SunRice has announced that the 2022 rice crop has now been harvested, and at ≈675,000 paddy tonnes, is the largest in five years. Estimated range for the 2022 pool is $390 to $450 per tonne for medium grain Reiziq.
The news comes on the back of the release of strong financial performance of the company.
Group revenue for the 2022 financial year was $1.3 billion, up 30 per cent on the previous year, while earnings before interest, taxes, depreciation, and amortisation of $91.3 million and net profit after tax of $48.7 million were up 86 per cent and 167 per cent respectively on the prior year, with a record fully franked dividend distribution of 40 cents per B Class share for the 2022 financial year.
The 2021 calendar year pool paddy price topped out at $428 per tonne for medium grain Reiziq, while fixed price contracts were also offered at $475 per tonne for limited volumes of Reiziq and up to $625 per tonne for specialty varieties.
It has been a great result despite challenging trading conditions, unprecedented escalation in freight rates, and systemic supply chain disruption.
SunRice Group CEO, Mr Rob Gordon said, “The business has delivered an outstanding result after two years of near record low Australian rice production – a period in which the company diverted resources to maintain supply of key markets with rice from other origins, while still investing in new acquisitions and progressing other organic growth initiatives.
“This improved FY2022 result was the consequence of the return of Australian rice to key markets, the accretive contribution of recent acquisitions, and the Group’s multi origin, multi price point international rice supply capability.”
The 2022 financial year has seen incredible yields achieved, which is testament to the ongoing work of producer and industry to produce our world leading rice with tremendous water efficiency.
The harvest has been a hard slog for some producers as they battled to get the crop off in wet conditions, compounded by continuing rain events resulting in harvesting operations pushing into late June.
The crop year of 2023 is looking promising with seasonal conditions, water availability and water pricing remaining highly favourable. Currently, we are seeing the highest water storage levels at this point in the season in more than 20 years.
This article appeared in The Koondrook and Barham Bridge Newspaper, 30 June 2022.
