THE right to control the marketing of rice overseas has remained in the right hands, according to leading stakeholders.
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NSW Minister for Primary Industries, Lands and Water, Niall Blair has renewed vesting and sole and exclusive export licence (SEEL) arrangements for a further five years.
These arrangements are policy mechanisms of the NSW government that provide the Rice Marketing Board (RMB) the right to control the marketing of NSW rice, provided it generates net benefits to the state’s rice industry and the general community.
The decision will help to strengthen the rice industry and the delivery of benefits to growers, families, businesses and communities that the industry supports.
SunRice chairman Laurie Arthur said maintaining the arrangements would provide certainty for rice growers and would enable Australian rice to compete effectively in global export markets.
“The NSW government’s decision is a meaningful and reassuring vote of confidence in the rice industry, which provides considerable benefits for the state,” he said.
“In particular, rice vesting and the SEEL help maintain a competitive advantage for NSW rice, delivering price premiums to growers that totalled $315 million over the past four years – achieved by exporting rice as high quality, branded consumer products.
“The vesting/SEEL arrangements ensure the rice industry has global marketing strength; has supply chain efficiencies; and can support investment in research and development, in collaboration with both NSW and federal governments.”
Ensuring the renewal of rice vesting was also a critical focus point for the Ricegrowers’ Association of Australia in 2016.
During the Department of Primary Industries’ review of the arrangements, over 90 per cent of the submissions received were supportive of the renewal.
RGA president Jeremy Morton said the continuation of vesting would allow the Australian rice industry to compete in the “extremely challenging” global rice market, despite being a small player.
He said the outcome was a crucial win for the Australian rice industry.
“It will provide certainty for growers, maximise returns, and maintain the industry’s competitiveness in export markets,” Mr Morton said.
“We commend the department for running a well consulted and professional review.
“The announcement will be widely celebrated in rice growing communities, who have strongly supported the retention of the vesting arrangements.”
