The company announced a short time ago that it will relocate its manufacturing base to Victoria to "expand its business and meet growing global demand for opiate raw materials".

TPI Enterprises managing director Jarrod Ritchie said the company has not been able to ensure supply of raw materials for its Tasmanian processing plant to meet international demand.

"Part of this problem has been the inability to import poppy straw from sources outside Tasmania," Mr Ritchie said in a statement.

Mr Ritchie said the Cressy processing plant will close in coming months, but the site will continue to receive poppy straw from Tasmanian growers.

A new processing facility will be established in Melbourne and be operational in time for the next harvest int he first quarter of next year, he said.

About 50 people are currently employed at the Cressy plant. Mr Ritchie said a number of staff will be offered the opportunity to relocate to Victoria. He said some positions will b retained at Cressy to support the storage of poppy straw from Tasmanian growers. 

"There will be a small number of redundancies associated with the relocation," Mr Ritchie said.

"Those staff not continuing with the company will be paid their full redundancy entitlements and provided assistance to transition to new employment opportunities."

Staff were told of the plans today and discussions are expected to be held with employees in coming days of their future involvement in the business.