Mr Williams was commenting on news the federal government had opened up poppy cultivation, previously the exclusive domain of Tasmania, to other states.

Mr Williams said the international restrictions would protect what was a $90 million industry for Tasmania.

‘‘You’ve got to carefully match the need for the product with Australia’s ability to supply it,’’ he said.

‘‘The situation in America is really bad at the moment and there are radical changes underway as it battles with prescription drug abuse — the US is 80 per cent of the world market.

‘‘The informal message we’re getting is that there’sasignificant drop-off in orders — this is already being felt in Tasmania and will be felt for some years to come.’’

Mr Williams said mainland states would not be able to export the product without the approval of the federal health minister.

‘‘So the actual growing of the crop is almost hypothetical,’’ he said.

Tasmanian Liberal Senator Richard Colbeck  said the federal government had looked at submissions from Tasmania and interested mainland states. 

‘‘We’ve used what has been put on the table so far as a framework [for future crop allocations],’’  Senator Colbeck said of its proposed five-year expansion plan.

TPI managing director Jarrod Ritchie is overseas at the moment, but told ABC television the decision was ‘‘good news for the industry as a whole’’. 

‘‘It cements Tasmania and Australia's reputation as a reliable supplier,’’ he said in a recorded interview.

Tasmanian Primary Industries Minister Jeremy Rockliff said the federal government had  considered Tasmania’s requests for a measured and sensitive approach to the issue.

Tasmanian Farmers and Graziers Association chief executive Jan Davis said the state’s  international reputation for growing half the world’s opiate poppy production in a secure environment and to the highest quality had to be the paramount consideration in any new national regime for the crop.