NZHIA Member & Stakeholder Update: 11 December 2025
For more details on the reform and national coverage:
📰 NZHIA Press Release: https://bit.ly/48xi5iA
🎙️ RNZ Political Report: https://bit.ly/4rNYAtp
🎧 Kelly Muirden Cooney (NZHIA Media Committee Chair) on RNZ: https://bit.ly/3YsjwIY
🎧 Brad Lake from The Brothers Green on Newstalk ZB: https://bit.ly/4s7AGtk
Today marks a milestone for everyone who has worked to grow New Zealand’s industrial hemp sector. In Ashburton this morning, Hon. David Seymour, Minister for Regulation and Associate Minister of Health, announced a comprehensive package of reforms that will finally modernise the regulatory settings governing industrial hemp.
This outcome is the result of years of collective effort, consistent advocacy, and the expertise contributed by growers, processors, researchers, and businesses across the sector.
What the Government Has Announced
Cabinet has approved changes that will significantly reduce compliance burdens and create a more practical regulatory environment for low-THC industrial hemp. Key elements include:
1. Removal of the hemp licensing system
Growers and handlers will no longer require a licence. This is the most significant change in nearly two decades.
2. Introduction of a clear THC threshold
A level of less than 1% THC will formally distinguish industrial hemp from high-THC cannabis.
3. New opportunities for whole-plant utilisation
Hemp biomass — including flowers and leaves — may now be supplied to licensed medicinal cannabis producers under strict conditions.
4. Simple pre-planting notification
Instead of licensing, growers will simply notify Police and MPI before planting. This provides transparency, avoids accidental enforcement, and supports control of illicit cannabis activities.
5. Continuation of all food safety and medicinal cannabis rules
Existing requirements remain in place to preserve quality and protect market access.
Why This Matters: A Turning Point for New Zealand iHemp
For nearly 20 years our industry has been constrained by regulations that did not reflect the low-risk nature of industrial hemp. Today’s announcement acknowledges that misalignment and corrects it.
The government’s analysis shows:
• $41 million in net benefits expected over the next 20 years
• Annual savings to growers of $80,000–$160,000 from the removal of licensing
• Industry potential to grow from $10 million today to $30 million by 2030
These reforms give growers, processors, and investors the certainty needed to build long-term capability and unlock new opportunities across food, fibre, health and wellness, construction materials, and regional development.
These figures strongly align with NZHIA’s longstanding strategic goals:
Reducing regulatory burden and costs – The removal of the licensing system delivers immediate savings and eliminates unnecessary complexity, a key NZHIA objective.
Supporting grower viability and investor confidence – The predicted cost savings and clear regulatory framework enable growers to plan, scale, and innovate.
Expanding the industry’s national economic impact – While $30 million by 2030 is conservative, it reflects the potential for growth under more rational regulations. NZHIA’s longer-term target remains significantly higher, emphasising whole-plant utilisation and new product innovation.
Unlocking full-plant utilisation – Permission to supply hemp biomass to licensed medicinal cannabis producers represents a critical step towards maximising value from the whole plant, fibre, seed, and leaves.
Recognition of hemp as a low-risk crop – This philosophical shift lays the foundation for sustained sector development, aligning regulation with science rather than outdated perceptions and stigma, a start to getting us out of Misuse of Drugs Act.
Acknowledgement to our Members
This progress would not have been possible without the collective voice and persistence of NZHIA members and industry partners. NZHIA Member submissions, conversations with officials, attendance at summits/workshops, and continuous advocacy have all contributed to today’s outcome.
We also would like to thank our coalition partners, Aotearoa Hemp Alliance and NZ Medicinal Cannabis Council, for their efforts to bring this to the attention of the Government and their work on the 5 key objectives in the 2023 Strategic Proposal.
The Minister explicitly acknowledged the importance of sector engagement — and your efforts have helped shape an evidence-based policy change that benefits the entire industry.
What Happens Next – what was not included and the devil in the detail
The Ministry of Health, supported by the Parliamentary Counsel Office, will now begin drafting the new regulations, based on the cabinet paper, which should be released today.
Several items in the Coalitions – 5 Strategic Objectives Proposal were not included in the MfR review. Access to production and companion animals was ruled out of scope by MPI ACVM. Biomass (including leaf and flower) for natural health products and hemp as a carbon crop were not mentioned in the review.
The announcement is great for growers of industrial hemp and should improve the supply chain, but without full plant utilisation and access to the markets above, the economic impact on the value chain will not be fully realised.
More advocacy work is required in these areas, while innovative and entrepreneurial iHemp businesses continue to push the boundaries in these markets, while focusing on exporting products to jurisdictions where they are in great demand.
Other issues that have been raised include cross-contamination from pollen drift and the use of viable seeds (permitted for sowing, but not as a food under the current food code). Also, import/export permits for products containing controlled drugs.
Today represents a major step towards realising the potential of industrial hemp as a sustainable, high-value crop for New Zealand. With the removal of unnecessary barriers to growing the crop, our sector is better positioned than ever to scale, innovate, and contribute to regional and national economic growth.
Thank you for your support, your engagement, and your commitment to the sector.
#NZHIA #HempForAotearoa #iHemp #HempIndustryNZ #RegulatoryReform #NewZealandHemp #IndustryMilestone