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Home / New Zealand

Industrial hemp sector hopeful as Government reviews ‘outdated’ regulations

By Monique Steele
RNZ·
1 Apr, 2025 09:01 PM4 mins to read

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Mack McIntosh of Hempseed Holdings helped form the Hemp Industries Association and says it is a "tragedy" low-THC industrial hemp had been stifled by "unworkable" legislation for decades. Photo / RNZ, Cosmo Kentish-Barnes

Mack McIntosh of Hempseed Holdings helped form the Hemp Industries Association and says it is a "tragedy" low-THC industrial hemp had been stifled by "unworkable" legislation for decades. Photo / RNZ, Cosmo Kentish-Barnes

By Monique Steele of RNZ

The industrial hemp sector is feeling unified and buoyant by a long-awaited regulatory review that it hopes will see more farmers adopt the crop and unlock its economic, social and environmental potential.

The government announced in late February that it would review what Minister for Regulation David Seymour described as “outdated” and “burdensome” regulations around industrial hemp production.

That sparked the NZ Hemp Industries Association, the Aotearoa Hemp Alliance and the NZ Medicinal Cannabis Council to come together and develop strategies and objectives they jointly put to government officials and ministers during a recent field and factory visit in Canterbury.

The Hemp Industry Strategic Proposal for Regulatory Change report said it wanted to ease the regulatory burden for industrial hemp growers and processors, open up its use in animal nutrition, integrate it for carbon sequestration on farms and utilise all parts of the plant.

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Industrial hemp was classified as a Class C controlled drug under the Misuse of Drugs Act, and while food legislation changed in 2017 opening up its use, it was limited to only seeds.

Hemp Industries Association chairman Richard Barge said the site visit with officials was a chance to showcase the versatility of industrial hemp, on goals that aligned with government priorities for climate resilience, economic diversification and regional development.

“With industrial hemp offering solutions across food, fibre, health, and farming or environmental sectors, it’s time for a new approach to unlock its full potential.”

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Seed company Midlands supplied hemp seeds for sowing and also produced food products from the seeds it received from up to 100 grower-suppliers.

Company director and Aotearoa Hemp Alliance board chairman Andrew Davidson said there was huge potential in allowing the production and processing of hemp biomass from leaves and flowers, which was only enabled for medicinal cannabis at present.

“There are various food processors handling seed and grain and making products like whole hemp seed, hemp flour, hemp oil, etc and there are now also businesses that are able to harvest fibre for the construction industries,” Davidson said.

“But there’s not a well-developed pathway for products from the leaves and flowers within hemp because we’re not permitted to process those products today.

“That capability does exist within the medicinal cannabis industry, and we would like to see regulations that clarify that interface between hemp and medicinal cannabis so that we can develop that processing capability for those products from leaves and flowers locally.”

Mack McIntosh says the government should urgently remove industrial hemp from the Misuse of Drugs Act to let the sector thrive. Photo / RNZ, Cosmo Kentish-Barnes
Mack McIntosh says the government should urgently remove industrial hemp from the Misuse of Drugs Act to let the sector thrive. Photo / RNZ, Cosmo Kentish-Barnes

Mack McIntosh of Hempseed Holdings helped form the Hemp Industries Association and was its chair up until 2020.

McIntosh said the government should urgently remove industrial hemp from the Misuse of Drugs Act to let the sector thrive, as industrial hemp was not a drug.

He said it was a “tragedy” that low-tetrahydrocannibol (THC) industrial hemp had been stifled by what he called “unworkable”, “prohibitive”, and “costly” legislation for decades.

“At the moment, there are adventurous farmers that grow it,” McIntosh said.

“But your average farmer is not the slightest bit interested in doing a police check to grow an agricultural crop.”

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He said iwi and hapū should also be encouraged to adopt the crop on Māori-owned land.

He said a greater definition around industrial hemp was needed, as stems and leaves were going to waste as processing was not allowed.

“You have to have a licence to be in possession of hemp roots.

“That’s the sort of idiocy that the Ministry of Health has brought to this.

“There are some good people in the Ministry of Health, don’t get me wrong, but they have no business being involved with an agricultural crop.

“It’s just ridiculous.”

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Minister for Regulation David Seymour said it was working with MedSafe and the Ministry of Health to progress reform of the regulations around industrial hemp.

“Reform of the industrial hemp sector has huge potential for economic growth,” Seymour said.

“A renewed regulatory regime will balance any risks of misuse with realising the potential of this industry to innovate and grow, and to be a significant contributor to our rural economy.”

Options for consideration were expected later this year.

- RNZ

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