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Industry Response to the Senate Inquiry

Industry Response to the Senate Inquiry: Opportunities for the Development of an Industrial Hemp Industry in Australia The response to Senator Richard Colbeck’s call for submissions to the Senate Standing Committees on Rural and Regional Affairs and Transport’s inquiry into the Opportunities for the Development of an Industrial Hemp Industry in Australia was both strong and diverse, with 64 submissions received from across the nation. Submissions came from farmers, processors, researchers, builders, health and wellness product manufacturers, advocacy groups, and government agencies, reflecting the depth and breadth of interest in unlocking hemp’s full potential for Australia. A number of consistent themes emerged across the submissions. Agronomic advantages Many highlighted the agronomic advantages of hemp as a sustainable, low-input crop that fits well into regenerative farming systems, supporting soil health, carbon sequestration, and water efficiency. There was a strong emphasis on regional economic development, with hemp positioned as a diversification opportunity for farmers and a driver of new jobs in processing and manufacturing. Regulatory reform Stakeholders also focused on the urgent need for regulatory reform, calling for the removal of industrial hemp from drug-related legislation and for national harmonisation of licensing, THC thresholds, and compliance systems. The inquiry revealed that fragmented regulations are among the largest barriers to growth, limiting investment and cross-border trade. Value-added manufacturing  Submissions underscored the growing potential for value-added manufacturing, particularly in hemp-based building materials, textiles, bioplastics, food, and wellness products. The construction and materials sector featured prominently, with strong calls to fast-track building code recognition for hempcrete and fibre board, and to align with international standards to enable rapid scaling. Research and development investment A further theme was the need for increased research and development investment, particularly in seed genetics, agronomy, processing technology, and product innovation. Stakeholders called for coordinated national leadership and industry collaboration to link research institutions, growers, and manufacturers. In summary Overall, the submissions presented a unified message: industrial hemp represents a significant economic, environmental, and social opportunity for Australia, but its success depends on policy alignment, investment in infrastructure, and continued cross-sector collaboration. The level of engagement in this inquiry highlights a maturing, motivated, and solutions-focused industry ready to contribute to Australia’s low-carbon, circular, and regionally based future.

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China Visit: Exploring Fiber, Plastics and Board Innovation for Hemp’s Next Leap

By Colin Steddy Hemp Inside Pty Ltd | iHemp NSW Executive Member In late July 2025, I headed to China to reconnect with key partners and explore the latest in fiber, plastic, and board manufacturing technology for hemp. The trip was fast-paced, full of factory visits, long train rides, and great conversations over tea — but most of all, it reaffirmed just how fast hemp innovation is moving in China. Shanghai: Fiber Processing Reimagined After leaving Vacy early on July 30, I arrived in Shanghai late that night where my long-time contact, Victor, met me at the airport. We eventually found his car after a short adventure in the car park and drove three hours to the hotel, pulling in around 3:40 a.m. Despite little sleep, I was keen to see what awaited the next day. At the factory, I was impressed by the level of refinement in their fiber-processing systems. The new long-fiber line, recently upgraded, now requires only two operators instead of nine. It runs cleanly without the need for an underground pit — a big saving — and automatically bales the finished fiber. The new setup handles stalks under 5 mm thick, blowing the Hurd cleanly into a separate bin. Equally impressive was the short-fiber line, featuring a redesigned drum that treats the fiber gently, maintaining its length and softness. The integrated dust-extraction system can service both lines simultaneously, allowing any short fiber from the long-line process to be redirected — meaning virtually no waste. Although each line currently outputs about 300 kg of fiber per hour (roughly one ton combined), the modular design means five units could outperform a five-tons-per-hour European system at a fraction of the cost. That evening over supper, I reconnected with Eric, an interpreter from a previous trip, and his colleague Tim, a Dutch-born Chinese fiber specialist with a distinctly Australian sense of humor. Over coffee, we discussed how Australian hemp fiber could fit China’s high-volume textile markets. China’s grading system is still largely based on experience — “look and feel” rather than numbers — but their eye for quality is sharp. The conversation reminded me how important hands-on understanding remains in this trade. Jinan: Natural Fiber Plastics The next leg took me north by high-speed rail to Jinan. Steven from GW Plastics met me and introduced me to their automated molding operation — one worker producing a pallet of parts every three minutes.   Their latest trials blend up to 80 percent natural fiber with plastic. The result is stronger, lighter, and less brittle — an ideal direction for sustainable materials. I immediately thought of potential applications for hemp, from injection-molded components to structural profiles. One idea we discussed was a “plastic rebar” or concrete straightener — using waste plastic and hemp stalks together. It’s the kind of circular solution that could really take off as green construction grows. Cement Boards and Bio-Composites From there I met Kevin, who manufactures cement board machinery used around the world. His plant featured two systems: a 100-metre heat-based line that requires glue, and a 50-metre cold-press version that doesn’t — fully automated, simple to run, and versatile. Boards ranged from thin 2 mm sheets up to 120 mm sandwich panels. This technology, combined with hemp fiber, could produce strong, lightweight, and toxin-free panels — exactly the kind of building materials the market is demanding. Every machine component met European electrical standards, meaning compatibility with Australian regulations would be straightforward. That evening, I checked into a modest hotel and ventured out for dinner, finding that everywhere I went, WeChat was the key to doing business. It’s more than just messaging; it’s the backbone of communication and payments in China. It’s clear I’ll need to set up a proper account before my next trip. Panjin: Reed and Hemp Board Futures A few days later, after a long standing-room-only train ride, I arrived in Panjin to meet Mr. Zhang, who runs a major reed-board manufacturing facility. Liz, an excellent interpreter, joined us for the tour. The factory processes 30–35,000 tons of reeds annually — material harvested from local wetlands and stored in large bales much like hay or hemp. The plant was spotless, with no visible dust and a sweet smell from the natural lignin binding the boards. Workers weren’t masked or suited up — the process itself is that clean. Over lunch, we discussed the potential for hemp as a feedstock. Mr. Zhang already had trialed hemp board and was enthusiastic about the results. He suggested partnering with Hemp Inside to test Australian hemp in his system, with the possibility of building a dedicated mill in Australia by 2027 if the economics and market align. The reed and hemp boards are almost indistinguishable by sight or touch — but hemp may prove to be the stronger and more sustainable fiber. Zhangpu: Wrapping Up and Looking Forward My final stop was Zhangpu, where I reunited with Mr. Xu — a long-term collaborator and friend. Over several days we shared meals, visited his warehouse, inspected a salt-tolerant kenaf trial, and talked late into the evenings about hemp’s future. Xu’s knowledge and network across China’s hemp and bio composite sectors continue to open new doors for collaboration. Our discussions confirmed that China is pivoting rapidly toward non-toxic, bio-based materials. Whether in fiber decortication, plastic composites, or natural boards, every manufacturer I met was seeking cleaner, simpler processes — and hemp fits perfectly into that vision. Reflections In just under two weeks, I saw firsthand how China’s manufacturing ecosystem continues to adapt and innovate around natural materials. The common thread across all these meetings was efficiency, integration, and sustainability — each factory taking steps to reduce labor, waste, and reliance on synthetic binders. For Hemp Inside and for Australia’s growing hemp industry, the opportunities are clear. By connecting our clean, high-quality raw materials with China’s processing technology and manufacturing scale, we can accelerate the development of hemp products that are competitive, sustainable, and commercially ready. As I landed back in Sydney on August 11, tired but

Easter Show Stand
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Success with Hemp at the 2025 Sydney Royal Easter Show

By Colin Steddy, Hemp Inside This year, I had the great privilege of joining Happy Soils (Andrew Meseha), Hexcore, and Why Not Consulting at the Sydney Royal Easter Show, thanks to an invitation from Duncan Kendall and the team at the Woolworths Discovery Centre. We bumped in on April 9, ready for gates to open on the 10th, and the energy was electric from day one — in fact, it was the biggest opening-day crowd in the show’s history. The Discovery Dome display stood out for all the right reasons. The entire fit-out — walls, tables, chairs, and cabinets — was crafted from ply board and furniture made by Hexcore using hemp materials. Hemp Gallery supplied beautiful hemp-made items, and I brought along hempcrete bricks, weed matting, samples of hurd and fibre, and hemp seed oil for sale. It was an honour to represent Hemp Inside and the broader Australian hemp industry. Public interest in hemp was strong and genuine. People came eager to share what they knew and to learn more — from curious newcomers to returning visitors tracking industry progress. Many asked, “Can I grow hemp on my land?” My answer was consistent: “We need to develop more markets and attract more investment to grow demand. Once that happens, we’ll be looking for more growers.” Andrew, Anastasia, their baby, and I were there every day — and yes, standing and talking non-stop for nearly two weeks was exhausting! But the support we received made it worthwhile. Visitors were enthusiastic, firemen stopped to see our display (including a video of the Hexcore house being tested in fire conditions), and Happy Soils customers shared encouraging results and plans to expand their use of the products. Media coverage? Disappointingly, not a single photo. But meaningful conversations made up for it — including promising follow-ups and exciting developments in the pipeline for Hexcore. I also had a valuable hour-long call with the NSW Department of Primary Industries, where I shared views on key obstacles holding back the industry: We must collaborate to build a strong, sustainable industry. The shift from the Office of Drug Control to the Department of Agriculture would unlock growth. It would create the policy certainty needed to attract serious investment. Right now, the perception that regulations could change overnight by the narcotics division scares off potential backers. Encouragingly, DPI is calling for industry submissions to help shape a stronger future. I urge everyone to contribute. One of the best compliments came from other exhibitors, who said the energy from our display was inspiring. Andrew’s love of music and fun made for a lively space — we even had a few dance moments with the crowd. The positivity was contagious. We bumped out on April 23 — a long stint on our feet, but a truly worthwhile experience. Big thanks to the Royal Agricultural Society, Duncan Kendall and his team, and our amazing crew: Andrew, Anastasia, Why Not Consulting, and Happy Soils. Let’s keep pushing forward. Cheers,Colin SteddyHemp Inside     Hemp at the 2025 Sydney Royal Easter Show Gallery

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