A recent survey of the state’s fledgling hemp industry has identified the opportunities and challenges to establishing and expanding industrial hemp production in WA.
The Department of Primary Industries and Regional Development commissioned the survey of 64 growers, processors, manufacturers and businesses involved in the hemp industry.
Department senior policy officer Andrew Reeves said the survey, supported by the Agribusiness Innovation Fund, had helped build a stronger picture of the existing industry and future growth potential.
He said opportunities for growth focussed on hemp as a high-protein grain for food and beverage production, including a nut-free milk alternative, and as a fibre for textiles and building products.
“Based on the survey, the current make-up of the industry was strongly represented by those involved in seed supply markets (30 per cent) or in the start-up or pre market phase (26 per cent),” Mr Reeves said.
“In the future, the majority of respondents believed that WA could be most competitive in building and textiles (36 per cent) and hemp food markets (26 per cent).
“Confidence in the expansion of the industry is strong, with 79 per cent of those surveyed indicating they intend to expand their production in the next three years, with the majority aiming to expand to a planted area of more than 100 hectares.
“The primary area of growth indicated is based in the South West.”
Mr Reeves said the majority of those surveyed considered the industry was well-supported to foster development, with 66 per cent using an agronomist to produce the best quality crops and 85 per cent belonging to an industry organisation.
In other findings, the absence of processing facilities for hemp food and fibre in WA and unknown markets were considered to be both significant opportunities and barriers to industry development.
Determining and developing domestic and export markets for industrial hemp products and improving access to good quality seed suitable to local growing conditions were considered by industry as valuable in improving its viability.
“The survey identified a key role for government to facilitate industry development via targeted incentives and grants and reducing regulation to enable new start-ups to enter,” Mr Reeves said.
“Continued legislative support, following recent amendments to the Industrial Hemp Act 2004 to increase permitted tetrahydrocannabinol (THC) content in industrial hemp to one per cent, is welcomed by industry.”
Mr Reeves said the survey was a component of the department’s work to support the hemp food and fibre industry and develop new opportunities for primary industries in WA.
Earlier this month, iHempWA held its third networking and information event in Bunbury with hemp food being a popular topic for farmers to grow hemp for grain.
Stalls at the event included hemp clothing, body and skin care products, hemp building products as well as hemp pet food and bedding.
The event demonstrated the holistic approach by business, celebrating the many nutritional benefits hemp offers and multiple uses of the plant for fibre in building houses and other manufacturing industries.
HempGro chairperson Bronwyn Blake said farmers would plant nine tonnes of certified hemp seed this coming season.
“Collaboration is the strength of our region. WA farmers are keen to identify the best seed for the diverse growing areas,” she said.
Presented by iHempWA, the second Australian Industrial Hemp Conference will be coming to WA in 2020.
For more information about the WA hemp industry and the upcoming conference please go to ihempwa.org.
