New Zealand Regulation Minister David Seymour last week announced reforms to regulations for the nation’s industrial hemp sector.
One of the issues holding back hemp in the land of the long white cloud is its classification. Industrial hemp is a Class C controlled drug under New Zealand’s Misuse Of Drugs Act, which includes substances such as barbiturates and codeine. This is even though hemp — by legal definition — has tiny amounts of THC and zero recreational value.
But beyond that, other red tape has greatly hampered the sector. The impact current regulations have had are clear based on the steady drop in the number of hemp licenses and area harvested over recent years. In 2020, there were 1,335 hectares under cultivation; while in 2024, that had plummeted to 180 hectares. In terms of licensing, figures plunged from 260 in 2020 to just 77 in 2024.
In an effort to address the situation, Minister Seymour originally announced a review of “outdated and burdensome” hemp regulations in February this year, and that process is now complete.
“New Zealand’s hemp industry has been treated like a criminal for too long,” he said last week. “The industry has been held back by outdated, heavy-handed rules that treat growing low-risk crops like high-risk drugs. That ends now.”
Under the reforms:
- Industrial hemp will no longer require a licence to grow or handle.
- A clear THC threshold of less than 1% will be implemented.
- Hemp use will remain restricted to fibre, seed, and oil.
- But under strict conditions, hemp biomass may be supplied to licensed medicinal cannabis producers.
- Growers must notify the Ministry of Primary Industries (MPI) and Police before planting hemp. This is to avoid accidental enforcement actions and assist in controlling illicit cannabis activities.
- Existing food safety and medicinal cannabis requirements will continue to apply.
- The new regulations will include safeguards to prevent misuse and ensure compliance.
The Ministry of Health will draft the new regulatory settings in collaboration with the Parliamentary Council Office.
The New Zealand Hemp Industries Association Inc (NZHIA) has welcomed the reforms, saying they were a turning point for the local industry.
“Today’s decision finally recognises industrial hemp for what it is—a safe, sustainable, and economically valuable crop,” says Richard Barge, NZHIA Chair. “Removing outdated and disproportionate restrictions is a crucial step towards unlocking the full potential of this industry.”
While New Zealand’s industry is currently valued at approximately $10 million, projections noted by NZHIA indicate it could grow to $30 million by 2030 under the new settings.
“This is about real jobs, real value, and real opportunity for New Zealand,” said Minister Barge.
