Commonwealth water policy blamed for 78 job losses at Australian rice giant SunRice

SunRice, one of the world's largest rice companies, has confirmed the loss of 78 jobs and changes to 92 positions across its mills in the NSW Riverina region. The company cited low crop volumes, exacerbated by drought and "water policy settings," as the reason for scaling down operations. This decision impacts about 650 employees in the region.

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we don't take these decisions lightly. Our focus has been on retaining as many employees as possible, including through redeployment opportunities where feasible.

Paul Serra, SunRice Group CEO, stated that the company focused on retaining as many employees as possible, including through redeployment. He added that SunRice continues to advocate to the government regarding the adverse impacts of water policy on the Riverina rice industry. The company will shift from 24/7 production at its Leeton mill to 16-hour shifts, five days a week, and reduce daily hours at its Deniliquin mill.

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SunRice continues to advocate to government on the adverse impacts of water policy settings on the Riverina rice industry.

Leeton Shire Council general manager Jackie Kruger directly blamed the federal government's water buyback policies for the redundancies. She explained that government water reform, particularly amendments to the Restoring Our Rivers Act in 2023, has skewed water prices and reduced availability for farmers like those in the rice and cotton industries. Kruger asserted that the government is "squarely responsible" for the job cuts.

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We really feel it in the country when communities like ours are impacted by choices like this.

Peter Herrmann, president of the Ricegrowers' Association of Australia, described the situation as a "sad time" for the industry and affected communities. A 2024 ABARES report had previously indicated that rice would be the crop most impacted by continued voluntary water purchases. Last summer's production was the smallest crop since the 2019-20 drought.

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Government water reform has impacted the rice industry … particularly from 2023, when the federal government brought in an amendment to the Restoring Our Rivers Act. These water buybacks have skewed the price of water and made water less available for annual croppers like rice farmers and cotton farmers.