Initially envisioned as a comprehensive initiative to study, promote, and enhance the hemp sector, the project sought to address various aspects of the hemp supply chain, including production, utilization of hemp for health and construction materials, and challenges related to regulation, public perception, and environmental concerns. Despite attracting AU$50 million (U.S. $32.5 million) in pledges toward its AU$200 million (U.S. $130 million) funding goal, the initiative faced setbacks in securing the necessary government grant.
Currently, Australia’s national hemp crop spans only 2,000-3,000 hectares (5,000-7,500 acres), a fraction of the envisioned expansion. Lauchlan Grout, vice president of the Australian Hemp Council, identified several obstacles hindering the hemp industry in Australia, including market domination by imported products, challenges in achieving consistency and competitive pricing, and a lack of processing infrastructure and complex licensing procedures. These factors have deterred significant investment from farmers and allowed imports to dominate the market.
Gavin Ash from the University of Southern Queensland, a consortium member involved in the initiative, highlighted the immense potential of the hemp industry in Australia but emphasized the need for substantial government funding to tap into national and international markets. Despite recognizing the industry’s potential, Ash revealed that he would no longer be involved in hemp initiatives due to the funding setback.
Queensland farmer David Richardson, who ventured into hemp cultivation on his property, emphasized the need for significant industry-scale participation to meet the demands of larger companies interested in hemp products. However, Richardson highlighted the existing challenge of companies hesitating to invest in the industry until a substantial volume of hemp is readily available.
The consortium formed to pursue the funding included various educational institutions such as the University of Southern Queensland, Southern Cross University, the University of Western Sydney, and Deakin University, alongside governmental bodies and companies from Canada, Fiji, India, and Europe. Despite their efforts, the project’s abandonment underscores the formidable challenges facing the Australian hemp industry and the critical need for substantial government support to foster its growth and competitiveness on a global scale.
Photo by: Mudassir Ali
