A global glut in supply is continuing to weigh on the state's once-dominant poppy industry, with output during the season just finished down between 15 and 20 per cent from the prior year, according to figures from the industry peak body.
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Howard Nichol, the new chief executive officer of Poppygrowers Tasmania, said while yields remained strong in the north of the state, they were weaker in the midlands.
"The crops in there were down on expected yields after a lot of rain through the spring, and with some having been late in getting sown and then having to be re-sown because of heavy rain," he said.
Area under cultivation also fell by a third throughout Tasmania, to about 4000 hectares, according to Mr Nichols. That was down from about 6000 hectares planted in the previous season, and from about 30,000 hectares planted in the industry's peak in 2012.
Tasmanian farmers last year chose to plant other crops amid a price crunch from the two biggest buyers - poppy processors Extract Tas, and Sun Pharmaceuticals.
Bishopbourne farmer Stewart McGee said last year that he had decided not to replant his 25 hectares of poppies, after the price and hectare contract was cut by Sun Pharmaceuticals, and ExtracTas failed to lift its contract offer.
Despite the fall in the area under cultivation, Mr Nichol stressed that yields had improved significantly over time, with the average farmer now producing about 60 kilograms of whole poppies per hectare, compared to a third of that 20 years earlier.
The industry supplies poppies that are processed into the alkaloid-based materials used to produce pain management medication like oxycodone.
Mr Nichols blamed the Tasmanian industry's recent woes on weak demand from the United States, where the use of prescription pain medication has plunged in the past decade.
He also said demand for pain medication fell worldwide as a result of the COVID pandemic, which sharply cut down the number of elective surgeries - one of the key drivers of demand for pain medication.
Neither Noel Beven, field operations manager for ExtracTas, or Dr Tiago Tomaz, head of crop research and operations at Sun Pharmaceuticals, responded to calls seeking comment by deadline.
Both companies have heavily cut back their poppy purchases in recent years. Sun Pharma also cut back the price it pays farmers by 15 per cent last season.
In an interview last year, Mr Beven said costs for poppy companies have increased significantly, including for freight, energy, chemicals and labour.
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