The rice industry is the 'backbone' of this small town, but it's struggling

The rice industry forms the backbone of the small town of Deniliquin, but it is currently facing significant challenges. SunRice, Australia's largest rice processor, recently laid off 68 workers, causing a ripple effect throughout the community. The cuts were attributed to lower rice production due to drought and water buybacks.

The Albanese government is collaborating with the NSW government, the United Workers Union, and the community to support affected workers. Deniliquin, home to 7,500 people, has already felt the impact of the job losses, with affordable housing already being scarce. Meghan Fisher, a Vinnies Services manager, explained that the situation makes it difficult for the unemployed to not only find new jobs but also to secure affordable housing.

The loss of jobs is particularly concerning for families with multiple members, as some may retain their positions while others lose them. The May River Council Mayor, Ashley Hall, emphasized that one in five jobs in the region are directly tied to the rice industry, making it a critical component of the community. Local businesses such as Downes Rice Hulls, which rely on rice hulls for animal bedding, are also grappling with the shortage, leading to increased costs and layoffs.

SunRice's CEO, Paul Serra, pointed to dry seasonal conditions and the government's water policy as the primary reasons for the reduced crop production. A 22% forecasted drop in rice production for the upcoming summer has prompted calls for unlocking federal environmental water for agriculture. Despite the looming cuts, SunRice is investing $70 million to modernize its facilities and explore high-value rice products.

The federal government has received SunRice's proposal for co-investment in a rice cake facility and is considering assistance for the affected workers.