NSW Rice Producers Granted Direct Overseas Market Access
Existing arrangements currently in place restrict growers from entering into their own agreements.
Australia’s most populous state is seeking to liberalize its rice export market by enabling producers to engage directly with international buyers.
Traditionally, rice growers in the fertile Northern Rivers region were obligated to send their harvest to SunRice, a multinational corporation and one of the world’s largest rice food companies.
In addition to the logistical challenge of transporting the rice 800 kilometers south to where SunRice is headquartered, existing agreements also prohibit growers from making their own deals.
The government of New South Wales (NSW) plans to introduce a bill to Parliament in May, advocating for the establishment of a new rice export marketing and trade system for the Northern Rivers. The government also aims to enhance the rice industry in southern NSW.
Presently, Australia’s major rice export markets comprise Saudi Arabia, Israel, Jordan, Lebanon, Japan, South Korea, Taiwan, New Zealand, Papua New Guinea, Solomon Islands, and various other Pacific nations.
“The NSW government is dedicted to creating fresh business prospects for the state’s agricultural sector, particularly for the rice industry, by responding to their requirements, cutting bureaucratic hurdles, and supporting growers in expanding their export capabilities,” stated NSW Agriculture Minister Tara Moriarty.
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NSW’s rice industry generated a farm gate value of $219 million in 2022-23, with an average value of $186 million over the past decade.
The southern rice-growing region in NSW, situated within the irrigations of Coleambally, Murray, and Murrumbidgee, accounts for approximately 97% to 99% of the state’s total rice production.
Meanwhile, the northern area, with irrigation fields in Richmond Valley and Tweed Valley in Northern Rivers, presents an opportunity for rice cultivation.
These ongoing efforts were triggered by a report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) which proposed the repeal of the Rice Marketing Act of 1983 by June 30, 2027, and the abolishment of the Rice Marketing Board (RMB) along with its licensing regulations.
Initially, the government dismissed both suggestions, recognizing the importance of stakeholder backing in retaining rice vesting agreements in NSW.
Instead, the government advocated for a five-year extension of rice vesting arrangements.
Meanwhile, SunRice expressed interest in the bill.
“The SunRice board is carefully considering each of the NSW government’s responses to the ABARES Report and eagerly awaits the release of the draft legislation to further assess the NSW government’s stance,” the company stated in an ASX disclosure.
Previously, SunRice emphasized that the existing agreements have helped the industry establish strong market positions and demand for branded and other rice products across about 50 markets.
