June 11, 2018

12/06/2018: Rice milling business, quality and profit

by Satake Group, Japan

In many Asian countries, product quality has not been considered as top priority by the rice milling industry for a long period of time.

Rice has been acknowledged as a stable food in the area, whose market consisted of no competition from other products and no demand for higher product quality.

In other words, rice is treated differently from other regular food products as far as market price is concerned.

Today, it is common for rice packaging to carry the term “quality rice”. What is meant by quality?

The definition is unclear. Many consumers believe it includes the rice exhibiting a good appearance, with rice also having a high degree of whiteness and along with a polished reflective surface.

However, technically speaking, that is not correct in terms of rice both as a vegetation and as a food product. High whiteness degree is achieved by excess milling. Once such rice is cooked, starch flows out from grains giving inferior taste. High whiteness degree also often results in less milling yield with a consequence for rice millers of reduced profit.

Higher milling degree consequently does not benefit the mutual interests of both consumers and the industry. In the long history of Satake, one of the top priorities has always been contributing to the mutual benefit of all parties involved – the rice, the millers and the consumers.

In Japan, China, and many other Asian countries, the rice milling industry is often a low profit industry, easily affected by variable cost such as the raw material, rice paddy.

Read the full article, HERE.

The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.

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