THE fortunes of rice processor SunRice have taken a dip, with the company posting a profit of just $11.7 million for the year ended April 30.
This compares with the previous year's record profit of $76.8 million, which was a result of improved sales on the back of low global rice stocks.
Revenue for this year was $817 million, or just 9 per cent lower than 2008-09.
SunRice paid its growers a record price of $550 a paddy tonne, up from $450 a tonne in 2008-09.
It also announced a fully franked dividend of 22.5c a B-class share.
The lower result comes on the heels of a 205,000 tonne harvest, the largest crop in four years.
SunRice chairman Gerry Lawson described the result as an "excellent outcome".
Mr Lawson said growers could expect pool returns to fall below $300 a tonne next season.
"The world's much tougher now - but not everything is against us, it is starting to rain," he said.
A strengthening dollar and a global inventory build-up approaching 100 million tonnes have dampened potential returns for Australian growers.
SunRice chief executive Gary Helou said California was processing a "monster" old crop with harvest to start next month.
Mr Helou said the several hundred thousand tonnes of finished product would place downward pressure on 2011 prices.
Meanwhile, China remains out of world markets after suffering flood damage .
Mr Helou said long-grain prices would stay subdued by large crops and stocks in Thailand, Vietnam and southern US.
Despite challenging international conditions, SunRice successfully launched microwave rice and rice cakes in the US.
Ready-to-go meals will soon be placed in vending machines at airports and government institutions.
Also new in the pipeline is a chocolate and rice snack bar. Mr Helou said the chocolate product would be positioned alongside convenience bars and would "create a stir".
