SunWest Foods has been a highly active buyer, miller and marketer of California rice since its formation in 1986. Purchasing 12-15% of the rice produced in California annually from over 300 rice producers, SunWest has become a model of efficiency and a premier family owned rice company with an incredible foundation of California’s finest family farmers.
SunWest purchases California rice through three basic methods:
- Crop Participation Contracts where SunWest and a Rice Producer enter into a contract providing for periodic payments throughout the crop marketing year and a final payment. The goal of this method is to provide the rice producer with a market based return thereby allowing the rice producer to avoid the risk of selling at the bottom of a market or miss selling the rice crop all together.
- Cash Option to Participation Contracts. Periodically SunWest offers rice producers, who have signed a crop Participation Contract, a “fixed cash price” option thereby providing the rice producer 100% of the cash price immediately and eliminating any further market risk for the grower.
- Fixed Cash Purchases. This contract is open to any grower and fixes a price for a specific volume of rice for immediate payment.