SunRice Mills Cut Shifts as Drought, Water Policy Squeeze Supply

Local officials pushed back hard. Leeton Shire Council general manager Jackie Kruger said the cuts were a direct result of the government buying water from irrigators to meet Basin Plan targets. "The relentless pursuit of water buybacks had to catch up at some point," she said. Edward River Mayor Ashley Hall said the consequences would ripple beyond the mill workers to trucking, mechanics, auto electricians, and local schools.

ABARES, the government's agricultural research bureau, forecast in a 2024 report that rice would be the crop most affected by continued voluntary water purchases. Ricegrowers Association of Australia president Peter Hermann said the warnings had been ignored. "Our sense is that there's some people … only interested in political consequences," he said. "They're not so worried about land, water and communities and even jobs."

The coming season faces zero water allocations for general security irrigators in the Murray and Murrumbidgee valleys, which includes most rice growers. Drought conditions persist. That means the supply squeeze is unlikely to ease in the near term, even if a wetter spring arrives.

United Workers Union director of food and beverage Mel Gatfield said the decision would create significant uncertainty for long-serving employees, many of whom now face the prospect of relocating to find work. SunRice said it is exploring redeployment options within the company.

The federal member for Farrer, One Nation's David Farley, said water surplus to environmental needs should be released for growing rice. "I believe there would be enough that would underwrite the production capacity and secure the jobs for the rice millers and the cotton ginners as well," he said.