Australia: Riverina hemp projects get $10M each from Fed Govt

THE COMPANY behind the Carrathool aggregation Gundaline, Ausuntech Pty Ltd, has been awarded $10 million to help build Australia’s first large-scale hemp-processing plant for linen-quality fibre production.

The facility, which is currently awaiting New South Wales Government planning approvals, will be supported by new plant, power upgrades and specialised equipment.

The project is expected to create local jobs, support regional growers’ access to value‑added markets, and deliver environmental benefits through low‑water and low‑emissions production.

The 14,916ha Gundaline Station was purchased by Chinese firm Zhejiang Sunrise Garment Group from Optifarm for circa $120M in 2023.

The operation primarily grows irrigated cotton, as well as soybeans, wheat, canola, and faba beans.

The grant to Ausuntech is part of 14 projects worth $69M under round two of the Sustainable Communities Program, funded by the Federal Government and delivered by the NSW Government.

Murray Industrial Hemp, located at Barham, was also awarded $10M to establish a hemp processing and manufacturing facility to produce low‑carbon hempcrete blocks for sustainable housing.

It has been promoted as a means of strengthening local supply chains and improving the energy efficiency of homes.

NSW Minister for Agriculture and Regional NSW Tara Moriarty said these grants would support value-adding agricultural produce in Murray Darling communities.

“These investments are about backing local businesses, supporting regional jobs and building stronger, more sustainable communities for the future,” Ms Moriarty said.

“This funding will help businesses increase productivity, diversify their operations, expand into new markets and invest in innovative projects that strengthen their long-term competitiveness and resilience.

“While the NSW Government remains opposed to water buybacks, we are committed to ensuring regional communities are well placed to seize every opportunity for economic growth and prosperity.”

Federal Minister for the Environment and Water Murray Watt said the Federal Government was “backing communities in the southern Murray-Darling Basin with targeted investment to create jobs, stimulate growth, and strengthen long-term resilience”.

“The science tells us that we need to recover water to secure the long-term environmental health of the Murray-Darling Basin and the jobs and communities that rely on it,” Mr Watt said.

“In delivering a healthy river system, we need to support communities to adjust, which is why we’ve committed a record $300 million in funding to help minimise social and economic impacts of water recovery, including $160 million for Basin communities in NSW.”

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