Last week, New Zealand’s Minister of Regulation David Seymour announced changes to the country’s regulations for industrial hemp.
Hemp is classified as a Class C controlled drug under New Zealand’s Misuse Of Drugs Act. This includes substances such as barbiturates and codeine. The Misuse Of Drugs Act of New Zealand classifies industrial hemp as a controlled drug in Class C. This includes codeine and barbiturates. This is even though hemp — by legal definition — has tiny amounts of THC and zero recreational value.
Other red tape, however, has also hampered this sector. Current regulations are clearly evident in the constant drop of the number and size of the hemp harvesting area over the past few years. In 2020 there was 1,335 ha of hemp under cultivation, but by 2024 that figure had dropped to just 180 ha. Licenses fell from 260 per year in 2020 to only 77 per annum in 2024.
To address this situation, Seymour first announced that the hemp regulations were “outdated and cumbersome” in February. This process is now completed.
New Zealand’s hemp sector has been treated unfairly for too many years,” he said last week. “The industry was held back by old, heavy handed rules which treated low-risk plants like drugs. “That ends right now.”
Reforms to the law:
- The cultivation or handling of industrial hemp is no longer subject to a license.
- There will be a clear threshold set of THC less than 1%.
- Use of hemp is restricted to seeds, fibres, and oils.
- Under strict conditions, however, hemp biomass is permitted to be sold by licensed producers of medical cannabis.
- Before planting hemp, growers are required to notify both the Ministry of Primary Industries and Police. To avoid unintentional enforcement actions, and to help in the control of illicit cannabis activities.
- All existing requirements for food safety, medicinal cannabis and other regulations continue to apply.
- New regulations include safeguards that prevent abuse and enforce compliance.
Together with the Parliamentary Council Office the Ministry of Health and the Office of the Minister of Health, will develop the new legal framework.
New Zealand Hemp Industries Association Inc., (NZHIA), has welcomed reforms as a significant turning point for 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. The removal of outdated and disproportionate regulations is an important step in unlocking the potential of this sector.
NZHIA’s projections show that New Zealand’s industrial sector could increase to $30 millions by 2030 if the current settings are implemented.
Barge stated that the issue is real jobs, real values, and real opportunities for New Zealand.