New Zealand Hemp Industries Association (NZHIA)
11 December 2025
The New Zealand Hemp Industries Association (NZHIA) welcomes today’s significant regulatory reforms for the industrial hemp sector, announced in Ashburton by Hon. David Seymour, Minister for Regulation and Associate Minister of Health.
The announcement marks the most substantial positive change the industry has seen in nearly two decades.
“Today’s decision finally recognises industrial hemp for what it is—a safe, sustainable, and economically valuable crop,” says Richard Barge, Chair of the NZHIA. “Removing outdated and disproportionate restrictions is a crucial step towards unlocking the full potential of this industry.”
Common-Sense Regulation at Last
“This is a landmark day for New Zealand’s hemp industry,” says Barge. For almost 20 years, industrial hemp — grown for food, fibre, oil, and health products — has been constrained by rules designed for high-risk substances, treating low-THC industrial hemp as though it were a high-risk drug. The NZHIA has long advocated for a regulatory framework that aligns with the plant’s actual risk profile. “Today’s decision finally brings common sense, science, and economic opportunity together.”
Cabinet has now agreed to a package of changes that will modernise and streamline the system, including:
- Scrapping licences to grow and handle industrial hemp.
- Establishing a clear THC threshold below 1% to distinguish industrial hemp from high-THC cannabis.
- Permitting the supply of hemp biomass, including flowers and leaves, to licensed medicinal cannabis producers under strict conditions.
- Replacing complex licensing with simple notifications to Police and MPI before planting, to support enforcement clarity and prevent accidental interventions.
- Maintaining all existing food safety and medicinal cannabis rules, ensuring that high standards remain intact.
Clear Economic Benefits for New Zealand
The reforms position the sector to achieve the association’s long-standing goals of whole-plant utilisation, sustainable growth, and regional economic impact. It is one step closer to the NZHIA’s number one objective of getting industrial hemp out of the control of the Misuse of Drugs Act 1975, as it is not a drug crop.
While the Ministry has projected $41 million in net benefits over 20 years and annual grower savings of $80,000–$160,000, the NZHIA sees these numbers as just the beginning.
With the current industry valued at approximately $10 million, projections suggest it could grow to $30 million by 2030, especially now that the whole plant can be utilised under clearly defined rules.
NZHIA believes the reforms will unlock new opportunities in regional development, advanced fibre manufacturing, bio-based materials, carbon-friendly construction, and high-value food, health, and nutraceutical products, says Barge. “This is about real jobs, real value, and real opportunity for New Zealand.”
“Today’s announcement recognises that industrial hemp is a low-risk, high-value crop,” says Barge. “The government’s economic analysis confirms what the industry has been saying for years: sensible regulation unlocks growth, innovation, and real economic benefit.”
A Turning Point for the Sector
“This is a turning point — we commend the government and the Ministry for Regulation for listening to industry and taking decisive action,” Barge adds. “This new framework puts New Zealand back on a competitive footing internationally and sends a strong signal to growers and investors that the hemp sector is open for innovation and growth.”
The NZHIA looks forward to working closely with the Ministry of Health and Parliamentary Counsel Office as they draft the new regulatory settings to ensure a smooth transition and robust safeguards.
“This is the beginning of a new chapter,” says Barge. “With sensible regulation in place to allow industrial hemp to be grown without a licence, New Zealand is a step closer to realising the full potential of this sustainable, regenerative, and future-focused crop.”
Keeping this in mind, the NZHIA would like to highlight their recent national awareness campaign to bring hemp into the homes of everyday New Zealanders. The NZHIA hemp tote bag has been created with purpose—to educate, advocate, and carry the change forward. It’s more than a bag; it’s a cause in your hands. Every bag sold takes the Association one step closer to the goal: a 100% NZ-hemp, NZ-made bag supporting a sustainable, plant-based future for Aotearoa New Zealand.
ENDS–
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