OPIUM ISLAND: The Aussie drug industry you haven't heard of
A CORNER of our nation grows enough poppies to cover the MCG 15,000 times. The legal opium trade is blooming and the rest of the country wants in. But there's a dark side to this flower.
States want their cut of Australia’s growing opium poppy industry
THE world’s largest legal drug crop has been growing for years in Tasmania and has become so lucrative that other states are now looking to get in on the trade.
Opium poppies have been grown on Tasmanian farmland for 48 years and the tiny island can now claim the title of being the largest legal supplier of opiates in the world.
The state has quietly been fuelling the world’s growing appetite for painkillers and built up a global dominance worth about $290 million a year.
Although the returns are not quite worthy of a drug kingpin - representing eight per cent of the value of the state’s agricultural production - they are sizeable enough to be of note and will continue to grow.
Enter Victoria and Northern Territory, which are both looking to get a cut of the lucrative industry and to break Tasmania’s monopoly on the crop in Australia.
Australian suppliers are keen to keep up with future growth as use of painkillers becomes more widespread, with plans to expand operations to the mainland.
Growth has been fuelled by an ageing population and increasing use of drugs such as Nurofen Plus and Panadeine, which has seen demand for opioids more than triple in 20 years.
Tassie currently supplies almost half of the world’s demand for opium poppies, from which morphine and codeine can be extracted.
This is not to be confused with Afghanistan’s illegal poppy industry which produces drugs such as heroin.
The legal industry has become so lucrative for Tasmania that the crop now dwarfs its apple industry and covers an area the size of the Melbourne Cricket Ground multiplied up to 15,000 times.
MAINLAND EXPANSION
Only three companies have a licence to cultivate opium poppies in Tasmania: GlaxoSmithKline, Tasmanian Alkaloids and TPI Enterprises Ltd.
All three companies are now looking to expand their operations to the mainland and have so far been welcomed by state governments.
Victoria passed legislation last month that would allow commercial cultivation of opium poppies on its land. Farmers will be able to get planting once regulations are finalised.
Last year the Victorian Agriculture Minister Peter Walsh said the high value crop could create a $100 million industry for the state within a decade.
“The development of a poppy industry in Victoria will provide economic benefits to the state and help meet growing world demand for pain relieving medicines,” Mr Walsh said.
Legislation in the Northern Territory is also being drafted to allow commercial poppy cultivation. A spokesman for the NT Land Resource Management Minister said two large trials had been agreed to, and the parliament was expected to introduce legislation this year.
WARNING: DRUG USE CAN KILL
According to a report from the International Narcotics Control Board last year, it is expected that demand for opiates will increase in the future.
The growth is being driven by an ageing population and increasing use of painkillers, which has tripled over 20 years from 1993 to 2012.
Much of the growth is for poppies rich in thebaine, of which crops in Australia made up 80 per cent of global production.
But despite the financial benefits associated with the crop, there are risks. Earlier this year, a Danish tourist died after drinking tea made from poppies in Tasmania, the third poppy-related death in the past three years. Most of the poppies grown in Tasmania contain thebain, which can cause convulsions and death if consumed in large quantities.
NO LONGER THE ‘APPLE ISLE’
Unlike Afghanistan, the world’s larger grower of illicit opium poppies, Tasmania’s plants are not cultivated to produce opium for drugs such as heroin. They are instead used to produce poppy straw, from which alkaloids are extracted to make legal painkillers.
In order to deter misuse of the poppies, the state only allows three licenced companies to undertake commercial cultivation. More than 800 farmers grow poppies for the three companies on up to 30,000 hectares.
The Tasmanian Farmers and Graziers Association estimated last year that crop was worth about $290 million to the state’s agricultural industry and made up about eight per cent of the value of overall production.
In the past five years alone, Tasmania has watched its production of opiates increase by 124 per cent, to 452 tonnes last year.
In comparison, Tasmania’s apple industry, which was once so dominant it earned the state the nickname the “Apple Isle”, covers about 7600 hectares and has been estimated to have a gross value of up to $50 million.
SPREADING THE RISK
TPI Enterprises Ltd chief executive officer Jarrod Ritchie said he hoped to expand his operations to both Victoria and Northern Territory this year, with planting expected to take place between June and August. Harvesting of the poppies could take place as early as October in the Northern Territory or about December in Victoria.
Mr Ritchie said he hoped to get the crop growing on up to 300 hectares, possibly south of Darwin, and across central or north west Victoria.
“The market is growing consistently ... but this is really about spreading the risk,” Mr Ritchie said.
He said that a storm in 2011 wiped out nearly 50 per cent of his crop just before harvest. Spreading the crop out across different areas will ensure a more consistent supply to customers.
Mr Ritchie said trials in the Northern Territory had already been very encouraging, with plants taking just half the time to grow.
Although demand for poppy straw will be impacted by the increasing popularity of synthetic opioids, it is still expected to increase. The market is concentrated mainly in the United States at the moment but is expected to rise because consumption is expected to spread to other countries.
“Fundamentally the situation is that 10 per cent of the global population has access to 90 per cent of the pain relief medication,” Mr Ritchie said.
“There is an enormous need in developing countries who don’t have access to pain relief, it’s a human right to have access to pain relief.”
Mr Ritchie’s competitors Tasmanian Alkaloids and global pharmaceutical and healthcare company GlaxoSmithKline, are also considering expansion into Victoria.
In December GSK Opiates Division General Manager Steve Morris said a trial of crops in Victoria were growing well.
“We don’t know the outcome of the trials as yet but we’re confident the results will be positive.”
A spokeswoman for GlaxoSmithKline told news.com.au this week that a decision would be likely be announced within a week.
A spokesperson for Tasmanian Alkaloids was unable to be contacted.
http://www.news.com.au/finance/busi...m-poppy-industry/story-fnda1bsz-1226880076728