HIA Convention ReportNovember 3-4, 2005Ramada Plaza Hotel - San Francisco, CA The Hemp Industries Association held it's 12th Annual Convention at the Ramada Plaza Hotel in San Francisco, California on November 3rd and 4th, 2005. The first order of business actually began with a Board meeting the afternoon of Wednesday, November 2nd. Newly elected Directors, Les Szabo from Living Harvest and Lynn Gordon from French Meadow Bakery joined the Board, and new Advisory Board members Lenda Hand, Michael Sutherland and Larry Serbin, as well as continuing Advisors Eric Steenstra and Barbara Filippone also attended the meeting. Steve Levine and Shaun Crew were re-elected to continue in their positions of President and Vice-President. Johanna Schultz is the new Secretary. John Dvorak continues as Treasurer. David Frankel was also re-elected to the HIA Board. Discussions on fundraising projects, membership recruitment and other HIA business dominated the Board meeting. However, the major news coming out of this meeting was the announcement by Candi Penn of her intention to retire as Executive Director of the HIA, effective June 2006. More on this later. Among the projects planned for the upcoming year include the continued renovation of the
HIA website; the ambitious "Hemp Hut" program created by Rob Jungmann; a new color brochure; and the 2006 HIA Convention. Speaking of next year's convention, we would like to hear from you, our membership, about your preferences. The choices are: This year's convention once again had great speakers and panels discussing the many facets of the hemp industry: from updates on the Canadian and Europe hemp industries to the marketing and legal strategies of the U.S. industry… from the food and oil markets to the textile and composite sectors and much more. See notes included here below, thanks to video taping by Candi Penn and transcription by Johanna Schultz. This year we were also joined by some of the Coop America folks for the Vote Hemp report on past, present and future legislation in the hemp industry's attempt to grow Industrial Hemp in the U.S. Opening the Green Business Conference, running concurrently with the HIA meeting, was a panel of experts giving an overview of the Green Economy today, with hemp featured along with socially responsible investing, green building, fair trade, organics, and corporate recognition of the green consumer market. Attendees received hemp tote bags donated by EnviroTextiles, with a new HIA Convention logo printed on them. The new HIA projector was put to good use for power point presentations from the experts. And a phone call from Julia Butterfly Hill on the road among Hurricane refugees was inspiring to all of us as she encouraged us to reach out to disadvantaged youth as we grow our businesses. It wasn't all business at this year's convention, as you may have guessed. On Thursday, November 3rd, HIA had its annual Awards Dinner and proudly presented four awards, all richly deserved, to some of the leaders of the hemp industry. Chris Conrad, HIA's first president, was given a Lifetime Achievement award; David Bronner AND Family were also honored for their huge contributions to the survival and growth of the modern hemp industry. Our dear friend Denny Finneran was given HIA's first Humanitarian award for not only his amazing efforts in helping survivors of the horrible tsunami disaster earlier this year, but for his constant support, on every level, throughout the existence of the Hemp Industries Association. And to our Leader, Candi Penn, a Lifetime Membership Award was given as a small token of our deep gratitude, love and respect for leading this industry for the past ten years to where we are today. EnviroTextile's Summer Star was present to receive her "Ten Years in Hemp" Pin at the Awards Dinner. Five and Ten Year Pins are being distributed to the following companies to celebrate their dedication and success in the hemp business: 5 Year Pins: Baby Kicks, Classy Dyeing and Finishing, Heart & Soul Books & Gifts, In Ticketing, Inc., Lancaster Trading Concepts, Taos Hemp, and Twist. 10 Year Pins: Azida, Inc., Bioregional Strategies, Byers Main St. Market, Hemp Hollow Consulting & HIA Past President - Cindy Biggers, Hempola, Inc., Hempshak, Hemptations #1 & Too, Menmax Pty. Ltd. - Braintree Hemp, Natural Emphasis and Fuel Bars / Pure Hemp Papers, New Hampshire Hemp Council / Monadnock Hemporium, Spirit Stream Trading Company, The Emperor's Clothes, and The Hempest I, II, and III. If we had 15 year pins there are some worthy recipients working with hemp since 1990 or earlier:
The Ohio Hempery - Don E. Wirtshafter Attendance at the event this year included participants from the following companies:
Atlas Corporation /Vote Hemp Director>br>
Attorney for HIA vs. DEA Donations for the Silent Auction included some real collectibles and generated some good fundraising for the HIA. Thanks to everyone who so generously participated, donors and contributors alike. Books: The Reign of Law: A Tale of the Kentucky Hemp Fields. (2), donated by Hempology.org. After the HIA Convention, many stayed for the Green Festival. It was an extravaganza of natural products and hemp was well represented by over 20 booths. The HIA/Vote Hemp booth displayed products from companies at the show, signed up some new members and developed a mailing list for sending more information to interested individuals, thanks to Adam Eidinger's devoted diligence. New members Tyler Hoff and Marguerite Heyward were excellent additions to the Convention staff this year. Thanks for all the help. And Steve Levine was great as our official emcee. And thanks to Heather Wakefield, since many of us are more relaxed after her healing massage work, and ready to tackle the New Year! This report was written by Steve Levine, HIA President, and Candi Penn, Executive Director. Speaker Presentations #1 MARKETING WHOLESALE TO RETAIL Lisa Benjamin sat in for Lynn Gordon of French Meadow Bakery. She emphasized education and correcting consumer perceptions about hemp. French Meadow Cafe in Minneapolis airport had 60% more sales than what was originally projected, and a second location that is four times larger is being constructed in another section of the airport. Lynn Gordon was voted SBA (Small Business Administration) businesswoman of the year for Minnesota Barbara Filippone from EnviroTextiles compared the bell pepper and chili pepper as a means of explaining the difference between hemp and marijuana to customers. She also advises to know what you're selling as far as the integrity and quality of the fabric used in products is concerned. EnviroTextiles customers have seen an 80% increase in sales using the Internet as a marketing tool. Summer emphasized the importance of keeping in contact with customers to insure repeat sales, and introducing hemp to new markets. She used the paintball market as an example, using hemp t-shirts to promote teams, etc. See Presentation #7 for more information about what Barbara is up to. Carolyn Moran and Bob Frankel of Living Tree Paper Company gave an overview of the eco-paper industry: Living Tree Paper Company is a certified woman-owned business in a 99% male-dominated industry that offers high PCW (post-consumer waste) content paper blended with hemp and flax. Living Tree Paper Company is also a NRDC (Natural Resources Defense Council) business. Print services are contracted out to green printers that use low-impact inks such as soy. Bob has established a working relationship with a non-profit out of Denver called Conscious Alliance that sponsors monthly food drives at the Denver Fillmore, where well-known artists design posters on Living Tree Paper. Customers include companies such as Warner Music, Sony Music, and Patagonia. Patagonia uses Living Tree Paper for hang tags. A new VP of marketing and sales, Kat Walsch, has been helpful in securing more customers. The hemp for Living Tree Paper comes from Canada and Europe, high PCW (post-consumer waste) is used for cost-effectiveness, and plenty of flax is available. It's important that paper pulp is processed correctly to insure high quality. Because certain paper grades require virgin wood pulp, Living Tree Paper Company uses certified wood pulps and, whenever possible, FSC-certified (Forest Stewardship Council). #2 COMPOSITES What are composites? Composites are made of complex material, such as natural fiber, wood, or fiberglass, in which two or more distinct, structurally complementary substances combine to produce structural or functional properties not present in any individual component. Examples: decking (wood particles & binder), auto interiors, aircraft body parts, roofing and building materials What fibers are used in composites? *Natural fibers like hemp, flax, kenaf, and jute Hemp stalk is primary source (bast and core) for composites. Natural fibers like hemp are blended w/ materials like polypropylene to produce a matted, felt-like material; can be pressed under heat into any shape (such as a door panel); structural component Natural fiber is blended w/ resin applied to it before it's formed Europeans further ahead than US BMW 5-series and 3-series car door panel 50%hemp/50%flax blend w/ resin. 5000 panels per day are produced in German factory *US market for hemp composites estimated annual sales: *Composites: $8-10 million, 30-50% growth, mostly automotive FlexForm: hemp for composites from Europe and Canada blended w/ kenaf from North Carolina Hemp composites in the US: Sources of hemp raw materials for US Markets come from the EU and Canada, though hemp fiber production in Canada is somewhat limited at this point. Hemp composites in Canada: *24,000 licensed acres in Canada this year (for seed) Hemp production in the EU:
*France's hemp goes into building materials, paper Trends in natural fiber uses:
*Growing trend towards natural fiber use in automotive composites Hemp composites research:
*Ford found that use of hemp composite panels in place of fiberglass reduced CO2 emissions by 31%. Also found it less likely to splinter in an accident situation. Warren Benjamin presented an extremely informative video production to promote awareness about hemp composite possibilities featuring Roger Johnson (ND Agriculture Commissioner), Dr. Andrew Weil, hemp exhibitors at Expo West, hemp farmers, and footage of hemp farms and processing facilities, #3 EUROPEAN HEMP REPORT: Don Wirtshafter presented the latest information on what is available for hemp harvesting technology. Present harvesting equipment is not efficient, as the fiber and core need to be separated to make use of what both have to offer. Core also needs to be dried sufficiently to be useful. Present technology is labor intensive; depends on good weather for retting; requires transportation and storage of crop; fiber gets dirty and stained which necessitates bleaching; fiber bundles are too thick for cotton spinning, as hemp requires long spinning technology; water is polluted and dust control is needed. It is also a huge capital investment. Only 1000 acres of hemp were grown in Holland this year; there are 6 big producers in the EIHA (European equivalent to HIA) Don is working with an Australian company to develop harvesting equipment that can maximize yield capabilities. This would reduce labor and capital costs; is not dependent on field retting, which will minimize losses; most of the processes take place in the field; no dust/water pollution control issues; fiber comes out clean and white; fiber bundles are broken up to individual fibers before they can be glued together; the hurds are saved unretted, which are good for paper and other uses. #4 Hemp Hut After Rob's presentation, convention attendees broke into smaller groups to discuss how this would work logistically, and tried to foresee what kinds of potential problems could arise and how they could be avoided. It would be important for the Hemp Hut to maintain continuity in its presentation, so it would be recognizable from venue to venue. It would serve to market the HIA "look." The Hemp Hut would need an operations manual; some kind of structure for accountability, hiring, purchasing, and inventory control; reliable supply channels; uniformly predictable service; a policy of services and procedures that can be replicated. If you can help in any way on this project, please contact rob@twojupiters.com #5 FEDERAL LEGISLATION Adam Eidinger of VoteHemp made a detailed power point presentation that Alexis Baden-Mayer put together, covering information about Federal and legal strategy and state initiatives. For a copy of the power-point, contact Alexis at alexisbme@mac.com Michael Greene, a lobbyist hired by HIA to assist with AB 1147 in CA, spoke more about the bill: The bill was introduced in February 2005 and was heard by the Assembly Agriculture Committee near the end of April. It didn't come out of committee, but will be heard again in January 2006. Greene is working closely with Assemblyman Mark Leno's office (he introduced the bill) on continuing strategy to get through and out of assembly before the end of January. The Democrats on the Ag. Committee were prepared to vote 'yes' on the bill, but Republicans were concerned that a 'yes' vote would confuse voters with marijuana and anti-drug laws. With AB 1147, there are tight restrictions on where seeds can come from, who can grow and process them, and where they can be sold. Seeds can only come from within the state of California. CCOF (California Certified Organic Farmers) has been an active supporter of the bill. #5 FOOD AND OIL - NEW RESEARCH AND MARKET REPORT Gero Leson filled in some of the gaps that the SPINS market study left in the hemp food and cosmetic market report. The SPINS survey doesn't cover all retail (foods and bodycare). Total retail value of all hemp food products in last 12 months (as of July '05) is about $12million (SPINS underestimated by $2 1/2 or so): Growth of about 40-50% from previous year (average) Discerning the numbers in the hemp body care market was tricky, because major suppliers don't release data (Body Shop, Alterna, etc). Between the Merry Hempster's and Dr. Bronner's: Solid growth of 50% CHTA (Canadian Hemp Trade Association); nutritional profiles, hemp doesn't get any mainstream coverage in places where it should be (good source of omega-3); hasn't been covered in scientific press, etc.; grant money from Canadian government for study of nutritional profiles; nutritional profile of various regional hempseeds (Saskatchewan. v. Manitoba, etc.); go through minor components to see what's there (in hemp) looking for things that give hemp advantages i.e. high in magnesium. Ruth's products have been available in Canada since 2000, in US just in the last year due to HIA v. DEA victory, but sales in US now match those in Canada. Sales close to triple from last year, triple again next year almost entirely in the US states. Ruth spoke about how Canadian consumers are already educated about hemp, therefore it is viewed as a regular food product and her products are available in Canada's largest supermarket chain. She also said that store demos, consumer shows such as Green Festival, and public relations have all been helpful in promoting her business. Ruth emphasized the need for "co-opetition" in the hemp industry; rather than viewing other companies as competitors, it's important to realize that the hemp industry is one based on values and that these values should be integrated into our work. #6 INSPIRATIONAL MESSAGE #7 TEXTILES: MARKET STUDY AND RESEARCH Barbara Filippone of EnviroTextiles said that it is becoming more cost-effective to manufacture in the US, which has created a need for China to raise prices, making it possible for the domestic market to compete with the manufacturing of apparel in China. The cost of tariffs, customs fees and other misc. import charges consumes any savings from lower offshore labor costs. She advise us to do our homework and compare the costs of domestic to offshore manufacturing Barbara is testing various fibers to compare their inherent resistance to bacteria, fungus and yeasts. These tests are being preformed by SGS Testing Labs. So far, hemp and flax suppressed the growth of fungus, while cotton showed little resistance in tests previously performed at Cal-State Poly Technical School. Currently, she is developing a sustainable\biodegradable textile standard with colleague, Georgia Kalivas, a professor at the Fashion Institute of Technology. Together, they plan to have all the test data compiled for formal publishing later this year. In closing, Barbara reminded us how imperative it is that we demand and provide the most sustainable available products to today's consumers. Barbara defines Sustainable as that which comes from the earth must return to the earth with little or no harm to the natural, sustainable and biodegradable life cycle process. January, 2006 |