NZ HEMP EXPORT DRIVEN INVESTOR SNAPSHOT Snapshot | Page 16

16 Investor Report Industrial Hemp Sector New Zealand ’ s New Export Opportunity 2020

• The NZ industrial hemp industry is a commercial startup which , despite cultivation and research activity since 2006 , has in fact only been able to really develop commercially since the Industrial Hemp Regulations were amended at the end of 2018 . Even in that short time a substantial industry has built up particularly around hemp seeds and oil , along with an increasing consumer awareness of the health benefits of hemp food and other products .

• Fibre ( bast and hurd ) is available and used for animal bedding but will be able to develop further when the first decortication plant is built later this year . The industries which have shown interest in substituting hemp fibre for less sustainable raw materials include Road building and Supermarket packaging . Kiwi university researchers are actively pursuing several innovations with commercialisation options .

• The lesson from Wine and Kiwifruit among other high value food industries is that substantial industry growth will only be achieved through an aggressive export strategy , and hemp can respond to this challenge . Some hemp seed companies are already beginning to export .

• The hemp industry has much to learn about ‘ discerning consumer markets ‘ from the wine , honey , kiwifruit , and the natural health products exporters , which have implemented successful high value export strategies utilising the powerful New Zealand country ‘ brand story ’.

WINE $ 2.5bil 2020

HEMP $ 2.0bil 2030