The Grower Services Committee is continuing to monitor the situation closely, and the SunRice Group Grower Services and Rice Extension teams will organise grower meetings to provide advice on wet weather planting options.
While the continuation of La Nina has been a great thing for rice production generally with water storages in both the Murray and Murrumbidgee systems at their highest levels in decades, and water prices at low levels, it is proving a headache for rice preparation.
Wwhile the water availability is positive, with forecasts pointing to La Nina continuing and the current wet weather across the region – the threat of flood is also front of mind for many growers.
SunRice chairman Laurie Arthur said the rice preparation has been extremely challenging, and some plantings have already been delayed.
“This has been the case on my own farms here at Moulamein where I have had recorded rainfall at levels not previously seen at this time of year,” he said.
“Under the terms of our CY23 pool contracts, there is a washout clause which states that SunRice would charge growers a fee if they do meet a committed volume of paddy.
“This clause was introduced in recent years when conditions were not as favourable for rice production, and it was critical the business received the paddy committed to by growers in order to efficiently run our Riverina operations, meet demand in end markets and optimise paddy returns.
“I know our growers are committed to planting the seed they have ordered in both the pool and fixed-price contracts, and will seek every opportunity in the planting window to do this.
“It remains critical for the company to maximise returns to growers that we receive as close to the committed volume of paddy as possible (in both the fixed-price contracts and the CY23 pool). “
Mr Arthur said some growers are concerned they may have the wash-out fee enforced for the CY23 pool, even if they were unable to plant through no fault of their own – but as a consequence of the ongoing wet conditions.
“In light of these concerns, I wanted to let growers know the company has considered the wash-out clause and has decided that this year (CY23), the wash-out fee will not be enforced in the event that growers are unable to plant as a result of the wet weather conditions.
“We still expect volumes in the CY23 fixed-price contracts to be honoured, and no wash-out exemption will apply.”
The Grower Services Committee is continuing to monitor the situation closely, and the SunRice Group Grower Services and Rice Extension teams will organise grower meetings to provide advice on wet weather planting options.
If you have any questions, please contact the Grower Services team on 1800 654 557 or growerservices@sunrice.com.au.
-SunRice
