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SunRice Group (AXS:SGLLV) renews supply deals with Chinese commercial partners

Consumer
ASX:SGL
17 March 2021 17:30 (AEST)
SunRice (ASX:SGLLV) - Chief Executive Officer, Rob Gordon

Source: Farm Online

SunRice Group’s (SGLLV) subsidiary Ricegrowers Singapore has entered two significant agreements with a strategic commercial partner in China.

While exact details regarding the deal are light on, SunRice affirms the renewed deals with the unnamed client will see the ASX-lister continue supplying milled rice to key markets throughout the Pacific.

The arrangements come as SunRice experiences hindered market conditions stemming from the global pandemic. The company has been at the mercy of international rice supply chains to meet demand, due to a small Australian crop during the 2020 calendar year.

The company also flagged a range of disruptions to the shipping industry that could further impact these supply chains and the company’s financial performance down the track.

SunRice’s chief executive officer Rob Gordon spoke highly of the renewed arrangements.

“The renewal of these supply arrangements is significant, and will enable the SunRice Group to ensure supply of milled white rice to key markets in the Pacific throughout the 2022 financial year,”

The agreements are set to expire on April 30, 2022.

SunRice Group shares closed the day down 1.54 per cent at $6.39.

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