Hobart, 5 November 2025 – The Tasmanian Hemp Association (THA) welcomes the Senate Inquiry into Opportunities for the Development of a Hemp Industry in Australia, describing it as a pivotal chance to build national consistency and unlock the full potential of one of Australia’s most sustainable crops.
THA Vice-President Ian Whitehouse said Tasmania’s leadership in hemp cultivation and regulation offers a proven blueprint for how coordinated national action can drive growth, innovation, and export success.
“Tasmania is the powerhouse of Australian hemp, producing around half the national crop and setting the benchmark for regulation, innovation and sustainability. With the right national coordination, hemp can become a multi-billion-dollar contributor to Australia’s regional economies, driving new industries in food, fibre and construction.”
In its submission to the Inquiry, the THA identified five national priorities to accelerate industry growth:
- A National Hemp Strategy to coordinate regulation, research, and market development
- Investment in processing infrastructure and regional manufacturing hubs
- Increased R&D and plant breeding to boost productivity and seed quality
- Education and workforce training pathways to build capability
- Global positioning of Australian hemp as a premium, sustainable export
Mr Whitehouse said Tasmania’s strong partnership between government, industry, and researchers has already produced results, but national alignment is the key to unlocking further opportunity.
“Tasmania’s Industrial Hemp Act 2015 shows how clear, practical regulation enables safe and productive growth. The next step is for Australia to work together on consistent national laws and support innovation across hemp fibre, food, and construction.” Mr Whitehouse said.
The THA also acknowledged the Tasmanian Government’s submission to the Inquiry, which reaffirmed its commitment to industry growth and continued investment in the THA’s capacity-building efforts.
Since 2018, the State Government has invested more than $700,000 in Tasmania’s hemp sector.
The Government also highlighted successful licensing reforms and a pilot program using hemp bales as horticultural mulch, demonstrating hemp’s potential to drive new value-added products and circular economy outcomes.
Global opportunity
With the right investment and national coordination, Australia’s hemp industry could realise its full potential within a decade. Hemp’s ability to sequester carbon, improve soil health, and replace energy-intensive materials such as plastics and cotton places it at the forefront of the circular economy.
Economic modelling by the THA and supporting studies show that regional fibre processing hubs could catalyse local manufacturing and exports in hempcrete, insulation, textiles, and biocomposites—creating new industries and jobs across regional Australia.
For more information or to read the submission, visit tasmanianhempassociation.org.au
View all submissions here
Media contact:
Anne Gigney I Executive Officer – Tasmanian Hemp Association
0499 244 367 | eo@tasmanianhempassociation.org.au
About the Tasmanian Hemp Association
Small Island. Mighty Plant. Big Future
At the Tasmanian Hemp Association, we champion the potential of industrial hemp as a sustainable, high-impact crop that delivers real-world solutions. From our small island, we support innovation, policy, and industry development to unlock hemp’s full potential – driving positive change in agriculture, health and nutrition, building materials, and the bioeconomy. Together, we’re cultivating a resilient future.