USDA Report: Australian Rice Update

Rice production for 2010/11 is forecast at 175,000 MT, unchanged from post’s previous report (AS 9038) and up considerably on the estimate of 63,000 MT for the previous year. Despite the sharp increase in year-on-year production, this forecast if achieved, would represent less than half of the ten-year average of 557,000 MT.

Recent travel undertaken by post has revealed significant plantings of rice in areas which have not grown rice in the past two or three seasons. Industry sources report that investment undertaken by the Australian rice industry in processing and marketing is unparalleled by any other field crop industry in Australia. Furthermore, an expected return to more normal rainfall conditions combined
with advances in water use efficiency should see rice production continue improve year-on-year for the foreseeable future. Some sources place Australian rice production prospects for the 2011/12 crop in the 250-400,000 MT range. The “long-term average for sustainable rice production” in Australia is believed by industry sources to be in the range of 600-800,000 MT per year.

Imports of rice in 20010/11 are forecast at 226,000 MT, down slightly on the revised estimate for the previous year. Improved domestic production, if achieved, is expected to have a significant impact on rice imports as well as allow Australia to return as a rice exporter.

Source: USDA