Changes to hemp seed regulation came into effect on Monday, opening doors to increasing domestic and international markets.
Andrew Davidson, director of Midlands Nutritional Oils and its partner company Midlands Seed, based in Ashburton, said the legalising of hemp seed as food in New Zealand was exciting for the company and for local grower suppliers.
Hemp seed was edible, nutritious and did not have psychoactive properties.
Midlands Nutritional Oils and Midlands Seed were among the first companies in New Zealand to be granted a licence to grow hemp in 2001 and food laws for hemp were under review then, Mr Davidson said.
''A lot of time and resource has gone into the regulatory side of things since then and it's great that finally ... it's real.''
Midlands, as a specialty seed production company, focused on seed production for food, but had established processing facilities for hemp seed oil and hemp seed meal (a co-product that previously could be sold only for animal nutrition in New Zealand).
The law change meant they could now take protein out of that co-product to sell for human nutrition.
Instead of just 25% of the raw material having value with oil), the change added extra value to the other 75%.
''The fact that we can now sell the hemp seed meal for human food is obviously very positive and gives us more confidence to invest in further infrastructure for the crop.''
Midlands were the first to grow and process hemp seed into oil for retail sale and became the first New Zealand company to produce hemp seed protein, and hulled hemp seed.
The decision could open opportunities for growers and hemp could become a staple, stable product.
However, there were still market forces to manage, especially with other international production locations such as Australia, China, Canada, and Europe.
Mr Davidson said it was important to keep value in New Zealand hemp products, which would create demand.
''If we can do that both on the retail shelves in New Zealand and abroad, then the opportunity for greater local areas in hemp will come to fruition.''
While the announcement came too late for the 2018-19 planting season, it meant next season there would be more confidence in the size of the market.
Industry members had worked together to get to this point but now it was likely new players would enter the market.
It would lead to the creation of jobs in the arable sector and food processing industry jobs.
''It's wide open. It's a complete unknown as to how big the New Zealand market is ... certainly leading into next season's planting we will be more aware, as we will have historical data in terms of sales.
''It's a great product. We believe the more people involved, the greater confidence the consumer will have in the product.
''We need to work together as an industry to make New Zealand hemp products the best in the world.''
