Australian 2022 rice output forecast up sharply; SunRice upbeat

Australian 2022 paddy production was forecast up by 44% on year at 660,000 mt by the Australian Bureau of Agricultural and Resource Economics (ABARES) as the country continues to recover from drought.

The forecast, published in ABARES' September Crop Report, is the first for the 2022 crop and reflects "plentiful supplies of irrigation water available to rice producers." Planted area is forecast to expand by 42% on the year to 66,000 hectares, with a small increase in the average field yield expected.

Australia's only major rice marketer, SunRice, has also recently expressed tentative optimism that production will continue to rebound following two years of drought-affected output in 2019 and 2020.

In a press release dated Aug. 27 following the company's annual general meeting, SunRice's Chairman, Laurie Arthur, wrote that "we are now confident that the CY22 [calendar year 2022] crop will exceed the volume harvested in CY21." According to SunRice, paddy production this year totaled 417,000 mt. Arthur added that "with improved water availability and lower water prices there is a strong desire from growers to plant rice in the upcoming season."

According to a SunRice spokesperson, SunRice is yet to forecast an exact figure for 2022 production. The spokesperson added that this would likely come in December, following the bulk of planting in October for harvesting in March-April.

Ahead of planting, SunRice offered fixed price paddy contracts to farmers in H2 August. The Reiziq variety was set at A$400 ($297)/mt, down by A$75 ($56)/mt from its year-earlier level, reflecting lower water prices and expectations of greater rice availability. Other major varieties, such as Opus and Koshihikari, will be priced through set premiums to the final price attained from 2022 pool paddy Reiziq.

In addition to usual varieties, SunRice also offered fixed price contracts at A$400/mt for the new V071 medium grain variety, which is noted for its tolerance of cold weather. The variety is now in the final year of commercial trials and is being offered to farmers on a limited basis.