A STRONGER year is being predicted for Leeton-based business SunRice in the next financial year.
SunRice held its annual general meeting recently where issues addressed included the provision of 2017-18 profit guidance, current market condition and the C17 paddy price outlook.
The SunRice Group has performed strongly since the start of the year, including Trukai and CopRice, which is benefitting from a gradual recovery in the dairy industry.
SunRice anticipates the net profit after tax for the current financial year will be around $40 million.
However, this will be dependent on market conditions and factors such as trends in global rice markets, exchange rate movements and other issues.
While the last year was characterised by a challenging trading environment, signals indicate the global rice market is moving beyond the bottom of the cycle.
Medium grain rice prices are improving, largely driven by a short supply situation in the California market.
The medium grain cash paddy price in the California market has increased 40 per cent since March and Japan tender prices are expected to open around US$745/tonne in October.
SunRice is confident of achieving the C17 paddy price range of $320-360/tonne (medium grain Reiziq), but market factors and trends will need to continue to be in the company’s favour.
In other industry news, NSW Rice Marketing Board (RMB) stalwart Noel Graham has announced he will not be seeking re-election this year.
Mr Graham was first elected to the RMB in 2001 and was its chairman from 2002 until 2009, when the NSW government directed the role would be elected from among the nominated members.
He has served as deputy chairman since then.
RMB chairman Robyn Clubb applauded Mr Graham’s achievements and contributions to the industry.
“Noel has been a stalwart of the rice industry and has made a very significant contribution over the past 16 years,” she said.
“His insightful and intelligent contributions and vast knowledge of the rice industry will be greatly missed.
“We thank him for his exemplary service to the rice growers of NSW and wish him well for the future."