Agri Fibre Industries

Mission Statement

The vision of Agri Fibre Industries Pty Ltd is to become an innovative, environmentally friendly and socially responsible leader in the industrial hemp industry in Queensland.

Its purpose is to grow, process and market industrial hemp to produce high quality products exceeding customer standards thus ensuring the highest possible returns to investors and farmers.

Our History

Agri Fibre Industries Pty Ltd (AFI) was established in 1998 to develop and commercialise a hemp industry in Central Queensland. It was approved by the Queensland Government to undertake field growing trials in 1999 and has a licence from the Federal Government to import Cannabis Sativa seed. The company has undertaken considerable market research of hemp products and markets world-wide. AFI was instrumental in the formation of a Bundaberg-based Farmers’ Association interested in trialling and then commercially growing industrial hemp.

AFI identified three basic strategies to enable a hemp growing and processing industry to be established in Central Queensland:

• a plant improvement program to develop hemp cultivars more suited to the sub-tropical climatic conditions of Central Queensland (and other climates, as appropriate);
• an experimental oil pressing and fibre processing facility to firm up yields, develop hemp products and markets prior to full commercialisation; and
• continued technical and market investigations to underwrite the selection of processes and equipment and to secure markets for the commercial stage of the industry.

These three strategies resulted in the development of a Strategic Plan which divided the hemp industry development project into three phases:

• Stage 1 focussed on plant development, project planning, agricultural trials of new cultivars developed for the Bundaberg region and the bulking up of seed for subsequent commercial trials. Only small areas from four to twelve hectares were planted by selected growers previously identified;
• Stage 2 focussed on continued plant development, more extensive trials; and
• Stage 3 commencing in 2005/06 will be based on the establishment of a commercial processing industry with larger plantings of over 2,000.

Stage 1 involved glasshouse and restricted field trials. Stage 2 involved the establishment of a pilot oil processing plant and an experimental fibre decorticator. Stage 3 will involve the establishment of commercial facilities.

Product obtained during the experimental Stage 1 of the project was used for research purposes, either of the market or to improve processing.

Regulatory Framework

Under legislation introduced in 1999 which amended the Queensland-based Drugs Misuse Act, Agri Fibre Industries Pty Ltd undertook preliminary activities utilising grower and import licences approved by State and Federal Governments. Similarly, Crop Tech Research Pty Ltd undertook the plant breeding program under a Seed Breeders Licence issued by the Queensland Department of Primary Industry. These amendments expired in December 2002.

The establishment of a hemp industry in Central Queensland was been given major impetus by the promulgation of new legislation in September 2002 by the Queensland Government which amended the Drugs Misuse Act 1986 to enable the development of a commercial hemp industry in Queensland.

Previous legislation provided for seed breeders licences but field testing for fibre varieties only. New legislation which further modified the Drugs Misuse Act was promulgated by the Queensland Government on 27 September 2002 and provided for the commercial grow-out of both oil and fibre varieties subject to the allocation of appropriate licences and certified limits on the THC content of the plants.

Accordingly, Agri Fibre Industries applied for and obtained Grower, Seed Supplier and Importer Licences once the previously existing licences expired. An affiliated Bundaberg-based company,Crop Tech Research Pty Ltd, applied for and obtained a Category 2 Researcher Licence to enable cannabis sativa seed to be used for plant breeding.

Under the current legislation, growers associated with Agri Fibre Industries Pty Ltd are also required to apply for grower licences.

In addition, licensees must keep a register of cannabis seed in their possession and a number of other records. Directors, employees and growers associated with Agri Fibre Industries Pty Ltd are required to be registered with the appropriate authorities.

Business Objectives

Upon the establishment of AFI and the advent of a legal framework in which to conduct a commercial industrial hemp industry, AFI’s initial business objectives were:

• To develop a business which processes and markets non-wood fibre and plant material;
• To facilitate the development of plant materials such as industrial hemp cultivars suited for the Bundaberg soils and climate for maximum efficiency yields;
• To exploit emerging world-wide commercial prospects of new, sub-tropical, low THC industrial hemp cultivars through seed sales and plant breeding rights;
• To develop expertise in establishing and operating seed, oil, fibre and eventually pulp processing facilities; and
• To gain marketing experience and establish a customer network for the processed products.

The creation of a successful industry was dependent upon the development of new sub-tropical cultivars (“varieties”). Agricultural trials undertaken in 1999/2000 indicated that existing varieties sourced from the high northern latitudes were not suited to the semi-tropical conditions of Central Queensland.

Since then AFI has been very successful in developing and field testing a number of varieties which are now suited to large scale production in such conditions.