SunRice to ship and pack rice overseas to counter shipping container issue

Rice processor SunRice looks at novel ways to meet its global customers’ demands. See what it is doing.

NSW rice processor SunRice is looking at alternative means of delivering rice products to its global markets.

SunRice chairman Laurie Arthur said most of the company’s rice products were traditionally sent by containers to customers around the world but supply chain problems meant it had to be more innovative in supplying markets.

“It’s incredibly complicated in getting rice into world markets because of shipping issues,” Mr Arthur said.

“World shipping is in turmoil.

“For some shipping routes, people are not even quoting (container rates).

“But you just can’t drop out of the market, so we are having to look at innovative things (to get product into markets).”

Mr Arthur said the problem was exacerbated by a shortage of food grade containers.

He said some of the measures to counter the problem included sourcing product out of SunRice’s mills in California and Vietnam.

But for the key Middle East market, he said the company was considering shipping rice in bulk and packing it in country.

Mr Arthur said the supply chain issues were costing Australian growers about an extra $40 a tonne.

He said SunRice had forecast a price of $405-$435 a tonne for rice.

He said if the company could pay growers a price of $435 a tonne it would be a record for a price generated solely by the pool and not supported by SunRice’s other sources of income.

Report, Page 62