"There were between 1,000 and 1,200 acres seeded," Mike Langtry, a member of the MHA board, told Reuters at the first hemp farming and equipment show held this week in Canada's grain capital.

"Seed yields this year were between 900 and 1,000 pounds per acre, with high-fibre yields," he said.

Industrial hemp, widely produced in Europe and China, is the same as the cannabis sativa plant used to produce marijuana -- but contains far smaller amounts of the drug, Langtry said.

Hemp is used in production of food, fuel, paper, rope and textiles.

Langtry said producers were storing the seed from this year's crop until an oilseed processing facility is built and other processing facilities become available.

"I can see hemp beginning as an interest crop, with development ofthe infrastructure for primary, secondary and tertiary processing developing in Manitoba," he said.

Langtry said the prospects for hemp production appear to be strong.

"I think we will see as many acres planted to hemp as we do to canola in the next five years," Langtry said.

Canada planted just over six million hectares to canola in the 1997-98 crop year, the federal agriculture ministry said.

Langtry added The Body Shop's recent decision to sell hemp skin care products, which also required government approval, would help to legitimize the plant.

He said officials from Canada's health ministry perform regular drug level checks of growing hemp.

Growing hemp is still illegal in the neighbouring United States, he said.

"That's good for Canada because now we get to develop the infrastructure and technology," Langtry said, adding Canada would rely on European and Australian research.

Australia is set to plant its first commercial crop this year after also receiving government approval, said AdrianClarke of Fibre Laboratory Pty. Ltd in the Victoria state.

"This year will be our first commercial year and farmers are queuing up to grow it," Clarke told about 150 growers.

Australia would seed 200 hectares in the initial crop aimed at specialty markets, Clarke said. "Our goal is to get it growing and get it exported," he said.