Rice Growing in Australia - Industry Market Research Report

Rice Growing in Australia - Industry Market Research Report

Rice Growing in Australia

The amount of water farmers in the Rice Growing industry can access influences production, as rice is a water-intensive crop. Therefore, the level of annual rainfall and water availability are key determinants of industry performance. Rice growers' reliance on rainfall is reflected in the industry's performance over the two years through 2019-20. Industry output and revenue were negligible over this period, as severe drought in the Murray-Darling Basin (the Basin), which hosts most industry establishments, forced many farmers to grow other crops. This decline was followed by a sharp revenue increase over the three years through 2022-23, when above-average rainfall allowed farmers to produce a bountiful crop. While rising demand for rice, particularly for premium varieties, has benefited farmers, volatile growing conditions have constrained industry performance. Overall, industry revenue is expected to grow at an annualised 1.9% over the five years through 2022-23, to $306.7 million. This includes an expected decline of 5.3% in the current year, as production volumes and prices marginally decline relative to previous years.

Operators in the industry grow rice, which is sold to millers for processing. The product is generally then onsold to retailers, wholesalers, food processors and food-service establishments to reach the final consumer.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.