The Complete Plant, Half the Alternative

Why Australia’s hemp business wants sensible pathways to make use of extra of each crop.

Margaret River Hemp Co  |  August 2026  |  Half 4 of the Australia’s Hemp Alternative collection

A complete-plant crop deserves a whole-plant business. If extra components of every crop can enter respectable, secure and commercially helpful markets, each hectare turns into extra helpful.

Certainly one of hemp’s best strengths can be one of many clearest examples of why Australia’s business has struggled to succeed in its potential.

Hemp is a remarkably helpful crop. The seed can grow to be meals, oil, protein and flour. The stalk will be separated into fibre and hurd for textiles, composites, insulation, paper and constructing supplies. Processing residues can discover makes use of in biochar, soil merchandise and different functions. Even components of the plant that may in any other case be thought of waste can have potential worth.

That’s the reason hemp is commonly described as a crop with little or no waste.

However in Australia, there’s a irritating catch.

We nonetheless can’t all the time use the entire plant.

And if we’re critical about making a round, commercially viable hemp business, that issues enormously.

A complete-plant crop inside a partial-use system

The 2026 Senate inquiry into Australia’s industrial hemp business appeared straight at this subject. The report notes that almost all Australian jurisdictions nonetheless comprise provisions proscribing using components of the hemp crop, significantly leaves, roots and flowers. It additionally information our personal estimate, submitted via Margaret River Hemp Co, Margaret River Hemp Processing and Hemp Properties Australia, that these restrictions may end up in the lack of as much as 50 per cent of a crop’s potential worth.

That isn’t a small inefficiency. Think about rising any agricultural crop and being advised that probably helpful components of it can’t enter regular industrial markets.

The farmer nonetheless paid to plant it. The water nonetheless went onto the paddock. The equipment nonetheless harvested it. The crop nonetheless occupied the land. However a part of the potential return can merely disappear.

For an rising business already making an attempt to compete with established abroad producers, that makes the economics a lot more durable.

The problem is greater than one product

It’s straightforward to take a look at whole-plant restrictions and suppose that is merely about discovering one other product to promote. It’s greater than that.

Utilizing extra of the plant can have an effect on the economics of every little thing upstream. If a grower has a number of income streams from the identical crop, the crop turns into much less depending on one market. If a processor can promote extra fractions of the fabric, the price of processing the precious fibre or hurd can probably be unfold throughout extra merchandise. If producers can entry extra feedstocks, they’ve extra choices for product growth. And if much less biomass needs to be discarded, the complete business strikes nearer to the round mannequin that’s so usually used to explain hemp.

The Senate committee itself recognised this level, saying that simpler whole-plant use might open new income streams, scale back wastage and decrease manufacturing prices. It additionally famous that proscribing flowers and leaves may end up in further worth merely being destroyed.

That’s precisely the issue.

What does “utilizing the entire plant” really imply?

It doesn’t imply each a part of each crop ought to routinely go into each market.

Totally different plant fractions want totally different requirements, testing and finish makes use of. However a mature hemp business ought to at the least have pathways to make use of as a lot of the crop as safely and commercially potential.

A part of the crop	Present or potential makes use of
Seed	Hemp meals, oil, protein, flour and components
Seed cake	Protein-rich meals ingredient and potential feed functions
Bast fibre	Textiles, composites, insulation, paper and technical fibres
Hurd	Hemp-lime development, animal bedding, panels, absorbents and horticultural makes use of
Quick fibre	Paper, composites, insulation and different manufactured merchandise
Processing mud / fines	Soil amendments, mushroom-growing substrates and different lower-value functions
Leaves, roots and flowers	Potential meals, extract, agricultural and different markets the place laws allow

The Senate report highlights this round alternative significantly clearly. Proof to the inquiry described how seed cake can grow to be one other helpful product after oil urgent; lower-grade fibre and hurd can transfer into composites or paper; and even processing mud could have makes use of in mushroom cultivation or soil enchancment.

“Waste” is commonly only a materials with no market

This connects straight with Half 2 of this collection. Australia doesn’t merely must develop extra hemp. We have to use extra hemp. And whole-plant utilisation is without doubt one of the clearest methods to do this.

When a processor separates a hemp stalk, not each fraction can be appropriate for a premium textile. That doesn’t make the remaining materials ineffective. The hurd could grow to be constructing materials. Quick fibre would possibly grow to be paper or composite reinforcement. Fines could grow to be a soil product. One a part of the seed could grow to be oil whereas the remaining meal strikes into one other meals product.

That is how mature agricultural industries work. They don’t depend upon one good product. They discover markets for various grades and fractions. In lots of industries, the by-product ultimately turns into an essential product in its personal proper. Hemp must be no totally different.

Circularity solely works if the circle is allowed to shut

The Senate inquiry describes hemp as significantly nicely suited to a round financial system as a result of merchandise and supplies will be reused, recycled or returned to organic techniques somewhat than merely despatched to landfill.

However the report additionally makes an essential commentary: laws proscribing components of the plant can forestall that circularity from being absolutely realised.

That creates an apparent contradiction. We encourage industries to cut back waste. We encourage producers to search out worth in by-products. We encourage farmers to diversify income. We discuss round economies. Then, in some instances, a authorized agricultural crop reaches a regulatory wall exactly when a enterprise tries to search out one other productive use for a part of it.

That’s the place regulation must grow to be smarter. Not absent. Smarter.

Regulation nonetheless has a task

This is a crucial a part of the dialog. Complete-plant use mustn’t imply eradicating each safeguard.

Totally different merchandise have totally different dangers and totally different regulatory necessities. Meals wants meals requirements. Animal feed wants acceptable security guidelines. Constructing supplies want efficiency requirements. Merchandise supposed for therapeutic markets sit in one other regulatory class altogether.

The Senate committee acknowledges that opening extra of the plant to industrial use creates real regulatory complexity and that Australia nonetheless has worldwide obligations that have to be thought of.

The reply is just not merely to faux these obligations don’t exist. The higher query is: can Australia regulate merchandise in keeping with what they’re really getting used for?

Regulate the tip use, not simply the plant

A recurring argument all through the Senate inquiry was that industrial hemp ought to more and more be handled in keeping with its supposed use.

A hemp stalk being changed into a constructing panel is just not the identical product as a meals ingredient. A fibre cargo mustn’t essentially face the identical regulatory assumptions as an extract. A seed destined for breakfast cereal is working in a totally totally different market once more.

Business proof to the inquiry argued that finish use must matter extra in how hemp is regulated, significantly the place the crop is being grown for industrial supplies somewhat than consumption.

The aim must be sturdy regulation the place it’s genuinely wanted, whereas eradicating pointless limitations the place the tip product presents no sensible purpose for them.

The economics of the entire crop matter to farmers

Farmers don’t develop concepts. They develop crops. And people crops must make monetary sense.

The Senate report repeatedly makes the purpose that Australian farmers are unlikely to dedicate helpful land to hemp with no dependable path to profitability. Complete-plant utilisation will help create that path.

Think about two crops. Within the first, just one or two fractions have reliable markets. Within the second, the seed, fibre, hurd and secondary fractions all have consumers. Which one would you somewhat develop?

The second crop has extra methods to generate income. It has extra safety if one market weakens. And it offers the processor extra alternatives to recuperate worth from each tonne coming via the gate.

The extra helpful merchandise we are able to create from every crop, the stronger the economics of rising the following crop grow to be.

It additionally issues for Australian competitiveness

Australian hemp producers don’t function in isolation. They compete with companies in Canada, america, Europe, China and elsewhere.

The Senate inquiry heard that opponents in different nations can entry broader whole-plant markets, giving them alternatives to recuperate worth that Australian producers could not have. The report notes that this may make Australian uncooked supplies dearer and make it more durable to compete for main worldwide contracts.

Australia is unlikely to win a world hemp race purely by being the most cost effective bulk producer. Our alternative is extra prone to be in high-quality, well-designed and well-traced merchandise. However premium merchandise nonetheless want aggressive provide chains. Throwing away worth doesn’t assist.

Animal feed exhibits how rapidly a by-product can grow to be a market

The inquiry additionally explores hemp-derived animal feed. Meals processing naturally creates by-products reminiscent of hemp seed meal and oil fractions. In one other agricultural system, these supplies would possibly discover a prepared second market in livestock or pet vitamin.

In Australia, the regulatory pathway stays extra sophisticated. Business individuals advised the Senate inquiry that restricted feed markets go away helpful by-products with fewer industrial retailers.

Once more, the purpose is just not that each hemp by-product ought to routinely be fed to animals. Security, residue ranges and acceptable requirements matter. But when a fabric will be demonstrated to be secure and helpful, a functioning business wants a sensible pathway for that use. In any other case the round financial system stops on the manufacturing facility door.

What we see at Margaret River Hemp Co

For us, the whole-plant dialog is just not theoretical.

Over time, we’ve labored with hemp throughout meals, skincare, clothes, processing and constructing. That have modifications the way you see the crop.

A bag of hemp seed is one product. Hemp seed oil is one other. Protein is one other. A hemp shirt is one other. Processed hurd going right into a hemp-lime wall is one other. Fibre heading in the direction of one other manufacturing course of is one other.

They might look unrelated once they attain the shopper. However all of them start with the identical plant.

That’s the reason we’ve all the time believed the actual alternative in hemp is just not one hero product. It’s the worth chain created by the entire crop. And that’s the reason seeing usable materials discarded as a result of a regulatory pathway doesn’t exist is so irritating.

As much as half the worth shouldn’t be an appropriate loss

Once we made our submission to the Senate inquiry, we estimated that present restrictions affecting hemp leaves, roots and flowers can imply shedding as much as half the crop’s potential worth.

If our aim is solely to develop a small area of interest crop, maybe we are able to tolerate inefficient use. But when the ambition is greater – regional manufacturing, exports, constructing supplies, meals manufacturing, round merchandise and critical agricultural diversification – then we’d like a lot better utilisation.

A aggressive agricultural business can’t afford to intentionally go away giant quantities of worth within the paddock or on the processing flooring.

That is precisely what a nationwide framework ought to deal with

The Senate committee didn’t make a single advice saying ‘enable each a part of hemp for use for every little thing.’ Nor ought to it have.

The problem crosses a number of regulatory areas and requires extra cautious work. However the committee did suggest simplifying regulatory burdens, lowering duplication and growing a coordinated nationwide hemp framework.

And in its closing view, it explicitly acknowledged that simpler whole-plant use might create new income, scale back waste and assist Australian companies compete internationally.

The subsequent step must be to map every a part of the plant towards respectable finish makes use of and ask: The place is the restriction obligatory? The place is it outdated? The place can an current meals, feed, agricultural or industrial commonplace already handle the danger? And the place does Australia want a brand new pathway?

That might flip ‘whole-plant use’ from a slogan into sensible coverage.

From one crop to many industries

The true fantastic thing about hemp is just not merely that it will probably grow to be a number of issues. It’s that one crop can provide a number of industries without delay.

Meals. Pure fibres. Development. Paper. Composites. Horticulture. Biochar. Potential feed markets. Rising biomaterials.

That range is what offers hemp the potential to grow to be way over one other area of interest agricultural commodity. However provided that the system lets the crop transfer into these markets.

The Senate report is true to explain hemp as a crop with sturdy circular-economy potential. The problem now could be ensuring Australia doesn’t regulate that circularity out of existence.

The aim is not merely to waste much less hemp

The larger aim is to make each hectare extra helpful.

If extra components of each crop can discover respectable, secure and commercially helpful markets, farmers grow to be extra assured. Processors grow to be extra viable. Producers get extra materials choices. Merchandise grow to be extra aggressive. Exports grow to be simpler to justify. And fewer of what we develop must be handled as waste.

That’s how the entire business turns into stronger.

Hemp’s versatility has by no means actually been the query. We already know the plant can do a outstanding variety of issues. The true query is whether or not Australia is keen to construct a system that lets us use it.

As a result of a whole-plant crop deserves a whole-plant business.

Australia’s Hemp Alternative

This text is Half 4 of our collection exploring the findings of the Australian Senate’s 2026 inquiry into the alternatives for the event of a hemp business in Australia.

Learn the total Senate inquiry report  |  Margaret River Hemp Co  |  Margaret River Hemp Processing