Rice growers welcomes NSW gov decision to end rice vesting

Rice manufacturers have welcomed the expected draft legislation to end statutory rice export marketing, or vesting, by July 2025.

These statutory marketing boards act as a single desk and buyer for agricultural products, as well as the sole seller for these products in Australian and overseas markets, often in a one size fits all approach.

The removal of vesting gives rice makers the power to export NSW rice overseas, entering new markets and negotiating their own contracts.

The Bill will end vesting for the southern growing region in 2025, mirroring efforts to end vesting in the northern rivers growing region from September, 2024.

NSW Minister for Agriculture Tara Moriarty says the forthcoming Parliamentary Bill will deliver greater flexibility to develop the rice industry based on regional preferences.

“The NSW Government is committed to grow the state’s agricultural sector and we are taking action to do that for the rice industry by listening to their needs, cutting red tape and assisting growers expand their export potential,” Moriarty says.

“The NSW Government while drafting a Bill to modernise the state’s rice marketing arrangements received requests from rice growers in southern NSW to end statutory rice export marketing, the ‘vesting’ arrangements, sooner rather than later.”

NSW Minister for Industry and Trade, Anoulack Chanthivong, adds that the bill will boost the state’s export capabilities.

“This decision opens the door to more export opportunities for NSW rice growers and that means businesses that are more productive, create more jobs and pay higher wages,” Chanthivong says.

“We’re committed to making it easier to get this state’s world class products into global markets where they attract a premium that flows back to regional NSW in the form of more jobs and better opportunities.

One of the largest rice companies, SunRice, has backed the legislation, stating it creates greater certainty in the market.

“Although SunRice has previously advocated for the NSW rice vesting arrangements in their current form to be retained, we believe that the NSW Government’s proposal for a partial deregulation between Southern and Northern Growers, over a prolonger timeframe, would have created uncertainty for our industry at a time when we need greater flexibility to adjust to a new operating environment,” SunRice Group chairman Laurie Arthur says.

“We believe today’s anticipated announcement of the NSW Government’s decision to end vesting by 1 July 2025 is the right decision as it provides greater certainty into the future.”

Laurie adds that the decision creates a more flexible environment for the industry, and by lifting regulatory constraints it allows rice makers to navigate the recently legislated water reforms.