SunRice seeking $10 million investment to triple its production capacity
North Queensland’s rice industry is facing an uncertain future as the Burdekin-based mill looks to secure vital funding to save it.
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The north Queensland’s rice industry is facing an uncertain future as the Burdekin-based mill looks to secure vital funding to save it.
On the back of a national announcement that Australia will run out of locally grown rice by Christmas, SunRice are seeking a $10 million investment to more than triple its production capacity.
SunRice’s Brandon mill, south of Townsville, was established in 2014 and currently employs 10 full time staff and processes about 8000 tonnes of paddy rice per year.
A total of 12 Burdekin farmers currently supply the mill however the Townsville Bulletin has been told about 100 growers have shown interest in growing the grain, but have been unable to due to the limited capacity of the current mill.
SunRice Chief executive Rob Gordon said $10 million would fund a storage facility allowing SunRice to fully utilise local capacity and increasing production to some 25,000 tonnes per year.
“Our expert economic modelling shows this would create 51 full-time positions in the region, and flow-on economic activity of $29 million each year. The flow on effects would be felt throughout communities along the North Queensland coastline, including through new export opportunities at the Port of Townsville,” he said.
“We currently have rice growers providing product from areas including the Burdekin and in the Hinchinbrook, and we would look to expand that production considerably.”
Mr Gordon said economic modelling indicated the returns to the Queensland economy could triple the $10 million investment.
“And more than that, it would open the door to our future plans – of taking the 25,000 tonne
industry up to potentially a 100,000 tonne industry, which we believe could deliver some $85
million in economic benefits every year and create more than 130 full-time positions,” he said.
One of North Queensland’s largest rice farmers Allan Millan said the expansion of the rice industry in the district would be complimentary to the district’s dominating sugar industry.
“Diversifying into rice has allowed us to have more control over our business and we’ve been able to grow crops to support market demand,” Mr Millan said.
“In the midst of the current pandemic in particular there is a huge need for global rice supply, and high-quality Australian rice.
“An expansion of the North Queensland rice industry would be a tremendous boost to farmers
across regional Queensland.
“The Burdekin, with its irrigation systems and perfect growing climate is a great region because you can do a wet season crop and a dry season crop which creates a lot
of certainty.”
Burdekin Mayor Lyn McLaughlin has backed calls for the expansion to be funded.
“The Burdekin is not just the sugar cane capital of Australia, but a leader across the agricultural sector with 300 days of sunshine and an abundance of underground water creating perfect conditions for a range of crops,” Cr McLaughlin said.
Mr Gordon said support had been expressed from both major parties’ candidates leading into next month’s election.
“But we now need the major political parties in Queensland to get behind this project and provide a firm financial commitment to make it a reality,” he said.
Originally published as SunRice seeking $10 million investment to triple its production capacity