The Sun Rice Group has announced changes to its Riverina manufacturing operations, affecting its major rice processing facilities in Deniliquin and Leeton, with some jobs being cut as part of a broader restructuring of milling activities.

The changes are linked to ongoing pressures within the Australian rice industry, including lower rice production volumes and challenges affecting the availability of locally grown rice. Sun Rice has said operational adjustments are required to maintain a sustainable business while responding to changing supply conditions.

The Riverina region has a long connection with rice production, and Sun Rice’s mills in Deniliquin and Leeton are among the most important agricultural processing facilities in the area. The company’s operations support local employment, farmers, transport operators, storage providers and many other regional businesses connected to the rice supply chain.

Workers and local communities have expressed concern about the impact of job reductions, with regional leaders highlighting the importance of maintaining manufacturing employment in rural towns. Previous restructures at Sun Rice facilities have also raised concerns about the broader economic effect on communities that rely heavily on agriculture and food processing industries.

Sun Rice’s Riverina operations have historically been a major employer. The company operates significant milling facilities in Deniliquin and Leeton, processing rice grown by Australian farmers and supporting thousands of jobs indirectly through the agricultural supply chain.

The company has continued investing in parts of its manufacturing network, including upgrades and operational improvements at its Leeton facilities, while adjusting staffing and production arrangements to match current market conditions.

The restructuring comes as the Australian rice industry faces a range of challenges, including water availability, changing climate conditions, production fluctuations and competition in global food markets. Rice farming requires significant water resources, making reliable supply one of the key issues affecting growers and processors across the Riverina.

For communities such as Deniliquin and Leeton, the announcement highlights the vulnerability of regional economies when major employers reduce operations. Local councils and industry groups continue to advocate for policies that support agricultural production, regional employment and long-term investment.

Despite the workforce changes, Sun Rice continues to operate as one of Australia’s leading food companies, with operations across multiple countries and a workforce of approximately 2,000 employees globally. The company remains focused on maintaining its position in domestic and international rice markets.

The impact of the latest changes will continue to be monitored by employees, farmers and regional communities as the Riverina adapts to changes within the rice industry.