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Home / New Zealand

Industrial hemp could be game-changing crop for Far North

Mike Dinsdale
By Mike Dinsdale
Editor. Northland Age·Northern Advocate·
5 Mar, 2025 05:00 PM4 mins to read

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Industrial hemp could be a game changing crop for the Far North if restrictive legislation around the plant is eased.

Industrial hemp could be a game changing crop for the Far North if restrictive legislation around the plant is eased.

Industrial hemp could be a multimillion-dollar crop in the Far North if the law is changed, an industry leader says.

Minister for Regulation David Seymour says that outdated and burdensome regulations surrounding industrial hemp (iHemp) production are set to be reviewed by the Ministry for Regulation.

Industrial hemp is classified as a Class C controlled drug under the Misuse of Drugs Act, despite containing minimal delta-9-tetrahydrocannabinol (THC) and posing little risk of misuse.

“This over-regulation stifles economic growth and innovation within the sector,” Seymour said.

The Ministry for Regulation has received extensive feedback on the red tape hindering the industry, both through its review into agricultural and horticultural products and the red tape tipline.

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In response, the ministry is working with MedSafe and the Ministry of Health to reassess these nearly 20-year-old regulations.

A 2023 report by the Ministry of Business, Innovation and Employment (MBIE) highlighted hemp as a key opportunity for New Zealand’s bioeconomy, with the New Zealand Hemp Industries Association (NZHIA) projecting potential earnings of $2 billion by 2030, contingent on regulatory reform.

Harvesting hemp could become common in the Far North.
Harvesting hemp could become common in the Far North.

“Despite several government interventions since the legalisation of hemp cultivation in 2006, the sector has seen limited growth. It’s time for a new approach that balances risk management with unlocking opportunities for growers,’’ Seymour said.

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If the law is changed to make it easier to grow industrial hemp, it could be a game changer crop for the Far North, as the area had prime growing conditions, NZHIA president Richard Barge said.

Barge said there have already been several industrial hemp trials in the Far North and they had proven that the district was ideal for commercial industrial hemp growing.

“We can grow iHemp, but are limited to seed and fibre uses [an arable industry] but the horticultural industry [growing female plants for health and wellness products] is a big economic opportunity for growth,” he said.

Barge said Dr Nick Marsh’s investor report from 2020 highlights the potential $1.5 billion opportunity.

“For Northland, I would recommend the region investigates the potential of growing iHemp as a new horticultural industry,” Barge said, “utilising the 500 metabolites in the leaf and flowering tops [terpenes, cannabinoids and flavonoids] that are naturally occurring in iHemp to make health and wellness hemp products.”

This New Zealand industrial hemp crop is budding up nicely. Hemp could become a valuable crop in the Far North, an industry leader says. Photo / Bevan Conley
This New Zealand industrial hemp crop is budding up nicely. Hemp could become a valuable crop in the Far North, an industry leader says. Photo / Bevan Conley

He said the barriers to entry are not as significant as they are for fibre crops, as you don’t need a $10 million decortication line to start making natural health products, nutraceuticals and functional foods.

“By growing female plants, we are not in conflict with the illicit [cannabis] growers, as we are not bringing pollen into their areas. This would open up the industry in those areas with great grower degree days, such as Northland, Coromandel, East Cape, and provide a real economic and employment opportunity in these regions,” Barge said.

He said the main aim from the organisation’s current media campaign is to be removed from the act as low-THC iHemp is not a drug.

“And this starts with the review announced by Ministry for Regulation and will hopefully lead to our second main outcome – full plant utilisation allowing access to the revenue streams from all parts of the industrial hemp plant,’’ Barge said.

“We welcome the comprehensive review and look forward to working with the Government and industry to make the review worthwhile. 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).”

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He said a review of the 2006 iHemp regulations is long overdue.

“If this Government is serious about growth, it should seriously look at the potential of iHemp to revitalise regional New Zealand. [iHemp is] a fabulous crop rotation option, creating investment and employment opportunities in a new primary industry with vast export potential. Will the review go far enough and allow natural health products from iHemp, leaf and flowers to be marketed in the health and wellness space, here and overseas?"

■ Hemp (Cannabis sativa) is the same species of plant as cannabis. Unlike cannabis, hemp contains very low levels of THC.

Both hemp and cannabis also contain cannabinoids such as cannabidiol (CBD), cannabidivarin (CBDV), cannabigerol (CBG), and others. The 2018 Farm Bill established the specific definition of hemp versus cannabis by limiting the THC content of hemp to no more than 0.3%. Hemp seeds contain fats, protein, and other chemicals.

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