According to the Tasmanian Farmers and Graziers Association (TFGA), today’s announcement that poppy processor TPI Enterprises (TPI) will relocate its manufacturing base to Victoria has taken Tasmanian poppy growers by surprise.

Over the last 40 years, the poppy industry in Tasmania has grown steadily from 900 hectares in 1972, to a peak of 32,000 ha in 2012.

Poppies are now an integral part of diversified cropping enterprises for approximately 1000 Tasmanian farmers. Tasmania is considered the world’s most efficient producer of poppies, with the state producing 50% of the world’s legal poppy crop from only 10% of the cropping area. The industry generates around $90 million pa at the farm gate.

TFGA CEO, Jan Davis, said that it was disappointing to see hectares lost to the poppy industry and skilled workers leaving the state.

“However, TPI is the smallest of the three processors contracting farmers to grow poppies in Tasmania and they had already initiated moves to expand production onto the mainland. It is therefore unlikely that this decision will have significant effect on the overall size of the industry,” Ms Davis said.

“Importantly, though, this decision should not be allowed to compromise the status of the industry in Tasmania; or to undermine our reputation as safe and reliable producers of opium poppies,” she added.

Ms Davis pointed out that our reputation has been built off some of the most stringent regulations in the world. Yet regulators in other states have agreed to lower safety standards.

“More and more, policy decisions and regulatory requirements are putting our agricultural sector at a disadvantage with our mainland colleagues, let alone with competitors in lower cost environments.

“There seems to be a mindset in some parts of the state government that it must set the highest regulatory standards anywhere in the world, regardless of the science and regardless the impact on farm businesses. This is unsustainable.

“If agriculture in Tasmania is to continue to be one of key economic drivers of the state’s economy, farmers must at least be able to compete on a level playing field with other Australian producers,” Ms Davis said.
TFGA chief executive Jan Davis