New Zealand aims to boost its hemp industry with a new standard at 1% THC

New Zealand has approved a hemp regulatory overhaul that removes licensing requirements and raises the THC threshold to 1%.

A relaxation of regulation after years of industry pressure

As part of the new system, growers will no longer need a license to grow or handle industrial hemp, provided that the crop remains below the new ceiling 1% of THC. On the other hand, they will need to inform the police and the Ministry of Primary Industries before planting. All existing food safety rules and medical marijuana remain unchanged.

M. Seymour stated that these reforms would correct a mismatch between regulation and real-world risks: «The current system treats low-THC hemp like a high-risk drug. That's absurd when this crop has long been used for food, oil, fiber, and health products.»

This decision follows a regulatory review launched earlier this year, prompted by numerous industry comments and submissions to the ministry responsible for regulation.

For years, proponents of this cause have argued that the industrial hemp, Used worldwide for food, textiles, construction, and cosmetics, has been hampered by policies designed for high-risk narcotics rather than agricultural products.

Economic justification for reform

According to government projections, removing administrative obstacles and aligning oversight with actual risk could generate a net present value benefit of approximately NZ$7.5 million over the next decade. As production increases and compliance costs decrease, benefits could reach NZ$41 million over a 20-year period.

transition to THC limit of 11% by weight should also make hemp cultivation more resilient. Many countries still apply the historical limit of 0.31%, a figure from an academic classification the 1970s rather than a scientific risk assessment of poisoning.

Below this threshold, crops may unintentionally exceed the limit—becoming «hot»—due to normal variations in genetics, climate, or harvest timing.

A higher THC limit significantly reduces the risk of crop destruction while clearly distinguishing the hemp from «cannabis drug». As Mr. Seymour pointed out, the updated framework reflects a more balanced approach: «If the Regulatory Standards Act had been in effect at the time these rules were drafted, the disproportionate costs would have been evident from the outset.»

Protection and monitoring measures remain in place

Despite major regulatory simplification, the government maintains strict controls on certain parts of the plant. The flowers and the leaves can only be provided to producers of medical marijuana approved, under strict conditions, to ensure that psychoactive substances remain in a controlled environment.

Oversight responsibilities will continue to be shared among existing agencies, including the Ministry of Health, which will lead the implementation of the new regulatory framework in coordination with the Office of the Parliamentary Counsel.

CBD remains legal but strictly regulated in New Zealand, where it is considered a prescription medicine rather than an over-the-counter wellness product. This helps maintain consistency with the country's conservative approach to cannabinoid-based health products.