SunRice cuts 78 jobs at rice facilities in Australia — ABC News Australia
In the Australian town of Deniliquin, SunRice cut 68 employees at its rice processing mill, affecting the local community of about 7,500 people. The company also cut another 10 jobs at processing facilities in Leeton, while 13 employees were reassigned to other positions, ABC News Australia reports.
Vinnies service manager Megan Fisher said that some people are already struggling to pay rent. According to her, affordable housing in Deniliquin was in short supply even before the cuts, so people without jobs will find it difficult to find cheaper accommodation.
The region’s dependence on the rice industry
Edward River Council Mayor Ashley Hall said that one in five jobs in the region is directly linked to the rice industry. According to him, local retail businesses, healthcare and educational institutions also depend on it.
Related businesses are also feeling the effects of the low harvest. Downes Rice Hulls, which processes rice hulls for bedding in intensive livestock farming, has begun adding straw because of the rice shortage. Jenny Downes said this is costing the business hundreds of thousands of dollars, and the company has already reduced part of its staff.
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Low harvest and water policy
The SunRice mill in Deniliquin, the largest in the Southern Hemisphere, is currently operating at only part of its capacity. Last year’s rice harvest of 180,000 tonnes was the smallest in six years.
SunRice chief executive Paul Serra linked low production to dry seasonal conditions and the policy of buying back water rights for environmental needs in the Murray-Darling Basin. He said the company hopes to avoid further cuts, but did not rule them out depending on the season’s results and water availability for growers.
Rice production is forecast to fall by another 22% this summer. Industry representatives and local One Nation MP David Farley called for agriculture to be given access to Commonwealth environmental water.
SunRice plans to invest $70 million in modernising its 50-year-old infrastructure and producing higher-value products, including rice cakes, high-protein rice and snacks. Australia’s federal government said it is considering the company’s application for co-investment in rice cake production, as well as support measures for workers who have lost or may lose their jobs.
