Defence has been identified by the state government as a growing economic opportunity for Tasmania after former Navy rear admiral Steve Gilmore was appointed the role of Defence Advocate in 2017.

Mr Gilmore is Australia's only full-time Defence Advocate and works with Defence and Tasmanian businesses to leverage defence opportunities and get them involved in those works.

Defence Minister Jeremy Rockliff announced at the budget last week that $2.8 million would be allocated to develop Tasmania's first ever defence industry strategy.

The funds would be used to "build on the momentum already gained in recent years" to assist businesses to win more defence contracts for both domestic and international export markets.

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"Since we first launched the defence strategy we have already seen Tasmanian companies score multimillion dollar supply contracts, supporting the next generation of advanced manufacturing jobs around our state," Mr Rockliff said.

"This government's focus on our local defence industry will see Tasmania's reputation for high-quality niche products grow around the world and will give more Tasmanian businesses the confidence and opportunity to take a bigger slice of the market."

The defence strategy will focus on assisting industry to win more contracts in the areas of advanced manufacturing, food technology, health sciences, ICT and remote area capability.

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Northern Tasmania already has a defence presence in the region, with national facility the Australian Maritime College calling Launceston home.

In addition, there is the food ration factory at Scottsdale, which develops and produces high-quality nutritional ration packs for serving military members.

Other businesses are also involved in defence contracts, helping to supply parts for shipbuilding or other defence vehicles and machinery.

The AMC is also hoping to capitalise on this renewed federal and state push into defence, with the development of its "defence precinct" at the site.

During the federal election the defence precinct received bipartisan support for $30 million for the first stage.

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