SA given poppy green light

Earlier this week, the state government announced it would support a Liberal bill to amend the Controlled Substances Act 1984 to legalise the cultivation and processing of poppies in SA.

The first harvest could be as early as next year. Potential growers are required to apply for licences with one of Australia's three licensed processors - GlaxoSmithKline, Tasmanian Alkaloids and TPI Enterprises Ltd.

Tas - the world's largest producer of legal opium poppies - had a monopoly on production for many years and makes $290 million worth of opium a year.

In 2013, Vic amended its legislation and could grow its industry to $100m within the decade. It has also been legal in the NT since May 2014.

Opposition agriculture spokesperson David Ridgway said he was delighted commonsense had prevailed and SA farmers would be permitted to enter this lucrative market where the alkaloids are used to make painkillers.

He said it would be most beneficial to irrigated, high rainfall areas such as the South East.

"Given SA's jobs crisis, it is vital that farmers are given every opportunity to grow the value of their production and create new jobs," he said.

He hoped to see at least some trial plantings within the next year.

"The prohibition of opium cultivation in SA is a hangover from a previous age that locks our farmers out of a growing market that services an important health need," he said.

Agriculture Minister Leon Bignell said the government was also keen to give growers another option.

"We will work with all political parties to try to open up things for new crops to be grown here," he said.

He warned potential growers to do their "due diligence", pointing to a global oversupply and disease risk.

"Growers are being told there is so much money in it but my understanding is the returns are not as good as some may think," Mr Bignell said.

"Poppies can be a sensitive crop to grow with disease risk. I would encourage everyone interested to talk to growers in other states."

Mackillop Farm Management Group poppy sub committee chair Greg Bell welcomed the bipartisan support for the bill and said it was the "good news they had been waiting for a while for".

"It means we have a potential new crop and producers will now see where it fits in their rotations and how the gross margins add up."

"The SE is a good area for them with climatic conditions close to Tas where they are widely grown."

Under the proposed legislation farmers would also need to able to apply for a licence with PIRSA's chief executive, who would investigate whether they were a "fit and proper" person, as well as security fencing and appropriate warning signs.