Arowhenua Investment Drives Expansion of Mid Canterbury Hemp Industry

A significant partnership between local iwi and the agribusiness sector is set to revitalise New Zealand’s natural fibre industry. Te Rūnanga o Arowhenua has joined as a local investor in an Ashburton-based hemp processing facility, providing crucial support for the expansion of Rubisco, formerly known as New Zealand Natural Fibres. The move comes as backers work to raise $12 million for the next stage of the project, following a year where overseas investment failed to materialise. Speaking at the Seed and Grain New Zealand conference in Christchurch on Wednesday, 11 September, Carr Group managing director Craig Carr described the iwi investment as a positive turning point. According to Carr, the involvement of Arowhenua provides the “patient” capital required to move beyond commodity production and toward high-value sectors such as textiles, acoustic materials, and biocomposites. Since 2018, the joint venture involving Carrfields and Hemp NZ has focused on building a complete supply chain from seed to production within Mid Canterbury. A spokesperson for Te Rūnanga o Arowhenua stated that the investment is a long-term strategic commitment designed to align economic development with kaitiakitanga. By capturing more value from natural fibres onshore, the iwi aims to build regional manufacturing capability and ensure benefits are shared across the supply chain. This approach focuses on traceability and provenance, moving away from traditional models where raw materials were typically processed offshore. Beyond the factory walls, the partnership is already yielding practical results on the land. The Arowhenua Native Nursery and Restoration is currently using wool and hemp mats, and plans are underway for a hemp cultivation trial in South Canterbury in collaboration with Rubisco. By combining agriculture with innovative manufacturing, the project seeks to establish a sustainable pathway for future generations in the materials industry.