FARMERS have been advised to do their research before jumping on the poppy bandwagon, following the passing of the Controlled Substances (Opium Cultivation) Amendment Bill in Parliament last week.
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Grain Producers SA chief executive officer Darren Arney said farmers should talk extensively to pharmaceutical companies and farmers in other poppy growing states about growing the crop.
"Growers need to make sure there are contracts available with pharmaceutical companies and that the demand is there," he said.
"They would then have to do the analysis on expected returns and the risks associated with growing the crop.
"I would expect most people would start off growing the summer crop in a small way to test the water, before increasing to any large scale.
"But, if demand stays stable and supply increases, it would be unlikely that prices would increase, so that would also need to be considered."
Agriculture Minister Leon Bignell also warned growers to do their due diligence.
"I encourage potential growers to have a chat to farmers down in Tas, who have been growing poppies for decades, and get some real sensible knowledge about what the chances and risks are," he said.
"The police also want to make sure there are protections put in place.
"We need to be very careful there are safeguards put in place on farms, and there will be a cost to farmers."
But Mr Arney and Mr Bignell were encouraging about farmers gaining access to the new industry, as was Opposition agriculture spokesperson David Ridgway, who introduced the bill earlier this year.
"SA is on a level playing field with Tas, Vic and the NT, where they successfully farm opium poppies with a great deal of success," Mr Ridgway said.
"At a time when some of our South East farmers are doing it tough, this could be a valuable crop to add to a farmer's rotation."
Tas produces about 80 per cent of the world's legal opium poppies. Its production of opiates increased by 124pc between 2008 and 2013, which Mr Ridgway said indicated a steady increase in demand.
"Opium poppies are used in the production of a wide range of painkillers including morphine, codeine, Nurofen Plus and Panadeine," he said.
"Given the world's ageing population, this demand will only continue to grow.
"That's why it is important for SA to get into the market and give our farmers every possible chance to capitalise on this growing demand."
Mr Ridgway said he looked forward to working with PIRSA and the government to ensure the necessary regulations were implemented as soon as possible to give farmers the earliest available opportunity to get the opium poppy industry in SA up and running.
