Hemp industry figures are mounting a campaign to reverse strict government rules that have prohibited the sale of hemp-based pet products, leaving a number of companies fighting to stay afloat.
A tightening of the regulatory position by the Australian Pesticides and Veterinary Medicines Authority (APVMA) has blindsided the sector, which is now calling for the policy to be urgently reconsidered.
Multiple businesses that have been trading in good faith for several years have received warning letters from the APVMA threatening enforcement action if their products are not pulled from shelves.
The dispute emerged after the APVMA issued an updated directive, understood to have been prompted by complaints to the regulator about unsubstantiated health claims allegedly appearing on product labels.
Under its published regulations, the APVMA states that all hemp is classified as a 'veterinary chemical product' requiring registration — and no such products have currently been registered.
Registration is expected to cost tens of thousands of dollars and take as long as two years, according to industry sources.
"If a product has not been registered by the APVMA or approved for use under permit, it may not be safe to use in animals… and could be dangerous," the regulator states.
"We are aware of some cannabis products that are marketed in Australia as animal health products, feed additives or pet food. However, these products have not been registered by the APVMA and safe levels/concentration limits for cannabis have not been determined for animals."
The regulator also raised specific concerns about omega 3.
In non-compliance letters sent to suppliers, the APVMA warned that "significant monetary penalties can apply to proven contraventions of these laws".
The move is another setback for an industry that has spent years working to separate itself from the stigma associated with cannabis more broadly.
Industry figures believe it is a further instance of government agencies failing to coordinate, treating all cannabis-derived products as equivalent and not recognising the fundamental distinctions between hemp and THC.
The Australian Hemp Council (AHC) has taken up the cause, writing to agriculture minister Murray Watt in a bid to find a way to protect businesses and the jobs they support.
In the letter, AHC Fodder Group chairwoman Bronwyn Blake argued that hemp seed and its derivatives do not meet the APVMA's definition of a 'veterinary chemical product' and should instead be reclassified as an 'animal feed product', which would not require registration provided certain conditions are met.
"In their position on cannabis, the APVMA does not recognise the distinction between industrial hemp and medicinal cannabis," Blake said. "Industrial hemp is cannabis with less than 1% THC, which has many useful non-THC applications. The two industries are tightly governed by different regulatory bodies… [but] this differentiation has seemingly not been recognised by the AVPMA.
She added: "Many people can and do purchase hemp seed products from their local store and give it to their pets, so it seems unfair that Australian businesses selling hemp products for pets are being restricted and threatened with non-compliance and associated penalties."
The crackdown risks insolvency for small businesses, increased consumer distrust of hemp seed oil and the general deceleration of the hemp industry, the letter adds.

Blake, the co-founder of hemp food business Vasse Valley, said the situation is causing serious distress for business owners and employees who have been operating without any indication of wrongdoing for years.
She said: "This has all come as a shock to us, and to every member of the hemp industry. Hemp truly is a massively over-regulated industry, which seems to be getting more and more bogged down in regulations.
"You'd think something that was deemed safe for infants was also safe for dogs. The funny thing is, anyone could go to their local shops, purchase some hemp seed oil, and give it to their dog, so we really don't understand how the APVMA will police this new ruling."
An APVMA spokesperson said in a statement that while some products can be "excluded from the scope of regulation" if they are 'generally regarded as safe' (GRAS), hemp seed oil does not currently appear on that list and "is not considered safe" for certain animals.
"Humans and animals can metabolise chemicals differently, which means some chemicals regarded as safe for humans can be toxic to animals," the regulator said. "For hemp seed oil to be included as an ingredient that is considered safe, registrants must demonstrate its safety and apply to the APVMA for it to be included in the Agricultural and Veterinary Chemicals Code Ingredient Determination."
The APVMA declined to confirm whether it was aware of any cases in which pets had suffered an adverse reaction to hemp.