Photo Source: Tree of Life Seeds
The New Zealand government is considering a new certification scheme for the natural health sector, aimed at aligning more closely with international standards. Officials are reviewing options to simplify the process while maintaining product safety.
These changes could unlock up to $500 million in additional export revenue, which has been hampered by lengthy certification processes.
Natural Health Products New Zealand (NHP NZ) is advocating to secure regulatory changes that could help local businesses access new global markets.
Samantha Gray, the organisation’s government affairs director, confirmed with BusinessDesk that recent discussions with government officials have been constructive.
Regulatory Barriers and Economic Potential
For years, New Zealand’s natural health sector has grappled with international certification barriers, limiting its export potential. These regulatory hurdles have hurt the growth of small and medium-sized businesses and cost the industry millions in lost revenue.
A 2019 NHPNZ Industry Survey found that 74% of New Zealand’s natural health products (NHP) companies are exporters, but face significant challenges due to complex government regulations.
Industry experts believe that easing certification requirements could boost exports by 30% over the next five years. According to the Nutra Ingredients Asia article, The health products sector is seen as a key area for economic growth, and reducing regulatory barriers could help New Zealand capitalise on growing global demand for natural health products.
Government’s Role and the Path Forward
While the changes could streamline certification and help local exporters, a final decision on the reforms may take up to a year.
The challenge for the government is balancing the needs of industry with public health and safety concerns. A simplified certification process could reduce red tape and speed up product approvals, helping New Zealand companies compete more effectively in regulated international markets.
However, officials are cautious about ensuring that any changes meet the stringent standards of key markets like Europe and North America.