Medicinal cannabis patients recently toured the Southern Medicinal plant in Mataura, Southland, which aims to reduce the cost of the treatment  by 90%.

The group was hopeful the Mataura-based cannabis production facility would be able to reduce the cost of treatment. Many faced huge prescription costs, while others were forced to turn to the black market to access medicinal cannabis.

Cohen Brown said he spent between $300 and $400 a month on medicinal cannabis to relieve the pain from a genetic condition where tumours grow on his nerves and nerve endings.

"I do have to stretch it out of course, and not only that, I've been resorting to putting stuff on credit. My medication - medicinal cannabis - on credit through the pharmacy because I just can't afford it any other way," he told Radio New Zealand.

"It will make a huge difference for me. Not only me but thousands of patients across New Zealand.”

Southern Medicinal executive director Greg Marshall said price was the biggest barrier for people who want to use medicinal cannabis. 

The company was seeking approval from Medsafe for a clinical trial.

Once up and running, Southern Medicinal would be able to reduce the market price by 90%, which would also undercut the black market price, he said.

“Patients across the country depend on access to medicinal cannabis and are forced to spend thousands of dollars a year. We see ourselves as disruptors to the industry because we’re able to produce large quantities for far less than they are currently on the market for – and we can do that by producing right here in Southland,” Marshall said.

Southern Medicinal has been converting the historic Mataura paper mill into a state-of-the-art medicinal cannabis and hemp growing, testing and processing facility. The 45,000 square-metre facility had its own hydro plant and space to add two more turbines meaning it could produce its own power, supporting its low-cost model.  

Marshall said the business’ low overheads and Southland’s great climate for growing meant it could produce at one-tenth the cost of other producers.

“Last year we had 10,000 plants in the ground, but this coming year we’ll have 50,000.”

The company was waiting for the green light from Medsafe to begin supplying to the New Zealand market, with a plan to start planting in October.