NSW to cash in on alkaloid poppy industry

Yesterday Primary Industries Minister Niall Blair introduced the Poppy Industry Bill 2016, which would enable Australian alkaloid poppy production to extend into NSW.

Mr Blair said Tasmania’s $100 million poppy industry produced half of the world’s alkaloid poppies, which pharmaceutical companies use to produce medical-grade compounds for medicines.

Small amounts of poppies are also grown legally in Northern Territory and Victoria.

Mr Blair said there was no good reason NSW shouldn’t be cashing in too. 

“We’ve got the right growing conditions, the biggest, best and most innovative farming sector in the country – all we needed was the legislative changes to allow poppies to be grown in NSW, and that’s what this Bill will achieve,” Mr Blair said. 

Mr Blair said the legislation would come with safeguards and a stringent regulatory regime, with fit and proper process, controls and balances are enforced.

Alkaloid poppies would only be grown by licensed growers with a contract to a licensed processor.

All products would be stringently tracked through the supply chain.

With the removal of the legislative barrier to growing alkaloid poppies in NSW, the NSW Department of Primary Industries said it would work with processors and farmers to help kick start this new industry.

NSW Farmers’ President Derek Schoen said the move would provide a niche, high-valued market opportunity for growers able to meet the necessary safeguards.

“This move recognises that a safe and stable jurisdiction like NSW is able to safely contribute to the world’s growing need for alkaloid poppy based pharmaceutical medicines,” Mr Schoen said.

Once commenced, NSW growers who meet the licensing requirements and have established supply contracts with licensed processors will be able to participate in the poppy industry.

Tasmania had a monopoly on Australia's poppy production until 2014 when poppy company TPI Enterprises relocated to Victoria. 

At its peak 30,000ha of poppies were planted in a season in Tasmania, contributing $290 million to the state’s economy. 

That figure is closer to 10,000ha now after a three-year decline due to oversupply, falling demand, and more productive crops. 

In June the Northern Territory government gave TPI permission to plant a commercial crop near Katherine. TPI harvested a 100-hectare crop in the state last year.

South Australia is also tipped to legalise poppy production soon. 

TPI Enterprises chief executive Jarrod Ritchie said the expansion of the industry to mainland Australia would ensure the country remains a global leader in the supply of pain relief medicines.