Learn how to apply for a license and stay compliant with regulations of New Zealand
Curious about cannabis in New Zealand? Whether you’re a budding entrepreneur looking to cash in on the growing trend or a medicinal user seeking the legalities, there’s a tapestry of information to uncover. This blog will explore cannabis in New Zealand, offering insight into everything from the legal landscape to its medicinal applications.
Looking to understand the distinction of cannabis in New Zealand? GrowerIQ’s cannabis production software offers valuable insights that can help you achieve your goals. Whether you’re exploring information on cannabis laws in New Zealand or are interested in its medicinal use, this tool is designed to support your journey.
Cannabis Landscape In New Zealand
Cannabis in New Zealand is a widely used substance, often referred to as:
- Weed
- Pot
- Grass
- Mull
- Chronic
- Dak
- Hash
- Smoke
- Buds
- Skunk
- Cabbage
The substance comes in three main forms:
- Marijuana
- Hashish
- Hash oil,
Marijuana is the most common form, made up of dried leaves. Despite its commonality, cannabis remains illegal in New Zealand. The penalties for possession can be quite severe, with fines reaching up to $500NZD, even for mere possession of a marijuana cigarette (joint).
The Legality Of Cannabis In New Zealand
In New Zealand, the legality of cannabis is regulated under the Misuse of Drugs Act 1975. As of recent updates, cannabis remains illegal for recreational use. Possession, cultivation, and distribution of cannabis for non-medical purposes are prohibited and can result in criminal charges.
Legal Status of Medical Cannabis
Medical cannabis, on the other hand, is legal but strictly regulated. Patients can access medical cannabis through a prescription from a registered medical practitioner, and it must be obtained from approved sources. Cultivation for medical purposes is also allowed. You must first obtain a license before you can cultivate or produce legal cannabis.
Legal Status of CBD and Sativex
Cannabidiol (CBD) products that meet the legal definition of containing less than 2% of trace THC are the only products doctors can prescribe without government approval, except in rare medical cases. The government has also approved Sativex, but it must be ordered overseas.
Legal Status of Industrial Hemp
According to the Misuse of Drugs (Industrial Hemp) Regulations of 2006, industrial hemp is also allowed in New Zealand as long as it has less than 0.35% THC and is produced by a licensed producer.
Uncomplicate Your Hemp Production
GrowerIQ provides cannabis growers with a comprehensive solution for:
- Managing their cultivation operations
- Ensuring compliance
- Optimizing quality
- Enhancing efficiency throughout the seed-to-sale process
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New Zealand’s Failed Cannabis Referendum
In 2020, New Zealanders voted on whether to legalize cannabis for recreational use. The 2020 cannabis referendum narrowly failed, with 50.7% of New Zealanders voting against proposed legislation for the legalization of recreational cannabis and 48.4% voting in favor. 0.9% of votes needed to be clarified or completed.
This means recreational cannabis remains illegal, although The Misuse of Drugs Act affirms that discretion should be used when deciding whether to press charges, taking a health-centered approach. Medicinal cannabis remains legal.
About New Zealand’s Medicinal Cannabis Scheme
The Medicinal Cannabis Scheme in New Zealand was established to improve patients’ access to quality medicinal cannabis products. The scheme was initiated on 1 April 2020 with the commencement of the Misuse of Drugs (Medicinal Cannabis) Regulations 2019.
Patient Access and Product Quality in the Medicinal Cannabis Scheme
Under this scheme, only patients with a doctor’s prescription are legally allowed to access medicinal cannabis products. For a manufacturer or importer of these products to supply within New Zealand, they must provide evidence to the Medicinal Cannabis Agency that their products consistently meet the minimum quality standards.
For those interested in working within the medicinal cannabis industry in New Zealand, it is mandatory to hold a medicinal cannabis license or be employed by an individual or company that holds a license. This license will dictate the specific activities that the holder is authorized to carry out, such as:
- The commercial cultivation of cannabis
- The manufacture and supply of medicinal cannabis products
How To Get A Licence To Produce Medicinal Cannabis In New Zealand
Activities related to the cultivation, seed supply, research, possession for manufacture or supply of medicinal cannabis products must be carried out by a medicinal cannabis license issued by the Medicinal Cannabis Agency under the Misuse of Drugs (Medicinal Cannabis) Regulations 2019
The license will specify the types of activity that can be carried out by the license holder and the people working under their authority. A license holder may need more than one activity specified to cover the full scope of their business operations.
The specified activities are discussed below:
1. Medicinal Cannabis Agency – Cultivation
A cultivation activity is required to:
- Cultivate cannabis for use in a medicinal cannabis product
- Cultivate and supply seeds, plants, or materials to another cultivator or appropriate medicinal cannabis license holder.
2. Medicinal Cannabis Agency – Seed Supply
A seed supply activity may be appropriate if you intend to act solely as a seed merchant. It does not allow the cultivation or supply of cannabis plants or plant material.
3. Medicinal Cannabis Agency – Research
You must hold a license with a research activity if you intend to supply or administer a medicinal cannabis product that is not a CBD product to a person who is a research subject in a clinical trial or study. Under section 30 of the Medicines Act 1981:
- You will also need approval to conduct human clinical trials
- You may not supply or administer medicinal cannabis products to a person who has a medical condition but is not a research subject
You may also import starting material, cannabis-based ingredients or medicinal cannabis products under the ‘research’ activity, provided these form part of your clinical trial. You will also need to apply for a license to import a controlled drug for each consignment.
Note: Products intended to be administered to humans in a clinical trial must be manufactured to Good Manufacturing Practice in a facility licensed to manufacture medicines.
4. Medicinal Cannabis Agency – Possession for Manufacture
You will need a possession for manufacture activity specified on your license if you intend to process dried cannabis, extract a cannabis-based ingredient, manufacture a medicinal cannabis product, develop manufacturing or test methods, perform laboratory testing, or engage in product development of medicinal cannabis products.
5. Medicinal Cannabis Agency – Supply
You will need a supply activity specified on your licence if you intend to supply or export starting material, cannabis-based ingredients, or medicinal cannabis products (except for testing, analysis, or research).
Applying for a License
Before you apply for a medicinal cannabis license in New Zealand, it is crucial to have a suitable location secured since activities associated with the license are linked to specific locations. The Medicinal Cannabis Agency will carry out inspections to ensure that adequate security arrangements are in place at each location listed in the application.
Once the application’s desktop assessment is complete, you will need to arrange an inspection. The Medical Cannabis Agency cannot issue a license until all necessary inspections have been conducted satisfactorily.
Other Licenses and Fees
Depending on your business’s nature, you may need to hold additional permits in addition to the medicinal cannabis license. For example, you may require a license to manufacture medicines under the Medicines Act 1981 or export controlled drugs for individual consignments of starting material or medicinal cannabis products. Fees for these licenses are separate from the fees for a medicinal cannabis license.
Eligibility to Apply for a License
Individual Licensing Requirements
- Individuals applying for a license must be 18 or older and live in New Zealand.
- They must have the expertise and resources to comply with the obligations imposed by the Misuse of Drugs (Medicinal Cannabis) Regulations 2019.
- They also should not have had a license revoked under the Misuse of Drugs Act 1975 or any regulations made under that Act.
Entity Licensing Requirements
- Entities (body corporate or partnership) applying for a license must have directors or partners who are 18 years or older and reside in New Zealand.
- In the case of a partnership, all partners must live in New Zealand, and the corporate body must be incorporated in New Zealand.
- Directors/partners must not have had a license revoked under the Misuse of Drugs Act 1975, among other conditions.
- It must nominate one or more individuals as responsible persons authorized to control the activity or activities for which the license is sought and communicate with the Medicinal Cannabis Agency on behalf of the entity. A responsible person must be 18 years or older, live in New Zealand, have the expertise and resources to comply with the obligations, and meet other conditions.
New Zealand’s Cannabis Regulatory Overhaul
The recent overhaul of the medicinal cannabis regulatory framework in New Zealand is a significant development for the country’s cannabis industry. These changes are aimed at facilitating easier export of cannabis products, allowing domestic producers to achieve better economies of scale and lower the price of treatment for patients in New Zealand. The changes will:
- Enable the export of cannabis seed
- Starting material
- Cannabis-based ingredients
- Medicinal cannabis products for testing, analysis, and research
The changes remove the requirement that consignments of starting material meet the minimum quality standard before export and that cannabis-based ingredients meet minimum requirements if manufactured to GMP standards. This regulatory overhaul is set to create new opportunities for growth in the cannabis industry in New Zealand and foster innovation and research in the medical cannabis sector.
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New Zealand’s Cannabis Market Potential
Amidst changing regulations and evolving consumer attitudes, the Cannabis market in New Zealand is experiencing significant growth and transformation. Customers in New Zealand are increasingly seeking out a wider variety of Cannabis products, including:
- CBD oils
- Edibles
- Topicals
This shift in preferences is driven by the Medical Cannabis Scheme, a growing awareness of the potential health benefits of Cannabis products, and a desire for more convenient consumption methods.
The Growing Popularity of Medical Cannabis
One notable trend in the Cannabis market in New Zealand is the rise of medical Cannabis usage. With the legalization of medical Cannabis, more patients are turning to Cannabis products to manage various health conditions. This trend is expected to continue as more research highlights the therapeutic properties of Cannabis.
The Projected Growth of New Zealand’s Cannabis Market
According to Statista, New Zealand’s Cannabis market is projected to reach US$36.14m in 2024. The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 0.77%, resulting in a market volume of US$37.56m by 2029. New Zealand’s Cannabis market is experiencing a surge in investment opportunities as regulations evolve, paving the way for increased market participation.
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Uncomplicate Your Cannabis Production Today With GrowerIQ!
GrowerIQ was designed to address the unique challenges that cannabis growers face daily. Cultivation operations in the cannabis industry are complex, involving various regulatory compliance requirements and documentation standards. GrowerIQ offers a software solution to simplify the production process and enhance efficiency.
Seed-to-Sale Tracking for Compliance
The software provides a range of functionalities to assist cannabis growers in managing their cultivation operations. For instance, it offers seed-to-sale tracking, which is essential for staying compliant with the cannabis industry’s strict regulatory standards. This feature enables growers to keep track of their products throughout the entire production process, ensuring that they meet all legal requirements.
Quality Management for Cannabis Cultivation
Quality management is another critical aspect of cannabis cultivation. The quality of cannabis products can vary based on factors such as:
- Growing conditions
- Genetics
- Processing methods
GrowerIQ helps growers optimize their quality standards by providing tools to monitor and control the cultivation process effectively.
Cultivation Planning and Optimization
Cultivation planning is essential for maximizing efficiency and yield. With GrowerIQ, cannabis growers can effectively plan their cultivation operations, taking into account factors such as space, resources, and timing. This helps optimize the production process and ensures that growers can effectively meet the market’s demands.
GrowerIQ: A Comprehensive Solution for Cannabis Growers
GrowerIQ is a valuable software solution for cannabis growers looking to:
- Streamline their cultivation operations
- Ensure compliance with regulatory standards
- Optimize product quality
- Enhance overall efficiency throughout the seed-to-sale process
About GrowerIQ
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