Australian rice growers are continually improving their water use efficiency
Water restrictions in urban Australia have nothing to do with rice farms
Rice is a valuable crop to Australia
Rice varieties grown in Australia are not the same as those grown in Asia
Water used on rice is not the same as drinking water
Rice farms promote biodiversity
Rice is not the agricultural product which uses the most water
If there’s no water, there’s no rice crop
Rice growers are committed to the environment
Rice is a valuable crop to Australia
The Australian rice industry has developed a world-class food business during the course of the twentieth century.
The Australian industry, while small by world standards, has become a competitive supplier of quality packed and branded rice products into world markets. It has achieved this through the vertically integrated marketing arrangements owned and managed by the rice growers’ company, Ricegrowers Limited (SunRice).
SunRice, the grower owned company, has a turnover of approximately $800 million per annum in a normal year. Value-added exports contribute about $400 million to these earnings with 70% of Australia’s rice production exported to over 60 premium markets overseas, including the Middle East, Japan and Hong Kong.
The rice industry supports the direct employment of over 7,000 people across Australia and indirectly the employment of a further 33,000 people, mostly in regional Australia.
The growing, harvesting, transporting, storage, processing, value adding and marketing of rice is a major contributor to the economic and social well being of the south western irrigation areas and districts of NSW. The major towns include Griffith, Leeton, Deniliquin, Jerilderie, Finley, Coleambally and Hay.
Rice growing is concentrated in this area due to irrigation infrastructure, availability of water, large areas of flat land, suitable clay-based soils and the development of storage and milling infrastructure in or near the regional towns.
The Australian rice industry is the most efficient in the world, operating without any production or export subsidies — unlike most of its major competitors. Australian rice competes in international markets, where rice is the most commodity in the world. Nor does Australia apply any tariffs on rice imported into Australia, abd yet Australian rice incurs some of the highest trade barriers in the world, such as 778% for the Japanese market.
To give you an idea of the subsidies paid to rice growers around the world, below is a table with a snapshot of what’s paid to rice growers (AUD) simply to plant a crop:
| Country | $A per tonne |
|---|---|
| USA | $191.00 |
| EU | $392.00 |
| Korea | $1,644.00 |
| Turkey | $555.00 |
| Japan | $2643.00 |
| Australia | Nil |
The outlook for the continuation of an economically viable industry in Australia into the long term is very positive. World market prospects are bright with world consumption exceeding production and stocks being at their lowest level since 1982/83.
Want to know more about this issue?
Below you will find links to useful information:
Fact sheets
- Rice and the Economy (PDF | 176kb)