In Phase Two of the Company’s business strategy, the Hemp Agro-Industrial Zone (“HAIZ”) is an optimization model based on GHG’s goal to utilize the exceptional properties of the hemp plant to produce raw materials and value-added products.Through partnerships, joint ventures, and acquisitions, Global Hemp Group will build a strategic portfolio of forward thinking companies that also believe in the disruptive potential of the industrial hemp plant. There are many promising sectors that will be pursued under the HAIZ, some of which include cannabinoids, nutraceuticals, superfoods, nutritional supplements, bio-composites, automotive, building materials and energy-related markets.
Global Hemp Group is committed to sustainability and social responsibility in a theme of “global environmental stewardship” as it pursues opportunity within these sectors. This theme drives the HAIZ concept, in order to secure a solid platform of products and services that are environmentally friendly, while producing consistent ROI for all stakeholders.
BENEFITS OF THE HAIZ STRATEGY
- Economic: Currently, the most profitable aspect of the HAIZ is cannabinoid extraction and refinement. In the near term, extraction will be the foundation that will subsidize the development of industrial applications for this strategy. Management expects that over time, these industrial applications will become the largest and most profitable aspects of the HAIZ.
- Social: From soil to shelf, the HAIZ concept is based on a collaborative rather than competitive operations model, benefiting all stakeholders throughout the process. From growing of the crops through to the final materials and products, the HAIZ concept promotes cross-sector partnerships, rural development and job creation.
- Environmental: GHG embodies a commitment to environmentally-friendly processes, from farming to production. The HAIZ concept utilizes the entire plant for the production of raw materials and products for the overall best benefits that balance profitability, as well as socio-economic and environmental impacts.
The HAIZ has been designed to be replicatable in any region where there is hemp cultivation.
Under the HAIZ model, farming contracts are negotiated based on all parts of the plant rather than just the seed. This produces higher returns and more stable revenues for farmers. It will also promote a more sustainable farming system with proper crop husbandry practices.
RESEARCH AND DEVELOPMENT (R&D)
Research is an important component of the HAIZ. Under this strategy, R&D consists of review and determination of best practices of hemp production and processing. This includes research of agricultural methods and industrial processes.
In this area, research is focused around developing new cultivars, that will be best suited for targeted industrial processes and end products. Specific areas of research include breeding hemp varieties that are easier to decorticate, as well as those that provide high-quality fiber, and yield quality CBD content of flowers and leaves. Research will also center around farming methods that support best practices under HAIZ.
- Industrial Processes
GHG will seek to attract and support research at its facilities surrounding best processes in the transformation of hemp materials. Within its R&D, Global Hemp Group will consider facets of processing on two levels. Primary processing, for the extraction of the various raw materials available from the hemp plant, and secondary processing, where considerable value is added through the manufacture of consumer goods. GHG will forge partnerships under the HAIZ model with owners of proprietary technologies capable of adding significant value to the raw materials for goods produced.