Learn Legal Regulations for Growing Medicinal Marijuana in New Zealand
If you’re considering cultivating medicinal marijuana, you’ll encounter a range of regulations. Let’s explore the key information you need to understand and navigate the requirements for growing medicinal marijuana in New Zealand.
If you’re seeking to learn about the regulations surrounding growing medical marijuana in New Zealand, GrowerIQ’s cannabis production software can be your best ally.
Medical Cannabis Legalization in New Zealand
In New Zealand, the legality of cannabis is controlled under the Misuse of Drugs Act 1975. As of the most recent updates, recreational cannabis remains illegal in the country. Possession, cultivation, and distribution of cannabis for non-medical purposes are prohibited and can result in criminal charges.
Regulations for Medical Cannabis Cultivation and Prescription in New Zealand
Medical cannabis 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, but a license is required before cultivation or production occurs.
Legal Status of CBD Products and Industrial Hemp in New Zealand
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. Industrial hemp is also allowed in New Zealand as long as it contains less than 0.35% THC and is produced by a licensed producer under the Misuse of Drugs (Industrial Hemp) Regulations of 2006.
Penalties and Legal Consequences for Cannabis Possession and Cultivation
New Zealand’s cannabis drug scheduling states that possession of non-prescribed cannabis is illegal and carries a maximum jail sentence of 3 months or a $500 fine. Possessing 28 grams or more may also result in penalties for intention to supply.
In terms of personal cultivation, growing marijuana plants without a cultivation license is illegal and can result in a 7-year jail term on indictment or an immediate 2-year jail term and/or a $2,000 fine, depending on the amount of cannabis being cultivated.
Accessing Medicinal Cannabis in New Zealand
To access medicinal cannabis in New Zealand, there aren’t any government-mandated medical cannabis licenses. People can only access medicinal cannabis products through a prescription from a doctor.
A medicinal cannabis prescription usually states the kind of medicinal cannabis product(s) and the amount that the patient can obtain. Some companies offer ‘Medicinal Cannabis Cards’ to patients after a consultation with their in-house doctors.
Medical Marijuana Regulation in New Zealand
Medical marijuana regulation in New Zealand is very complex. GMP (Good Manufacturing Practice) regulations apply to all activities that occur after harvest, and producers must have validated processes based on a formal GMP risk assessment. If you plan on starting a cannabis business in New Zealand, it is advantageous to work with a team that is experienced in pharmaceutical regulation.
Essential Quality Systems and Documentation for Cannabis Businesses
Cannabis businesses must create a quality system that governs all activities within the venture. A security plan, a site master file, and an equipment master file are also necessary. The New Zealand Medicinal Cannabis Agency oversees all licensing and audits.
Features of GrowerIQ for Compliance and Quality Management
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
Uncomplicate Your Hemp Production.
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How To Get A Licence To Produce Medicinal Cannabis In New Zealand
Cannabis is a powerful plant with incredible medicinal properties. As the legalization of cannabis for medical purposes gains momentum worldwide, it’s crucial to understand the licensing process to produce medicinal cannabis in New Zealand.
Applying for a Licence
Before you can embark on the journey of cultivating cannabis for medicinal use in New Zealand, you must obtain a medicinal cannabis license from the Medicinal Cannabis Agency. This license is mandatory for all activities related to the cultivation, research, and supply of cannabis for medical purposes. To apply:
- You must have the necessary resources
- Expertise
- Be familiar with the regulations
Cultivation
If you plan to cultivate cannabis for medicinal purposes, you must obtain a cultivation activity license. This license allows you to grow cannabis for use in medicinal cannabis products and to:
- Supply seeds
- Plants
- Plant material should be sent to other cultivators or appropriate medicinal cannabis license holders
Seed Supply
A seed supply activity license is required if you intend to operate only as a seed merchant. This license restricts you from cultivating or supplying cannabis plants or plant material.
Research
To supply or administer medicinal cannabis products for research purposes, you must hold a research activity license. This license allows you to conduct clinical trials on humans and import starting material for your research.
Possession for Manufacture
If you plan to process dried cannabis, extract cannabis-based ingredients, or manufacture medicinal cannabis products, you must have a possession for manufacture activity license. This license is essential for developing manufacturing methods, performing laboratory testing, and engaging in product development of medicinal cannabis products.
Supply
A supply activity license is required if you intend to supply or export starting material, cannabis-based ingredients, or medicinal cannabis products. This license is essential for commercial operations such as retail sales or exportation of medicinal cannabis products.
Eligibility and Application Process
To be eligible for a medicinal cannabis license in New Zealand, you must meet specific requirements, including 18 years or older, residing in New Zealand, and having the expertise to comply with the regulations. You must also pass background checks and demonstrate that you have not been convicted of relevant offenses.
Location Inspections
Before a license is issued, all locations listed in the application must be inspected to ensure compliance with security regulations. Inspections are critical to assessing the suitability of facilities for cultivating medicinal cannabis.
Importance of Compliance and Regulation in Cannabis Production
Securing a medicinal cannabis license in New Zealand is a detailed process that involves multiple steps. Each step is essential to ensure that cannabis is produced and supplied for medicinal purposes in a safe and regulated manner by:
- Understanding the licensing process
- You can navigate the complexities of the cannabis industry
- Contribute to the vibrant landscape of medicinal cannabis in New Zealand
New Zealand’s Cannabis Recordkeeping Requirements
The recordkeeping requirements in New Zealand are extensive, and you must adhere to GMP regulations. Even if you are only growing cannabis flowers, you will need to keep meticulous records and start adhering to GMP regulations in the drying stage, when risks to product safety and quality begin.
While some countries delay implementing GMP until after the buds are dried and cured, New Zealand is much more strict and requires its cannabis cultivators to behave like pharmaceutical producers. This requires having:
- Defined manufacturing batch number system
- Developed specifications for the raw materials, finished product, and primary packaging components
- Established the manufacturing process and written standard operating procedures
- Established the control points and critical parameters for the process
- Finalized batch manufacturing and packing records
- Amount/quantity of plants cultivates
- Amounts/quantities of mother plants, seeds, and clones (and failed plants/seeds)
- Plant destruction records
- Sales and distribution records
- Cannabis inventory
- Seed-to-sale tracking
Challenges of Using Paper Records in Cannabis Cultivation
New Zealand does allow the use of paper records, but due to the strict regulations, paper records are likely to become a liability. Their loss of destruction could result in major productivity losses.
Key Features to Look for in Cannabis Seed-to-Sale and Quality Management Software
The solution is software capable of tracking and logging seed-to-sale cultivation activities. Numerical data such as plant weight, as well as the handling of high-level quality management functions like CAPA and deviation reporting, record retention, and quality control inspections, also need to be retained. GrowerIQ’s seed-to-sale and quality management software can help you with all your cannabis-related operations, including compliance.
Growing Conditions And Regions
Cannabis is globally distributed, with regional-specific cultivars performing well in their regions of origin. New Zealand’s hemp is more suited to temperate climates with reasonable rainfalls. The further from the equator, the better, as cannabis is light/day length sensitive. In drier regions like:
- Canterbury
- Tasman
- Hawkes Bay
Where marijuana is suitable for growing, irrigation is likely necessary. Cannabis is also sensitive to soil compaction and waterlogged soil conditions. With these considerations, New Zealand’s growing conditions for medicinal marijuana present a unique set of challenges and opportunities.
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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 oil
- 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.
Rise of Medical Cannabis Usage in New Zealand
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.
Market Projections and Growth Trends for Cannabis in New Zealand
This trend is expected to continue as more research highlights cannabis’s therapeutic properties. 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.
Largest New Zealand Cannabis Cultivators
- Hikurangi Cannabis
- Helius Therapeutics
- Cannasouth
- Puro New Zealand
These are some of the most prominent names in the New Zealand cannabis cultivation industry. These companies have made significant strides in the medicinal cannabis market and established themselves as key players in the field.
Hikurangi Cannabis
Hikurangi Cannabis is a social enterprise founded by a group of Māori people on the East Coast of New Zealand in 2015. The company has grown significantly over the years and now boasts a team of over 22 employees. Hikurangi Cannabis made headlines after raising an impressive $2.4 million in a crowd-funding campaign, showcasing the strong support and interest in its operations.
Helius Therapeutics
Successful businessmen, including Paul Manning, JP Schmidt, and Gavin Pook, founded Helius Therapeutics. The trio initially funded the business themselves before securing a substantial investment of $15 million from local investors.
This financial backing allowed Helius Therapeutics to establish two cannabis cultivation and production sites in Auckland. Their commitment to the medicinal cannabis space, even amidst potential recreational market opportunities in the future, speaks volumes about their dedication to the cause.
Cannasouth
Cannasouth, founded by Mark Lucas and Nic Foreman, has an extensive background in industrial hemp cultivation and research dating back to 2002. As pioneers in the field, they were among the first to secure cultivation licenses in New Zealand. The company has grown steadily through two funding rounds and eventually went public after listing on the New Zealand Stock Exchange. With a market capitalization of $62.18 NCD as of November 2023, Cannasouth continues to make significant strides in the industry.
Puro New Zealand
Puro New Zealand entered the scene in 2018 and quickly raised funds to kickstart its operations by the end of 2019. The company commenced construction on its first growing sites at Kēkerengū (outdoor growing site) and Waihopai Valley (indoor growing site).
Puro New Zealand prides itself on being the largest cultivator of medical cannabis in New Zealand based on the square footage of its facility. The company has established New Zealand’s largest medical cannabis drying facility, further solidifying its position in the market.
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