Tuesday 9th Mar, 2021

SunRice crop expected to be 10 times larger than 2020

Despite unseasonably cool conditions in the Riverina, the SunRice Group is estimating a crop in excess of 450,000 paddy tonnes, 10 times the size of last year’s crop.

The group will have sufficient levels of inventory to maintain supply to domestic customers, however there will be a short period of ceased production at some of its facilities in the Riverina until the CY21 crop is harvested and ready to be processed.

SunRice has reduced the duration of this period of ceased production, which at the peak of COVID-19 demand was anticipated to occur prior to the end of 2020 due to the exhaustion of the small CY20 crop.

The SunRice Group relied on its international rice supply chains to meet demand in global markets, due to the small CY2020 Australian crop.

According to a trading update, key markets remain depressed due to the global COVID-19 pandemic, along with a range of increased disruptions due to the latest shipping industry dynamics.

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These disruptions include material increases to spot freight rates, demand for space and containers continuing to outstrip supply, scheduling issues, and port productivity impacts. These have the potential to delay or prevent planned sales, which could impact revenue and financial performance in the second half of financial year 2021.

SunRice is observing the potential impacts of these disruptions on its ability to deliver product to satisfy orders in international markets, particularly in the lead-up to the key Ramadan trading period.

Harvesting will commence on the CY20 crop March 2021. The group says it remains well positioned for the 2022 financial year.