SUNRICE has reported at its annual general meeting it will be facing another challenging year ahead.
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However, in a statement released by the company, it said the business was in good shape to address the issues at hand.
The AGM was held in Jerilderie and covered many topics regarding the previous financial year.
The company will continue to manage this year’s lower crop of 244,000 tonnes, which will require intensive international sourcing for approximately 600,000 tonnes, as well as cost issues for manufacturing and processing operations due to lower throughput levels.
“SunRice’s efforts over the past few years to secure a sustainable supply base and improve operational efficiencies will assist the company in countering these challenges,” the statement said.
SunRice anticipated net profit after tax for the current financial year will be around $40 million, but this will be dependent on market conditions and factors such as trends in global rice markets over the remainder of the year. The company also encouraged more growers to consider planting rice this year.
“With water pricing having declined by around $100/ml compared to the previous year due to improved water availability, SunRice considers that planting rice remains an attractive proposition,” the statement said.
“The company estimates that our growing and vibrant markets could support a crop (next year) of 900,000 tonnes and we are encouraging growers to maximise their upcoming planting plans.” SunRice also provided an update on its capital restructure and said there continued to be delays.
“In addition to the ongoing joint venture partner issue that was announced in May, uncertainty regarding the potential implementation of PNG quotas could also now impact the timing of the capital restructure,” the statement said.
“The restructure will progress forward only once the joint venture issue is resolved and there is more clarity on the quota issue. The board remains firmly committed to the proposed restructure and its ability to deliver a strong future for SunRice and all shareholders.”
