)

7

Materials & Methods (Cont…) • Experiment 6 : Kraal manure and

fertility trials (no manure, 10, 20, 30tons/ha of kraal manure, and chemical fertilizer )

• Experiment 7 : Sociological acceptability and economic viability of hemp, Nutritive (digestibility) impact on livestock performance. Site Fort Cox Agric. College

• Experiment 9 : Breeding Program. Site(s): ARC-IIC Rustenburg, Dohne Agric. Dev. Institute. Objectives: To produce South African hemp cultivar(s), their registration as agricultural bast fibre crop(s).

• Experiment 10 : Effective control of nematodes

• Experiment 11 : Retting of hemp

• Commercial feasibility trial (2006 to now) Experiment 12 : Hemp commercial incubation trials

8

Phase 1 -1999 to 2005(Cont…) 8. Execution – The agronomy

trials were conducted at six on farm research sites, and on four research stations (Fort Cox College, UFH, Dohne Institute and Addo).

9. Beneficiaries – 260 EC hemp farmers (Indalo Oils & Fibre Industries Coop. Ltd.) in the Eastern Cape province who allocated 15 farms to the project.

10. Stakeholders – ECHPPI members: all the farmers, public sector, private sector, research bodies, MEC as patron.

Working groups: 1. Technical 2. Enabling legislation 3. Marketing 4. HRD

Production guide booklet – marked the success & end of Phase 1 (1999 – 2005)

9

Hemp is grown under license valid for 12 months

10

Hemp permit conditions 1. Monitoring (Size & Structure)

– Size –Area 2ha or more, security-access controlled wire-mash + razor wire on top

– Structure of fence- 2m height + locked all times

2. Record keeping + control of storage for audit purposes – Seed quantity + harvested

products + processed products – Quarterly reports (Circulate

format by SAPS)

3. Handling, monitor & Transport (Record prior to transport, local SAPS notified)

Now, 1) Farmers & 2) Private sector 3) With or without EC government Organize their own hemp permits

11

Hemp plants samples taken for analysis at Addo Research Station 7 March 2007

12

Hemp fibre

• Hemp dry stalks ready for decortication

13

THC testing facility at Dohne Institute

14

Local Market for Flax and Hemp

Statistical data for Flax and Hemp import to South Africa:

• About R100 million rands worth of flax (fibre, yarn & fabric) imported to South Africa (source is Textile Federation South Africa).

• About R20 million rands worth of hemp (fibre, yarn & fabrics) imported to South Africa (source is Textile Federation South Africa).

15

Investment on technology

• The CSIR centre based in Port Elizabeth invested to-date about R15million in new technologies to process flax and hemp

16

Hemp farmers in Eastern Cape

District Local

Municipality

Name of the farm /

farmers

Contact farmer Extension officer

Amathole Great Kei Rosedale Farm Mr Des Burger Mr T.W. Bani

Weltevrede Farm Ms Thami Madliwa Mr T.W. Bani

Amahlathi Vukuzenzele Project Mr Mzwanele Pateka Ms. V. Ncathama

Masizameni Co-op. Mr Velile Ndondo Ms. V. Ncathama

Buffalo City Lutho Lwangomso Mr Stanford Jali Mr. M.H. Chubeka

Hilltop Farm Mr M. Nomtshongwana Mr M.H. Chubeka

Matinise Farm Mr Ziphilele Matinise Mr. M.H. Chubeka

Mnquma Waterdale Farm Mr Sipho Matikinca Mr. Z. Tom

Chris Hani Ntsika Yethu Qamata Hemp Farmers Mr Mfuneko Jungqe Mr. G.M. Nkcita

Cacadu Ndlambe Stamford Farm Chief MD Hintsa Mr. S. Mpotulo

OR Tambo Nyandeni Evergreen Farm Mr Mzwakhe Rozani Mr. N.C. Gibson

Imbumba Farmers Mr K. Tukani Mr. N.C. Gibson

Mhlontlo Zanendyebo Farmers Mr S. Songelwa Mr. P. Manciya

Mbizana Siyazama Farmers Ms P. Madikizela Mr. T. Songiya

Alfred Nzo Mzimvubu Pontseng Farmers Mr. W. Dumo Mr. S.D. Marareni 17

Private Sector Manufacturers involved in flax and hemp production

• Herdmans Irish Linen Spinning Company based in Atlantis, Cape Town currently

imports all its flax fibre from overseas. The company uses 120 tonnes of combed flax long fibres.

• Brits Textiles based in Pietermaritzburg also imports flax for use in production of rear passenger seat tray for Toyota and DaimlerChrylser car manufacturers. This company is a leader in a consortium involved in establishment of a kenaf (is a fibre crop just like flax & hemp) industry in kwaZuluNatal. A factory that will cost R35million rand will be established mid-next year, i.e., 2006.

• Hemp oil produced by the farmers in the Eastern Cape generated an interest from

established markets such as Irie Hemp, House of Hemp, Hemptons and many more. The combined demand from first three listed companies of hemp oil is 7800 litres at more than R200 per litre.

18

2. PHASE II : [2006 onwards] • Commencement with commercial incubation.

• Legal challenges; 1. The Drugs and Drug Trafficking Act, 1992 (Act

No. 140 of 1992)

2. According to the Conservation of Agricultural Resource Act (CARA), No. 43 of 1993

3. Amendment of Medicine & Related Substances Act, 1965 (Act No. 101 of 1965)

4. Environmental Conservation Act, 1989 (Act No. 73 of 1989)

19

NHF 2nd phase

• National Hemp Foundation has started process of reviewing legislation and found need for – Feasibility study to prove commercial viability – DAFF. – Trials to double check THC stability in Southern Hemisphere.

• IDC finalised feasibility study that shows hemp is viable. • NHF identified commercial research trials to verify IDC study

and monitor THC stability. • NHF tasked House of Hemp coordinate hemp commercial

research trials for 2010 to 2015. • NHF has approved trials for EC, WC and KZN. • Commercial Research trials to include THC testing annually. • NHF has asked farmers to get organised into provincial

associative to be represented in national hemp foundation.

National Hemp Foundation

Private Sector Working Group

Public Sector Working Group

DAFF

Eastern Cape DRDAR

DOHNE INSTITUTE

KwaZulu Natal Agriculture

Western Cape Agriculture

DOH, DEA, SAPS, DSD

DTI, EDD

Training Institutions

Fort Cox

Fort Hare

Research Institutions

CSIR

ARC

National Hemp Foundation IT number

Public Sector Working Group

Private Sector Working Group

Eastern Cape Hemp Secondary Cooperative

At least 5 Primary cooperatives and Hemp companies

Western Cape Hemp Secondary Cooperative

At least 5 Primary cooperatives and Hemp companies

KwaZulu Natal Hemp Secondary Cooperative

At least 5 Primary cooperatives and Hemp companies

Hemp farmer workshop November 2010 adopts following structure towards a national hemp association to join House of Hemp represent non-government stakeholders in the NHF.

Securing seed 2010

Planting 2010

• Meeting with Hemp farmers in Eastern Cape October 2010 decided to apply for 3 original farms in the Eastern Cape.

• Qamata, Libode and Mthiza issued with permits. • Hemp farms subsidized by Department of Social

Development. • Hemp site visists 8 to 11 March 2011 with DTI • DTI disappointed in farms due to bad maintenance • Qamata sites bad management for bad site performance. • Mthiza sites bad weather for bad site performance. • Libode sites lack of extension support for bad site

performance. • Qamata yield 200kg, Libode 400 kg and Mthiza 400kg per

2ha sites.

Planting 2011

• Meeting with Hemp farmers in Eastern Cape November 2011 decided to apply for 16 farms in total 7 farms in the Eastern Cape.

• Only 4 farms qualified due to lack of fencing.

• Three farms were issued with permits in the Eastern Cape (Qamata, Libode, Mthiza)

• DAFF customs holds hemp seed till end of February 2012.

• No plantation in 2011.

REGION COVER PAGE SIGNED FORM CERTIFIED ID MAP GPS

KZN – Howick yes yes Yes Yes Yes

KZN – Melmoth yes yes yes yes yes

KZN – Ukukhanya

kwaseMvuzini Vryheid

yes yes yes yes yes

KZN – Mpofana Area

Vryheid

yes yes yes yes yes

KZN – Zaailaagte Farm

Vryheid

yes yes yes yes yes

EC – Mthiza yes yes Yes Yes yes

EC – Komga yes yes yes yes yes

EC – Ncora yes yes yes yes yes

EC – Qamata yes yes ID not certified yes yes

EC - Libode yes yes yes yes yes

EC - Cacadu yes yes yes yes yes

EC – Green Bushes yes yes yes yes yes

WC – Bruintjies Rivier yes yes yes yes yes

WC – Mamre yes yes yes yes yes

WC – Wellington yes yes yes yes yes

WC – Robertson yes yes yes yes yes

Planting 2012

• Meeting with hemp farmers May 2012 in ECDC. • Department of Health only willing to consider three farms

that had received permits but didn’t plant in 2011. • EC: Three farms (Qamata, Libode, Mthiza) received permits. • DSD does not renew subsidy for 2nd year. • Meeting with hemp farmers October 2012 agree to go

ahead without DSD financial support. • ARC assists with soil tests in three sites. • House of Hemp secured seed and delivers seed to farmers

October 2012. • Libode and Qamata cultivate, Mthiza fails to cultivate due

to no resources.

Preparing seed 2012

Delivering seed 2012

Libode

4 tons per 2ha

Qamata

1 ton per 2ha

Western Cape

20 tons per 2ha

Farmers identify intervention needs: • Funding from government departments/incentives to come on time to secure

factors of production including irrigation, equipment, labour and capital. • DAFF to avail extension support to all sites involved in this research. Extension

officers also to cooperate in report writing. • DOH to ensure the permits come by end of September latest middle of October to

be in line with the season. • DTI to avail Cooperative incentive that it promised to individual farmers. • EDD to assess and monitor socio-economic impact of hemp program activities. • Link with provincial Ministers of Agriculture (MEC Capa) and Economic Affairs

(MEC Jonas) in the Eastern Cape. • Dohne to assist with THC testing. • Linkages with Awareness raising and PR campaigns to assist change perception

about hemp (consultation with Contralesa, traditional leaders, counsellors, mayors, HSRC, CRL and communities workshops during farmer days, university students).

CSIR, ARC, DST, DTI, DEDEA, Chris Hani willing to assist

Project Plan & Wayforward • THC test • Processing and product development of 2012 harvest • Commercial trials research report • Finalise commercial feasibility • bankable business plan. • economic cluster of the provincial cabinet • The project steering committee will be revived. • engage with potential investors • secure forward production contracts for the farmers for Eastern Cape to finalise farms to

be planted in 2013 • How to assist resource poor farmers. • National Hemp Day for awareness raising. • How to strengthen INDALO as a hemp secondary association. • INDALO being represented in the NHF with Western Cape & KwaZulu Provincial

Associations & forming National Hemp Association or Hemp APEX. • establishing hemp industry in South Africa to avoid importation of hemp products • large-scale hemp cultivation by pioneer farmers • hemp seed multiplication scheme • establishment of Hemp Industrial Park worth about R400 million in the Eastern Cape. • resolving the legislation • Alternative crops grown Soya beans, Sunflower & “Canola”

35

Some Financials

Income Unit Cost / unit Quantity/ha Value / ha

Hemp dry stalks

Tonnes R2,500 10.00 R25,000

Hemp oil Litres R100 150.00 R15,000

Gross income R40,000

36

Gallery on uses of hemp

Hemp fabric

37

Gallery on uses of hemp

Hemp swatch book Hemp socks

38

Gallery on uses of hemp

Hemp west coat Hemp trouser

39

Gallery on uses of hemp

Hemp paper Hemp rope

40

Gallery on uses of hemp

Hemp skirt Hemp bag

41

Gallery on uses of hemp

Hemp body lotion Hemp cosmetic / tissue oil

42

Gallery on uses of hemp

Another hemp west coat

43

End Session ! THANK YOU!

Monde Sotana Manager

c/o Directorate of Agri-Business

Eastern Cape Dept. of Rural Development & Agrarian Reform

Private Bag X0040 Bhisho 5606

Office Tel. 040-609 3391 / 39 Fax. 040-609 3338 Mobile Tel. 082 300 8802 E-mail. monde.sotana@agr.ecprov.gov.za Office: Block D, Unit 8 & 9, Bhisho Business Village, Bhisho 5605

44