Naturally Splendid Enterprises Ltd. (FRANKFURT:50N) (TSX-V:NSP) (OTC:NSPDF) is pleased to announce that it has contracted with a long established organic hemp farmer, Fresh Air Farms, for 330 acres of organic agricultural land to provide organic hemp production for the 2018 and 2019 growing seasons.
Fresh Air Farms is an organic farm located in Marcelin, Saskatchewan, Canada with roots that go back to 1911, when the Grenier family first began farming there.
In the agreement, Naturally Splendid has the right to purchase up to 100% of the organic hemp production from the 330 acres for the 2018 and 2019 growing seasons. Currently, the Company is securing the acreage for organic hemp seed production. However, as the new hemp regulations under Bill C-45 come into effect, the Company has the option to convert some or all the acreage to CBD (cannabidiol) production.
The Company anticipates designating a portion of the organic cultivation for research and development of high yielding CBD (cannabidiol) hemp. Naturally Splendid intends to expand this model of identifying organic acreage for hemp seed and/or CBD cultivation to secure additional acreage in the future.
According to Russ Crawford, Naturally Splendid Director and President of the Canadian Hemp Trade Alliance, “The pending regulations addressing the legalization and deregulation of cannabis in Canada signals a new beginning for the hemp industry, and in particular, organic production. Securing organic acreage to meet future demands as the uses for organic hemp increase with the coming of the new regulations, positions the Company for sustainable growth.”
Naturally Splendid CEO Mr. Douglas Mason states, “Securing organic acreage is very much a cornerstone to our vertically integrated business plan. The recent acquisition of hemp processor ACI Foods, strengthens our efficiencies in product supply of organic hemp seed, hemp hearts, hemp oil and hemp protein into existing Company retail brands NATERA® and Chii™ while increasing our margins considerably. As importantly, the fact that we can convert the acreage from hemp seed production to CBD (cannabidiol) production gives us immense flexibility as the new hemp regulations come into effect. Additionally, we continue down the path of securing a Dealer’s License which in turn allows Naturally Splendid a myriad of new revenue opportunities including cannabinoid extraction and toll processing, as well as the ability to introduce new CBD fortified products currently under development by our experienced team of formulators. Product categories for CBD fortification under development include food and supplements, beverages, skincare and cosmetics and pet care and food products which we plan to market through established distribution channels with our existing divisions and brands.”
According to a recently published TechSci Research report, “Global Organic Food Market Forecast & Opportunities, 2020,” the global organic food market is projected to register a CAGR (compound annual growth rate) of over 16% during 2015 – 2020. Growth in the market can be attributed to growing health concerns among consumers and increasing awareness with regard to health benefits of organic food. Other factors driving organic food sales across the globe include increasing income levels, improving standard of living, and government initiatives aimed at encouraging widespread adoption of organic products.