New South Wales (NSW) is making significant strides in opening up the rice export market for its producers. Currently, rice growers in the fertile Northern Rivers region are required to send their produce to SunRice, a multinational rice food company. However, this arrangement not only involves the hassle of transporting the rice 800 kilometers south, but it also prevents growers from entering their own agreements. In response to these limitations, the NSW government plans to introduce a bill to Parliament in May that calls for the development of a new rice export marketing and trade arrangement for the Northern Rivers.
The move is part of the government’s commitment to creating new business opportunities for the state’s agricultural sector. By cutting red tape and assisting growers in expanding their export potential, NSW aims to boost the rice industry and tap into international markets. Currently, Australia’s largest rice export markets include Saudi Arabia, Israel, Jordan, Lebanon, Japan, South Korea, Taiwan, New Zealand, Papua New Guinea, Solomon Islands, and other Pacific nations. With direct access to these markets, NSW rice producers can capitalize on the demand for their high-quality products.
The rice industry in NSW holds significant value, with an estimated farm gate value of $219 million in 2022-23 and an average value of $186 million over the previous decade. The southern region of NSW, encompassing irrigations of Coleambally, Murray, and Murrumbidgee, contributes around 97 percent to 99 percent of the state’s overall rice output. However, the northern region, with its irrigation fields in Richmond Valley and Tweed Valley, presents an untapped potential for rice production. By allowing producers in this region to negotiate directly with international buyers, NSW aims to diversify its rice industry and attract more investment to the Northern Rivers.
These initiatives come as a response to a report from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), which recommended the repeal of the Rice Marketing Act of 1983. The report also suggested abolishing the Rice Marketing Board (RMB) and its licensing requirements. While the government initially denied these recommendations, it acknowledged the importance of stakeholder support in retaining rice vesting arrangements in NSW. Therefore, instead of abolishing the existing arrangements, the government pushed for a five-year extension.
SunRice, the multinational rice food company currently involved in the rice export process, has expressed its consideration of the new bill introduced by the NSW government. The company’s board is carefully reviewing the government’s responses to the ABARES report and awaits the release of the draft legislation to further evaluate its position. SunRice emphasizes that the existing arrangements have been instrumental in building strong market demand for branded and other rice products in approximately 50 markets.
Overall, the NSW government’s efforts to grant rice producers direct access to international markets are commendable. By allowing growers in the Northern Rivers region to negotiate their own agreements, the government is empowering them to expand their export potential and tap into lucrative markets. This move not only benefits individual producers but also contributes to the growth and diversification of the state’s agricultural sector. With its high-quality rice products, NSW has the opportunity to become a prominent player in the global rice trade, bringing economic prosperity to the region and establishing itself as a leader in agricultural innovation.
