NSW Minister for Primary Industries Niall Blair has announced the successful harvest of the state's first alkaloid poppy crops, with production expected to more than double this year.
Blair described the moment as a "significant milestone".
"We passed the legislation in 2016, farmers planted the seeds in the ground the following season and now we can all celebrate a successful harvest -- this is a huge win for our primary producers and the regional NSW economy.
"Our reforms have given farmers a new option as part of their annual crop rotation and a new potential income stream," Blair said.
The NSW poppy industry is estimated to be worth up to $100 million over the next 10 years, he added, enhancing the viability of many farming operations throughout the state.
After the poppies are harvested, they are transported to a specialised facility where alkaloids are extracted, isolated and purified.
The alkaloids are then formulated into medication for use in pain relief, palliative care and anti-addiction treatment.
Australia currently supplies more than 50% of the world's opiate market, with three of the eight companies worldwide that process poppies for opiate manufacturing based here.
The NSW Department of Primary Industries is overseeing the licensing, cultivation, and management of poppy crops in NSW.
It remains illegal to take, use, sell or grow poppies without a licence in NSW and illegal possession of opiate plant parts or substances derived from them is a criminal offence, attracting heavy penalties.
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