Hemp-seed law change seen as big opportunity

More growers may be harvesting hemp crops following the approval for its use in food. Photo / Midlands Seed

The decision by New Zealand and Australian food safety authorities to allow hemp seed to be used in food has been greeted with delight and excitement by Ashburton-based Midlands Nutritional Oils.

Andrew Davidson, managing director of Midlands Nutritional Oils and director of its partner company, Midlands Seed, said the legalising of hemp seed as food in New Zealand was very exciting for the company and for local grower suppliers.
It was also a fantastic opportunity for consumers.

The industry had been consulting food safety authorities for about 18 years and Midlands Seed had been waiting 16 years for the decision, Mr Davidson said.

Midlands Nutritional Oils and Midlands Seed were among the first companies in New Zealand to be granted a licence to grow hemp back in the 2001-02 season.

The companies were also the first to grow and process hemp seed into oil for retail sale and became the first New Zealand company to produce hemp seed protein and hulled hemp seed.

The decision created opportunities for existing products, Mr Davidson said.

''We have been exporting to Australia and Asia. Now there is a chance for New Zealand consumers to enjoy the New Zealand-grown hemp food products such as flour, protein and hulled hemp seeds.''

He sees a big market for the products and said the company would invest in further processing infrastructure.

''I'd like to think we would employ more staff, and this will make locally grown hemp more globally competitive.''

Before the standard can take effect in New Zealand, changes to regulations under the Food Act, the Misuse of Drugs Act and the Medicines Act will need to be made, a process that may take up to 18 months, Food Safety Minister David Bennett said

Mr Davidson said the company would be very focused on working with regulatory authorities to implement this legislative change.

''The sooner we can get New Zealand products out and secure shelf space the better. The longer it takes, the more chance there is for competing imported products. I think it is going to take some time to establish this market due to this constraint.''

Mr Davidson said it would be difficult for growers to get into hemp crops in the coming season due to legislative timelines, but in the following season and beyond there would be an increase in demand for the product.

The Minister said the low-THC hemp seed was nutritious and safe to eat, and would add to the New Zealand economy.

''Hemp seeds have a growing global market currently worth around $1billion. It is estimated it will initially generate between $10 million and $20million in export revenue and create about 20 jobs.

''These seeds do not require either fertiliser or irrigation. Because of the low inputs, research has put the farm-gate revenue for hemp seed between $4000 and $5000 per hectare,'' Mr Bennett said.

New Zealand Hemp Association chairman Mark McIntosh was disappointed hemp leaves and flowering tops were not included in the changes to legislation.

He believes the industry could be much bigger if food and beverages could be produced from the leaf and flowering tops.

But Mr Davidson said there were differing opinions on this and Midlands Seed did not endorse or support extending the new food legislation to include the plant material.

He paid tribute to all the people who had worked for many years to get the changes in legislation.

''All those parties have contributed to this. A lot of people in the wider industry are really delighted we have finally got there and the decision has gone in our favour.''

A cross-agency working group will be formed to work through the process of amending relevant legislation.