ANOTHER solid half-year result from its stockfeed subsidiary CopRice could be a pertinent pointer to the growth ambitions of rejuvenated rice processor and marketer, SunRice.
The stockfeed division, developed in the 1980s to find markets for waste rice hulls and bran from the grain milling process, has been applauded for achieving an 11 per cent sales lift (year on year) in the six months to October 31.
Last month grower-owned SunRice posted a $15 million first-half profit after tax (up 24pc on the same period last year) thanks largely to improved overseas sales and a robust first half performance by CopRice.
Chief executive officer Rob Gordon is confident about the revenue diversification growth opportunities the stockfeed business could offer SunRice.
"We have a really good stockfeed business which is producing good revenue and we believe there are opportunities to develop this," he said.
In 2011-12 CopRice sales jumped 37pc as SunRice revenue topped $1 billion for the first time.
Bouncing back after the costly blows during the drought when Australia's rice crop withered to just 18,000 tonnes in 2008, SunRice is determined to broaden its revenue base to buffer itself from future crop production setbacks.
With a second successive 900,000-plus tonne harvest in the wings this year it is also using the cashflow revival to re-invest in brand development and improve efficiencies through its processing and market supply chain.
Mr Gordon wouldn't say if the company had acquisition plans in mind for its stockfeed division or market targets, but he was keenly viewing the potential for CopRice which produces pelleted feed and litter for livestock and pets.
The CEO, who joined Riverina-based SunRice a year ago, moving from Adelaide where he led the Australian arm of Canadian-based grain giant Viterra, had gained a good feel for the expanding stockfeed market in his previous job.
"Stockfeed was a very successful aspect of our business at Viterra. CopRice holds a lot of interest for me," Mr Gordon said.
Growth strategies are being drawn up for other SunRice enterprises, too.
Shareholders at feedback meetings late last year gave management a clear indication they wanted the company building on its recent marketing and debt reduction achievements to help future-proof the southern NSW irrigation industry's big investment in SunRice.
"We're looking at all market opportunities open to the company," Mr Gordon said.
He noted SunRice's domestic food service and gourmet product brands Riviana and Always Fresh also had growth potential, as did its off-shore operations - notably SunFoods in the US and Trukai Industries in New Guinea.
"We're evaluating where profitable growth areas might be and are looking at the most attractive plays in a prudent manner," he said.
A renewed focus on growing SunRice's already diverse rice product category had also attracted a "phenomenally supportive response" from retailers.
"We've been through a period when we weren't investing so much in our brands during the drought, but we've recently finished a lot of consumer work to grow the category with a focus on working with retailers - it's all looking very promising," Mr Gordon said.
"Because we're not just a straight grain commodity exporter or trader much of what we do is dealing with consumer marketing trends and expectations, which means we need to look out for new openings."
Those new market opportunities often started with trials of SunRice branded products made overseas, including its highly successful lines of Thai pre-cooked rice-based meals (packed in Thailand) or new square-shaped rice cakes (from Belgium).