The global rice production is expected to rise by 0.9 percent over 2021 buoyed by record yield especially from Vietnam.

In its 2021 annual report, The Rice Company of Fiji Limited says despite this, rice import costs and shipping delays remain a challenge due to the unprecedented port congestion, container shortages and high freight rates.

Chair, Sanjay Punja says the shipping delays also impact their procurement cycle, forcing build-up of inventory volumes to avoid out-of-stock situations.

But, despite the challenges and uncertainties due to the COVID-19 pandemic, Punja says the company posted a high revenue of $31.4 million during the financial year ending June 30th.

It recorded a net profit of $2.14 million which Punja says is at par with the previous financial year.

He adds Sunwhite Medium Grain rice and premium variety FMF Jasmine rice saw a growth during the year while there was a drop in sales of FMF Sungrown long grain rice.

This was mainly due to supply disruptions caused by pandemic led restrictions and container shortages mainly from South East Asia.

Punja says the profitability was impacted by a higher cost of raw materials resulting from sharp increases in input and freight costs.

The Company has maintained the dividend of 35 cents per share, on par with last year’s dividend, resulting in an outflow of $2.1 million.

Punja adds the increase in vaccination rates, opening of borders in Viti Levu, relaxation of restrictions and planned opening of international border will drive economic recovery and boost the demand and consumption.

However, the company is cautious about the challenges posed by the pandemic and thus will continue to tread cautiously.