Leslie Massey
Industrial hemp is an emerging industry in Australia, with the country aiming to reach an annual gross value of production of $10 million by 2025. To achieve this, the industry needs to increase production and improve post-harvest infrastructure. Australia's climate and agronomic conditions are conducive to cultivating industrial hemp, and the crop is adaptable to various regions in Australia. However, water management is crucial during the first six to eight weeks of hemp crop establishment, and industrial hemp is intolerant of frost and excessively cold or hot climatic conditions. Growing industrial hemp in Australia requires a licence issued by state governments, and applicants must comply with strict testing standards and background checks.
| Characteristics | Values |
|---|---|
| Industry Status | Emerging, expected to grow |
| Industry Goal | $10 million annual gross value of production by 2025 |
| Crop Yield | The biggest influence on industry viability |
| Area Planted | 2,500 ha in 2022-23 |
| Number of License Holders | 500+ in 2022-23 |
| Climate | Requires soil temperatures of 18°C for germination, optimum temperatures of 15-27°C for growth, intolerant of frost and extreme temperatures |
| Soil Type | Fertile, neutral to slightly alkaline, well-drained clay loam or silt loam, intolerant of waterlogging |
| Water Management | Requires 3-6 megalitres of irrigation water per hectare for sustainable production rates |
| Pest and Disease Control | Prone to fungal diseases in humid conditions, requiring chemical control measures |
| Licensing | Required for cultivation, issued by state governments and Agriculture Victoria, with background checks and strict testing standards |
| THC Content | Allowable levels vary by state, generally low-THC, with specific limits for seeds and crops |
| Processing | Small-scale facilities available for fibre and hurd processing, with food processing plants in development |
| Market | Potential market for hemp stems and hurd, with processing plants in NSW and WA |
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What You'll Learn
Hemp growing licences
The Australian hemp industry is still in its infancy, but it is an emerging industry that is gaining traction in Australian agriculture. In the 2022-23 season, there were just under 2,500 hectares of industrial hemp planted by over 500 license holders across Australia.
A licence is required in Australia to authorise the cultivation and processing of industrial hemp for non-therapeutic or non-medicinal purposes. In Victoria, licences for industrial hemp are issued by Agriculture Victoria. To apply for a licence, applicants must provide national criminal history checks for themselves and their associates, and site assessments are generally required. To prevent criminal activity in the cultivation and processing of industrial hemp, Agriculture Victoria will not issue an authority to grow if the applicant or any associate has, in the last 10 years, been found guilty of a serious offence (e.g. fraud, assault, etc.).
The allowable THC content for crops planted as industrial hemp in Victoria is as follows: the seed used for sowing must be harvested from an industrial hemp crop with a THC level of 0.5% or less. Crops returning a test result of 1% THC or less may be harvested and processed for food (from the seed only) and/or fibre (from the stem only). Any industrial hemp crop that has returned a test result greater than 1.0% THC is not considered 'low-THC cannabis', and enforcement actions may be required.
Licence fees and inspector charges, plus laboratory analysis costs, can range from $500 to $1,500 annually (when a crop is grown) and are dependent on the number of crops and the time taken to collect samples for THC analysis.
It is important to note that a hemp licence issued by Agriculture Victoria cannot authorise the processing of leaves and flowering heads, where the cannabinoids are found, nor can it authorise activities related to the therapeutic use of industrial hemp.
To grow hemp for medicinal or scientific purposes, a licence and permit must be obtained from the Office of Drug Control (ODC).
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Soil and climate
Hemp grows well in different climates and soil types, making it adaptable to many regions in Australia. However, there are some specific soil and climate conditions that are optimal for growing industrial hemp.
Firstly, hemp grows best in fertile, neutral to slightly alkaline, well-drained clay loam or silt loam soil types. Hemp is intolerant of wet, flooded, or waterlogged soils, so good water management is crucial, especially during the first six to eight weeks of crop establishment. Hemp requires 3-6 megalitres of irrigation water per hectare for sustainable production rates.
Secondly, hemp requires specific temperatures for optimal growth. Soil temperatures for germination should be around 18°C, with optimum temperatures for growth between 15°C and 27°C. Hemp is intolerant of frost and excessively cold or hot climatic conditions, so regions with extreme temperatures may not be suitable for hemp cultivation.
Additionally, very humid conditions can lead to fungal diseases in hemp crops, which would need to be controlled with chemical measures. Currently, there are not many registered products available for this purpose.
It is worth noting that genetics also plays a role in the suitability of hemp for specific climates. Genes sourced from dry, hot locations may offer more drought-resistant traits, and there has been progress in developing seed strains better suited to warmer and drier conditions in Australia's north.
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Germination and growth
Industrial hemp (Cannabis sativa L.) grows well in different climates and soil types, making it adaptable to many regions in Australia. However, it requires specific conditions for germination and growth.
Industrial hemp requires soil temperatures of around 18°C for germination, with optimum temperatures for growth between 15°C and 27°C. It is intolerant of frost and excessively cold or hot climatic conditions, which limits the regions in Australia where it can be grown.
Industrial hemp thrives in fertile, neutral-to-slightly alkaline, well-drained clay loam or silt loam soil types. It is important to note that hemp species are intolerant of wet, flooded, or waterlogged soils. Water management is crucial during the first six to eight weeks of hemp crop establishment. Without significant supplementary rainfall, industrial hemp requires 3-6 megalitres of irrigation water per hectare for sustainable production rates.
In terms of genetics, it may be advantageous to consider genes sourced from dry, hot locations like Africa. These variations may offer more drought-resistant traits compared to other landraces. There has been progress in developing seed strains better suited to warmer and drier conditions in Australia's north, such as North Queensland and the Northern Territory.
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Pest and disease control
One of the challenges in growing hemp is the lack of established crop protection options. To address this, AgriFutures Australia has developed the Industrial Hemp Pesticide Review and Evaluation Program (PREP) to identify alternative or new fungicide, insecticide, and herbicide options for the industry to trial. This program aims to support the growth of the hemp industry by exploring effective crop protection measures.
The Best Management Practice (BMP) manual, produced by AgriFutures Australia, also provides comprehensive guidance on pest and disease control. It covers various aspects, including plant growth and development, regulations and licensing, sourcing and sowing seed, soils, fertiliser, irrigation, and post-harvest management. Additionally, the manual addresses emerging disease, pest, and weed challenges as the area sown to industrial hemp increases.
It is important to note that hemp does not require pesticides, and Australia has no major hemp pests or diseases. However, as the hemp industry is still in its infancy, further research is needed to address new challenges, such as insect pests and new growing regions.
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Harvesting and processing
Harvesting:
Industrial hemp is typically harvested mechanically, using a combine harvester. The timing of the harvest depends on the purpose of the crop. For fibre production, the crop is usually harvested when the plants are in full bloom or just after. For seed production, the crop is harvested when the seeds are mature, typically in late summer or early fall. The climate and growing conditions in Australia can vary widely, so growers must carefully monitor their crops to determine the optimal harvest time.
Processing:
Processing industrial hemp depends on the intended use of the crop. For fibre production, the harvested plants are retted (a process of soaking and drying to separate the fibre from the stem), and then the fibre is cleaned, combed, and spun into yarn or used to produce other textile products. For seed production, the seeds are cleaned, dried, and processed into oil or used for food products. It's important to note that processing hemp for medicinal or therapeutic purposes requires special authorisation from the Australian Government's Office of Drug Control.
Legal and Regulatory Considerations:
The industrial hemp industry in Australia is highly regulated. Growers must obtain licences from their respective state governments and comply with strict testing standards for THC levels. The allowable THC content for crops varies by state but is generally very low (around 0.5% to 1%). Independent tests must be conducted for every crop, and failure to comply with regulations can result in criminal investigations.
Post-Harvest Infrastructure and Market Considerations:
The viability of the hemp industry in Australia depends on crop yields and post-harvest infrastructure. Growers must consider the availability of processing facilities and the potential markets for their products. The location of processing plants and the volume of production can impact the profitability of the crop. Additionally, the export potential of Australian hemp products is an important aspect of the industry's economic outlook.
Best Management Practices:
To support the growth of the industry, AgriFutures Australia has developed a Best Management Practice (BMP) manual for growing, harvesting, and post-harvest management of industrial hemp. This manual provides comprehensive guidance on harvesting and processing techniques, including disease, pest, and weed management. It is a valuable resource for growers and agronomists to ensure viable yields and competitiveness in global markets.
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Frequently asked questions
A license is required to grow industrial hemp in Australia. The license is issued by the state government and is mandatory for growers who want to produce fibre, seed, or grain.
Industrial hemp grows well in fertile, neutral-to-slightly alkaline, well-drained clay loam or silt loam soil types. The soil temperature for germination should be around 18°C, with optimum temperatures for growth between 15–27°C. Hemp is intolerant of frost and excessively cold or hot climatic conditions. Water management is critical during the first six to eight weeks of hemp crop establishment.
The industrial hemp industry in Australia is still emerging and rapidly growing. The industry has set a target of achieving a gross value of production of $10 million per annum by 2025 or 2026. The key to unlocking the economic potential lies in supplying high-quality Australian hemp products to the global market.
