A REPORT INTO HEMP BUSINESS AND CUSTOMERS IN AUSTRALIA: HOW WOULD POTENTIAL CHANGES TO HEMP SCHEDULING AFFECT THE INDUSTRY? MGC Derma commissioned Wells Haslem Mayhew to undertake a survey of hemp related businesses and consumers in Australia in April 2017. The purpose of the survey was to ascertain the impact the proposed changes to hemp scheduling would have on business and consumers. On 2 February the scheduling delegates released an interim decision outlining proposed amendments to the entries for cannabis, tetrahydrocannabinols (THC) and cannabidiol (CBD) in the SUSMP. If these proposed changes go ahead and are adopted by the States and Territories, they will have the practical effect of rendering a number of currently legal low-THC hemp products, including cosmetics and topical ointments containing hemp oil, unlawful. Due to the impending TGA decision due in May, the survey was opened to respondents for two weeks, limiting the number of responses. In saying that, we did receive 482 responsesin total, including various calls from concerned business owners and industry representatives. Our data demonstrates clearly that there would be significant impacts on Australian business if the TGA was to go ahead with proposed changes to cannabis scheduling.

1. APRIL 2017
FEEDBACK FROM THE HEMP INDUSTRY
A REPORT INTO HEMP BUSINESS AND CUSTOMERS IN
AUSTRALIA: HOW WOULD POTENTIAL CHANGES TO HEMP
SCHEDULING AFFECT THE INDUSTRY?
In conjunction with:

2. 2 HEMP INDUSTRY REPORT Wells Haslem Mayhew
1 Executive Summary
MGC Derma commissioned Wells Haslem Mayhew to undertake a survey of hemp related businesses and
consumers in Australia in April 2017. The purpose of the survey was to ascertain the impact the proposed
changes to hemp scheduling would have on business and consumers. On 2 February the scheduling delegates
released an interim decision outlining proposed amendments to the entries for cannabis,
tetrahydrocannabinols (THC) and cannabidiol (CBD) in the SUSMP.
If these proposed changes go ahead and are adopted by the States and Territories, they will have the practical
effect of rendering a number of currently legal low-THC hemp products, including cosmetics and topical
ointments containing hemp oil, unlawful.
Due to the impending TGA decision due in May, the survey was opened to respondents for two weeks,
limiting the number of responses. In saying that, we did receive 482 responses in total, including various calls
from concerned business owners and industry representatives.
Our data demonstrates clearly that there would be significant impacts on Australian business if the TGA was
to go ahead with proposed changes to cannabis scheduling.
1.1 Key findings
1.1.2 Business respondents
• 30 respondents.
• 97 per cent of respondents could be considered “mum and dad” businesses, with annual revenue of
less than one million dollars.
• Of businesses surveyed, there were 131 employees, with 50 of those full time.
• 35 per cent of respondents said 100 per cent of their products were derived from hemp.
• 94 per cent of the businesses surveyed expected their business sale of hemp to grow, with the
average projected growth being by 179 per cent over a non-specified period.
• 52 per cent of respondents said if the proposed changes went ahead, they would be put out of
business, while a further 42 per cent said there would be disastrous or negative impacts on their
business.
1.1.3 Customer respondents
• 452 respondents.
• The average amount spent per month on hemp products was $44 – and for all respondents
combined was over $20,000 worth of sales.
• 92 per cent of respondents felt there would not be a product they could use in place of their hemp
based product.
• 98 per cent of respondents said if hemp products were banned the impact on them would be
disastrous or negative.
• Not a single respondent said they had found out about the TGA’s proposed changes via the
government.

3. 3 HEMP INDUSTRY REPORT Wells Haslem Mayhew
Manufacture and sell
and/or buy and sell
hemp products
6%
Buy hemp products
94%
41%
44% 44%
18%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Wholesaler Retail shop (online or in-
store)
Producer or manufacturer
of hemp products
Other
Type of business
2 Business Respondents
2.1 Do you buy hemp products, or do you manufacture, buy or sell hemp products?
2.2 What type of business are you?

4. 4 HEMP INDUSTRY REPORT Wells Haslem Mayhew
$0-$50,000
53%
$50,001-$100,000
9%
$100,001-$500,000
20%
$500,000-$1,000,000
15%
$4-10M
3%
Total revenue
0-2 years
40%
2-5 years
24%
5-10 years
6%
10-20 years
18%
20+ years
12%
Years in operation
2.3 What was your total revenue as at 30 June 2016?
2.4 How many years have you been in operation?

5. 5 HEMP INDUSTRY REPORT Wells Haslem Mayhew
50 50
31
0
10
20
30
40
50
60
Full time Part time Casual
People employed in industry (of businesses surveyed)
0-25%
28%
50-75%
13%
75-100%
59%
Percentage of revenue
The median
percentage
was 80
35 per cent of
respondents said
100 per cent of
their products
were derived
from hemp
The mean
percentage
was 65.5
2.5 How many people do you employ?
2.6 What percentage of your revenue is derived from hemp products?

6. 6 HEMP INDUSTRY REPORT Wells Haslem Mayhew
Yes
94%
No
6%
Expect to grow:
The highest
projected
growth was
1000 per cent
The average
projected
growth for
businesses was
by 179 per
cent
More than half
of respondents
indicated a
growth ofover
100 per cent
Online purchases
29%
In-store purchases
19%
Business and other
retailers
36%
Other
16%
Most frequent customers
2.7 Do you expect to sell more hemp products than you do now in the future? By how
much?
2.8 Who are your more frequent customers?

7. 7 HEMP INDUSTRY REPORT Wells Haslem Mayhew
No change
6%
Negative impact
29%
Disastrous
impact
13%
It would put me
out of business
52%
Impact on business
2.9 What would the impact be on your business if the government was to introduce
the proposed restrictions on hemp products?
2.10 How did you first hear about the potential changes to the law restricting the
supply of hemp products?
This survey
20%
Social media
group/feed
13%
The media
3%My own research
27%
Word of mouth
17%
Other
20%
Heard about changes through:

8. 8 HEMP INDUSTRY REPORT Wells Haslem Mayhew
NSW
57%
Victoria
10%
Queensland
10%
Western Australia
13%
Tasmania
10%
Breakdown of respondents by state
2.11 Breakdown of business respondents by state:
2.12 Commentary from respondents:
We launched Hempme late last
year, a skincare company that is
based on hemp seed oil. We
would be devastated as we have
put a lot of time, effort and
money into getting our business
up and running and would have
to close up.
The government is doing the
Australian people a huge
disservice without fully
comprehending the implications
of such a decision.

9. 9 HEMP INDUSTRY REPORT Wells Haslem Mayhew
0%
10%
20%
30%
40%
50%
60%
Types of products
3 Customer Respondents
3.1 How much money would you spend on hemp products in any given month?
3.2 What type of product do you buy containing hemp?
The question was multiple choice.
Many of those who chose “other” specified they used hemp seed oil or CBD oil for a range of uses. Most of
these products also contain hemp seed oil, hemp oil or CBD oil.
$0-25
35%
$25-50
24%
$50-75
24%
$75-100
17%
Average spent per month
10 per cent of
respondents
spent $100 or
more on
these
products
The average
amount spent
per month on
hemp products
was $44
The median
amount
spent on was
$40 per
month

10. 10 HEMP INDUSTRY REPORT Wells Haslem Mayhew
3.3 Do you feel there is a non-hemp product you could use instead of the product/s
you currently use?
3.4 If banned, how would you be impacted if you were unable to purchase hemp
products?
No change
2%
Negative impact
68%
Disastrous impact
30%
Impact if hemp products were banned
Yes
8%
No
92%
Are you able to use other products?

11. 11 HEMP INDUSTRY REPORT Wells Haslem Mayhew
3.5 How did you first hear about the potential changes to the law concerning buying
and selling hemp products?
3.6 Breakdown of states where respondents are from based on postcode
NT
1%
NSW
39%
Victoria
16%
QLD
24%
SA
7%
WA
11%
Tasmania
2% States
This survey
24%
Social media
group/feed
46%
The media
7%
My own research
6%
Word of mouth
5%
Through a
business/my retailer
10%
Other
2%
Hearing about changes to law

12. 12 HEMP INDUSTRY REPORT Wells Haslem Mayhew
3.7 Comments from respondents
Hemp products are natural. Why
ban something that is natural
and has so many benefits to
people? I hope that Australian
laws will catch up with the rest of
the world and let people make
the right choice for themselves.
I hope we don't go backwards, the rest of
the world sees and uses its amazing
multi-faceted uses. We should be allowed
to use them to as a part of a greener
more eco-friendly Australia.
What is the big deal?
Medical marijuana is
becoming legalized. What
is the big deal about using
hemp products?
Government should be
promoting new and
innovative industries
and researching the
wide benefits of hemp in
a variety of products.
Low and very low THC hemp products
are extremely beneficial to several
industries & the environment. We
should be using it more, not making it
illegal. Hemp is incredibly useful in so
many different ways. To deem this
super plant illegal just doesn't make
sense for anyone!
This would be an extraordinary backwards step
for hemp growers and manufacturers of hemp
based products in Australia. They are already
constrained by very tough legislation compared
to elsewhere in the world. Rural Australia can
benefit economically from having a really varied
hemp indusrty that extracts the many great
benefits of this plant. This is a very alarming and
anti-competitive, unnecessary move that needs
to be reconsidered.
I hope to see hemp become a massive
primary industry in Australia. Not only
does the plant and the products it can
be made into have immense potential
but the environmental benefits are
enormous. If the government doesn't
consider the viability of hemp they will
be missing a brilliant opportunity for
this nation.