OTAGO LIKELY TO BENEFIT IF HEMP TRIAL PAYS OFF

After plugging away for more than a decade to set up a hemp industry in New
Zealand, former Otago fisherman-farmer Mac McIntosh has been given the
green light.

While the Government has only given approval for hemp trials, it is
estimated up to 60ha could be planted out this season if enough seed can be
obtained.

Mr McIntosh said seed would be obtained from Hungary and Canada. Trials
would be in Canterbury and north of Wellington, and would be controlled by
Crop and Food Research. Hemp was a temperate climate crop and if the
returns were worthwhile was certain to be grown in Otago and Southland.

Harvesting a plant that grew up to 3m tall was one of the important
features of the trials and a member of the New Zealand Hemp Industry
Association (NZHIA) was going to Canada where hemp had been grown since the
mid-1990s.

He said another feature would be returns from the crop, which could be
processed into a wide range of products from dietary supplements, skin-care
products, linen-like fabrics and floor covering. It was one of the world's
most versatile natural fibres.

The returns from hemp crops depended on the variety and volumes produced.
Returns also depended on whether the crop was grown for both seed and
fibre. Returns were estimated to be about $2000 a hectare after growing and
harvesting costs. If seed and fibre were extracted, returns could be up to
$4000 a hectare.

Processors already importing hemp fibre and seed oil indicated they would
take New Zealand product. Their requirements alone would take about 500ha
of the crop.

He emphasised it was 40 years since hemp was last grown as an industrial
crop and there was a lot of speculation on yields and returns. More than a
million dollars was spent on importing hemp into New Zealand each year. It
was a crop that could be used domestically or exported into niche markets
overseas.

In time, it was hoped plant breeders would develop a hemp variety specially
suited to New Zealand conditions. This would reduce reliance on offshore
seed stocks.

Mr McIntosh said his interest began 12 years ago. He had just left the
fishing industry and ventured into farming, which was struggling. Looking
for an alternative crop he read an article on hemp. Cannabis was another
variety of hemp.

The article was written by a Tasmanian trying to persuade authorities of
the benefits from a hemp industry. Unfortunately, it was taking time to get
people past cannabis and focused on hemp.

"I still had a few dollars left from the sale of my fishing operation and
set out to discover more about the industry. I visited Australia and Europe
and by the mid-1990s started a lobby group. It attracted some interesting
people."

The Labour Party gave its support and then the Alliance.

He said about four years ago he shifted from Owaka to Wellington to promote
the industry.