Poppy prices and plantings to rise

Farmers growing poppies for Westbury-based processor Extractas Bioscience will benefit from a major price rise for the coming season.

Company management met with representatives of Poppy Growers Tasmania this week to outline the company’s offer which recognises the difficulties farmers are currently facing with increased costs particularly of fuel and fertiliser.

Company CEO Ross Murdoch outlined crop payment increases of 15 percent for the 2026/27 crop.

The increase is in two parts, a 5 percent increase to the current crop payment line plus a one-off 10 percent increase in recognition of the temporary impact the closure of the strait of Hormuz is having on the procurement of fuel and agricultural inputs.

“While the cost of doing business has increased for our company as well, we are very cognisant of the challenges farmers are currently facing and want to support them as much as we can in their efforts to grow quality crops for our factory,” Mr Murdoch said.

Field operations manager Noel Beven also outlined plans to increase the contracted crop area this year, up from 7000ha last season which was greatly increased from an area of 3300ha in the 2024 harvest.

“This is a great opportunity for farmers given that Extractas pay for harvest and cartage of the crop, two significant production costs relative to some other crops,” Mr Bevan said.

“Supply of sowing seed, conventional sowing, harvest and cartage costs continue to be met by Extractas.”

A payment of $200 per ha will be continued for those growers requiring raised beds and advances of $550 per ha each for herbicide and fungicide applications will also remain.

Additional trial work this season vindicated the use of the bio-stimulant YieldOn which will continue to be provided by the company for part of the crop.

The past growing season was discussed, highlighted by weather extremes including excessive wind and cooler temperatures through spring and summer.

The late season saw harvest generally delayed by up to three weeks concluding on March 31.

Payments to growers and contractors for the recently completed harvest totalled almost $32 million.

“Our field staff are currently talking with growers about this seasons’ crop and planning for sowing which is expected to commence in June,” Mr Bevan said.