THE commercial production of poppies for pain-relieving opiates is to begin in western Victoria following the issue of cultivation licences.
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A Department of Environment and Primary Industries (DEPI) spokeswoman said a small number of cultivation licences had been issued in several regions of the state, including western Victoria.
But the DEPI spokeswoman declined to give specific details of where the poppies would be planted.
The issue of the first licences follows a federal government decision to lift the moratorium on growing commercial poppies on mainland Australia.
The commercial production of poppies for pain-relieving opiates has previously been restricted to Tasmania, which has supplied about 50 per cent of the world demand for opiates used in pain relieving medicines such as morphine and codeine.
Growing demand prompted the state government to establish a strict regulatory framework to enable the industry to expand to Victoria.
Under the regulations, the cultivation of poppies can only occur when there is a valid contract between a licensed grower and processor.
The Victorian Farmers Federation (VFF) has welcomed the start of the poppy industry in the state, saying the crop has the potential to create a $100 million industry within a decade.
VFF president Peter Tuohy said it was estimated there could be more than 30,000 hectares of land available that would easily grow the crop.
The start of local commercial poppy production is sure to be welcomed by GlaxoSmithKline (GSK), whose Port Fairy factory is one of the main processors of poppies for opiates in Australia.