THE Federal Government is in talks with SunRice Group over a potential co-investment package that could save many jobs at its Riverina operations in southern New South Wales.

Earlier this month, the ASX-listed rice company announced changes for 92 employees across Deniliquin, Leeton and Australian Grain Storage (AGS) operations, with 78 staff to be made redundant, and only 14 able to be redeployed.

SunRice attributed the decision to a smaller crop caused by drier weather and current water policy settings, particularly Murray-Darling Basin buybacks.

During an interview on the ABC’s Insiders program on Sunday, Federal Member for Farrer David Farley confirmed discussions were under way over potential co-investment in the Leeton facility, which manufactures packaged rice cakes.

He said SunRice had asked the government “for $15 million to match the industry’s $15M to invest in the plant and we would be able to avoid those redundancies of 78 families”.

“I’m happy with the outcome as it is progressing,” Mr Farley said.

“It started out with an engagement with Tony Burke, who facilitated a meeting with Murray Watt.”

Mr Farley said he had further discussions with Prime Minister Anthony Albanese about the issue, with Mr Albanese responding: “I’m aware of it; I’m working on it; we’ll get it done.”

Member for Farrer David Farley.

Mr Watt asMinister for the Environment and Water commented on the situation during an interview on Monday with ABC News Breakfast.

“We have been meeting with SunRice for some time about the situation there, just as we’ve been meeting with the union that represents those workers, the New South Wales Government, and rice-grower groups as well about the situation that is being faced there,” Mr Watt said.

“I can confirm that we have advised SunRice that we are prepared to co-invest with them in new investment in a rice-processing plant that would be about manufacturing rice cakes.

“SunRice have indicated that that investment along with their own would protect jobs that already exist and potentially create more as well.”

He also confirmed that SunRice had sought $15M which would be matched with its own funds.

“We haven’t put a figure on that, and what we’ve said to them…we do need to see a formal written proposal that sets out the funding that would be required, the jobs that would be protected and created, and we’ll make a decision from there.

“[W]e have said that we are prepared to co-invest with them.”

Water policy reform

A SunRice Group spokesperson said that as discussions were ongoing, “it would be inappropriate to comment on those discussions in detail”.

“SunRice welcomes the constructive engagement we have had with the Australian Government regarding the challenges facing the Riverina rice industry and regional communities,” the spokesperson said.

The spokesperson said a sustainable rice industry also required a long-term plan which included supportive water policy settings.

“To truly ensure a viable Australian rice industry, we need a multi-faceted plan that supports more balanced water allocations and value-added manufacturing to help promote skilled regional jobs.

“We have been highlighting the need for water policy reform that balances socio-economic and environmental outcomes, and greater regional manufacturing support in the Riverina, for several years.

“We welcome the short-term assistance and are encouraged to see the government considering action on part of the solution.

“We remain hopeful that further measures can be progressed to support a viable level of rice production in the upcoming season and the long-term viability of the Australian rice industry.”

NSW Member for Murray Helen Dalton criticised the potential Federal Government investment while maintaining the current water policy, describing it as “breaking someone’s leg, then offering them crutches”.

“Maybe just stop hurting people in the first place,” Mrs Dalton wrote on social media.

“Buy the water, grow less rice, mill fewer jobs. That’s the chain. SunRice has now cut around 200 roles since late 2025 and the 78 at Leeton and Deniliquin are just the latest.

“A rescue package might slow the bleeding, and I hope it does, because those families need it. But crutches don’t mend a broken leg. Unless buybacks stop for good, more SunRice-style job losses are coming.”

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