The Biggest Breakthrough In A Decade: Let’s Get Regulations Changed To Allow A New Horticultural Industry

The NZHIA summer media campaign is getting results!

A review of the 2006 Industrial Hemp (iHemp) regulations is being hailed as the most significant step forward for New Zealand’s iHemp industry in over a decade. Industry leaders and advocates welcome the Ministry of Regulation's "review" of the outdated and burdensome regulations that have stopped growth, stifled innovation, and held back the potential of this sustainable, multi-billion-dollar primary and secondary sector.

Richard Barge, President of the New Zealand Hemp Industries Association (NZHIA), acknowledges the need for reform:

"We are currently handcuffed by the regulations. The compliance and uncertainty are putting investors and farmers off. To grow, we need a level playing field that works for farmers, government, and industry. This requires fit-for-purpose regulations, and a review is way overdue." He continues, “Many options are being considered, but time will tell if they meet our requirements for full plant utilisation and the removal of low THC iHemp from the Misuse of Drugs Act (1975).”

The NZHIA is emphasizing the need to greenlight a horticulture industry supplying health and wellness products. From the 500 metabolites in the leaf and flowering tops, which are a treasure trove of chemicals: terpenes, cannabinoids, and flavonoids, all of which have export potential.

A new horticulture industry, growing an annual crop, is the missing link to a $1.5 billion growth opportunity, highlighted in the 2020 report by Dr. Marsh, funded by AGMARDT investor report and introduction.

Key Points of Reform

• Remove iHemp out of Misuse of Drugs Act 1975 - low THC iHemp is not a drug and has little or no risk as a new alternative land use and crop rotation option for farmers.
• Full Plant Utilisation (FPU): Unlocking all parts of the hemp plant—seed and fibre (arable farming) and leaf and flowering tops (horticultural growers)—will create high-value markets, including food, beverages, animal feed, and natural health products.
• Move Oversight to MPI.../MBIE: The Ministry of Health is not the right body to regulate iHemp. The Ministry for Primary Industries (MPI), Ministry of Business, Innovation, and Employment (MBIE), or Ministry of Regulation (MOR) are better suited to support the growth of a new vertically integrated primary industry.
• Fair Licensing: Simplify and extend licensing processes to reflect the low risk and enormous economic potential of iHemp.
• Remove Stigma: iHemp is not marijuana. Outdated perceptions must not hold back New Zealand’s opportunity to be a leader in this global sector.
   

A Regulatory Review is Overdue; in 2006 it was promised it would be done in 10 years.

When the Misuse of Drugs (Industrial Hemp) Regulations were enacted in 2006, to "enable" an industry, we were promised a review within 10 years and to be moved from the Ministry of Health to another more appropriate ministry; this review is now well overdue.

The time for action is now. New Zealand must modernise its iHemp regulations to unlock economic growth, remove unnecessary barriers, and enable a thriving industry.

A regulatory review will provide certainty, open up new markets, and position iHemp as a cornerstone of New Zealand’s sustainable primary sector future.

To have an impact, the review needs to "fully enabled" industry. This was the objective of the 2006 regulations. And whose purpose it is to "ensure that other forms of cannabis are not cultivated and distributed under the guise of industrial hemp."

The iHemp regulations were designed to enable the industry but have largely failed due to overly restrictive interpretations by the Ministry of Health (MOH).

Instead of fostering growth, the industry has been weighed down by short-term licenses and market uncertainty. Farmers and investors see no clear pathway to scaling production or developing resilient end-use markets.

For our industry to make an impact, we must reflect the low-risk nature of iHemp and remove uncertainty.

iHemp’s Untapped Potential for New Zealand

We have considerable good will and cross-party support for unleashing the iHemp industry. Government ministries, the Primary Production Select Committee, the Ministry of Regulation, Health, and Primary Industries, MPs, and many Ministers are interested and supportive.

Industrial hemp has the potential to help double New Zealand’s agricultural export value by 2030 while establishing a complementary, sustainable primary industry.

If this government is serious about growth, it should seriously look at the potential of iHemp to revitalise regional New Zealand. We are a fabulous crop rotation option, creating investment and employment opportunities in a new industry with vast export potential.

The modern industry is one of the few primary and manufacturing industries that is growing globally at around 20% compound annual growth rate (CAGR) and across a wide number of sectors.

However, despite this significant economic opportunity, outdated regulations restrict farmers and businesses from accessing valuable export and secondary markets

The uncertainty created by the interpretation of the 2006 regulations is stifling industry.

We need full plant utilisation, where all parts of the crop can be used to create "hemp products" for local and international markets. The UN Single Convention on Narcotic Drugs 1961 allows this option and Aotearoa/NZ is well placed to create a new export industry based on supplying "hemp products" made from leaf and flowering tops to complement the seed and fibre industry

The 2020 NZHIA study funded by AGMARDT, by Dr Nick Marsh, "NZ Hemp Export Driven Investor Report," detailed how we could add a further 1.5 billion to the economy if we had an iHemp horticultural industry, selling hemp products from the leaf and flowering tops.

Call to Action: Support Regulatory Change Now

The NZHIA is calling on the Hemp Army—farmers, businesses, investors, and the public—to continue to push for change, raise awareness, and register their regions interest in the iHemp industry.

Supporters can take action by: contacting local MPs, mayors, and media to advocate for change and unlock the potential of this sustainable crop.

Writing a letter, this really works! We had success in Part I, and the progress being made in Part II is a result of these letters.

We need you to make "first contact" with MP's and Mayors. To identify which local authorities support this emerging industry for their region, those are the people we want to work with first.

We need the Hemp Army to register their region's interest in the emerging industry by contacting your local Mayor or MP here and CCing admin@nzhia.com on the email.

About the NZ Hemp industries Association

The New Zealand Hemp Industries Association (NZHIA) is dedicated to promoting the economic, environmental, health, and social benefits of the NZ Hemp Industry, supporting the growth of a new vertically integrated primary industry in New Zealand. Our mission is to foster sustainable development through iHemp by providing education, advocacy, and industry support. We believe that iHemp is a key player in New Zealand’s future economic and environmental resilience. www.nzhia.com.

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