IN GOOD news for the region’s rice growers, prices will be increasing for a certain type of rice.
SunRice has announced an increase to the lower end of the price range for base grade medium grain (Reiziq) by $15 per tonne for the 2017 crop (for rice harvested in 2017 and marketed in the 2018 financial year).
The estimated range for base grade medium grain (Reiziq) is now $350 to $365 per tonne, from the previous guidance of $335 to $365 per tonne.
In an update to growers, SunRice chairman Laurie Arthur said the increase was due to numerous factors.
“SunRice continuing to experience positive trading conditions,” he said.
“The company is increasingly confident of achieving its full year projections as the end of the financial year on April 30, 2018 draws closer.
“SunRice’s ability to take advantage of the recovery in world markets and prices since the challenging conditions that prevailed at the start of the year.”
Mr Arthur said the ongoing power of SunRice’s branded positions in markets had not only provided the company with resilience to minimise the impacts of cyclical downturns, but has also allowed the expansion of the brand premium when the markets recover.
“We are delighted to announce this increase, which contributes to an overall $50/t uplift on the initial estimated range of $300 $320/t for medium grain (Reiziq) announced in August 2017,” he said.
“We are very pleased to be in a position to support our growers in this way, particularly as the 2018 crop harvest gets underway.
“This is a wonderful result and one that demonstrates SunRice’s ability to generate the best possible returns for Australian rice growers.”
SunRice is hopeful with a continuation of the positive movements in global markets that this trend may continue.
However, any softening in markets and a further strengthening of the Australia dollar will naturally influence the final pool result. The positive $15/t adjustment was paid to growers as part of the scheduled third C17 Pool Payment February 27.