Local rice supply drops rapidly

SunRice will have to flex its international rice sourcing capability in coming months as increasing volumes of rice are required to be imported to meet demand.

Rice runs low: the 2020 Australian rice crop is now the second-smallest crop on record.

AUSTRALIAN rice supply is expected to be exhausted before next year’s harvest.

According to SunRice, changes to consumer shopping patterns, following the coronavirus pandemic earlier in the year, has led to significant increases in demand for products which was “200 per cent above forecasts” in some cases.

This, paired with the second-smallest rice crop on record will mean the rice giant will have to flex its international rice sourcing capability in coming months as increasing volumes of rice are required to be imported to meet demand.

“We have just recently completed harvesting of the 2020 Australian rice crop, and unfortunately at 45,000 tonnes it is now the second-smallest crop on record,” SunRice group chief executive Rob Gordon said.

“The crop that has just been harvested represents less than 25 per cent of Australia’s rice consumption. Subject to demand, we now anticipate that we will exhaust Australian rice supplies prior to the next harvest in April and May 2021.”

Mr Gordon said some long grain varieties were already being imported from Cambodia and Thailand, and some short grain varieties from South American.

“The reality is that plantings for the 2021 rice crop in October 2020 will be predominantly driven by two factors — water availability and water pricing, “ he said.

“While the outlook is for a wetter than normal winter, if water allocations and water pricing remain at current levels then we are likely to see another extremely small rice crop planted in the Riverina.”

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