Major Win for NZ Hemp Industry: Government Announces Sweeping Regulatory Changes
New Zealand’s hemp sector just received its most significant regulatory shift in years. Regulation Minister David Seymour has announced sweeping changes that will remove heavy-handed restrictions and open the door for growth, innovation, and investment across the industry.
For too long, industrial hemp has been treated like a high-risk drug crop, despite containing extremely low levels of THC. The government has now agreed to overhaul the outdated system and replace it with a more practical, proportionate approach.
Below is a breakdown of the changes and what they mean for growers, manufacturers, and the wider hemp supply chain.
What’s Changing?
Under the new regulatory settings:
- No more licences will be required to grow or handle industrial hemp, provided plants contain less than 1% THC.
- A clear THC threshold of <1% will formally differentiate hemp from high-THC cannabis.
- Hemp biomass (flowers, leaves, stalks) can now be supplied to licensed medicinal cannabis producers—a major step forward for the industry.
- Growers must notify Police and MPI before planting, to avoid accidental enforcement and help distinguish legal hemp from illicit cannabis crops.
- Hemp use remains limited to fibre, seed, and oil, with added permissions for medicinal cannabis supply.
- Existing food safety and medicinal cannabis standards still apply.
Why the Changes Matter
David Seymour labelled previous regulations as “outdated” and “heavy-handed,” saying they have held the industry back for too long.
“The industry has been treated like a criminal for years. Growing a low-risk crop like hemp shouldn’t require navigating high-risk drug regulations. That ends now.”
By scrapping unnecessary red tape, the government expects significant economic benefits:
- $7.5 million in gains over the next 10 years
- $41 million in benefits over 20 years
These improvements come from reduced compliance costs, greater industry certainty, and increased opportunity for product development—including potential expansion into medicinal cannabis supply chains.
A Step Toward a Modern, Competitive Hemp Industry
Seymour highlighted that industrial hemp has always posed minimal risk, yet compliance requirements made it difficult for growers and processors to operate efficiently. The proposed changes bring New Zealand more in line with international standards, where hemp is widely recognised as a safe, versatile agricultural crop.
With clearer rules, reduced costs, and better pathways to innovation, the New Zealand hemp industry is now positioned for meaningful growth.
What Happens Next?
The Ministry of Health will now begin drafting the updated regulatory framework. Growers and processors can expect more detailed guidance in the months ahead.
For now, the announcement marks a huge milestone—one that supports hemp as a legitimate, sustainable, and economically valuable sector in New Zealand.