Poppy profit slide a threat, says industry

FALLING returns are the biggest threat facing Tasmania’s poppy industry the state’s peak grower body has warned.

Poppy Growers Tasmania acting president Glynn Williams said unless returns started improving many farmers may choose not to grow the crop.

“It’s my opinion that in real terms poppy returns are going backwards,” Mr Williams said.

“So, for the long-term reliable supply, the price issue has to be addressed or people will lose interest.”

The comments follow negotiations between PGT and the state’s two major poppy companies SunPharma and Tasmanian Alkaloids.

Both companies will be planting more crops this season, meaning an overall area expansion of about 50-70 per cent on last year.

SunPharma is expected to grow 6000-7000ha and Tasmanian Alkaloids 50006000ha.

Mr Williams welcomed the area increase but said potential falls in crop returns this year were a significant issue.

Tasmanian Alkaloids will drop prices by 12 per cent across all its varieties.

“That is a big cut,” Mr Williams said. “You’ve got to do very well now in poppies and have a wonderful crop to get good returns.”

Mr Williams said the situation with SunPharma, however, was more complicated.

This year the company will apply plant growth regulators to all of its crops, which will reduce the crop seed content and overall weights.

Mr Williams said while some of this may be offset by increases in assay levels, the lighter weights could significantly impact on returns in some crops.

He is urging all growers to be very cautious and look carefully at the different crop varieties being offered before signing any contracts this year.

A global oversupply of opioid drugs and tightening of supply laws in the globe’s biggest market, the United States, has been blamed for price and area cuts in recent years.

Mr William said that made this year’s area increases by both companies confusing.

“There is a possibility that when growers sit down and do the sums, with returns continuing to decrease, they might decide to grow less risky crops,” he said.