New Zealand hemp stakeholders seem to be keeping their cool, but they can’t help but be frustrated by the slow pace of change in the government’s management of industrial hemp.
Four years after the New Zealand Hemp Industries Association (NZHIA) first outlined the necessary reforms in a landmark paper, the “NZ Hemp Export Driven Investor Report,” industry leaders say outdated laws continue to stifle growth and prevent the nation from capitalizing on the growing global hemp market.
‘Prohibited plant’
Speaking to the primary production select committee of the Parliament last week, Richard Barge, NZHIA chairman calmly reiterated the need to remove hemp from the prohibited plant list and exempt it from the Misuse of Drugs Act and the Medicines Act.
“It’s just another horticultural crop, and it should be treated as such,” Barge said, emphasizing hemp’s non-psychoactive nature. Current regulations create unnecessary hurdles for both domestic and export markets, particularly as global markets for hemp-derived products expand.
The NZHIA predicts that a well-developed hemp sector could contribute $2 billion annually to New Zealand’s economy by 2030 and create up to 20,000 jobs.
Profits challenged
The industry has already achieved success, with hemp seeds approved for human consumption since 2019. However, the absence of a secondary market, such as animal feed, limits profitability for growers, Barge noted.
Regulations for hemp-derived animal feed and agricultural compounds under the Agricultural Compounds and Veterinary Medicines (ACVM) Act remain restrictive. New Zealand’s Ministry for Primary Industries (MPI) requires proof that hemp feed contains no trace of THC or CBD, a stipulation no local lab can currently verify. While these rules aim to protect New Zealand’s meat and poultry exports, they also hinder innovation in the hemp sector.
“Europe has never had a problem with hemp animal food,” Barge said, pointing to Australia and the United States, where progressive regulations now allow hemp feed in certain contexts.
Barge told the committee hemp has untapped potential in functional foods and natural health products. With the right support, he said, New Zealand could develop advanced processing technologies to maximize the plant’s value.
“It’s too large a market to leave on the table,” Barge said. He urged the government to help establish regional processing hubs to handle the bulky raw materials close to production sites, boosting employment and infrastructure use in rural areas.
Global lessons
New Zealand lags behind global leaders in hemp regulation. The United Nations and the European Union have both acknowledged the safety of low-THC hemp products, and the World Health Organization has recommended CBD be classified as safe.
France, Germany, and the United States continue to develop robust legal frameworks that have generally supported the hemp sector. For instance, the U.S. recently approved hemp-derived feed for laying hens, signaling a willingness to integrate hemp into mainstream agricultural systems.
Nick Marsh, author of the 2020 hemp investor report, urged New Zealand to learn from these examples. “New Zealand lawmakers should look for guidance among legalization schemes in various countries,” he wrote, emphasizing the need for clarity on CBD’s status and the development of a proper export strategy.
Blueprint for reform
Reforming New Zealand’s hemp laws will require balancing consumer safety with market growth. Stakeholders have suggested defining acceptable limits for THC and CBD in hemp products, establishing science-based frameworks for production, sale, and export, and reclassifying CBD as a wellness product rather than a medicine.
Without such changes, the industry risks being left behind in the global market. Barge noted that medicinal cannabis has already gained regulatory support in New Zealand, setting a precedent for industrial hemp to follow.
“It’s industrial hemp’s turn to shine,” Barge said. “With government support, this can become a flagship primary industry for New Zealand.”
The hemp sector faces additional challenges that reflect broader regulatory and market complexities. Products that are illegal to produce or sell domestically are often purchased online and imported by consumers. This discrepancy highlights the need for coherent laws governing non-medical hemp products.
A path forward
Balancing these interests is critical. A well-regulated hemp industry could complement, rather than compete with, traditional agriculture while contributing to New Zealand’s export-driven economy.
Stakeholders and industry leaders are optimistic about the potential of hemp, but they stress that action is needed now. A cooperative approach between government and industry could resolve regulatory uncertainties and unlock significant economic opportunities.
“The industry is ready to go,” Barge said. “We just need the government to remove unwarranted barriers and let us compete on the global stage.”