Skip to main content

Tag: New Zealand

New Zealand Approves Sale Of Domestic Cannabis Products

The island nation has relied on exports to treat patients so far. Allowing the dispensation of domestically cultivated cannabis will help the nascent industry grow and lower overall costs

Last week, New Zealand officials approved the beginning of the domestically sourced medical cannabis market. The Department of Health began allowing local producers to supply patients as of September 9. This has, of course, created new opportunities for domestic companies which have already established themselves in hopes of exporting to other countries.

Under the 2020 New Zealand Medical Cannabis Legalization Act, licensed doctors can prescribe cannabis to any patient and for any medical condition. However up until now, all of this had to be imported – mostly from Australia and Canada.

Two medicines have already been approved for local dispensation.

The first New Zealand cannabis company to achieve global GMP standards only happened last year.

A Shorter Supply Chain (and Lower Costs)

Unlike Germany, which only has three producers and, thanks to the highly stringent language of the first medical cultivation bid, imports the vast majority of the same, most of the medical cannabis in the New Zealand market will begin to be sourced domestically. It is unclear whether legalization of recreational cannabis will change that. In the meantime, Germany has been one of the top targets of New Zealand producers so far, as has South America.

That said, given the aftermath of Covid, with its disrupted supply chains, not to mention the much higher costs of energy, New Zealand’s decision may be replicated elsewhere – including countries in Europe.

Will a Switch to Domestic Supply Move Reform Forward?

It is highly likely, in addition to lowering costs – and expanding domestic patient numbers, that the decision to source domestically will also drive the “other” cannabis discussion forward too. This has been the case in many other places as medical use expanded. Indeed, in Germany, public support for recreational cannabis reform has increased steadily for the past five years since full medical reform became reality.

In 2020, the recreational discussion was narrowly defeated in New Zealand, when it was put up for a referendum vote during the last national election by 51-48%.

However, with more patients, and greater awareness of the efficacy of medical cannabis at home, attitudes are likely to continue to shift in support of full legalization.

Patients and their advocates are obviously ecstatic about the victory, which has, like everywhere else, been a long time in coming.

Domestic Cannabis Is Finally Coming To New Zealand

New Zealand nearly became the third country to pass an adult-use cannabis legalization measure back in 2020. The referendum measure failed by just over 2% of the vote. Had the referendum succeeded, New Zealand would have become the first country on earth to pass a national cannabis legalization measure at the ballot box versus via legislative action. Unfortunately, it proved to be a missed opportunity.

New Zealand was already home to a medical cannabis program, however, the program was very limited. While that will still largely be the case, there’s at least one component of the country’s medical cannabis program that is going to see improvement in the near future.

Government officials in New Zealand have finally granted permission for domestic medical cannabis cultivation. Per Newshub:

The Ministry of Health has just approved homegrown and manufactured medicines – so Kiwis no longer have to rely on imported medicinal cannabis.

This green gold has been given the green light by health officials to be turned into medicine for Kiwis patients.

“It’s something the whole industry has been working towards,” Helius Therapeutics CEO Carmen Doran said.

New Zealand is currently home to roughly three dozen medical cannabis companies, however, they are all operating on an import/export model. Allowing domestic cultivation will likely prove to be a gamechanger for the nation’s emerging cannabis industry.

Cannabis imports and exports will always play a role in the emerging cannabis industry, and should not be avoided entirely. With that being said, no country’s medical cannabis program will never reach its full potential without allowing some form of domestic cultivation.

New Zealand’s Cannabis Eradication Operation Is A Complete Waste Of Money

New Zealand came very close to becoming just the third country to legalize cannabis for adult use, and if it had done so, would have become the first to legalize cannabis via a citizen vote.

Uruguay was the first to legalize cannabis the better part of a decade ago now, and Canada became the second country to legalize cannabis for adult use nearly 4 years ago. Both countries legalized cannabis via legislative action.

In New Zealand, where activists have worked very hard for many years, voters got to weigh in on a cannabis referendum measure back in 2020. Unfortunately, the measure was narrowly defeated by a vote of 51.47% to 48.53%.

As we now know, the failed vote in New Zealand paved the way for a different country, Malta, to eventually become the third country to legalize cannabis for adult use.

So where does cannabis reform stand in New Zealand roughly 1.5 years after the failed cannabis legalization vote? Two top lawmakers in New Zealand recently published a rare dual op-ed (for Stuff).

The op-ed provided a ‘for’ argument in support of cannabis reform by Arena Williams (Te Aitanga-a-Māhaki, Ngāi Tahu, Ngāi Tūhoe), Labour MP for the Auckland electorate of Manurewa, and an ‘against’ argument in support of continued prohibition by Stuart Smith, National MP for the South Island electorate of Kaikōura.

The first paragraph, copied and pasted below, really summed up how ineffective prohibition is in New Zealand:

Senior police say the annual cannabis eradication operation, costing $700,000, a year, does nothing to reduce the supply or raise the price of marijuana on the street and distracts from targeting gangs, guns and meth.

The ‘core operating budget‘ for New Zealand’s current fiscal year is in the billions, so from that perspective, $700,000 is not a lot. However, it’s still a huge waste of money, as apparently pointed out by ‘senior police.’ So what is the point?

From my perspective, the country’s cannabis eradication program is nothing more than symbolic, presumably meant to serve as something for prohibitionists to point to as ‘proof’ that the country is fighting the unregulated cannabis industry.

How many school books does $700,000 buy? Meals for children? That money could be better spent on virtually any other public need.

In his portion of the op-ed, MP Smith seems to argue that cannabis prohibition should be the law of the land forever, that the public voted, and the result is final. That is unfortunate and does not actually reflect reality.

Yes, voters in New Zealand defeated the measure that was put before them in 2020. However, it’s just one general form of legalization, and with just a few policy tweaks it’s likely that more people would support it.

Prohibition is a failed public policy and is tremendously harmful to society. That is true in New Zealand, and everywhere else that prohibition exists. Rather than cling to prohibition, all lawmakers in New Zealand need to get on the rights side of history and pass reforms that make sense for the country.

Australia And New Zealand Renew Commitment To Medical Cannabis

The APAC region of the world continues to develop its medical cannabis industry – but no word yet about further reform

Australia and New Zealand may well be “down under” but they are continuing to develop their medical cannabis sectors.

In Australia, the British study and trial Project Twenty21 has announced that they are expanding to the country. Project Twenty21 was launched in 2019 in the UK. The goal was to establish a national body of evidence about the efficacy of cannabis and provide patients with cannabinoid medicines at a discount. The additional cost was underwritten by licensed producers who agreed to participate. Patients had to agree that their medical data could be collected by the organization managing the effort – Drug Science.

The plan originally was to enrol 20,000 patients by the end of 2021, but so far, only 2,000 patients have joined the study. The project has been extended in the UK until the end of this year. In the meantime, the project will unroll in Australia. Releaf Clinics will be the local partner organization. Study participants will have to complete annual questionnaires and attend the participating clinics. Current users of cannabis will be excluded from the trial, which is expected to enrol about 1,000 patients.

Just a skip and a hop across the Tasman Sea, New Zealand has also just announced that it is committed to its existing cannabis scheme. The health minister Andrew Little has reiterated that the government remains dedicated to its new Medicinal Cannabis Scheme, addressing critics who have said the program is too stringent. Little said that the country will source its cannabis via firms who comply with GMP standards even though critics have said this standard creates a cost barrier for patients that is often prohibitive.

How Will This Development Impact the Global Industry?

Both Australia and New Zealand are continuing to establish their presence on the international cannabis scene even while developing their own national markets. Australia has begun importing cannabis from other countries even as some of its producers are also finding their way to Europe. New Zealand has its sights set clearly on establishing a European market for its cannabis exports. Firms are already scouring the landscape for partners.

However, the continued expansion of both two country’s medical markets and additional demand (and supply) of medicinal cannabis will do several things. It will create two more viable medical markets and will contribute to the now continued downward pressure on the price.

Many cannabis patients are not able to participate in legal programs simply because the cost of the drug is still too expensive.

Be sure to attend the International Cannabis Business Conference events in Europe in 2022, including Barcelona, Berlin, and Zurich!

Medical Cannabis Tea Is Now Legal In New Zealand

New Zealand was very close to becoming the third country to legalize cannabis for adult use back in 2020. Voters in New Zealand narrowly rejected a legalization referendum measure in 2020, with the measure losing by less than 2 percentage points.

The title of ‘third country to legalize’ ultimately went to Malta, which passed a legalization measure late last year. The failed vote in New Zealand was a missed opportunity to be sure, however, cannabis reform is still moving forward in other ways.

Medical cannabis was already legal in New Zealand prior to the failed referendum vote, and recently medical cannabis flower was permitted for limited use. Per excerpts from an article first published by Newshub:

The cannabis buds from Australian pharmaceutical company ANTG have approval from the Ministry of Health to be prescribed to patients with chronic pain, but only in the form of a tea.

“This is a great day for New Zealand, just across the Tasman they’ve had dried flowers available to be prescribed by doctors for at least two to three years – we’ve been waiting a long time for this,” Green Doctors co-founder Mark Hotu says.

While this cannabis flower contains less than one percent THC, others due on the market later in the year will contain much more.

It is always perplexing why lawmakers and regulators around the globe seem to be so scared of cannabis flower. A number of jurisdictions that permit medical cannabis products simultaneously continue to ban sales of dried flower.

The reasoning offered up for such flower bans always seems to hinge on lawmakers and regulators wanting to deter patients from combusting and inhaling cannabis flower.

What that reasoning fails to account for is that some patients benefit more from smoking and/or vaporizing inhaled flower compared to ingesting cannabis via a pill or tincture or other delivery methods. It also doesn’t account for the fact that patients will still seek out unregulated flower if it’s not available legally, and the end result of the ban is simply that patients will be consuming less-safe medicine.

Suffering patients deserve to have unimpeded, safe access to any and all forms of cannabis that help treat their condition. It’s the logical and compassionate approach that every country needs to pursue via every reasonable means necessary, including in New Zealand.

New Zealand’s Justice Minister: No Plans To Decriminalize Cannabis

Cannabis reform supporters across the globe had huge hopes in 2020 that New Zealand would legalize cannabis for adult use via a measure that was placed on the ballot by lawmakers.

Only two countries had legalized cannabis for adult use prior to the 2020 election in New Zealand (Uruguay and Canada), and with legalization stalling in Mexico, New Zealand was poised to become the third country to legalize.

Unfortunately, voters in New Zealand struck down the legalization measure, and cannabis prohibition remained in place. It was a lost opportunity for sure, but still a significant milestone with voters at least getting a chance to weigh in.

With legalization off the table in New Zealand for now, the focus amongst some activists shifted to decriminalizing cannabis, which does not seem to have the support of New Zealand’s government.

No Government Plans For Decriminalization

The bad news is that New Zealand’s Justice Minister Kris Faafoi made it clear that the government has no current plans to decriminalize cannabis right now.

However, the good news is that the Justice Minister also stated that his party would not oppose MPs voting for a decriminalization measure if it was part of a legislative measure.

With all of that being said, it’s not likely that a decriminalization measure will be introduced any time soon. It’s unlikely that a Labour Party member will introduce a bill because the party has made it clear that its position is ‘to respect the vote’ from 2020.

It is also unlikely that a Green Party member will introduce a decriminalization measure because the party clearly wants full legalization to happen as soon as possible, which is why it pushed the 2020 legalization measure.

Support For Decriminalization Is Significant

A poll was recently conducted by Labour Party pollster UMR for the Helen Clark Foundation. The poll found that 49% of respondents supported adult-use cannabis legalization, which is similar to other polls released prior to the 2020 legalization vote.

While 49% is obviously not a majority, let alone a super-majority, when the support for legalization is combined with decriminalization the number jumps to 69%.

A cannabis decriminalization referendum is not politically viable from a political will standpoint for whatever reason, however, a decriminalization measure is clearly popular among constituents and that’s something that lawmakers in New Zealand need to take note of.

Legalization will always be better than decriminalization, but decriminalization will always be better than criminalization. Currently possessing a personal amount of cannabis carries a potential fine of $500 and up to 3 months in jail in New Zealand.

A Missed Opportunity In New Zealand

2020 is an election year in various countries across the globe, including in New Zealand. This year’s election in New Zealand was of particular interest to cannabis observers due to the fact that there was a cannabis legalization measure on the ballot.

Only two countries have legalized cannabis for adult use so far, Uruguay and Canada, and both of them legalized via the legislative process versus letting voters decide the issue directly.

The vote, which was referred to voters by New Zealand lawmakers, was originally scheduled to occur in September, however, due to a spike in Covid cases the election was postponed until October 17th.

In New Zealand, the results for referendum measures take longer to release to the public versus results for candidate races. With that in mind, cannabis enthusiasts had to wait a couple of weeks before learning the outcome of the vote in New Zealand.

Unfortunately, when the results were finally released they were not favorable. Per The New York Times:

New Zealand will join a small number of countries that have legalized euthanasia after its citizens voted overwhelmingly in favor of it in a referendum this month.

A second question on the ballot during the Oct. 17 general election — on legalizing recreational marijuana use — was set to fail, according to preliminary results released on Friday.

Proponents of the cannabis measure expressed frustration with Prime Minister Jacinda Ardern, who had declined to take a position on legalization before the election and revealed only on Friday that she had voted in support of it.

Cannabis activists across the globe were hopeful that New Zealand would become the third country to legalize cannabis for adult use, but that will apparently have to wait. It’s unclear if/when New Zealand will try to vote on legalization again.

The focus of the international cannabis community will now likely move back to Mexico, where lawmakers are working to pass a legalization measure before the end of the year to fully implement a previous Supreme Court decision which ruled that Mexico’s cannabis prohibition policy was unconstitutional.

New Zealand Cannabis Legalization Campaign Wins The Twitter Battle

New Zealand could become the third country to legalize cannabis for adult use. Currently, cannabis is legal for adult use in Uruguay and Canada, and New Zealand could join that list if voters approve a legalization measure this month.

Election Day is technically on October 17th in New Zealand, although early voting is already underway. The election was originally scheduled for last month but was delayed due to a coronavirus outbreak.

Only time will tell if the measure ultimately passes, however, a study was recently conducted that sheds some light on the level of support for the measure, at least on social media.

Twitter is an extremely popular social media platform that is often harnessed for political purposes. Whether it’s by an official campaign or just a single voter, many New Zealand-focus tweets have involved the legalization measure.

A coalition of researchers based in Australia, the United States, and New Zealand examined Twitter data to gauge the level of support and opposition for New Zealand’s cannabis legalization measure.

Specifically, the researchers “conducted a sentiment analysis of all historic cannabis‐related tweets and referendum‐specific tweets written in New Zealand.”

The researchers didn’t just look at the data in recent months. They went all the way back to July 2009 and identified 304,760 tweets about cannabis legalization and New Zealand.

“Overall, the tweets were predominantly positive (62.0%) and there was a higher proportion of positive tweets written in 2020 (65.3%) compared to negative or neutral tweets. Similarly, for referendum‐specific tweets, the 2020 data reveal a generally positive view of cannabis (53.5%).” researchers concluded.

Twitter is obviously not the same as the ballot box.

For the sake of those that were harmed by cannabis prohibition in New Zealand, and countless others that are at risk of prosecution because of their cannabis use, hopefully voters approve the measure and get New Zealand on the right side of history.

The world will find out soon enough!

Yes, I Inhaled – New Zealand’s PM Admits Smoking Cannabis In Election Debate

The topic of recreational cannabis reform is absolutely atop the country’s election debate as New Zealand stares down its own national elections on October 17. Originally scheduled to take place on September 19 but delayed because of COVID, the vote for rec reform is not expected to be successful.

The majority of New Zealanders do want to see more medical reform, and the topic is likely to be a big issue going forward, particularly, if as expected, the recreational reform campaign fails at the ballot box. The country, like many others, is now beginning to quantify and structure its medical industry. That said, a full-boat “Canadian” if not U.S. state style cannabiz appears to be just a bit too forward for the Kiwis this year. And if it fails, the topic is also likely to get booted down the political pike for several years, at least.

The topic of recreational reform, however, is still enough of a political bug bear that defending Prime Minister Jacinda Ardern was forced to admit recreational use “a long time ago” in her most recent televised debate against her opponent. She has so far refused to say how she will vote on recreational reform herself.

Is Recreational Taking A Breather?

Canna history is likely to show that 2020 was clearly a transitional year for the entire industry, globally, but recreational was far from the top of the agenda just about anywhere.

There are reasons for this apart from bureaucratic decisions that are still far removed from science.

The UN is likely to reset the entire debate about the plant itself as of the end of the year – no matter what it decides.

From that point on, other countries (see Luxembourg) are likely to take the ball forward, but only against a medical discussion that first and foremost recognizes the plant and its extracts as at minimum a kind of superfood if not wonder drug.

2021 is likely to see a restart of the discussion across Europe, particularly given what has happened here so far, particularly with a greater interest in hemp and extracts as a way forward to wellness, beyond a visit to the doctor.

For the latest on industry trends be sure to attend the International Cannabis Business Conference when it returns to Europe next year.