Wednesday, April 24, 2024

Hemp farmers are ready to plant

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Cropping farmers could be reaping their share of a lucrative global hemp seed market as early as next season.
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The Australia and New Zealand Ministerial Forum on Food Regulation approved a recommendation in April 2017 by Food Standards Australia NZ to allow the sale of low tetrahydrocannabinol (THC) hemp seed for food products for human consumption.

But there were still some legislation changes required to allow the growing of hemp for food products.

Now the Government is amending the Food Regulations and Misuse of Drugs (industrial hemp) Regulations and the grain and seed industry is optimistic farmers could be planting hemp crops this spring.

The Ministry for Primary Industries and the Ministry of Health last week opened public consultation on amending regulations to allow the sale and use of the seeds.

MPI food safety head Bryan Wilson said an increasing number of overseas regulators are allowing hemp seed to be used in foods, given it is highly nutritious with omega 3, 6 and 9 fatty acids. 

Hemp is a plant that contains extremely low levels of THC with the seeds containing only trace amounts, meaning they are safe to eat.

Only hemp seed oil can be sold in NZ and initial conversations with food businesses have shown there is wide support to broaden the range of foods that can be made from hemp seeds.

“The hemp industry believes that the production of hemp seed foods will stimulate regional economies, create jobs and generate $10-20 million of export revenue within three to five years,” Wilson sa

The prospect is exciting news for cropping farmers, Grain and Seed Trade Association general manager Thomas Chin said.

“There are exciting opportunities in potential economic contribution to NZ agriculture,” Chin said. 

“Hemp seed for human consumption is an important new cropping option for farmers that will create new export opportunities and generate new employment.”

It gives farmers an alternative high-value broadacre annual or rotation crop option and will boost investment in the infrastructure needed for the harvest, processing, storage and distribution of hemp seed.

The global market for hemp seeds is worth about $1 billion and its legalisation could eventually generate up to $20m in exports.

That could translate into as much as 2000 hectares of crop potentially generating a return to farmers of $4500 to $5500 a hectare in the medium to long term. 

Chin said the NZ climate and soils favour industrial hemp seed production and NZ has the added advantage of world-leading agronomic research and cropping expertise in other seed crops such as ryegrass and clover.

Many other places including Europe, Canada and the United States already permit hemp seed in a range of foods.

“Depending on getting Cabinet approval for the new regulations farmers will hopefully be planting the crop this coming spring in order to bring in the harvest in February next year,” Chin said. 

“Hopefully, this next sowing season opportunity will not be missed as it will put NZ further behind Australia as a competing producer and supplier of hemp seed.

“Hemp seed as a crop can play an important part in future crop rotations with returns equal to or greater than existing break crop options.” 

Public consultation on the regulation changes is open until June 20. 

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