SunRice is expecting a small rice crop and has to change its operations

LOW water availability and high water costs have resulted in SunRice reconfiguring its Riverina operations.

LOW water availability and high water costs have resulted in SunRice reconfiguring its Riverina operations.

SunRice announced today it will be reconfiguring its Riverina milling, packing and warehouse

operations over the coming eight months to cater for the significantly reduced Riverina rice crop expected next year — anticipated to be the second smallest crop recorded since 2003.

The reduced size of the 2019 rice crop is due to very low water availability and

high water prices.

In a statement today, SunRice said it remained firmly committed to the Riverina region and the difficult decision to implement changes in operations followed an extensive review process.

While SunRice said it was focused on minimising the number of job losses the changes will mean a reduction in employee numbers across Riverina operations, with the company anticipating the loss of fewer than 100 positions.

The proposed reconfiguration, which is subject to consultation with employees and unions, will see operational changes and shift restructuring at the Deniliquin and Leeton mills.

These changes will be undertaken in a phased approach to match the production requirements created by the significantly reduced 2019 crop.

The proposed changes include:

PHASE 1 — Reduction of Deniliquin Mill 2 shift structure from 24/7 to 24/5 will take effect from 2 January 2019

PHASE 2 — Reduction of Deniliquin Mill 1 shift structure from 24/5 to 16/5 will take effect from 31 January 2019

PHASE 3 — Will take effect from end of April 2019 at both Deniliquin and Leeton Mills:

‒ Deniliquin Mill 1 will cease production and be placed into maintenance

‒ Reduction of Deniliquin Mill 2 shift structure from 24/5 to 16/5

‒ Reduction of Leeton Mill shift structure from 24/7 to 24/5

PHASE 4 — Reduction of Deniliquin Mill 2 shift structure from 16/5 to 8/5 will take effect from July-August 2019.

SunRice chief executive Rob Gordon said “our priority is the welfare of SunRice employees”.

“We deeply regret the departure of loyal SunRice staff, and we look forward to returning to more normal production levels in the future when we can expand our workforce,” Mr Gordon said.

“The decision to reconfigure Riverina milling operations in 2019 is necessary to ensure a competitive and sustainable business for our employees, growers, shareholders and the communities we support.”