Gary Helou, chief executive, said the business would return to a more normal level of profitability following boom conditions in 2008 that were characterised by record prices and favourable exchange rates.

But there was cause for some optimism: earnings would be bolstered by the continued success of its new US joint venture, SunFoods, while its Always Fresh range of snack foods was dominating the sector with about 50 per cent of the Australian olive market.

Mr Helou said higher water allocations should lead to an improved rice harvest next year after the Australian rice crop sank to only 19,000 tonnes in 2008 - the smallest harvest since 1929.

SunRice, which is listed on the National Stock Exchange, reported revenue for the six months to October 31 of $454.8 million, down slightly from $457.3 million in the previous corresponding period.

Profit after tax was $6.3 million, down 89.4 per cent on the $59 million for the same period last year.

Mr Helou said the five-fold rise in profitability in 2008-09 was the result of a tripling in international rice prices and the positive impact of the weaker Australian dollar.

Lack of supply and a fear of global food shortages sent rice prices rallying over the past 18 months, with long-grain rice selling as high as $US1000 a tonne and medium-grain rice fetching $US1200 a tonne.

Long-grain rice has fallen back to $US600-$US700 a tonne, while medium grain is trading at about $US800 a tonne.

Mr Helou said the high Australian dollar would put a cap on profits despite steady growth in consumer demand. SunRice's biggest markets are the South Pacific, the Middle East and the US.

He said the rice harvest should rise to 170,000 tonnes in next year from 65,000 tonnes this year.

"There is a renewed sense of optimism in the industry this year, following the higher water allocations and stronger plantings. We look forward to the coming crop,'' Mr Helou said.

He added that the returns on rice farming were superior to any alternative crop at the moment.