Total financing of CA$6.1 million (~US$4.5 million) has been announced in support of a hemp supply chain to produce uniforms in the Canadian province of Alberta.

The federal government said it is providing CA$5 million in support of Askiy Hemp Limited Partnership (Askiy), which plans an industrial hemp processing plant in Elk Point, while the province will invest CA$1.1 million in uniform maker Logistik Unicorp, according to recent announcements.

The initiative is intended to turn hemp locally grown in the Elk Point and Frog Lake region into a wide range of products, beginning with textiles. Frog Lake First Nations and other neighboring indigenous communities will dedicate 125,000 acres to hemp farming, the government said.

40k tons per year

Funding for the Askiy Hemp LP facilities is in the form of a CA$5 million federal loan through the Community Economic Development and Diversification fund, administered in Alberta by Prairies Economic Development Canada.

The industrial complex, a 13,000-sq-ft. building on 7.5 acres in Elk Point’s Diversity Industrial Park, is to include technology for decortication, refinement and cottonization of industrial hemp. The factory is planned to process 40,000 tons of hemp stalks annually for use in textiles, building materials, fertilizer, and paper.

“Increasing demand for hemp will provide a new revenue stream for farmers and diversify Alberta’s agricultural sector,” according to the federal government, which said the factory, to employ 45 workers, is expected to be operational by summer 2025.

Boost to economy

The Logistik investment by the province will help create 33 permanent jobs and 50 temporary jobs in Elk Point. Logistik Unicorp Inc., Quebec, is the largest uniform company in Canada with more than ten years experience in the hemp industry.

Officials said the hemp initiatives are aimed at rejuvenating and diversifying the economy of the Elk Point area – which is primarily dependent on oil and gas – by creating value-added products from the agriculture sector.

Alberta is the leading province in Canada’s hemp industry, accounting for roughly 40% of national production, primarily for grain. Farmers in the province grew hemp on roughly 8,000 hectares (~20,000 acres) in 2023, a year in which 22,500 hectares (~55,400 acres) were planted nationally, according to figures from Statistics Canada.

https://hemptoday.net/hemp-processor-uniform-maker-get-4-5-million-for-textile-operations-in-canada/

“Our government is taking action to advance reconciliation and to develop meaningful partnerships that contribute to an economy that works for everyone. By supporting the Askiy Hemp Limited Partnership hemp processing plant we are helping to strengthen the economy in the Elk Point area, creating quality jobs for Albertans, contributing to economic reconciliation, and adding value to Canada’s agriculture sector. This investment will help build a stronger and more sustainable economic future across the Prairies.”
–The Honourable Dan Vandal, Minister for PrairiesCan

“The agriculture sector plays an essential role in the lives of all Albertans. It is a key economic driver in communities across the province and provides quality jobs, especially in rural Alberta. This investment will help farmers in the Elk Point region access new opportunities in agriculture and will create more good jobs for area residents, including members of the Frog Lake First Nations.”
–The Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages

“As the Chief of Frog Lake First Nations, we are committed to enhancing the lives of our people. This can only be done by diversifying and by making investments such as this as it is an important factor to the nations’ growth. I want to take this time to thank Logistik Unicorp, for approaching Frog Lake First Nations to develop a joint venture partnership and form Askiy Hemp LP. This is a great opportunity for economic growth for Frog Lake First Nations. It will provide a large scale of opportunities in green energy, food and water sovereignty, clean transportation, carbon sequestration and sustainable projects.  It will also provide a number of employment opportunities for our nation’s members as well.”
–Chief Gregory Desjarlais, Frog Lake First Nations

“On behalf of the Town of Elk Point, we are excited that with the assistance and encouragement of our government, Askiy Hemp LP had decided to invest in our town. Askiy Hemp LP is a shining example of the collaboration between our First Nation friends and the private sector to promote economic and agricultural development within our region. Most important of all, this venture also provides employment opportunities for our Frog Lake First Nations and residents, as well as future economic development opportunities within our region.”
–Parrish Tung, Mayor, Elk Point

“We are pleased to be part of the transformation of the Canadian industrial landscape by fostering economic development for First Nations, Inuit and Métis peoples. Working with Frog Lake First Nations is a natural step in creating this new branch of our economy, which is in line with Canada’s vision of growth and representation. This project, which is rooted in our environmental values, will bring about the creation of a unique hemp industry, in the image of all Canadians.”
–Louis Bibeau, President and CEO, Logistik Unicorp

• A repayable $5 million federal contribution is being provided for this project through the Community Economic Development and Diversification fund, administered in Alberta by PrairiesCan.
• PrairiesCan programs and services help businesses, not-for-profits, and communities grow stronger: its mandate is to support economic growth and diversification in the Prairie provinces and advance the interests of the region in national economic policy, programs, and projects.
• Through the Community Economic Development and Diversification fund, the federal government is making targeted investments in not-for-profit organizations that aim to generate sustainable, inclusive growth and help communities to fully participate in, and benefit from, economic opportunities.
• The Framework to Build a Green Prairie Economy is a long-term commitment to work differently, through stronger coordination among federal departments on investments for the Prairies and closer collaboration with Prairie partners on their priorities for a prosperous and sustainable Prairie economy.
• The Framework is intended to encourage greater collaboration, leverage additional funding, and attract new investments across the Prairies.