Sally Murphy, Reporter

Prescriptions for medicinal cannabis continue to climb - but the local industry and farmers are yet to see the benefits.

Data from Te Whatu Ora shows since medicinal cannabis was legalised in 2020, prescriptions have grown from about a thousand a month to over 8000 a month.

In December 2020 there were 1118 prescriptions, and in June this year there were 8217.

Southern Medicinal has converted the old Mataura paper mill into a medicinal cannabis and hemp growing, testing and processing facility.

But founder Greg Marshall said they could not actually sell anything yet.

"We peaked operating and growing at nine different sites, right now we are operating three, the reason we put sites into hibernation is because the rules in New Zealand are very difficult to navigate.

"Even though there's massive growth in demand, we can't access the market until the rules are changed."

Marshall said at the moment the requirement is that from the moment the cannabis plant is cut down, everything that happens has to happen inside a pharmaceutical process, something that is not required in other countries.

Medical cannabis was legalised in 2020. Photo: Supplied/ Southern Medicinal

"It meants that means we have to put in place pharmaceutical processes which drive up costs for no benefit."

He said there is a company in New Zealand growing and selling medicinal cannabis products but many others are standing by, waiting for change.

"The New Zealand medicinal cannabis industry is in utter duress, and many businesses are close to going under."

Marshall said Te Whatu Ora has proposed amendments to the Medicinal Cannabis Scheme - but everyone is waiting for the new government to look at them.

"New Zealand is ideally positioned to produce the highest quality, most affordable product in the world and I think it's a massive opportunity for the country.

"If we could get up and running properly we'd support 500 hectares of growing and could provide a new business line for a 100 to a 150 different farms."

This story was originally published by RNZ