Southern Riverina ricegrowers have welcomed a paddy price increase which sees the second payment for the 2011/12 crop valued at more than $50 million.November 7, 2012 4:19am
The overall paddy price for medium grain rice was increased by $20, to $280 a tonne, last week.
The second of six payments from the 963,000 tonne crop, which was harvested in April this year, was increased to $55 a tonne and brought forward to October 30.
It was originally planned to be paid to growers on November 20
Ricegrowers Association (RGA) vice president and Berriquin RGA Branch president Warren Lang said the early and increased payment was a welcome bonus for local rice growers.
‘‘In my role I have received calls from quite a mixture of young rice growers starting their career, right through to older growers,’’ he said.
‘‘It’s a particularly difficult time as farmers are waiting for cereal crops.’’
Mr Lang said farmers were still cash strapped from the 10-year drought — which only broke two years ago — and that the timing of the payment was perfect.
‘‘The timing is the most important thing,’’ he said.
‘‘Quite a few had approached banks in relation to increase carry-on payments.
‘‘But thanks to the payment this may not have to be used. There is much pleasure in receiving the payment.’’
Mr Lang said the increase has injected some much needed positivity into the industry, saying it had been ‘‘considerable years since I have seen something like this’’.
‘‘In particular it’s good for the community,’’ he said.
‘‘Local businesses should get paid. It’s a huge boost to the community.’’
Mr Lang said it also points to SunRice ‘‘getting back on track’’.
The payments are being made to ricegrowers based on the 963,000 tonnes harvested in April this year.
Last week, SunRice announced a strong financial year has allowed the company to increase the return price for the 2011/2012 harvest by $20, to $280.
The total payment is averaged out over six instalments, with this second payment worth about $55 per tonne and delivering almost $53 million to growers.
The first payment, paid at harvest, delivered $145 per tonne, and the remaining $80 in the estimated pool will be delivered through additional payments in February, April, May and July.
Rice growers were originally only expecting to receive about $22 per tonne for the second payment.
SunRice chairman Gerry Lawson made the announcement of an increase to shareholders and growers, saying the continuation of good trading conditions for the Australian Rice Milling and Marketing business had made it possible.
Mr Lawson said given SunRice’s improved cash flow position, the company had also decided to bring forward the second paddy payment.
‘‘We hope the early payment will assist growers at a time when rice planting and winter crop harvest place considerable demands on cash flow,’’ he said.
In the same announcement, SunRice said it anticipated that its consolidated net profit after tax (including minority interests) for the half year ending October 31 would be more than 15 per cent above the result achieved for the same period in 2011/12.
SunRice’s half year accounts will be finalised and released in December 2012.
The outlook for rice in the 2012/13 season is looking ‘‘good’’, but the volatile world economy could impact on returns next year, according Deniliquin RGA Branch president Nick Morona.
‘‘But generally it looks quite positive,’’ he said.
Budding Kyabram actor Taylor Smith Morvell is one of 20 Victorian students chosen to perform his Year 12 theatre studies monologue in Melbourne next week.
The Yarrawonga and District Cemetery Trust has been awarded a $50,000 grant from the Department of Health to undertake development work at the Yarrawonga cemetery.
Members of Murchison Book Club are hosting a literary lunch with Vivien Achia, author of Marrying Italian — When Love is Not Enough.
This year's Southern 80 ski race has reaped an estimated $36.2 million for the district economy.
Rochester and Elmore District Health Service has increased its radiology services from two to four days a week.
Tongala family hopes for transplant call for six-year-old.
Family of former Seymour man killed in a road crash in Los Angeles before Christmas set up a Melbourne University scholarship in his honour.
Tocumwal's Don Elgin is aiming to compete at the 2014 Commonwealth Games in Scotland
Leitchville-Gunbower at home was too strong for Heathcote’s senior footballers in their first Good Friday clash.
Huge crowds turned out for Cobram Barooga's River Beaches Festival, which featured a special splash for 2000 rubber ducks.
South West Arts ArtOut will be held again in 2015 after last weekend's inaugural success.
Some of Australia’s greatest horses and just a few racetrack characters have appeared at the Benalla Racing Club’s grounds in its 150-year history.
Benalla's Kevin Harper will be honoured in the motorcade lap of honour at Melbourne Cricket Ground tomorrow for his service during the Korean War.
Discover unbelievable local deals from local businesses every week in the Goulburn and Murray Valley area with Leapon.com.au!
Search properties for sale or rent across North Central Victoria and Southern NSW. Visit your local website for local homes....
Search for published and unpublished photos from McPherson Media Group newspapers and magazines. All our photos are available to purchase.
Place an advertisement in any one of McPherson Media Group's local newspapers.