Markets, Seeds & Processing Plants Needed For Hemp Industry To Take Off In Australia

Ron Strider

Well-Known Member
With hemp seeds approved for human consumption, and medicinal cannabis trials taking place around Australia and the world, there is a lot of talk about the potential for a major new industry in Australia.

West Australian grower Colin Steddy, director of the Hemp Corporation, has just returned from China.

"They're going to plant a million acres (400,000 hectares) this year," he said.

"China is also buying out of Bangladesh and Africa and they cannot get enough. They would prefer to buy from Australia because of our reputation as a quality product."

Mr Steddy has brought back a range of hemp products made in China to show what the country is using hemp for.

Products include biodegradable plastic bags and shipping pallets, but low THC hemp is also being used in construction and as a fiber for clothing, as well as in mattresses and furniture.

Using hemp in construction

Australian Industrial Hemp Alliance president and Hunter Valley grower Bob Doyle has built a processing plant, but said there was very little processing capacity in Australia at the moment.

"We take the long stalks and decorticate (remove the bark) and separate it into the bast and the herd," he said.

"The bast is the outside fiber and the herd is the pyth or the core of the plant.

"There is no market [for the bast] in Australia so we're working with Colin on getting a market in China, but there is a big market in Australia for the herd, primarily in housing."

Klara Marosszeky, from the Australian Hemp Masonry Company, used to grow hemp but has shifted into the construction industry, and is involved in the construction of 75 houses in Australia.

"We've got an eco village underway in the Hunter Valley and a social housing project starting in South Australia," she said.

Ms Marosszeky said carbon capture was a key element of her industry.

"You can build a commercial building and lock up 500 tones of carbon … so we could be sequestering carbon in hemp and locking it up in construction materials," she said.

Industry has a need for seed

While there is excitement about the potential for hemp, the industry still needs a supply of seeds and varieties that suit different regions and purposes.

Northern Rivers Hemp Association president and NSW hemp breeder Andrew Kavasilas has been working on breeding varieties that yield a lot of seeds but can be easily harvested with machinery.

"We've got shorter varieties that are producing all their seed at the top of the plant [which] we can take off," he said.

"We'll concentrate on developing a Northern Rivers variety, but if we can produce high yielding plants with a lot of omegas we'll be really happy."

Once the varieties are developed, farmers will still be hesitant to grow hemp unless the price is right.

Mr Doyle said the price was currently $3.50 to $4.00 a kilogram, cleaned and graded.

That compares pretty well to wheat, but hemp has a long way to go to match the wheat or cotton industry in growers' eyes.

Despite that, Mr Kavasilas believes the value of hemp seed production in Australia could be $1 billion inside a decade.

"When you look to the Canadians, they went from zero in 2002 to about half a billion dollars in 2014," he said.

"Here in Australia, I think within 10 years I'd hope that we'd be doing a billion dollars in hemp seed food both domestically and overseas."

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News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Markets, seeds and processing plants needed for hemp industry to take off in Australia - ABC Rural - ABC News
Contact: Contact Us - ABC News (Australian Broadcasting Corporation)
Photo Credit: Anthony Pancia
Website: ABC News (Australian Broadcasting Corporation)
 
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