Two thirds of the Deniliquin rice mill workforce has been slashed as SunRice continues to navigate government water policy settings that have significantly impacted rice production.
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Five weeks after announcing reduced hours at its Deniliquin and Leeton mills, SunRice confirmed on Tuesday evening that 78 SunRice and Australian Grain Storage (AGS) staff had been offered redundancies.
Of those, 68 were based at Denilqiuin.
While SunRice could not provide any specifics on the demographics of those employees affected, the Pastoral Times understands it includes apprentices right up to long-term employees and managers.
Another three Deniliquin employees have been able to be redeployed within the company, along with 11 Leeton-based staff members.
Community leaders continue to warn that the impacts will be felt well beyond the factory floor, affecting families, contractors and local businesses that rely on the rice industry.
United Workers Union director food and beverage Erryn Cresshull said the scale of job losses was “devastating” for the town.
“The loss of 78 good, secure SunRice jobs is devastating for workers, their families and the Deniliquin community.
“These workers have spent years supporting the Riverina’s rice industry and have done everything they can to keep this industry strong.
“This is a blow to a town where SunRice has been the lifeblood of the local community.
“We fear workers who remain at SunRice Deniliquin still face the possibility of further redundancies hanging over their heads each month, given the dire situation outlined by SunRice about future crops.”
Ms Cresshull said regional workers were being forced to carry the consequences of water policy decisions.
“We have long supported a sustainable approach to water management, but when agricultural production faces too many constraints, it’s regional workers who are forced to pay the price.
“Government decisions on water allocation have real consequences, and there needs to be a real commitment to addressing those consequences.
“SunRice workers in Deniliquin are now living with uncertainty from season to season. These workers and their families deserve better than being left alone to carry the cost of these decisions.”
Ms Cresshull said the union would continue speaking with members about the support they need in the coming weeks.
SunRice declined to comment on whether further reductions may occur, saying “out of respect for our people, we won’t be providing commentary on individual personnel outcomes”.
SunRice Group CEO Paul Serra did say, however, the company will support impacted staff.
It will do this through resume‑writing workshops, one‑on‑one assistance, and retraining where redeployment is possible.
“We remain hopeful the government will identify meaningful opportunities through the Sustainable Communities Fund to further support the rice industry and communities of the Riverina,” Mr Serra said.
Mr Serra said the company tried to retain as many employees as possible.
“This has been a difficult period for our people, and for the communities of Deniliquin and Leeton, and we don’t take these decisions lightly,” he said.
“Throughout the consultation process, our focus has been on retaining as many employees as possible, including through redeployment opportunities where feasible, while supporting employees whose roles have been impacted with care, transparency, and respect.”
Mr Serra said SunRice continues to advocate to government on the adverse impacts of water policy settings on the Riverina rice industry, while monitoring seasonal conditions and crop outlook.
Responding to the SunRice decision, the Ricegrowers’ Association of Australia (RGA) said it’s a clear reflection of the impact of imbalanced government water policy settings.
RGA President Peter Herrmann said the job losses were “a very sad day for the industry, but not unexpected”.
He acknowledges that SunRice had been placed in an “extremely difficult position” following consecutive years of smaller plantings and lower production.
“Our industry has survived for more than 75 years. It has endured severe droughts and devastating floods, but the cumulative impact of decades of water reform and ongoing buybacks is now being felt right across our communities,” he said.
“The greatest impact is not being felt on farm.
“It is being felt by mill workers, transport operators, contractors and local businesses who have no control over decisions that reduce the water available to support regional production.”
Mr Hermann said the Sustainable Communities Fund - offered by the Federal Government as a way to offset the impacts of its water buyback plans - had so far failed to deliver meaningful support.
“Too many worthwhile job‑creating projects have failed to make it past the first stage, while funding continues to flow to cosmetic upgrades that do little to replace lost regional jobs.”
RGA Executive Director Graeme Kruger said declining water availability had “fundamentally changed the scale of the industry”.
“Before significant water recovery, Australia’s rice industry regularly produced more than one million tonnes of rice from more than 1000 farms.
“Since the end of the Millennium Drought, production has struggled to exceed 700,000 tonnes even in wet years, and the number of rice‑growing farms has fallen to about 500.
“Every megalitre removed from production ultimately affects more than a farmer.
“It affects regional jobs, regional investment and the future of communities like Deniliquin and Leeton.”