POPPY processor Tasmanian Alkaloids will reduce its planting area by 20 per cent for the upcoming season.
The company plans to contract 11,500-12,000 hectares of the cash crop this year – down 3500ha from 2013-14 – in a move which field operations manager Rick Rockliff said was a response to market conditions that included reduced demand for opioid pain drugs in the United States.
The Obama Government's National Drug Control Strategy 2013 took aim at the country's prescription drug abuse pandemic by expanding prescription drug monitoring programs and making it more difficult to get repeat prescriptions for stronger pain-relieving drugs.
Poppy Growers Tasmania president Glynn Williams said the strategy had had a significant impact on use of the product in that country, which would see State-wide planting areas drop to their lowest level in four years.
TPI Enterprises chief executive Jarrod Ritchie said the US Drug Enforcement Agency's (DEA) decision to cut back its international thebaine quota for this year by 10pc would not have the same impact on TPI as on other poppy processors.
Thebaine is used to make Oxycodone – a prescription drug to relieve moderate to severe pain – but TPI mainly produces morphine, which is converted into codeine.
"We haven't seen our customers cutting back demand," Mr Ritchie said.
TPI harvested 4500ha of poppies in Tasmania last season and was looking for close to 8000ha this year, according to Mr Ritchie, who was optimistic part of the volume would be sourced from Victoria.
"My understanding is that all legislative requirements have been completed," said Mr Ritchie, who suggested Victoria's central and north-western areas had been earmarked as potential growing areas.
"It's great news for Victorian producers."
In December last year the Victorian Government introduced legislation to support a commercial alkaloid poppy industry in Victoria – a decision which has been challenged by Poppy Growers Tasmania.
"We are in direct ongoing discussions about the issue of Australia as a narcotic-producing country and we don't see it (poppies being grown in Victoria) as a foregone conclusion," said Mr Williams, who suggested Tasmania was chosen as a safe and temperate area in which to grow the crop.
Alkaloid poppy trial plots – licensed by the Victorian Department of Health in 2012 – are dotted around northern and south-western Victoria, but Mr Rockliff said despite the success of some of the sites, commercial poppy production in Victoria for Tasmanian Alkaloids would take time.
Despite TPI's push to secure supply away from Tasmania, the two largest processors within that State – GlaxoSmithKline and Tasmanian Alkaloids – say they have no plans to grow anything substantial on the mainland for the 2014-15 season.
Last season's poppy crop in Tasmania suffered from a wet spring, with grower Will Morrison, Cressy, expecting a 40-50pc drop in returns this year.
Mr Morrison, along with brother Askin and father Ian, is in contract negotiations with the family's processor but are anticipating significant cutbacks.
"We thought they would increase planting area a bit, especially because they're thinking of moving some supply to Victoria," said Mr Morrison, who has grown up to 500ha of poppies in recent years.
Mr Rockliff said no particular areas would be targeted through the cutbacks but added decisions would be based on production reliability.
"The growers continuing to do a good job will get all they want," he said.
GlaxoSmithKline were aiming to harvest about 9500ha next season, which crop supply head Rohan Kile said would be the same as last year.
