"The New Zealand cannabis market remains small but is growing confidently, with increasing prescription numbers, new products, improved acceptance of cannabis medicines and new individuals and businesses entering with enthusiasm. While it is still a nascent industry, the trajectory is positive," says Tom Forrest, Co-Founder of Puro. The medical cannabis company is noticing the positive results of the changes made to the export regulations. "Our sales pipeline has increased almost fivefold compared to previous years, as we've found new export opportunities." On top of that, the company has recently received an investment from Te Rūnanga o Kaikōura, allowing Puro to expand production and explore a contract growing model.
New export opportunities
Last year, changes to New Zealand's Medicinal Cannabis Scheme were announced. "The changes in our export regulations have been extremely positive," Tom says. "We've successfully launched our flower products into Australia including Kākāriki Koha (a Maori term meaning Green Gift) and achieved more revenues. We've realized new export opportunities, with new product formats and a faster path to market. Alongside Puro, we've seen other Kiwi producers bringing Aotearoa New Zealand products to worldwide markets. For example, Helius is now distributing our certified organic cannabis, formulated into GMP-made medicines, into Australia."
Tom says that Puro's sales pipeline has increased about fivefold compared to previous years, as they've found new export opportunities. "Firstly into Australia, and now further abroad with partnerships into the UK and EU medical cannabis industries."
Investment
The good news doesn't end there. Puro recently announced an investment from Te Rūnanga o Kaikōura. "This iwi group (Māori tribe) has been a strong supporter of our journey to date, and their capital investment signifies a stronger partnership and relationship," Tom says. "We share common values of Kaitiaki, guardians of our land, as we promote sustainable agriculture. This includes environmental sustainability, alongside sustainability of our whānau (our family). We all share a common goal of promoting and expanding cannabis agriculture as a method of providing local healthy industry and jobs."
Tom adds that it is an opportune moment to invest into Puro, especially given the considerable ongoing $13 million funding grant from the New Zealand government. "The iwi investment not only supports Puro's growth but also emphasises our commitment to values and partnerships that enhance education, employment, and improved land use outcomes for local Maori."
The investment from Te Rūnanga o Kaikōura will enable Puro to expand its production capabilities and explore a contract growing model, allowing for the use of iwi land for cultivation. "We have received council consents to expand both protected cropping (greenhouse or glasshouse) and have over 100 hectares of farmland ready for planting and will be working with Te Rūnanga o Kaikōura to further expand production on iwi land via a contract growing model. We are planning to expand as our customer demand dictates. We grow with specific customer needs, the product type, moisture or specific particle size, and packaging requirements. Our expansion will be driven as our product demand determines," he says.
Tom adds that their existing customers have increased their orders every year, and new products are receiving incredibly positive reviews. "This positive feedback gives us confidence to expand, at a healthy and sustainable rate."
The contract growing model allows the company to expand into new regions with their own microclimate and unique agronomic attributes. "New Zealand has incredible farming prowess, beautiful farmland and strong ancillary industries. So we are able to expand the New Zealand production, provide jobs for our local Iwi and provide beautiful organic Kiwi cannabis to the world."
For more information:
Puro
www.puro.co.nz