News: New Zealand Industrial Hemp Regulation Review Gets The Green Light.
Published 12:00 AM EST, Thurs February 27, 2025
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 On Friday, Minister for Regulation David Seymour announced it would review what he called “outdated and burdensome regulations” surrounding industrial hemp.
The industrial hemp industry in New Zealand is on the verge of a significant transformation following the government's announcement of a regulatory review aimed at removing outdated restrictions. Currently, industrial hemp falls under the Misuse of Drugs Act, requiring growers to obtain licenses from the Ministry of Health despite its negligible tetrahydrocannabinol (THC) content. Industry advocates, including the Hemp Industries Association president Richard Barge, argue that these regulations have stifled the sector’s growth and prevented it from reaching its full economic potential. The government’s review marks a potential shift toward more progressive policies that could decouple hemp from controlled drug classifications and align regulations with the growing demand for sustainable and innovative agricultural solutions.
The push for reform stems from mounting evidence that industrial hemp has vast economic and environmental benefits. A 2020 industry report suggested that, if properly regulated, the hemp industry could be worth $2 billion and create 20,000 jobs by 2030. Despite hemp seed being approved as food in 2017, broader restrictions have prevented the industry from scaling efficiently. Barge and other advocates emphasize that public perception has evolved, with increasing recognition that industrial hemp differs significantly from marijuana or medicinal cannabis. They see regulatory change as an opportunity to boost rural economies, attract investment, and enhance New Zealand’s role in the global hemp industry.
The government’s move aligns with broader efforts to reduce over-regulation in the agricultural and horticultural sectors. Minister for Regulation David Seymour acknowledged that red tape has hindered economic innovation and job creation, prompting his ministry to collaborate with MedSafe and the Ministry of Health in reassessing nearly two-decade-old laws. The review, presented before the Primary Production Select Committee, aims to propose regulatory reforms to Cabinet later this year. If successful, these changes could not only drive hemp’s economic potential but also redefine the relationship between cannabis-related industries and regulatory frameworks, setting a precedent for future cannabis policy developments. Source: RNZ
