Industrial Hemp Pre Feasibility Study
Industrial Hemp Pre Feasibility Study
A Pre-Feasibility study found that hemp production offers Western Murray farmers.
Collaborations -
LP021-023
The issue
The establishment of an Industrial Hemp Cluster Group and field trial was funded by the Australian Government’s (AG) Murray Darling Basin Economic Development Program (see separate Case Studies). A Pre-feasibility Study (PFS) was completed by the Wedge Group to investigate opportunities for establishing an industrial hemp industry in the Western Murray Region (WMR) which was funded by the AG and Murray River Council.
The solution
The pre-feasibility study found that hemp production offers Western Murray farmers: Potential to generate more revenue per unit area compared to many other traditional crops. Potential to augment existing farm revenues or to establish a new base of operations, support the development of a local supply & value chain and diversify the types of crops grown, provide positive weed break and farmer opportunities for carbon sequestration. There is strong consumer demand for hemp-fossil fuel replacement products, such as bioplastics and building products. A business case for funding has been submitted to the NSW Government.
This project is being delivered via funding from the Australian Government's Murray Darling Basin Economic Development Program and Murray Local Land Services
The impact
The pre-feasibility study found that hemp production offers Western Murray farmers: Potential to generate more revenue per unit area compared to many other traditional crops. Potential to augment existing farm revenues or to establish a new base of operations, support the development of a local supply & value chain, diversify the types of crops grown, provide positive weed break, and farmer opportunities for carbon sequestration. There is strong consumer demand for hemp-fossil fuel replacement products, such as bioplastics and building products. A Business Case funding has been submitted to the NSW Government.
This project is being delivered via funding from the Australian Government's Murray Darling Basin Economic Development Program and Murray Local Land Services
Key facts
- An Industrial Hemp Cluster group has been established
- Competitive return to the grower of approx. $1,156/ha or $193/ML water (based on 10tn/ha production and farm gate price of $400/tn)
- Prefeasibility study indicated a potential gross return via one decortication plant of $6.8M servicing 416 Ha and create 4-6 direct ongoing manufacturing jobs
- Success of a cohesive industry requires strong collaboration and cooperation throughout the entire value chain
- Business Case development funding has been submitted to the NSW Government to further refine cost / benefit economics and risk analysis of decortication
- Several businesses have indicated strong interest in establishing local value adding businesses, such as prefabricated building material, bricks and bioplastics.