Suggestions at the inaugural ihemp summit that the Government might move hemp control from the Ministry of Health to the Ministry for Primary Industries is also exciting for the industry, NZ Hemp Association vice-chairman Richard Barge said.
The big opportunities for cropping farmers to reap their share of a lucrative global hemp seed market are in relation to health and sustainability.
Not only is there a need to grow hemp but processes need to be established to create products.
“We have the people geared to create the solutions and improvements for growing and processing our annual crop into a wide range of exportable products and technology in food, fibre and medicine,” Barge said.
But before those opportunities can be realised the law need to change because growing the crop for hemp oil is the only legal commercial activity.
Food authorities are working on changing regulations under the Food Act, Misuse of Drugs Act and the Medicines Act to allow hemp seed to be sold as food.
Barge said hemp seed has a growing global market 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.
“But we do need (the) Government to enable the industry and we believe we are getting close, as close as the end of this year.
“While unfortunately that will be too late now for this 2018-19 season it will open the doors in time for the 2019-2020 season,” Barge said.
What really got the food people excited at the summit was the presentation by Dr Stewart Jessamine from the Ministry of Health.
“He almost did a 180-degree turn in becoming supportive of enabling the industry saying there’s very positive things coming out of the Government.”
Agriculture Minister Damien O’Connor warned Labour’s coalition partner NZ First is wary and does not want to see any encouragement of drug abuse but Health Minister David Clark is open to transferring responsibility for hemp to the MPI.
Barge said hemp leaves can be used as a vegetable, as a mop-crop on dairy farms to soak up excess nutrients then be fed to livestock, the fibre can be used in clothing and furnishings and even concrete can be made from the fibre.
O’Connor suggested the challenge for hemp enthusiasts is in using hemp to make high-value products rather than fibre because NZ already grows a lot of wool and wood fibre.
Hemp was first trialled in Mid Canterbury in 2001 and for the past 17 years Canterbury cropping farmers have been using it as just another crop in their rotation.
Barge said at $4000 a hectare it is not to be sniffed at because it also has advantages over cereal crops in that it’s a short duration crop, about 90 days, while autumn-sown cereal crops can be in the ground for 10 months.
Hemp can also be sown in spring.
Canterbury-based Midlands Seeds has long seen a prosperous export market for NZ-grown hemp seed and has been cultivating its own lines for several years with growers keen to pick up on growing the crop albeit, until a law change, for the oil only.
Retired horticulture scientist Dr Mike Nichols told the sold out Summit of 250 people NZ risks losing out on a profitable industry in the same way it turned down the chance to grow poppies for legal codeine and morphine.
Instead Tasmania now supplies 40% of the world’s legal codeine and morphine, earning more than $200 million a year for the state.
Barge said the ihemp Summit was a huge success with everyone from food, fibre and medicine networking for a common cause and realistic about the problems facing the industry in NZ and worldwide.
Planning is under way for a science and technology focused follow-up to be held at Massey University early next year.
