NZ HEMP EXPORT DRIVEN INVESTOR REPORT: $2 Billion and 20,000 Regional Jobs by 2030 Just needs the nod - full report - New Zealand Hemp ...
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NZ HEMP EXPORT DRIVEN
INVESTOR REPORT:
$2 Billion and
20,000 Regional Jobs by 2030
Just needs the nod...
full report
Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 3
NZ’s Hemp Export Driven Industry
10 August 2020
By Dr Nick Marsh
Author: Dr Nick Marsh
Published by: NZ Hemp Industries Association
table of contents
1) A 60 page FULL REPORT Funded by: AGMARDT/NZHIA
https://joom.ag/attC for investors, in the NZ Editing, Design & Artwork – Marco Fantham &
iHemp industry Chedon Owsley
2) A 28 page SNAPSHOT https://joom.ag/oSiC Printing: NZ Hemp Industries Association Inc FOREWORD......................................................................................................... 5
of the full report for investors, in the NZ Submit feedback and queries, to the author via
iHemp industry. admin@nzhia.com
ACKNOWLEDGEMENTS Disclaimer:
EXECUTIVE SUMMARY....................................................................................... 7
-A huge thanks to my wife Linda Robinson The purpose of this report is to explore the
whose writing and editing expertise has been commercial, regional, and environmental
invaluable to this report. opportunity for investors in the Industrial 1. INTRODUCTION............................................................................................. 10
-Thanks to Richard Barge, Chair of NZHIA, Nigel Hemp sector in New Zealand.
Slaughter from Ligar Extraction, and Nigel Readers are responsible for accessing the
Hosking from Midlands Seed who have guided relevance and accuracy of the content of this
this project - from seed to product, so to speak. publication. NZHIA, AGMARDT or the author
2. WHAT IS HEMP............................................................................................... 12
-Thanks also to all the CEO’s and investors who will not be liable for any loss, damage, cost or
have created and grown the hemp companies expense incurred or arising by reason of any
including: Dave & Anne Jordan - Hemp Farm person using or relying on the information in 3. HEMP HEALTH MARKETS - COUNTRY COMPARISONS.......................... 20
NZ, Andrew Davidson – Midlands Seed, Jacob this publication.
Draper - Hemp NZ, Matt Johnston - Hemp This publication is copyright. NZHIA
Connect, Isaac Beach - Kanapu Foods, Andrew encourages wide dissemination of it’s
Bell - Kakariki Fine Foods, Brad Lake, Brendon research, providing the organisation and
4. HEMP FOOD PRODUCTS IN NEW ZEALAND............................................ 30
McIntosh, Michael Burnett - The Brothers author are clearly acknowledged.
Green, Chris Woodney - NZ Hemp Brokers,
Mack McIntosh - Hemp Seed Holdings, Tadhg Author: DR NICK MARSH 5. HEMP FIBRE INVESTMENT GROWTH........................................................ 42
Stopford - Hemp Foundation, Lisa Gadsby - NZ Strategic Analyst
Hempress and many more. Next Corporation
-And a special thanks to the 150 farmers who 021 617 267
have planted around 1,200 hectares of hemp
6. THE ROAD TO A MAJOR HEMP EXPORT INDUSTRY............................... 46
nick.marsh@nextcorporation.net
in 2019/2020. linkedin.com/in/dr-nick-marsh-3b3109
NZ'S HEMP EXPORT DRIVEN INDUSTRY NZ Hemp Industries Association 7. HEMP GROWTH SCENARIOS - A $2 BILLION INDUSTRY BY 2030...... 49
ISBN 978-0-473-53796-8 – Full Report (softcover) PO Box 38 392, Howick, Auckland, New
ISBN 978-0-473-53798-2 – Full report (PDF) Zealand 2014
ISBN 978-0-473-54114-9 – Snapshot (softcover) Chair: Richard Barge
ISBN 978-0-473-54115-6 – Snapshot (PDF) 021 706 690 8. CONCLUSION................................................................................................ 54
10 August 2020 www.nzhia.com
(c) 2020 copyright NZ Hemp industries admin@nzhia.com
Association Inc (NZHIA)
APPENDIX 1 - SCENARIO MODELLING ASSUMPTIONS.............................. 56
APPENDIX 2 - BIBLIOGRAPHY......................................................................... 56
APPENDIX 3 - NZ FOOD, FIBRE, AND HEALTH – KEY REPORTS................. 57
4 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 5
New Zealand Hemp Regions
AUCKLAND & NORTHLAND
-
HEMP REGION: KOEKOEA
FOREWORD
Industrial Hemp is a treasure trove of potential
WAIKATO & BAY OF PLENTY HEMP - New Zealand can grow high quality plants,
REGION: HEMP FARM which can be processed into a wide range of
natural health products for consumers, as well
as industrial products for different industries.
The environmental and health credentials of
hemp are aligned with the values of consumers.
Processing has to be situated close to the
farms - which leads to investment in regional
development. And, the creation of jobs and
training opportunities.
WELLINGTON/MANAWATU-WHANGANUI/TARANAKI 80 years of prohibition the food and fibre hemp
means there is a industry is moving forward
HEMP REGION: HEMP CONNECT tremendous amount and making huge leaps
of work required. That each season, to develop
fits well with our ‘can and service a wide range
do’ attitude, and kiwi of expanding markets:
ingenuity. Our research • The food industry
and development eco- has embraced the
system are well positioned highly nutritious hemp
to develop new products seeds, and the wider
and services. Additional industrial applications
rewards come from are starting to be
licensing the technology discussed as supply
SOUTH ISLAND to process and produce creates a demand
HEMP REGION: MIDLANDS hemp products for global for the secondary
markets. industries. They being
We have the growers, and animal foods (currently
6 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 7
Executive Summary
The global research in this report paints a
surprising picture for most New Zealanders. A
big opportunity for the New Zealand economy,
illegal) and industrial yields will increase and other products of which few are aware. In short, we could
uses. as new varieties are that are required to have another crop export success like Wine and
• The fibre industry is bred to meet the deliver our high value
potentially the largest specifications of the branded products to
Kiwifruit, but in a much shorter time. Hemp
part of the industry, food, fibre and health global niche markets. products are making a comeback globally
with a high demand industries. Farming into mainstream consumer markets as well
for low and high tech systems will benefit as industrial markets, most notably in the
end products. It will from this alternate land Americas and across Europe.
provide scalable and use, in their rotations.
bankable business Regenerative hemp
plans for investors will help these systems Hemp manufacturing The global hemp industry
and farmers. There to become sustainable, was for centuries a key is projected to grow from
is a strong local and will benefit the economic sector from US$ 4.6 billion in 2019
demand for low carbon soil and ecosystems Asia to the Americas. But at a CAGR of 34%, to
construction materials where it is grown. this was followed by eight US$64.8 billion by 2030.
grown and made in • Health applications, decades of being wrongly The biggest share of
New Zealand. Ensuring which are currently designated as a narcotic this market is expected
continuity of supply limited by our legal drug. Hemp and marijuana to be CBD and other
from local sources is framework, have the are two varieties of the cannabinoid products,
a priority in the ‘new- potential to bank Richard Barge cannabis plant. Marijuana followed by seed food
normal’ post Covid-19. roll the industry Chair of NZ Hemp Industry contains psychotropic products, as well as an
• Growers will improve and encourage the Association Inc (1997) THC, while hemp contains increasing demand for
their on farm development of hemp the calming CBD. low and high-tech fibre
management and their fibre into packaging products both locally and
8 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 9
20,000 REGIONAL JOBS BY 2030 THERE ARE ONLY 2 PROBLEMS GETTING IN THE WAY:
1. The general public ignorance, confusion, and
outdated stigma about cannabis, marijuana,
medicines, and hemp.
overseas. A niche market This report is to inform led by Dave and Anne MISUSE OF DRUGS
which NZ could quickly investors and politicians Jordan who founded ACT 1975
dominate is premium seed about the opportunity Hemp Farm NZ in 2008,
oils for the discerning hemp provides to our also Andrew Davidson and 2. The regulatory block that is delaying our ability to
consumers of high quality economy, as we face the Nigel Hosking at Midlands compete in fast-growing global CBD markets with
cuisine in San Francisco, challenge of minimising Seed in Christchurch. our own brands of hemp nutraceuticals, as well as
London, Shanghai, and recession by developing premium bulk extracts.
Berlin. new crops and value Hemp Farm has grown
propositions in world into Hemp NZ, which
The commodity hemp markets. We prosper or operates as a nationwide
players are China, USA, decline on our ability to conglomerate across
Canada, and France. But find high value consumer Foods, Fibre, and Bulk
smaller iHemp countries niches in world markets. extract markets with a
and states around the grower’s group of 100
world (such as NZ) are also In New Zealand Medicinal farmers across five Investment Fund Industry in NZ in 2006. in seed products, and
positioning themselves to Cannabis/Marijuana was growing regions. managers tell us that $317 million in fibre
play to their strengths and legalised commercially capital is readily available This report describes two products, $1.5 billion in
specialise in key markets. in April of this year Other leading hemp for the rapid expansion growth scenarios for hemp hemp nutraceuticals from
For example, Israel and for the production of companies in different of our hemp industry in New Zealand by 2030. cannabinoids, terpenes
the Australian state of pharmaceuticals which regions have developed but that investors need and flavonoids, and
Victoria are focussed on can include THC and CBD brands and market share regulatory assurance so SCENARIO 1 - No 20,000 new jobs in the
pharmaceuticals; Canada in their formulations. - Hemp Connect, Kanapu, that they can enter the Regulatory Reform regions.
is building strength in iHemp was partly The Brothers Green, nutraceuticals market, as with the seed and fibre
fibre for construction and legalised in 2006, with Hemp Brokers, Larry’s well as the seed and fibre products estimated at In summary: Does New
textiles, while Colorado, new regulations allowing Creek, NZ Hempress, markets. Senior lawyers $500 million with around Zealand want the export
California and Hawaii are for human consumption Karariki Fine Foods, and tell us that the regulatory 5,000 new jobs in the earnings of a new $2.0
retailing a wide range of of hemp seed in 2018, but HomeSite Farm. These adjustments needed regions billion hemp industry,
CBD products for different not the flowers and leaves. entrepreneurs have are really not that hard which plays to all our
customer markets, helped drive consumer to accomplish, but we SCENARIO 2 - strengths in agriculture,
including formulations for The scaling up of the demand for hemp seed need a similar vision and Regulatory Reform with and global brand
animal well-being. commercial hemp industry products including oils, political will to that which total earnings of $2.0 marketing of high value
in New Zealand has been balms, milk, and protein established the iHemp billion; $183 million food and beverages?
powder.
10 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 11
reader will encounter the report provides a pyschoactive compounds
in this discussion, the comprehensive picture of in hemp can be used in
report looks at the results the New Zealand industrial a wide range of non-
of scientific study into hemp sector at present. medicine products, such
hemp. It then scans global Included is a discussion as - foods, nutraceuticals
activity in the industrial of the present regulatory or body care. This would
hemp market, which is framework, which is seen enable hemp growers to
proving very profitable as a serious obstacle to use the whole plant, and
in those countries which the development of a to grow the industry at a
have liberalised their wider, and more lucrative substantial rate.
legislation by either range of products to
legalising the cannabis meet growing consumer Finally, a ten-year
plant, or at the least demand – both in New forecast is given in
expressly excluding Zealand and overseas. the 2030 Scenario,
industrial hemp and its based on assumptions
beneficial compounds Further discussion including a liberalisation
from their anti-drug laws. includes ways in which of regulations as seen
the regulatory framework in other countries, and
Following on from in New Zealand could be predicting a $1.6 billion
1. introduction
the global discussion, changed so that the non- dollar export sector.
PURPOSE OF REPORT interviews and meetings
across the industry and SCOPE
This report was also desktop reviews of This report is about
commissioned by the the literature relating to industrial hemp, a cultivar
NZ Hemp Industries traditional knowledge, the of the cannabis plant.
Association Inc and science and international Owing to the general
funded by Agricultural and national laws relating prohibition on cannabis,
and Marketing Research to the cannabis plant, and it is necessary to discuss
and Development Trust to hemp cultivars. cannabis (marijuana)
(AGMARDT). Its purpose In addition, a market scan and medicinal cannabis.
is to inform interested has been undertaken of However, it is vital that
parties and potential the global market in those the reader appreciates
investors about what has countries where there are that industrial hemp, as
already been achieved active industrial hemp compared to marijuana,
in the industry and sectors. The international is a non-psychoactive
the opportunities for scan includes an cultivar with enormous
growth; in particular the understanding of the ways health and other benefits,
extraordinary opportunity in which law changes as well as the potential to
for New Zealand to export have allowed for the be a new export industry
into a burgeoning global development of a market for New Zealand. It is
industry in hemp foods, in hemp-based products. hoped that this report will
hemp fibre, and hemp Finally, the 2030 forecast/ assist in overcoming the
health products . scenario was the result negative connotations
of collaboration with the around cannabis and give
a new appreciation of the
METHOD CEO’s of several leading
NZ hemp companies value of hemp.
The report is based on and the chairman of the After explaining the
a substantial number of NZIHA. industry terms which the
12 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 13
HEMP
MARIJUANA
2. What is Hemp
KEY TERMS SUMMARY industrial hemp, and
processing and trading
New Zealand. • Food products can
be sourced from
Cannabis Sativa cannabis flowers which occurring chemical in the seeds and stalk to Hemp (Sometimes called hemp seeds which
is an annual flowering has a wide range of anti- compounds in hemp and produce hemp food and ‘industrial hemp’) is the are processed into
plant originating in inflammatory effects in marijuana which interact fibre products. name given to cannabis oils, flours, powders
Central Asia, which has the body. CBD is non- with the ECS in our body. sativa plant strains with and milk. This market
been cultivated for psychotropic. Medicinal Cannabis/ extremely low levels of started in 2018 when
several thousand years, Hemp Fibre Marijuana Medicines in THC. (In New Zealand we were granted
for health and recreational Marijuana is another name The Bast are the fibres New Zealand the permissible level of access to hemp seed
purposes. Recently, it for these high THC plants that grow on the outside Misuse of Drugs THC is less than 0.35%, foods for human
has been bred to enhance and their associated of the plant’s stalk- which (Medicinal Cannabis) Act in Australia 1%, and in consumption.
its active compound products which have more can be manufactured into 2018-2019 made it legal Europe 0.2%). Hemp
tetrahydrocannabinol than 0.35% of THC textiles, ropes, and all from 1st April 2020 for is grown both in New • Fibre is commonly
(THC) which provides the fibre-based products. licensed companies to Zealand and overseas for used for pet bedding,
euphoric effect or ‘high’ Endocannabinoid grow and manufacture industrial and commercial high grade paper
sought by recreational system (ECS) a recently The Hurd (or shiv) is the cannabis prescription uses. Hemp seed is making and as a yarn
users. discovered, molecular high cellulose, woody core medicines containing highly nutritious and in textiles, plastics
system in the human inside the stalk, which can cannabinoids. Including very versatile. The entire and composites.
THC body responsible for be used for hempcrete high THC dosages. hemp plant, including Local demand for
(Tetrahydrocannabinol) maintaining homeostasis and various absorbent stalk, leaves, seeds, roots construction uses
the psychotropic chemical (stability of your products. To understand hemp and buds can be used for - which range from
compound found in internal environment) one must start with the a wide range of products, insulation, MDF boards
the buds and flowers in many processes in Hemp Industry in New cannabis plant, and then including food, fibre, and and hempcrete to
of marijuana, induces the body including the Zealand understand the different health remedies. acoustic tiles, carpets
a euphoric effect when immune system, sleep, Misuse of Drugs Act characteristics of cultivars Traditional markets exist and soft furnishings
heated and consumed. stress, chronic pain and (Industrial Hemp) of that plant and in for hemp food and fibre - will support the
moderating inflammation. Amendment Regulations particular hemp; these and as more research is establishment of new
CBD 2006 and 2018 allows differences are central to done we are developing industries for the
(Cannabidiol) a prevalent Cannabinoids cultivation of low THC the development of an many more non- regions.
cannabinoid in the More than 100 naturally (less than 0.35%) industrial hemp sector traditional, high and low
in any country, including tech markets.
14 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 15
• A sustainable source of New Zealand, appetite, metabolism
fibre can complement creating the jobs and and more. Science
our other primary opportunities required has revealed a web
industries like wool to scale the industry. of receptors, enzyme
and forestry and lead And, leveraging the and biochemical
to the development global reputation of pathways involved
of both low and high New Zealand food and in manufacturing
tech applications. beverages, as a trusted and using the human
Researchers at New brand. body’s own form of
Zealand Universities cannabinoids. Endo
and Scion Research are • Scientific research into (originating within the
already engaged with the phytochemicals body) cannabinoids,
industry to open up contained in the can be supplemented
opportunities to utilise cannabis leaf and by phyto (from plants)
the versatile qualities flower, and in particular cannabinoids.
of hemp fibre for compounds known
industrial applications. as cannabinoids, • The cannabis plant can
has resulted in the be used for treating a
• Consumer demand recognition that, wide range of illnesses
will help focus these in comparison to because it has over
developments. high THC content one hundred currently
By being ahead of plants, many strains known cannabinoids
the curve we could of Cannabis Sativa which can each
be developing can be safely used connect into the ECS.
novel packaging for medicines and The best known of
and distribution other products. Many these is cannabidiol
technology which is research agencies, (CBD), which is a
supported by science. including the WHO, non-pyschoactive
This complements new have published compound. CBD is
product development, literature reviews highly regarded as a
and has export confirming that compound with a wide
potential. Cannabidiol (CBD) range of medical and New Frontier Data
is generally safe for health benefits. This
• A positive future human consumption. knowledge has been
for hemp food and (1) known for centuries
fibre is assured. but only recently
As the industry • The recent proved via scientific The hemp plant has many different uses
scales up to meet discovery of the research.
a growing demand endocannabinoid The hemp plant has many oils, flours, powders
for sustainable raw system (ECS) in • CBD is extracted either different uses, which can and milk. Fibres
materials, New Zealand the 1990’s, is very through separation generally be divided into sourced from the stalks
is well positioned to significant for the of CBD oil from the four distinct categories of the plant have been
be a global leader in future of the hemp plant matter, or based on the parts of the manufactured into
these areas. We can industry. The ECS is a by extracting the plant: Flower, seed, fibre textiles, ropes, paper,
play to our strengths, molecular system in compound from the (stalks), roots. composites, plastics,
with a sophisticated our body responsible stem, stalk, leaves and Food products can be fuels and construction
and ecological R&D for regulating and flowers of the hemp sourced from hemp seeds materials.
system, and an balancing many plant. which are processed into
agile manufacturing processes in the
industry. body including
immune response,
• Hemp is an opportunity communications
to invest in regional between cells,
16 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 17
The Hemp Value Chain - Manufacturing Raw Materials
into products (2)
THE 3 MAIN PRODUCTION CATEGORIES ARE:
FIBRE EXTRACTS SEEDS
From the bast and hurd in Cannabinoids, terpenes Manufactured into oils
the stalk; is manufactured and flavonoids extracted for consumer products
into a wide range of from the flowers and including natural health
textiles, ropes, paper, leaves into distillates products, food products,
composites, plastics, and isolates of which the such as oils, flours, milk,
fuels and construction largest market is CBD supplements, powders,
materials. (cannabidiol). balms, industrial oils,
lubricants.
18 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 19
While the cultivation of
hemp is permitted in New
of the safety, health
and nutritional benefits
Nutraceuticals added or concentrated
ingredients to functional
THE NATURAL HEALTH
PRODUCT MARKET
3. However, one could
argue that hemp is
Zealand for the production
of hemp seed oil and
of cannabinoid-based
products.
and Functional levels which improve
health or performance.
1. Hemp health products the queen of all the
plants from which
hemp seeds, as well Foods - The Growth are part of the natural
health products nutraceuticals can be
as fibre, it is important The discussion around Space for Hemp 2. NUTRACEUTICALS industry, which is a extracted, because
to note that products liberalisation of cannabis Many analyst reports over ‘The term ‘nutraceuticals’ $2.5 billion industry. of its unique ability
containing CBD are can be confusing, as for the past ten years have was coined in the late 2. The Natural Health to work with our own
regarded by the regulator, many people cannabis is pointed out the growth 1980s to describe food Products Association endocannabinoid
the Ministry of Health, as a synonym for marijuana, opportunities which lie products that have a holds the membership system, to help keep
being prohibited. whereas for those in the in the space between health benefit. They are of 136 NZ companies all ourphysiological
research sphere or hemp ‘Food’ and ‘Pharmaceutical natural product extracts which are primarily systems in
The only exception to this industries ‘cannabis’ is Medicine’. As pointed sold in dosage form as making nutraceuticals homeostasic balance.
is a designation of CBD simply a plant genus, out in Chapter 3 it is in capsules, tablets, powders, from plants.
and CBD derived products, which includes both this space that the largest etc.
containing less than marijuana (containing boom in the American and
2% THC, as medicines, THC) and hemp (minimal European hemp markets
which are governed by THC) cultivars. has occurred, focused
the Medicinal Cannabis on nutraceuticals and
Agency, and must be Without the psychoactive functional foods. The
prescribed by a doctor. THC, Industrial hemp is following diagram shows GROWTH SPACE EXAMPLES
just another agricultural the continuum between
Due to its derivation from crop. But unlike many food and medicine, which
a plant infamous as an other crops it can be are categorised as the
illegal recreational drug, used by a wide range of ‘natural health foods’
the development of CBD industries. Providing a market:
(and minimal THC) based safe and plentiful resource
products overseas has with great physical 1. FUNCTIONAL
required a liberalisation properties makes it an FOODS
of legislation and other attractive and sustainable Foods fortified with
controls, and a recognition raw material for industry.
THE GROWTH SPACE FOR NUTRACEUTICALS
BETWEEN FOOD AND MEDICINE
MEDICINAL
INDUSTRIAL HEMP INDUSTRY CANNABIS
FOODS WITH
STRONG FUNCTIONAL
HEMP PRESCRIPTION
NUTRITIONAL FOODS/
NUTRACEUTICALS MEDICINES
HEALTH RELATED INGREDIENTS
LINKS
Raw Hulled Hemp Seeds Hemp Protein Powder FULL SPECTRUM OILS Epidiolex
Hemp Seed Oil Hemp Snacks CBD OILS Sativex
Hemp Protein Powder Hemp Flour CBD PET FOOD
Hemp Milk Hemp Skin Balms20 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 21
• Glaucoma FDA approved cannabis companies’ research
• Muscle spasticity medicine formulation, includes a focus on
• Insomnia, anxiety and Epidiolex, used to formulations using
low appetite treat epilepsy contains different doses of CBD and
both CBD and THC. THC, as they have useful
Interestingly, the first Many pharmaceutical interactive effects.
3. HEMP HEALTH MARKETS -
COUNTRY COMPARISONS
HEMP SEED RESEARCH
HEMP CANNABINOIDS (CBD) AND THE ENDOCANNABINOID A review of the research • Contain GLA (gamma centuries most countries
SYSTEM literature (5) on the
benefits of hemp seeds
linoleic acid) which
is considered to be
grew and processed hemp.
The endo-cannabinoid Cannabidiol (CBD) was have shown that while shows that they; beneficial to brain But the world was divided
system (ECS) is discovered in 1940 and these cannabinoids are • Are an excellent function, hair growth, in the 1960’s between
responsible for managing THC in 1963. Professor chemically similar, they protein source; and in reducing those which accepted the
the complex parts of a Raphael Mechoulam has have almost opposite • Are an excellent arthritic inflammation UN Single Convention
human: A vast range of led a major output of effects on the human body source of vitamin E pain. on Narcotic Drugs and
physiological processes Israeli research studies in in the way they interact and minerals such made Hemp illegal and
including mood, memory, the 1970’s, 80’s and 90’s with the body’s receptors. as phosphorus, These benefits can those refusing to impose
pain-sensation, and which has identified more potassium, sodium, be enjoyed through a ban, including China and
appetite. It monitors cannabinoids, along with Research studies appear magnesium, sulphur, consumption and use of France.
irregularities in different an understanding of the to show that CBD can help calcium, iron and zinc; hemp seeds in a number
systems and helps endocannabinoid system with conditions such as: • Hemp contains all 21 of ways including: Hemp is today grown in
communicate corrective (discovered in the 1990’s) • Seizures, inflammation amino acids which • raw hulled seeds around 30 countries; it
action to restore and its relationship to and pain are in a perfect ratio • hemp oils began its resurgence in
homeostasis. Body cannabis-sourced (phyto) • Psychosis or mental for humans, making • protein powder Europe in the 1980’s, in
temperature is a simple cannabinoids. Through disorders, depression it an ideal food for • milk Canada in the 1990’s and
example, and the immune the continuous research and anxiety vegetarians / vegans • balms for the skin. in the USA in 2018.
system is a more complex findings and influence • Nausea and (and those cutting
one. Research has proved of Mechoulam’s work, inflammatory bowel down on meat) The Global Hemp Picture Today the top six hemp-
that humans create their Israel has become a global disease • Hemp contains a There is a burgeoning producing countries are:
own endocannabinoids, centre of research and • Migraines number of essential cannabis and industrial • China
such as dopamine and commercial development. fatty acids, including hemp industry worldwide • Canada
serotonin, inside the body. (3, 4) THC research studies Omegas 3, 6, and 9, in hemp foods, hemp fibre • USA
These are not stored, but suggest that THC can help which have major and hemp nutraceuticals. • France
formed as and when the Further research studies with health benefits; and It is important to • Chile
body needs them. relating to CBD and THC • Pain and nausea most notably, remember that in previous • North Korea (6)22 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 23
The fastest growth in the aged 18+ have tried CBD, in a number of European - accessible products this was expanded to the (due to legalisation), and a
last 5 years has been in and that 50% of those countries, also in the containing THC, and legalisation of cultivation, unified market, that is not
the use of cannabis for consuming it, are doing so United States and Canada, to non-psychotropic possession, acquisition hampered by state/federal
medicinal purposes and as a substitute for other Australia, and Israel. health products, food and consumption of conflict as has been the
in FMCG (fast moving wellness products. supplements and cannabis and its by- case in the United States).
consumer goods) - via the Each country or state nutraceuticals containing products (i.e. as a
development of a wide Similar surveys in Europe has a slightly different CBD and other beneficial recreational drug). Canada can expect
range of hemp health are indicating a similar profile in regard to this. cannabinoids. competition, however,
products, including oils, picture as CBD products At the highly proscribed A licence is required from other jurisdictions
capsules, tinctures, teas are widely available end of the continuum Before reviewing the to grow cannabis where relevant legislation
and balms. in large retail chains are countries such as New Zealand situation, commercially, process it is being rapidly
nationwide. (7) Germany and New both in the present and in into finished products, liberalised, in particular
In addition, hemp Zealand, which continue regard to future potential, conduct research on it the United States.
seed and seed oil are The cultivation and to classify cannabis as an it is helpful to look at and sell it for medical
being used as a food development of these illegal substance under the hemp industries in purposes. ISRAEL
supplement, a health hemp health products anti-misuse of drugs some of these overseas As we have seen, Israel has
food product, and an has been facilitated by legislation, but which countries. In what is regarded by been a global leader in
ingredient in cosmetics. legalisation of cannabis permit certain exceptions commentators as an research and development
Also, hemp fibre products for medicinal purposes. to that prohibition. This helps with both extremely important of medicinal cannabis
are becoming very popular As well as a trend towards These include medicinal appreciation of the further stage of and recognition of its
as a textile and as a the easing of regulations cannabis, and the potential for a developed liberalisation, regulations beneficial attributes. As
substitute for fossil fuel which had previously cultivation, processing, hemp industry in came into force in October a result, its medicinal
plastics and construction hampered the production use and consumption New Zealand, and the 2019 for the production of cannabis programme was
materials. and sale of hemp health of hemp seeds and oils regulatory means by edible cannabis, extracts introduced in the early
products, including those containing minimal THC or which that might be and cannabis topicals. 1990’s.
Hemp Industry Daily (12) containing CBD. CBD. achieved. These may contain THC
reports that the USA hemp and/or CBD and other The country has stayed
products market in 2019 Demand Drivers Other jurisdictions such Additionally, it highlights cannabinoids. in the vanguard of
was around US$1.6 billion When considering these as Hawaii and the United those countries which legalisation, permitting
revenue, and dominated developments, it can Kingdom, retain the illegal are sufficiently liberal There is expected to recreational use of
by CBD products be seen that the growth status of psychotropic to have developed be strong demand cannabis from April 2019.
• CBD - US$1.2 billion of the cannabis/hemp cannabis (marijuana), consumer demand for, for these products by
• Seeds and Oil - industry globally can be however they have and understanding of, consumers who were GERMANY
US$200 million attributed to a number of legalised the production hemp health products, previously reluctant to Germany was one of the
• Fibre - US$200 million drivers. and/or importation of and therefore qualify as use or consume cannabis first countries to advocate
(10) hemp health products valuable export markets products. While the for CBD legalisation
These include traditional containing CBD extracts for NZ producers. existing market of legal in Europe, and it has
There has been a strong knowledge in regard and other cannabinoids. cannabis was estimated developed a diverse CBD
consumer interest in to the plant’s efficacy, CANADA (in 2019) as C$5.6 billion, product market, both off
Cannabidiol (CBD) as an present day trends in At the most liberal end are Canada is at the forefront the creation of a consumer and online.
ingredient in a wide range consumer demand for countries such as Canada of the cannabis/hemp market for edibles and
of products. CBD is prized plant based remedies and Israel, and various global industry in regard other alternate cannabis In 2017 the German
for its anti-inflammatory and products, research American States, which to research, investment products is predicted to government amended
and calming effects for based discoveries, and have legalised cannabis and substantial be worth another C$2.5 its Narcotics Law to
humans and also pets. activism around the use containing THC for production. billion per annum. make a clear distinction
of cannabis products for recreational use. between cannabis for
Consumer awareness and the treatment of certain This has been enabled The Deloittes Report, medical and non-medical
market penetration over diseases. Flowing from this has by broad liberalisation of when discussing the use. This resulted in the
the past 4 years has been been the growth of hemp controls of the cannabis Canadian industry’s legalisation of medicinal
extraordinary, led by the This liberalisation, with industries ranging from plant and products competitive advantages, cannabis, with a licensing
USA and Europeans. US the resulting growth in medicinal cannabis, to arising from it. Medicinal cites government support, scheme for production,
surveys indicate that up their respective hemp cannabis edibles and cannabis was legalised access to capital markets and prescription only by
to 25% of consumers industries, has occurred other more consumer in 2001, and in 2018 and the banking system medical practitioners.24 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 25
Cannabis/marijuana through registered hemp based oils are only) which would mean United Kingdom and in THC products for medical
retains its classification as specialist doctors. controlled substances, as that no prescription would some US states. purposes.
an illegal narcotic. is cannabis containing THC be required so long as:
Cultivation and processing for recreational use. The argument for keeping Federally, recreational
In addition, the are permitted through a 1. The CBD is either the products as pharmacist and medicinal use of
amendments exempted licensing scheme. CBD AUSTRALIA plant-derived, or when only, compared to freely cannabis containing THC
(industrial) hemp and CBD oil (less than 0.2% THC) Having legalised synthetic, is subject to over the counter (OTC), remains illegal, as well
from the definition of is permitted to be sold, medicinal cannabis in certain conditions; is that they consider this as transporting cannabis
dangerous substances. in both pharmacies 2016, Australia has seen 2. The maximum to be more appropriate across state borders.
and health stores, as a a growth in supply and recommended dose is as pharmacist advice is
This allowed for nutritional supplement. demand of medicinal 60 mg or less; necessary to mitigate However, there has been
cultivation of hemp with cannabis products. 3. The product is in packs safety risks associated an important change
less than 0.2% THC, and The CBD industry in the This has been limited, containing not more with CBD’s potential for in the federal attitude
products with less than United Kingdom is one however, by the normal than 30 days’ supply; drug-drug interactions to (non-THC) hemp, as
0.2% THC are available of the largest in Europe, prescription/medical 4. CBD comprises 98% when used at the same compared to cannabis.
over the counter. A range based on imported raw doctor framework, due to or more of the total time as many other This change is manifested
of CBD products are also ingredients. As in other the need to train doctors cannabinoid content of commonly prescribed by relevant provisions in
available over the counter; jurisdictions, however, in the medicinal benefits the preparations; drugs. Schedule 3 also the Farm Bill of 2018.
however, edibles are there are issues around of the cannabinoids - 5. Any cannabinoids, requires that Product
excluded from this, due to the seller’s ability to make especially THC and CBD. other than CBD, must Information and Consumer In 2018 the Hemp Farming
their prohibition under the therapeutic claims. be only those naturally Medicine Information is Act removed hemp (with
EU Novel Food Regulation. A Senate Inquiry was found in cannabis and available to reinforce the less than 0.3% THC) from
This regulation requires EU set up in late 2019 to comprise 2% or less of safe use of CBD. (9) Schedule 1 Controlled
businesses to apply In addition to the EU review how the medicinal the total cannabinoid Substances and made it
for a novel food Novel Foods regulation cannabis system in content of the These proposals an ordinary agricultural
authorisation in the referred to above, the EU Australia could be preparation; and are presently being commodity.
European Commission has also set up the Rapid reformed to better serve 6. The product is for considered by the
before they sell CBD Alert System for Food and the public. adults 18 and over. Advisory Committees of Its provisions were
foods. (Designated Feed (RASFF), to facilitate Medical Scheduling and incorporated in the
‘novel’ because there the quick exchange of Most products are The consultation Chemical Scheduling. 2018 US Farm Bill, which
is no evidence of information amongst imported; by June 2019, document relating to this became law at the end of
significant consumption EU member countries the top twenty listed proposal states that “A This initiative in Australia that year.
before 1997). Although on possible health risks cannabis companies in safety review conducted is of particular relevance
authorisation is related to food or animal Australia had a market by the Therapeutic to New Zealand, where Usually the Farm Bills
anticipated, the feeds. This applies to CBD capitalisation of A$1.8 Goods Authority has there is substantial provide important
application process is products on sale in the EU. billion. established that low impetus in the hemp agricultural and nutritional
lengthy. doses of CBD may have industry, to definitively policy extensions for five
DENMARK More relevant to this possible clinical utility remove CBD extracts from years; however cannabis
The sale over the counter Denmark is another report, however, are when used via the oral the Misuse of Drugs Act is not typically part of the
of CBD hemp flowers country which has recent moves in Australia route in the management 1975 (MoDA). discussion around farm
is prohibited because legalised medicinal to liberalise its narcotics of some conditions, that subsidies, nutritional
they are unprocessed. cannabis, prescription- scheduling of CBD to do not require medical UNITED STATES assistance and crop
Hemp flowers containing only from a doctor. make it available over the practitioner oversight”. As of 2019, 22 states insurance. Then, in 2018,
quantities of THC are A small number of counter in limited doses. (8) across the US have it was.
only sold for scientific licences are granted, Under the Australian legalised medical use
purposes or commercial and market supply is Therapeutic Goods Act The proposal advises that cannabis, and a further For decades, federal law
use. mostly dependent on 1989, CBD is listed in the current controls in 11 states have broadened did not differentiate
strategic alliances with Schedule 4 of the Poisons Australia are much more to allow adult-use of hemp from other cannabis
UNITED KINGDOM international companies Standard. The Health restrictive than those for cannabis, for recreational plants, all of which were
Medicinal cannabis for all elements, including Department has proposed comparable regulators in and other uses. in effect made illegal in
products were legalised in research, cultivation and that CBD should be moved other jurisdictions, with An additional 15 states 1937 under the Marihuana
late 2018, with restricted manufacturing. to Schedule 3 of that CBD products available allow the sale of some Tax Act, and formally made
access by prescription However, CBD and other Standard, (pharmacist over the counter in the form of CBD oil, and of low illegal in 1970 under the26 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 27
Controlled Substances Act, In states opting not to a Schedule 1 substance improve the efficiency hemp industry which has price $US0.75/pound
which banned cannabis of devise a hemp regulatory under federal law and of regulatory pathways developed in a very short • US$53 million paid
any kind. programme, the USDA are therefore illegal. for the lawful marketing time. to Kentucky farmers
construct a regulatory (The only exception are of appropriate cannabis for harvested hemp
Federal policy did regime under which hemp pharmaceutical-grade and cannabis-derived Before hemp was banned materials
recognise ‘industrial cultivators in those states, drugs approved by the products”. (13) again after World War 2, • US$194 million in
hemp’ to the extent that apply for licences and FDA). Kentucky was the leading gross product sales
pilot programmes to study comply with a federally- As a result it has been hemp-producing state in • US$207 million in
hemp and market interest run programme. Previously CBD products consulting with the hemp America. capital investments
in hemp-derived products produced by state-legal, industry in the US for over • 1,304 people
were approved by the USA, The effect of the Farm Bill medical or recreational a year, and evaluating the employed
and by state departments has been to dramatically use cannabis jurisdictions regulatory frameworks
of agriculture. This increase the number - were illegal products that apply to certain CBD FUTURE GROWTH
permitted small-scale of US hemp cultivation under federal law, both cannabis-derived products PROSPECTS FOR US
expansion of hemp licences. Moving from within states and across which are intended for
pilot programmes to Farm state lines. Under the non-drug uses. This
INDUSTRY
cultivation, for limited
Estimates for the CBD
purposes. Bill endorsed cultivation Farm Bill, CBD products consultation includes
market in 2024 vary from
has meant an increase in are more broadly whether the FDA might
US$10 - $20 billion, with a
However, the US Farm Bill licences from 3,546 in available, however this consider updating its
compound average growth
is much broader, and is 2018 to 16,877 in 2019. does not mean that all regulations, in what way,
rate (CAGR) from 22%
regarded as “drastically” Similarly, hemp acreage CBD products are legal. and whether legislative
upwards (11)
transforming hemp policy has increased from 78,176 change is appropriate. Mitch McConnell is the
in the US. It allows hemp in 2018 to 230,000 in In addition, state legal Unfortunately for the senator for Kentucky and
(Analysts vary in their
cultivation broadly, not 2019. cannabis (as compared to industry, to date no report an ardent supporter of the
forecasting models due to
just pilot programmes. hemp) programmes are or proposals have come hemp industry. He is also
product definitions, and
It explicitly allows the There is a misperception still illegal under federal from the FDA as to its one of the Senate House
the proliferation of CBD as
transfer of hemp-derived that the Farm Bill law. However, there is position. leaders who influenced
an ingredient.)
products across state lines legalises CBD. While hope among interested the President to sign the
for commercial or other it has removed hemp- parties that reforms to In the meantime, it 2018 Farm Bill.
There are a number of
purposes. In addition, it derived products from its hemp policy under the continues to send warning
reasons for the predicted
controls the sale, transport Schedule 1 status under Farm Bill may serve as a letters to CBD companies The result has been
rapid growth in the United
or possession of hemp- the Controlled Substances first step toward wider which it considers are accelerated economic
States CBD products
derived products, so Act, the legislation does cannabis reform. making unproven health growth for the state. In
sector. These may be
long as those items are not legalise CBD, which claims and/or dealing in a 2019, the statistics from
applicable in other
produced in a manner remains a Schedule 1 The US Food and Drug non-approved medicine. the Kentucky Department
countries (depending on
consistent with the law. substance under federal Administration (FDA) is of Agriculture show a
regulation) and include:
law. an agency that is also thriving industry, with
There is significant,
shared state-federal The Farm Bill creates
obstructing the industry
to some extent. To Kentucky State - 209 licensed growers.
Particularly of interest are
Depth of market
penetration.
regulatory power over
hemp cultivation and
exceptions to that
illegality; it ensures
date, it has approved
only one CBD product, a
a case study the increase in licensed
growers, and the valuable
CBD products in the USA
Kentucky is an interesting have been distributed
production. State that any cannabinoid prescription drug to treat case study, as it shows income from hemp for
through many states in
departments of agriculture that is derived from two rare, and severe forms the scale of growth in the farmers, from hemp
supermarkets, petrol
must consult with the hemp will be legal, if of epilepsy. Its position is the hemp/CBD industry flowers for CBD.
stations, and a range of
state’s governor and chief and only if that hemp is that it is illegal to market of a country or state in large retailers which has
law enforcement officer to produced in a manner CBD by adding it to a food which legislation has been • 209 licensed growers
made them very visible to
devise a plan that must be consistent with the Farm or labelling it as a dietary changed to untether hemp • 43 licensed processors
consumers.
submitted to the Secretary Bill, associated federal supplement. from (illegal) cannabis. • 12,800 outdoor
of USDA. A state’s plan to regulations, associated cultivated acres
The versatility of CBD and
license and regulate hemp state regulations, and by a The FDA states that it is Kentucky is a state with a • Hemp flower
the nature of consumer
can only commence once licensed grower. All other “committed to protecting population of 4.67 million wholesale price
demand mean that it will
the Secretary of USDA cannabinoids, produced in public health while - comparable to New US35.00/pound
grow from inclusion in
approves that state’s plan. any other setting, remain also taking steps to Zealand. It has a large • Hemp Seed wholesale
health products to being28 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 29
such as industry testing, have liberalised marijuana, relatively safe drug.
compliance, and quality but that does not appear
management into the to have deterred them, nor Interestingly, one
hemp industry. has it changed their status commentator’s view was
in regard to membership that “the WHO’s slow-
CONCLUSION as a Convention signatory. moving suggestions may
The global experience be obsolete by the time
of growth in the hemp Even the World Health they are implemented,
sector points to exciting Organisation has recently given that more
opportunities for the recommended to the progressive organizations
New Zealand Industrial United Nations that are so far ahead”. (13)
Hemp Sector, both in the cannabis be reclassified,
domestic market and for by removal from Australia is an interesting
Photo credit: Matt Barton, University of Kentucky Ag Com
our exports. Schedule IV of the Single example of a country
Convention, which is the which is moving ahead
an ingredient in a broader potential widespread use via supermarkets and The process in other most restrictive level with the concept of
range of products aimed of CBD in products makes petrol stations, which countries of liberalisation of the Convention (and down-scheduling low
at the mainstream lifestyle sales growth very hard has increased consumer of laws blocking CBD includes heroin). The dose CBD, a move which
market, including products to forecast accurately. awareness very quickly. extraction and products, recommendation is that has been proposed by
intended for pets. An Analyst forecasts of as discussed above, it should be maintained the Therapeutic Goods
example of CBD products the CBD market vary In the US this has then demonstrates to New under a less restrictive Agency. In proposing
moving into mainstream widely, possibly totalling created a virtuous Zealand legislators and level of control than this course, reference is
is the replacement of US$25 billion by 2024. investment circle of regulators that there Schedule I, which applies expressly made to WHO’s
alcoholic beverages with This wide variation is awareness, demand, are a range of different to “harmful psychoactive recommendation that
CBD-based beverages. explained by different product creation, approaches which will substances” which could CBD should not be placed
market information feeds distribution, access to allow growth to occur. have a medical use (such under international
DECLINE OF and different product capital, and impressive To enable the industrial as morphine). drug control. This is of
CONSUMER TRUST IN definitions. sales growth; thus hemp sector in New particular interest to
sparking more investor Zealand is to allow In regard to CBD, the New Zealand given our
PHARMACEUTICAL
Hemp growers get higher demand, which has spread agricultural growth at an WHO recommends that Trans-Tasman relationship
COMPANIES AND returns from harvesting to the UK and European preparations containing and the harmonisation
exponential rate.
REGULATORS. hemp flowers for CBD. markets. The downside predominantly CBD and of various standards
Trust has been shaken This has resulted in a has been that the lack of History also clearly shows with no more than 0.2% including food standards
by the opioid addiction majority of growers (94% product regulation has that being a signatory to THC should not be placed relationship and the
scandal. This leaves in 2019) planting hemp seen many products of the United Nations Single under international drug harmonisation of various
chronic pain sufferers in cultivars, the flowers of inferior quality enter the Convention on Narcotics control, and that this standards including food
the US, which could be as which are rich in CBD. In market, and this has made 1961 has not hindered should be expressly stated standards.
many as 50 million people, comparison, only 11% of consumers mistrustful. any countries in their in the Single Convention. For the New Zealand
looking for an alternative growers are planting for amendment, re-definition This recommendation is hemp industry, and those
solution. Increasingly the production of fibre, The hemp sector in the or complete removal of based on reviews by the lawmakers who have
these sufferers are very and 10% for seed. US has attracted many the prohibition in that WHO’s Expert Committee the power to remove
attracted to medicines and entrepreneurs from Convention on cannabis on Drug Dependence on the constraints on its
nutraceuticals containing Clearly, the US Hemp other industries, who sativa. At most it has cannabis and cannabis growth, the question that
THC and/or CBD for a non- market was transformed have strong marketing visited a little disapproval related substances is begged by this review
addictive solution to their in 2019 despite concerns skills, and have set up on those countries which (including CBD) - which of the global growth and
problem. from the FDA regulator. manufacturing companies found CBD to be a opportunity in the hemp
To some extent, the in many states. For industry is:
CBD can be added to most market jumped past the example, Global Widget
fast moving consumer regulatory confusion to CBD Corp executives in “If not now then
products which are eaten get the product to the Florida have a background
or applied to the skin.
when?”
customer. CBD products in the car industry,
These include various are widely distributed and have brought
food, beverages, skin to the mass market manufacturing disciplines
balms and cosmetics. This30 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 Investor Report Industrial Hemp Sector New Zealand’s New Export Opportunity 2020 31
whole or in part from has the prerequisite cannabis, and manufacture
industrial hemp, phytosanitary and supply medicinal
including a hemp seed documents; products, which can then
food product) 4. Process and sell hemp only be obtained by
• Hulled hemp seeds and product (e.g. oil made consumers with a doctor’s
• Stalks of industrial from seed), hulled prescription. Quality
hemp (limited to stalks hemp seeds and stalks standards and prescriber
which do not have of industrial hemp; guidelines are covered
leaves or fruit). (under licence) by the regulations, which
5. Import and export also allow the importation
Hemp seed food products hemp products of medicines produced
can be produced from as defined in the overseas.
hemp seeds but must not regulations, including
be produced from any hulled hemp seeds Activities must be carried
other part of the plant, or food containing out in accordance with
including flowers, buds or hulled hemp seeds, a Medical Cannabis
4. hemp food products - in leaves.
The amendment also
without a licence. In
relation to seeds the
importer must make
Licence which is issued
by the controlling body,
the Medicinal Cannabis
new zealand
allows importation and a mandatory customs Agency.
exportation of these same declaration that the
products. hulled seeds are not a A major barrier remains
controlled drug. for the availability of
Hemp seed and oil medicinal cannabis to
products for consumption The 2018 Industrial Hemp those who need it, namely
Regulation must also meet the
requirements of the Food
amendment did not alter
the prohibited status of
the cost of medicines
which typically do not
As previously noted, New use. generally below 0.35% Act 2014, to ensure that foods infused with or qualify for Pharmac
Zealand remains at the and is not above 0.5%. the products are safe to containing cannabinoids subsidies.
proscribed end of the There is also confusion The regulations apply to eat. such as THC or CBD, hemp
cannabis continuum. Like around the status of Cannabis Sativa only. oils other than oil derived In order to facilitate
many countries which products which contain New Zealand industrial from hemp seed, full the amendment
are signatories to the CBD and/or other The Misuse of Drugs hemp growers and hemp spectrum hemp extract allowing for a medicinal
UN Single Convention cannabinoids, but are (Industrial Hemp) companies are allowed to: and other medicinal cannabis scheme, and in
on Narcotics 1961, the neither medicines Regulations 2006 allowed 1. Grow industrial hemp products. anticipation of the fact
cultivation and use of nor considered to be general cultivation, which meets the THC that such medicine was
Cannabis Sativa has been psychotropic. research, and plant maximum levels under Medicinal amendment likely to contain not just
illegal in New Zealand for breeding to be carried out the 2006 regulation An important step, THC but also CBD, a new
decades. MODA REGULATIONS under a licence from the (under licence); and recognition of the definition was inserted
2006 AND Ministry of Health. It has 2. Procure non- therapeutic benefits of into the MoDA.
Specifically, it is a been a highly regulated approved cultivars for the cannabis plant, was
AMENDMENT 2018 cultivation, breeding a further amendment to In summary, the definition
specified substance under system.
A slight softening in
Schedule 2 and 3 of the and research purposes the MODA, the Misuse states that ‘CBD Product’
regulations was seen
Misuse of Drugs Act 1975 The 2006 regulation was only, under licence. of Drugs Act (Medicinal means a product that
in 2006 under the
(MoDA). subsequently amended 3. Import (but not sell) Cannabis) Amendment contains cannabidiol and
MoDA, which exempted
by the Misuse of Drugs whole hemp seeds Act 2018. This allows for either does not contain a
“Industrial Hemp”
Also similarly to other (Industrial Hemp) (not hulled/viable) the use of cannabis for specified substance under
from the ban. These
signatories, New Zealand Amendment Regulations under licence and with medicinal purposes. the MoDA or contains
regulations defined hemp
legislators have slowly 2018. These extended mandatory customs specified substances that
as “cannabis plant, seed
drawn back from that permission to possess, declaration indicating Subsequent regulations are no more than 2% of
or fruit”, and “industrial
position, although there is use, and trade in: that the importer has in 2019, allow a New the cannabinoid content
hemp” as hemp in the
still a ban on recreational • Hemp products (a a permit to import a Zealand-based industry in the product.
form of plants with
cannabis cultivation and product derived in controlled drug, and that can cultivate
a THC content that isYou can also read
