New Zealand’s Minister for Regulation has announced a review of “outdated and burdensome” regulations concerning hemp will be carried out by his Department.
Currently in New Zealand, industrial hemp is a Class C controlled drug under the country’s Misuse Of Drugs Act. This class includes barbiturates, codeine, coca leaf, and BZP. Given industrial hemp has tiny amounts of THC by legal definition and is used for fibre and seed rather than medicinal or recreational purposes, the classification is at best incorrect.
Under NZ regulations, industrial hemp or derived products cannot be supplied to any person for therapeutic use or for the purpose of creating a therapeutic product. Furthermore, only low-THC cannabis varieties approved by the Director-General of Health can be cultivated.
Minister Seymour says hemp’s controlled drug classification makes no sense – and he certainly isn’t alone in that sentiment. While hemp cultivation was made legal in the country in 2006 and several government interventions have occurred since, the sector has seen limited growth largely due to over-regulation.
According to the New Zealand Hemp Industries Association (NZHIA), the amount of land cultivated for hemp has been dropping in recent years:
- 2020: 1335 hectares
- 2021: 862 ha
- 2022: 278 ha
- 2023: 182 ha
- 2024: 180 ha
Similarly, the number of licences has also plunged:
- 2020: 260
- 2021: 192
- 2022: 111
- 2023: 83
- 2024: 77
… and New Zealand’s economy is missing out. There’s potentially a lot of money and jobs at stake.
“A report from MBIE projects the sector could be worth $2 billion by 2030 – if we get the rules right,” said Minister Seymour. “Through our review of Agricultural and Horticultural Product regulations and feedback from the red tape tip line, we’ve heard loud and clear that change is needed. Now, we’re getting on with the job.”
Last year, the NZHIA kicked off a campaign calling on the country’s government to “get out the way” of hemp. A 2020 report from the organisation also estimated industrial hemp could generate $2 billion in revenue for and create tens of thousands of new jobs in New Zealand by 2030. While the group hadn’t commented on this new development at the time of publishing, no doubt it will be welcome.
Minister Seymour stated he will table reform options to Cabinet later this year with view to rejuvenating the sector and driving economic growth.
