SunRice

Ricegrowers Limited
Public
Traded as NSX: RGWB
Industry Food and Beverage Manufacturing
Founded 1950[1]
Founder NSW Rice farmers[2]
Headquarters Leeton, Australia
Key people

Laurie Arthur, Chairman

Rob Gordon, CEO[3]
Products Bulk Rice, Rice Products
Increase A$1.15 billion (2014)[4]
Number of employees
 2,100 [5]
Website www.sunrice.com

SunRice is the consumer brand and trading name of Ricegrowers Limited, which is one of Australia's largest exporters of processed branded food products.[6] In the 2016 financial year, SunRice recorded revenue of A$1.3 billion and profit of A$52 million (representing more than a doubling of profit since 2011).[7]

The SunRice Group comprises nine businesses and almost 30 brands, and employs over 2,000 staff in Australia, Papua New Guinea, the Solomon Islands, USA, the Middle East and Asia.[8]

Australian rice production is based in southern regional New South Wales. The company’s main office is located in Leeton (with a corporate office also in Sydney), and it has rice mills in Leeton, Deniliquin, and Coleambally. SunRice also operates CopRice stockfeed plants in Leeton, Tongala and Cobden, Victoria.[9]

In 2014, SunRice expanded to North Queensland with the purchase of the rice mill in Brandon, having recognised the region as an opportunity to grow specialty rice varieties to complement its existing supply of rice from the Riverina region in NSW.[10] The potential for the emerging North Queensland rice industry to become an important value-added, branded food producer in the local region, was demonstrated in 2016 with the launch of the first North Queensland branded rice products[11] - Tully Rain Fed Rice and North Queensland Koala Long Grain rice. These products are being sold in leading supermarkets across Australia.[12] Since August 2015, TV Cook and personality Poh Ling Yeow has been a brand ambassador for SunRice.[13]

Capital Restructure

SunRice is proposing to move its listing from the National Securities Exchange of Australia to the more liquid Australian Securities Exchange.[14] The plan would mean existing B-class shares would be converted to B securities on a one-for-one basis and be held in the SunRice Fund, which would be listed on the ASX. The proposed restructure would open the company to new, non-grower investors but also keep the rice exporter under the control of rice growers.[15]

History

SunRice began with the establishment of a single rice mill in the Riverina, New South Wales in 1950. Today SunRice has operations across Australia, Papua New Guinea, the Solomon Islands, the USA, Asia and the Middle East.[16]

Products

SunRice manufactures more than 700 products - from table rice and rice flour, snacks and rice meals, to companion animal and livestock products. The Company’s most recent product addition was the introduction of ready-to-eat snacks called “Street Snacks” in 2015.[17] In 2016, SunRice anticipates marketing the first North Queensland branded rice products in Australia and Asia.[18]

During the 2015 financial year, the Company experienced significant market share growth in the domestic Australian snack foods sector due to increasing sales of microwave rice meals. Internationally over the same period, SunRice also re-launched the SunWhite brand and, as a result, experienced a 41pc revenue increase in the "hugely competitive" Middle East market.[19]

Business Units and Brands

CopRice

CopRice has been supplying animal feeds for over 30 years through its plants in Leeton, Tongala and Cobden. The CopRice business was originally established in response to the availability of rice by-products, such as rice pollard: a quality feed which is high in energy and protein. Rice now represents only one of many ingredients used by CopRice. CopRice also operates a pet food business, which caters for a wide variety of companion animals. CopRice has been proudly supporting the Australian equestrian industry for over a decade through its sponsorship of elite showjumping riders and events. In 2015 it was the major sponsor of the Tamworth World Cup Show Jumping Qualifier in the CopRice Arena at Australian Equine and Livestock Events Centre in NSW[20] and prior to that has sponsored the NSW Interschool Championships.[21]

Riviana Foods

Riviana Foods is a gourmet food distribution, sales and marketing company owned by SunRice. It has the largest share of olives and pickled vegetables in the retail channel in Australia. In its grocery business, important brands include Always Fresh, Admiral, Captain, Riviana and Mahatma. Riviana Foods also has a strong presence in the food service sector and an extensive portfolio of brands including Riviana, Menu Master, Garden Supreme and Ocean Supreme.[22]

Trukai Industries

Trukai is a rice product packaging, distribution, sales and marketing company that is two-thirds owned by SunRice, with the remaining interest held by the people of Papua New Guinea through the Pacific Balanced Fund. It is Papua New Guinea’s leading supplier of quality rice products. Registered in 1970 by SunRice, Trukai has a number of well-established brands including Trukai and Roots Rice. Trukai’s head office and processing base is located in Lae, with a marketing office in Port Moresby and distribution facilities located throughout Papua New Guinea. Trukai employs over 1,000 people throughout the country. Trukai has a strong focus on community and encouraging healthy lifestyles at the grassroots level in PNG. The company’s ongoing sponsorship of the North Queensland Cowboys rugby league team has continued to boost the profile of the game in a country where rugby league is the national sport.[23] For the past 17 years, Trukai has hosted the National 2016 Trukai Fun Run in Port Moresby. This is a vital fundraising event to support Team PNG for the Rio Olympic Games in Brazil.[24] To support PNG rice farmers, Trukai has taken a new approach to increasing productivity while giving back to the people in the communities. With the establishment of various pilot rice projects in the country Trukai has been able to assist small holder farmers by providing the tactical expertise, equipment, training and skills to help the people in the rural communities produce their own rice.[25]

SolRice

Solrice, located in the Solomon Islands, is a distribution, sales and marketing company wholly owned by SunRice. It is the Solomon Islands’ leading supplier of quality rice products, including the well-established Solrais brand.

SunFoods

SunRice owns a 65% interest in SunFoods, a rice milling, distribution and marketing company that was established in 2008 to acquire Gold River Mills. SunFoods is the owner of the Hinode brand, which was created by the California-based Rice Grower’s Association in the 1930s. The Hinode brand is very strong in medium-grain rice markets throughout the US, and is stocked in retail outlets including Walmart and Kruger. SunFoods’ head office and milling base is located in Woodlands, California.

AGS

SunRice’s wholly owned subsidiary AGS owns and operates Riverina-based grain storage infrastructure with capacity exceeding 1 million tonnes. With an extensive grower base in the Riverina and beyond, AGS is well placed to meet storage requirements for all grain types.

RRAPL

Rice Research Australia Pty Ltd (RRAPL), a wholly owned subsidiary of SunRice, undertakes rice varietal and agronomic research and development in partnership with the NSW Department of Primary Industries and the Rural Industries Research and Development Corporation (RIRDC). RRAPL operates a leased farm in the Riverina for its activities.[26]

Corporate Activity

In July 2014, SunRice announced the acquisition of the rice milling assets of the Blue Ribbon Rice Group.[27] The assets, located in North Queensland’s Burdekin region, include property, plant and equipment.

SunRice is committed to building a sustainable Queensland rice industry, investing significantly in the 2015 financial year to improve the quality of locally grown rice and manufacturing productivity at the Brandon Mill. Key developments have seen a weighbridge installed to enable growers to directly deliver paddy to the mill. A new software system is also being investigated to improve the management of incoming and outgoing rice stocks.

This commitment has been further solidified with the announcement that in 2016 the first North Queensland branded products will be marketed in Australia and Asia.

In anticipation of increased rice production across North Queensland, SunRice is expanding the rice storage capacity at the Brandon Mill, with the purchase of 40 hectares of land adjacent to the Mill, where new storage facilities have been built to supplement the Mill’s recently commissioned grain drying equipment. The new facility includes 18 new paddy drying silos with 4,000 tonne capacity to complement the Mill’s existing 1,500 tonnes of storage.[28]

Corporate and Social Responsibility

In 2015, for the third year running, SunRice has teamed up with Riverina rice growers and Deniliquin Freighters to bring hunger relief to thousands of Australians.

SunRice has engaged the entire rice industry supply chain to donate 96 tonnes of Australian medium grain rice, or the equivalent of 1.37 million serves of rice, valued at more than $180,000 including freight, to Foodbank. Foodbank is the largest hunger relief organisation in Australia, providing food supplies to a range of frontline charities and community groups.

In 2015, SunRice launched the annual Jan Cathcart Scholarship for females in the rice industry undertaking tertiary studies. The scholarship honours the memory of long-term SunRice employee Jan Cathcart and her 30 year contribution to the rice industry.[29]

References

  1. ↑ Doak, Emily (18 June 2007). "SunRice lists". ABC Rural. Australian Broadcasting Corporation. Retrieved 26 October 2010.
  2. ↑ "The SunRice Story". SunRice Australia. Retrieved 26 October 2010.
  3. ↑ "SunRice Update March 2012 - NSX" (PDF). SunRice Australia update to NSX. Retrieved 14 January 2013.
  4. ↑ "SunRice Financials".
  5. ↑ https://www.nsxa.com.au/ftp/news/021727244.PDF
  6. ↑ "Error" (PDF). www.parliament.nsw.gov.au. Retrieved 2016-07-14.
  7. ↑ "SunRice moves a step closer to making leap to ASX". 2016-06-21. Retrieved 2016-07-14.
  8. ↑ "SunRice Crawls Towards Revamp".
  9. ↑ "SunRice tests farmer shareholder support for listing".
  10. ↑ "Burdekin growers gather to consider rice growing future". ABC Rural. 2014-11-25. Retrieved 2016-07-14.
  11. ↑ "Tully Rice Sows Its Brand Far and Wide".
  12. ↑ Sherrington, Matt (2015-12-03). "N.Q rice boom continues". Retrieved 2016-07-14.
  13. ↑ "Poh Ling Yeow signs new SunRice brand ambassador".
  14. ↑ "SunRice seeking grower feedback on capital restructure". ABC Rural. 2015-03-04. Retrieved 2016-07-14.
  15. ↑ "SunRice announces it will delay its proposed company restructure".
  16. ↑ "Sponsors". www.burdekinwaterfestival.com.au. Retrieved 2016-07-14.
  17. ↑ "SunRice launches new Street Snacks product line | Australian Food News". Retrieved 2016-07-14.
  18. ↑ "Value-add pays off for SunRice - Agriculture - Agribusiness - General News - Farm Weekly". www.farmweekly.com.au. Retrieved 2016-07-14.
  19. ↑ Sherrington, Matt (2015-12-03). "N.Q rice boom continues". Retrieved 2016-07-14.
  20. ↑ "News about North North West Show Jumping Club". North North West Show Jumping Club. Retrieved 2016-07-14.
  21. ↑ "CopRice Equestrian NSW Interschool Championships 2012 - Eventing | An Eventful Life". www.an-eventful-life.com.au. Retrieved 2016-07-14.
  22. ↑ "SunRice impresses with profit growth".
  23. ↑ "Cowboys & Trukai extend partnership » League Unlimited". League Unlimited. Retrieved 2016-07-14.
  24. ↑ "Trukai backs Rio Olympics Athletes". Retrieved 2016-07-14.
  25. ↑ "Trukai giving back to local farmers". Retrieved 2016-07-14.
  26. ↑ "Corporate > Our Businesses - SunRice". www.sunrice.com.au. Retrieved 2016-07-14.
  27. ↑ "SunRice invested in NQ future". Queensland Country Life. 2015-09-07. Retrieved 2016-07-14.
  28. ↑ Sherrington, Matt (2015-12-03). "N.Q rice boom continues". Retrieved 2016-07-14.
  29. ↑ "Scholarships open for women in rice". www.mmg.com.au. Retrieved 2016-07-14.
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