Scientifically known as Cannabis sativa, industrial hemp is specifically bred to contain minimal levels of tetrahydrocannabinol, unlike its close relative marijuana.
Murray Industrial Hemp’s is to be an end-to-end environmentally sustainable growing and manufacturing alternative to conventional house bricks, at a competitive price point.
While production and processing are in its infancy locally, the company plans to strategically develop its market share in Australia by importing a range of hemp products, including hempcrete blocks and insulation batts.
Investor confidence has been boosted by an assessment undertaken in accordance with the Department of Treasury and Finance’s Economic Evaluation for Business Cases Technical Guidance.
The assessment made using the assumptions provided found a benefit-cost ratio of 1.6 suggests that the project’s benefits will outweigh its costs, and a benefit-cost ratio (BCR) of 42 per cent and a net present value of $59 million indicates a positive financial gain over the project’s life.
The versatile plant suits well-drained sandy loam to clayey loam irrigated soils in Northern Victoria and Southern NSW.
It’s hoped that the ancient plant will provide opportunities for local producers.
The biomass-rich plant can reach 3m to 4m, with minimal branching.
Growing comparisons provided by Murray Industrial Hemp suggest the crop can be water efficient and still obtain a gross margin return of $3049 per hectare, and a return of $609 per megalitre.
Industrial Hemp is also said to play a crucial role in soil improvement within agricultural rotations.
Studies have recognised its efficacy in returning nutrients to the soil through decomposed leaves, stubble, and root systems.
Additionally, the plant’s rich secondary metabolites help reduce soil insect attacks and infections by soilborne pathogens in subsequent crops.
It is forecast that the demand for industrial hemp is expected to rise significantly, driven by its role as a substitute and complement to traditional forestry products.
The company plans to capitalise on this demand by cultivating and processing hemp and, in doing so, create 30 full-time equivalent direct and indirect jobs, fostering stable local employment and generating an annual economic activity of $4.4 million.
To find out more contact Leigh Fletcher at info@murrayindustrialhemp.com.au or call 0429 144 743.
