Industrial hemp regulation review gets the green light

The hemp industry could be worth $2 billion and create 20,000 jobs by 2030.

By Monique Steele of RNZ

The industrial hemp sector says it’s one step closer to finally unlocking the true potential of the fibre crop, following the announcement of a long-awaited regulatory review.

On Friday, Minister for Regulation David Seymour announced it would review what he called “outdated and burdensome regulations” surrounding industrial hemp.

It was the result of years of campaigning by hemp farmers, processors and companies that were hamstrung by regulations developed in 2006, which put licensing for cultivation into the hands of the Ministry of Health.

A ministry license was required for growers of the crop, as it was classified as a class-C controlled drug under the Misuse of Drugs Act.

But Hemp Industries Association president Richard Barge said industrial hemp contained “very minimal amounts” of tetrahydrocannabinol (THC), the psychoactive chemical compound found in cannabis, to which hemp was closely related.

He said he hoped the review would change the stigma around industrial hemp and cannabis, and unlock its many growth opportunities in booming areas like health and wellness.

“These positive, supportive comments, recommendations and actions made by the Government will help us to build up that picture of removing the stigma of marijuana from our conversation,” Barge said.

He said industrial hemp should be de-coupled from the Misuse of Drugs Act, which drove a decline in both the area planted and the number of licenses in recent years.

The group commissioned a report with funding from AGMARDT by Dr Nick Marsh in 2020, which said the industrial hemp industry could be worth $2 billion and create 20,000 jobs by 2030 if regulation enabled it.

Meanwhile, hemp seed as food was approved in New Zealand in 2017.

Barge said the current approach to hemp products as food or fibre was outdated.

“People’s attitudes to industrial hemp have changed,” he said.

“People realise that it is different to marijuana or medicinal cannabis and, in general, they’re very supportive.

“There’s a lot of interest in the industry and if we can capture that interest and really move forward and engage with our regions where the economic opportunities, employment and investment potential will be realised, then we’ve got a winning formula to revitalise rural New Zealand.”

The issue was raised in the Primary Production Select Committee this week ahead of Friday’s regulatory review announcement.

Seymour said over-regulation had stifled economic growth and innovation within the sector, and it was time for a new approach that balanced risk management with unlocking opportunities for growers.

“The Ministry for Regulation has received extensive feedback on the red tape hindering the industry, both through its review into Agricultural and Horticultural Products and the red tape tipline.

“In response, the ministry is working with MedSafe and the Ministry of Health to reassess these nearly 20-year-old regulations.”

Options for reform will be presented to Cabinet later this year.

- RNZ