Critics of New Zealand’s natural health product policies have long lamented restrictions on dietary supplements in making therapeutic claims, as stated in the Dietary Supplements Regulations 1985.
Hoggard’s announcement on Sept. 23 said that new proposals have been introduced to allow New Zealand’s dietary supplements exporters to make therapeutic claims in line with the requirements of importing countries.
Exporters will also be exempt from New Zealand’s compositional requirements for food additives and maximum daily dose of vitamins and minerals.
Currently, New Zealand’s dietary supplement exporters have to comply with both New Zealand’s labelling and composition rules, on top of those of the importing countries. This is the case even if the products are not intended for sale in New Zealand.
Hoggard, in his proposal to improve the Dietary Supplements Regulations 1985, explained that the current regulatory regime, which restricts product composition and prohibits therapeutic claims, does not allow New Zealand exports the flexibility to compete in export markets, resulting in “lost commercial opportunities.”
“The changes would prevent unnecessary double-up by requiring exporters to only meet the rules of the importing country,” said Hoggard. “It’s a common-sense change strongly supported by industry and would help to level the playing field for a rapidly growing industry, without compromising on consumer safety.”
If implemented, dietary supplements meeting only the regulations of importing countries cannot be sold in New Zealand.
Commenting on the proposal, industry association Natural Health Products NZ (NHPNZ) Government Affairs Director Samantha Gray welcomed the move, highlighting that exporters can tap into opportunities in fast-growing markets, since it would allow businesses to tailor export-only products to international rules and market-driven demands.
“This will be a game changer for our industry,” said Gray. “Without a doubt, this will free up exporters from decades of red tape, saving time and money. It means New Zealand businesses-ranging from innovative start-ups and SMEs to large enterprises-can better tap into fast-growing markets across Asia, the Middle East, North America and Europe.”
NZ$500m in additional export opportunities
The reforms are projected to unlock up to NZ$500m (US$283.5m) a year in additional export opportunities, according to NHPNZ. The industry is currently worth about NZ$2.3bn (US$1.3bn) annually.
The trade association highlighted a series of engagements with the government in the lead-up to Hoggard’s proposal.
One of them was demonstrating to Trade Minister Todd McClay how New Zealand’s brands have been excluded from Chemist Warehouse’s Dubai expansion because export exemptions were unavailable. Chemist Warehouse has opened four outlets in the UAE so far, with the latest located in Abu Dhabi Mall.
It also developed a global market analysis comparing the natural health products sector with key trading partners and New Zealand’s wine and honey industries.
“This work has helped position the sector as a growth opportunity and strengthened our engagement with the Ministry of Primary Industries (MPI) on its growth strategy,” NHPNZ said in its response to Hoggard’s proposal.
A first step, not the finish line
While being optimistic about the proposal, Gray said it was still crucial that the regulations were implemented effectively, without further delay.
She explained that after all, exporters would require a clear, workable pathway across the full range of dietary supplements to reap the benefits of the proposed regulatory change.
“A lack of regulatory reform over many years has left us lagging behind international trading partners,” she said. “The fact that our sector has grown to its current scale is a credit to the people backing it. We will continue pushing the government for further, fast-paced reform to accelerate growth for this rising star of New Zealand’s value-added economy.”
