Tasmania set to be hit by poppy job cuts

Global demand for Australian opium poppies is booming but it's bad news for Tasmania.

Poppy processing company TPI Enterprises says it's being forced to shift operations from the island state to Victoria to ensure the ongoing supply of raw materials.

"Part of this problem has been the inability to import poppy straw from sources outside Tasmania," the company said in a statement.

About 50 people are employed at the company's plant at Cressy in central Tasmania and some will be able to relocate to Victoria and keep their jobs, TPI said.

However, there will be a small number of redundancies.

The raw opiate material produced by the plant is used to make pain relief products.

While processing at the Tasmanian plant will cease, the site will continue to receive poppy straw from Tasmanian growers for use in operations elsewhere.

A new processing facility will be set up in Melbourne and is due to be ready for the next harvest in early 2015.