$2.5 Million Investment into Australia’s Industrial Hemp Future

Article: Janet Price. Editor/Publisher: Jeremy Thomas

Australia’s industrial hemp sector has taken a significant step forward with the launch of the Australian Industrial Hemp Program of Research (AIHPR) a $2.5 million investment through AgriFutures Australia.

Running from 2023 to 2028, the program is guided by the Australian Industrial Hemp Strategic RD&E Plan (2022–2027) and is designed to strengthen the industry from seed to end-product, with a strong focus on sustainability.

The research is being led by Southern Cross University under the New and Emerging Industries Program.

Investment into Australia’s Industrial Hemp Future

The Four Research Themes

The AIHPR is structured across four key themes that together address production, processing, performance, and environmental impact.

Theme 1: Hemp Seeds and Varieties

This theme aims to secure Australia’s long-term access to reliable, high-performing hemp varieties.

Researchers are:

  • Establishing a baseline of characterised hemp varieties
  • Improving germplasm for Australian conditions
  • Supporting growers across different agroecological zones
  • Providing clearer guidance on varietal selection for specific climates and end uses

The goal is practical decision-making tools that reduce uncertainty and improve crop performance.


Theme 2: Hemp Primary Production

Theme 2 focuses squarely on agronomy and risk reduction.

Key areas of research include:

  • Optimal sowing rates
  • Fertiliser strategies
  • Weed management
  • Integrated pest and disease management

The outcome will be grower-focused agronomic packages designed to:

  • Minimise crop failure risk
  • Maximise attainable yields
  • Improve consistency across diverse cultivation environments

This work is critical for commercial-scale confidence.


Theme 3: Hemp Products and Value-Adding

Theme 3 looks beyond the farm gate.

Research is investigating:

  • Safe and beneficial use of hempseed-based products in livestock, performance, and companion animal feed
  • Impacts on animal welfare and end-product quality
  • Advanced processing of hemp seed meal by-products into high-value, health-promoting peptides
  • Pathways to increase value from fibre and biomass streams

The focus here is building stronger markets and improving whole-crop utilisation.

Theme 4: Sustainability and Carbon

Sustainability is a major pillar of the program.

Theme 4 is generating data and tools to help the industry clearly understand, and quantify, hemp’s environmental credentials.

This includes:

  • Life Cycle Assessment (LCA)
  • Greenhouse Gas (GHG) emissions analysis
  • Carbon sequestration across crop production, processing, and product use

A January 2026 update shared preliminary findings from the LCA/GHG analysis. While final outputs are not yet publicly available, further insights are expected following the next annual program update later this year.

For an industry increasingly positioned around low-carbon materials and regenerative agriculture, this work will be foundational.


Investment into Australia’s Industrial Hemp Future

Why This Matters for NSW

For growers, processors, builders, manufacturers, and investors across New South Wales, the AIHPR represents something essential: evidence-based industry development.

Strong industries are built on:

  • Reliable seed supply
  • Proven agronomy
  • Diversified product markets
  • Verified sustainability credentials

This program is working across all four.

We encourage members to follow developments closely. As updates become publicly available, they will help inform everything from on-farm decisions to investment confidence and policy advocacy.

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