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Benefits of NBT’s Technology
1. Productivity Enhancements
Australian rice production is characterised by high yields (9.8–11 t/ha, compared to a global average of 4–5 t/ha) but remains sensitive to water availability and input costs.
NBT technology’s ability to increase yields by up to 8% and reduce Fertiliser use by 25% could be a significantly boost to productivity.
Potential Impacts:
• Increased Yields: An 8% yield increase could raise average yields from 10 t/ha (2023–2024) to approximately 10.8 t/ha.
For a 2024 production volume of 622,000 tons across 57,000 hectares, this translates to an additional ~49,760 tons annually, assuming consistent planting areas.
This could offset the forecasted 16.7% production decline in 2024–2025 (to 518,000 tons) and stabilise output during water-constrained years (e.g., El Niño periods).
• Improved Root and Plant Health: Enhanced nutrient uptake and growth hormone production, as demonstrated in trials, could improve crop resilience to
stressors like variable weather or pests, which are increasing due to climate change.
• Scalability: If adopted across the Riverina’s ~57,000 hectares of rice fields, the technology could increase total production to ~671,760 tons annually at
current planting levels, aligning with medium-term projections (600,000–800,000 tons by 2030).
• Strategic Fit: This aligns with the AgriFutures Rice Program’s goal of closing yield gaps and the industry’s focus on maintaining its position as a global
leader in rice yields.
2. Sustainability and Resource Efficiency
The Australian rice industry is highly water-efficient (1.2–1.5 t/ML vs. global average of 0.6 t/ML) but faces pressure from water allocation variability and rising environmental expectations.
Fertiliser costs, exacerbated by global supply chain issues (e.g., Ukraine conflict), are a significant concern.
Potential Impacts:
• Reduced Fertiliser Use: A 25% reduction in fertiliser requirements could lower input costs significantly.
In 2023–2024, Fertiliser costs were a major driver of the industry’s cost pressures. For a $566 million industry (2024 GVP), reducing Fertiliser use could save farmers millions annually, assuming Fertilisers account for ~20–30% of input costs (a conservative estimate based on global rice farming data).
• Water Efficiency Synergies: NBT’s irrigation’s ability to enhance nutrient delivery could complement existing water-saving technologies (e.g., laser
levelling, Ricecheck). This could push water productivity beyond the AgriFutures target of 1.5 t/ML by 2026, critical for sustaining production during
drought years.
• Lower Environmental Impact: Reduced chemical Fertiliser use aligns with consumer and regulatory demand for sustainable practices, enhancing the
industry’s reputation in premium export markets (e.g., Japan, Middle East).
Additionally, applications in wastewater treatment and phytoremediation could address runoff concerns in the Murray-Darling Basin, supporting compliance with environmental regulations.
• Strategic Fit: The technology supports the industry’s adoption of “climate-smart” practices, such as dryland rice research in northern NSW, and could
position Australia as a leader in low-carbon rice production.
3. Economic Benefits
The Australian rice industry has seen strong revenue growth (CAGR of 45.9% from 2019–2024), but margins are pressured by rising input costs and declining export prices (e.g., $953/ton in 2024, down 10.8%). Deregulation in 2025 will increase competition, requiring cost efficiencies to remain competitive.
Potential Impacts:
• Cost Savings: A 25% reduction in Fertiliser costs could improve grower margins, critical as pool prices are forecasted to decline in 2025 due to global
supply increases (e.g., California’s recovery).
For a 2024 market value of $396 million, savings on Fertilisers could free up ~$20–30 million annually (assuming 20–30% of input costs), boosting profitability.
• Increased Revenue: An 8% yield increase could add ~$47.5 million to the industry’s gross value (based on 2024 GVP of $566 million and proportional
volume increase), offsetting price declines and supporting export competitiveness.
• Market Differentiation: By producing rice with lower chemical inputs and higher sustainability credentials, growers could target premium markets,
mitigating the impact of global price pressures (e.g., India’s export bans providing price support).
• Strategic Fit: Cost reductions and yield increases align with the need to remain competitive post-deregulation, particularly for smaller growers facing
new market entrants.
4. Market Competitiveness and Global Opportunities
Australia exports 80–85% of its rice, competing with suppliers like California and Thailand. Deregulation in 2025 will open northern NSW markets, while global demand for sustainable products grows.
Potential Impacts:
• Export Market Advantage: NBT’s technology’s sustainability benefits could strengthen Australia’s position in high-value markets like Japan, where
environmental credentials are prized.
This could counter price competition from recovering suppliers like California (76% production increase in 2023–2024).
• Deregulation Opportunities: Post-2025 deregulation, northern NSW growers could adopt NBT’s technology for dryland rice, diversifying production and
reducing reliance on Riverina’s irrigation systems. This could attract new growers and increase overall planted area.
5. Challenges to Adoption
While the benefits are significant, potential barriers include:
• Upfront Costs: Installing NBT’s injectors will require capital investment, which could challenge smaller growers, especially with tight margins in
2024–2025, but the government will more than likely provide the funds.
• Scalability: Field trials must be expanded to Riverina’s large-scale operations to confirm results across diverse conditions (e.g., heavy soils, variable water
allocations).
• Awareness and Training: Growers will need education on integrating NBT’s systems with existing practices like Rice check or precision irrigation.
• Regulatory Hurdles: While wastewater and phytoremediation applications are promising, environmental approvals for large-scale use may be required in
the Murray-Darling Basin.
6. Broader Industry Benefits
• Climate Resilience: Enhanced root health and reduced water/Fertiliser needs could buffer against climate variability (e.g., El Niño droughts), supporting
long-term projections of 700,000 tons by 2035.
• Innovation Leadership: Adopting NBT’s technology could position Australia as a global leader in agtech, attracting investment and research partnerships.
• Community Impact: Increased yields and cost savings could stabilize rural economies in the Riverina and northern NSW, supporting ~1,500–2,000 family
farms.
Conclusion
NBT’s technology has the potential to revolutionise Australian rice production by increasing yields by up to 8%, reducing Fertiliser use by 25%, and enhancing sustainability.
These benefits align with the industry’s needs to address water constraints, rising costs, and global competition, while supporting long-term goals of 700,000-ton production by 2035.
By addressing adoption challenges through pilot programs and partnerships, the technology could deliver ~$47.5 million in additional revenue and $20–30 million in cost savings annually, while reinforcing Australia’s reputation as a sustainable, high-yield rice producer.