Public Disclosure Authorized

THE WORLD BANK FAU 8

FA U-08

I.
Public Disclosure Authorized

SECTORAL LIBRARY
INTERNATIONAL BANK
FOR
RECONSTRUC1TON AND DFVELOPMENT

FEB 121986
Public Disclosure Authorized

Agro-Industry Proffles
Public Disclosure Authorized

RICE

,'
 PROFILES IN THIS SERIES:

OILCROPS - OVERVIEW........... FAU-01

OIL SEEDS ................... . FAU-02

OIL PALM. . *. *.... . . .o......... .FAU-03

COCONUT. .e. .... . . . ****

.. *..... FAU-04

SUGAR. .. .... e.o.........

....... FAU-05

ETHANOL. . .e. .o.o................ .FAU-06

WHEAT. ..... ....... e.....e.....o. FAU-07

RICE .eee...e.
.o. . . . .e..... .FAU-08
CORN ..oo...................o...FAU-09

CASSAVA ........................ FAU-10

ANIMAL FEEDS...... ....... .FAU-11

FRUITS AND VEGETABLES.........FAU-12

RUBBER. ... .. . ............. e.e.. FAU-13

COFFEE .o.e..................... FAU-14

TEAo...o..e.o...eoe.ee........e.FAU-15

COCOA. .. e.e.ees
................ o . FAU-16

COTTON .. o.e...................... FAU-17

MEAT. .. . . . e... . .. e...e

... . FAU-18

SPICES AND ESSENTIAL OILS ..... FAU-19

0
ABSTRACT
The objective of this Profile is to provide a review of the rice
processing industry. It provides basic data on rice production
and discusses in detail the milling system, from drying to final
screening. It outlines the major features of rice storage and
marketing, including quality/grade factors and the uses of both
rice and its milling by-products. A bibliography of useful
references is provided. Annexes showing investment and operating
costs of sample milling operations, and conversion tables are
included at the end of the Profile.

0
I~~~~~~~~
I~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 FOREWORD
The nature of project and sector work in the World Bank is such
that staff are often called upon to work outside their major
fields of specialization, if only to make an initial judgement on
the utility of further, often costly, investigation. Under these
circumstances, up-to-date and authoritative reference material is
essential.
The profiles in this series are designed for use by operational
staff with experience in the agricultural sector but who do not
have a technical knowledge of the particular commodity under
discussion. Their purpose is not to substitute for technical
expertise but to provide a reliable inhouse reference which will
help Bank staff to determine when and what expertise is needed in
the detailed evaluation of investment proposals in agro-
processing.

The conditions for any particular proposal are bound to be unique

in a number of respects, and the use of norms and general data in
project analyses could give rise to significant errors. On the
other hand, by providing responsible staff with a guide to the
issues on which appropriate expertise should be sought, these
profiles can contribute to the overall quality of agro processing
investment. Used with care, they should also facilitate broad
pre-screening such as may occur during sector work and
reconnaissance.

Questions, comments and further inquiries should be addressed to:

Agro-Industries Adviser
Finance and Agro Industry Unit
Agriculture and Rural Development Department

The contribution of Ibberson International, Inc. in the review of

this profile is gratefully acknowledged.

September 1985
i
I I
0

Rice

CONTENTS

DATA SHEET .

INTRODUCTION .1
GLOSSARY .1
RAW MATERIALS .4
MILLING .6
MARKETING ASPECTS. 13
OTHER FACTORS .16

0BIBLIOGRAPHY ... 19
ANNEX I EXAMPLES OF INVESTMENT AND OPERATING COSTS

ANNEX II CONVERSION TABLES (METRIC/US)

ANNEX III RICE CONVERSION FACTORS

0
i

I I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
 Rice

DATA SHEET

Grain Characteristics: Dimensions and shape (of grain, brown

rice, or milled rice). Measurements given: length, width, and
thickness in millimeters. Shape can be expressed by the length-
width ratio.

FAO scale USDA IRTP-IRRI

for worker's scale scale
milled rice for brown rice for brown rice

Length class (80% of - - - - - - - mm - - - - - - - - - -

sample or more)
Extra long 7.0 and over over 7.5
Long 6.0-6.99 6.6-7.5 6.61-7.50
Medium 5.0-5.99 5.5-6.6 5.51-6.60
Short less than 5.0 less than 5.5 less than 5.51
Shape class (80% of - - - - - length/width ratio - - - - -
sample or more)
Slender (long) over 3.0 over 3.0 over 3.0
Medium -- 2.1-3.0 2.1-3.0
Bold 2.0-3.0 less than 2.1 1.1-2.0
Round (short) less than 2.0 -- less than 1.1
Table 1: Grain characteristics of rice
(Source: IRRI)

Pound and Kilogram equivalents of international units of measure

are listed in Table 2 on the following page.

i
 Table 2: Rice -- Units of Measure
-----------------------------------------------------------

Measure Product Weight per Unit

Poundrs - Kilograms
BUSHEL
Australia paddy 42
Brazil 19.05
paddy 45 20.41
Cambodia milled 46 20.86
Sierra Leone paddy 60 27.21
milled 84 38.10
Sri Lanka paddy 46 20.86
United States paddy 45 20.41
BAG OR SACK
Brazil paddy 110.23 50.00
milled 88.18 40.00
Burma milled 225 102.6
Egypt milled 220.11 99.84
Gnana milled 240 108.86
Guyana paddy 140 63.50
milled 180 81.65
Malawi paddy 150 68.04
milled 200 90.72
Surinam paddy 154.32 70
milled 220.46 100
United States (cwt) paddy 100 45.36
milled 100 45.36
OTHER MEASURES
Burma : Basket paddy 46 20.86
Basket milled 75 34.02
China PR : Catty 1.1 0.5
Colombia : Arroba 27.6 12.50
Egypt : Darriba paddy 2083.37 945
Korea : Suk paddy 220.5 100
milled 317.5 144
husked 330.7 150
India : Maund 1/ 82.28 37.4
Japan : Koku husked 330.69 150
Malaysia : Picul 2/ 133.33 60.48
Gantang 5.60 2.54
Mexico : Carga paddy 304.24 138
milled 352.74 160
Panama : Lata paddy 24.99 11.33
milled 35.99 16.32
Philippines : Cavan paddy 97.00 44
milled 123.46 56
*Sri Lanka : Measure milled 2 0.91
Swaziland : Pocket 100 45.36
Thailand : Kwien paddy 2226.67 1010
Picul 3/ milled 132.28 60
Kwien husked 2910.11 1320
Uruquay : Bolsa 110.23 50
United states : Barrel paddy 162 73.48
-1/ Also Pakistan
2/ Also Brunei, Honq Kong, Macau, Sarawak, Singapore
3/ Also Cambodia and Laos
Source: FAO Rice report 1974/75; Reprinted in World Bank,
1981
 INTRODUCTION

Rice is the staple food for about half of the world's population.
It is grown on all continents, under a range of climatic
conditions. Yields under irrigated conditions range from an
average of about two tons/ha in developing countries to five
tons/ha in Japan and the United States.
Milling is the term applied to the collective operations of a
rice processing plant, or, to the specific operation involving
separation of the outer bran from the rice. The former includes
removal of foreign matter, outer hulls, bran, and germ, followed
by polishing and glazing to add to consumer appeal.

The vast majority of the world's production of rice is consumed

in kernel form, making further processing unnecessary.
A current, detailed coverage of rice milling techniques is
provided in Technical Handbook for the Paddy Rice Post-Harvest
Industry in Developing Countries by J.E. Wimberly (1983).

GLOSSARY

Bran A milling by-product consisting of the outer

layers of the kernel and part of the germ.
Brewers The smallest fragments of broken rice kernels
after milling; used in brewing.
Brown bran Bran obtained from the milling of parboiled
rice.
Brown rice Rice from which hulls have been removed.
(Cargo Rice)
Dwarf rice Rice plants characterized by their relatively
short stalks, resistance to lodging, and
* adaptability to mechanical harvesting.
Early variety Fast maturing rice, requiring 100-140 days
from seeding to maturity.

1
Extracted rice Residue remaining after the extraction of
bran rice pollards.
Fortified rice Milled rice which has been treated to improve
(Enriched rice) its nutritive value.
Glazed rice Milled rice which has been coated with a
(Coated rice) talc and glucose mixture to enhance shine.
Glutinous rice Rice with a chalky, opaque endosperm, which
(Waxy rice) is stickier when cooked.
Head yield Post-milling yield of unbroken kernels and
those of 3/4 length or more.
High yielding Systematically developed rice varieties
varieties (HYVs) known for their superior yields. May also
have improved disease resistance and
tolerance to climatic variation.
Hull The thick outer covering of paddy, also
known as husk.
IRRI International Rice Research Institute,
located in the Philippines.
Late maturing Varieties which require 155 days or more
varieties from seeding to maturity.
Lowland rice Rice grown in a flood culture during most
or all of its growing period.
Milled rice Rice from which the husk and most of the
(white rice) bran layers have been removed.
Midseason Rice requiring 140-155 days from seeding to
varieties maturity.
Paddy Refers to either the entire growing plant or
(rough rice) the threshed grains with their hulls intact.

2
 Parboiling An optional pre-milling treatment of soaking,
steaming, and drying which gelantinizes the
starch, and increases the nutritive value of
the rice, as water-soluble vitamins and
minerals from the bran penetrate the
endosperm.
'Pecky' rice Milled rice containing distinctly discolored
kernels, which lower the quality.
Polished rice Milled rice which is scoured to remove the
innermost bran layer and is polished in the
process.
Quick-cooking Cooked, dehydrated rice that can be reconsti-
rice tuted in 5 minutes with the addition of boil-
ing water.
Rice mill feed A mixture of rice pollards and ground rice
hulls, used for animal feed.
Rice pollards A mixture of rice bran and rice polishings,
comparable to wheat when used as a high-
energy, high-protein feed.
Rice polishings The inner layers of bran, part of the germ,
and a small amount of the starchy interior,
removed during polishing; also known as rice
meal, rice flour.
Screenings Medium-sized fragments of broken rice kernels
following milling.

Second head The largest fragments of broken rice kernels

following milling.
Stalk paddy Rice plants which have been cut, but not
threshed.

Upland rice Rice produced under rainfed conditions.

* 3
RAW MATERIALS

Most cultivated rice is of the species oryza sativa. It

shallow-rooted annual grass, with stems growing from 2-6 is a
feet or
more in height. Rice is commonly self-pollinating, and, unlike
other cereals, it is able to germinate when submerged in
water.
The mature rice seed is composed of a seed coat, embryo, and
endosperm. The rice grain is normally light brown in color,
but
has been known to range from red and purple to golden and grey.
It varies with respect to translucency, presence or absence
chalky spots, and hardness. of

Two types of rice are dominant. Indica is predominately grown in

South and Southeast Asia and China. While it is well-suited
areas of low soil fertility, uncertain weather conditions, to
water control, and is resistant to many pests, it is not poor
well-adapted to modern farming techniques (Considine, 1982).
Japonica, on the other hand, grows well in temperate zone
conditions in, for example, Korea, Japan, Europe, and parts
the United States and Australia. of
It is characterized by a
shorter, stiffer stalk; a shorter growing period; and
resistance
to lodging, hence it is well-suited to modern agricultural
methods (Ibid).
The growing season for rice is normally four to six months;
average temperature during this period should be no lower the
F (21.1 C) (Ibid). While the optimal soil pH is 6.5 for than 70
cultivation, more rice-growing soils worldwide tend to be rice
with a pH ranging from 4-6 (Ibid). acidic,

Cultivation methods are broadly classified as Upland and

Lowland.
Upland rice is that which is grown under rainfed conditions
when
flooding is not possible. High humidity and substantial rainfall
(at least 40 inches per year) are required. Direct seeding,
mechanical harvesting, and relatively lower yields (usually
to 1/2 those of Lowland) are frequently associated with this 1/3
of cultivation (Ibid). Yield is largely determined by amount type
distribution of rainfall during the growing season. and

Lowland rice is that which is grown in submerged fields for

good part, if not all, of its growing period. Water depth a
from 5-15cm (shallow) to more than one meter (deep-water). ranges

4
 Lowland rice cultivation usually involves the transplanting of
nursery-grown seedlings by hand. The surface water must be
drained for application of fertilizers and pesticides (Ibid). In
the U.S., rice is direct-seeded to obtain stands of 15 to 20
plants per square foot. Fields are flooded when the plants are
six to ten inches high and drained about two weeks prior to
harvest.
Presently there are over 8,000 types of rice, including a large
number of high yielding varieties (HYVs) (Ibid). The latter,
when combined with fertilizers, controlled water, and pesticides,
contribute significantly to increased rice yields.

Rice is ready for harvest when about 80% of the plant is straw-
colored, i.e., when the lower kernels are in the hard-dough stage
(DeDatta, 1981). When harvested too early, there is a high
proportion of weak, immature, and chalky grains which have a
tendency to break during milling. When harvested too late, field
losses are greater, as is the percentage of stress-cracked grains
which are also more likely to break during milling.

Harvesting can be done mechanically or manually. When a combine

is used, the stalk is severed just below the grain so as to
minimize the passage of straw through the thresher. In hand-
harvesting, the straw is cut with a sickle 15-25 cm above the
ground.
Threshing, or removal of the grain by impact from the harvested
plant, is accomplished manually, by beating the panicles on a
slotted platform, by animals which tread on the harvested crops,
or by machines which range in size from a small, portable
thresher (such as that designed by the International Rice
Research Institute - IRRI) to a large thresher with an output
capacity which exceeds 1.5 tons/hr. Threshing losses, i.e.,
grain which remains on the panicle following threshing, range
from 8% for a large stationary machine to 7% for manual threshing
to less than 2% for the IRRI-designed portable threshers
(DeDatta, 1981)

0* 5
MILLING

Milling methods range from traditional pounding with

pestle, to the use of fully-mechanized, large-scale mortar and
processing
plants. The only processing required prior to consumption
removal of the hull, germ, and bran. Since most rice is
in grain form, it is important to minimize breakage. is consumed
Broken
grains detract from cosumer appeal and are more susceptible
infestation, and the percentage of broken grains is to
determinant of grade and price. a major

Rice milling involves the collective operations of drying,

cleaning, shelling, separation of kernels, bran removal,
brushing, trumbling, and final screening, as illustrated
flowchart below. in the

Riec tlour A IgC$tiour

Tlc/G Ucole Polistie rice

R ecycit Undermlad

f; _s * _~~~~~~~~~~~~SeaaTn

Drown r Pce n

l I

Flowchart 1: Rice Milling

Source: Considine (1982)

6
 Drying
Harvested paddy normally contains 18-25% moisture. In order to
avoid deterioration, drying must begin no more than 24 hours
after harvesting (DeDatta, 1981). For short-term storage (two to
three months), the moisture content should be reduced to 13-14%;
for long-term storage (more than three months), it should not
exceed 12-12.5% (Wimberly, 1983).
In many parts of the world paddy is either left in the field
prior to threshing or spread on waterproof threshing floors to
dry in the sun. This is a labor-intensive method requiring
constant turning. Losses from sun-drying are relatively high due
to (1) exposure to the vagaries of weather over the four-to-five
day period required for proper drying; (2) consumption by insects
and rodents; and (3) stress produced in the grain as a result of
uneven drying and changes in temperature from day to night.
Mechanical driers are of three basic types: Batch-in-bin,
recirculating batch, and continuous flow. Typical
specifications, performance, and estimated costs of each are
detailed in Table 3 below.
Batch-in-bin' Pczltr Batch Contin-xs Flaw
Small lare Smail Iarme Small Large
DrywSeifica1i
Cacity (t) 2 100 5 10 5-10 10-25
Aprmdnate hp 3 10 15 25 15-20
Aoprt,x. airflcw (m3/nin per t) 25-50
50 23 56-85 70-100 85-L15 115-140
Approx. drying air terp. (C) 43 43 60-80 60-80 60-80
Ap= burrer capacity (Bbtl.) 60-80
100,000 4.0 M a/ 2.0 M 4.0 M 4.0 M 8.0 M
Estimatid Perrfc
lDying city (t/day) 6 10 15 30 60 100
fran 20% to 14 % M b/
Anrnal dryirg city (t) 240 400 600 1,200 2,400 4,000
(40 days/year cDraticn)

Estifte Oot C/ (US;$)

Irves t dryirrjegaipTet 800 6,000 15,000 24,000 40,000 50,000
Anral fixed cst 240 1,800 4,500 7,200 12,000 15,000
Arial variable cat 720 1,200 1,800 3,600 7,200 12,000
Arnual total ct 960 3,000 6,300 10,800 19,200 27,000
*Ct/t 4.00 7.50 10.50 9.00 8.00 6.75
a' Wl,000,000 b/ Moisture Catent c/ Basd on 1978 Price Data
Table 3: Dryer Specifications, Performance, and Cost for Drying
Raw Paddy from 20% to 14% Moisture.
Source: Wimberly (1983)

7
In a batch-in-bin dryer, paddy is spread to a
depth of 0.6-3.0
meters over a perforated floor. Heated air is forced
compartment, to be released following passage through into the
(Relative humidity of the forced air should be the paddy.
grain is stirred regularly to ensure more even below 60%.) The
drying.
A recirculating batch dryer forces hot air through
paddy as it falls from the top of the unit. a batch of wet
It is then lifted
back up to the top and the process is repeated until
complete. drying is

Continuous flow dryers are used in conjunction

equipment, by means of which the paddy input is with conveying
paddy is introduced into the top of the unit in regulated. Wet
a thin layer (no
more than 10-25 cm thick). Large volumes of heated air are
forced through this layer as it descends through a large
column. Continuous-flow driers are often combined vertical
bins, since tempering between drying passes serves with tempering
the uneven moisture content. to equalize

Drying should be slow and uniform to avoid grain

leads to breakage during milling. stress, which
For this reason, high
temperatures should be avoided.

Cleaning
Paddy often contains quantities of straw, soil particles,
seeds, small stones, and other debris which must be weed,
to milling. removed prior
Cleaning serves to reduce drying and storage
requirements and costs, and to remove matter which
the grade of the rice, damage the milling equipment,could reduce
the deterioration of the paddy. or lead to

Scalping is a pre-drying operation, in which large

is removed by screening, and dust and light-weight foreign matter
removed by aspiration. matter are
Scalper cleaner (or scalperator)
capacities range from two-six tons/hour to 20-50 tons/hour
(Wimberly, 1981).
A second cleaning takes place as the first step in the milling
operation to remove remaining impurities. This employs the use
of sieves, aspirators, magnetic separators, and sometimes
de-stoners. Capacity is usually geared to rice mill capacity,
and ranges from one-four tons/hour.

8
 Shelling (De-husking)

Traditionally the hull was removed manually, by hand-pounding the

paddy. The principal disadvantages of this method are the
relatively low yields (about 50%) and low throughput (50 kg of
paddy/person/day) (Esmay, et al, 1979). Except in remote
subsistance communities hand-pounding has been replaced by steel
hullers, disk shellers, or rubber rollers.
Steel hullers remove both hull and bran by means of a shearing
action resulting from the rotation of the rollers. Bran
ground hulls then pass through a fine screen. While theseand
machines are relatively simple to manufacture, operate, and
maintain. Milling efficiency is low (total yield is about
head rice and 17% brokens), as is throughput (100-500 kg 46-47%
output/hr), and power requirements are high (Ibid).
Disk shellers consist of two abrasive-surfaced disks, one
which rotates while the other remains stationary, dehullingof
placed between the two upon contact. Hulls are later removed paddy
aspiration. Disk sheller capacity ranges from 500-5000kg of by
* paddy/day (Ibid). The advantages of this system lie in its
of maintenance and repair, higher milling efficiency (up to ease
56%
head, 11-12% brokens), and adaptability for large-scale
commercial processing (Ibid).
Rubber rollers are used in most modern rice mills. Paddy is
passed through a number of pairs of rubber rolls which revolve
different speeds. One roller tends to hold the kernel while theat
other pulls at the hull. The distance between rollers is
regulated according to grain size. Although initial capital
costs are high, so, too, is milling efficiency: head rice yield
is up to 62% while total hulled rice recovery can be about 70%
(Ibid). Aside from the high investment cost involved, the
principal disadvantage of the rubber roller is that roller
surfaces wear out quickly and must be replaced frequently.
Milling efficiencies of different methods, with uniform properly
dried paddy, are compared in Table 4 on the next page.
Following de-hulling, the grain passes through a paddy machine,
which culls out unhulled kernels. These are then recycled to the
sheller, while brown rice (de-hulled paddy) goes on to the mill.

0
9
 Table 4: Rice Milling Efficiency
Source: Esmay, et al (1979).

Tbtal Husk Total Ha

Husk Bran ard Bran Head Bken and Brkn
MillinProcesgs (% f% 1% (% M% (%)
Harl prdin - - 40 40 20
Steel Hullers 60
- - 36.6 46.5 16.9 63.4
Disk sellers - - 32.5 55.9 11.6 67.5
RlSber rollers 22 8 30 62 8.0 70.0

Bran Removal (Milling)

Milling removes the outer bran coat of the brown rice.
degree of milling affects the nutritional value of the The
product. final
While well-milled, whiter rice is preferred by most
consumers, less-milled rice actually contains more protein,
vitamins, and minerals. Disadvantages of less-milled rice
include increased cooking time required, chewier texture,
market price for processors, and reduced storage life. a lower
rice tends to become rancid after about two months, due (Brown
oil content of the bran.) to the

Bran is removed by friction or by abrasion. Abrasive-type mills

(also referred to as 'pearlers' or 'whiteners') such
vertical cone mill and the horizontal abrasive mill, as the
remove the
outer bran layers as the rice kernels come into contact
moving abrasive surface. with a
Calcium carbonate may be added as an
agent to facilitate the process. Generally there are two, three,
or four mills in a series.
In friction-type mills, the bran is removed as kernels
against one another under slight pressure conditions. rub
cycles of milling is sufficient to produce well-milled One or two
rice.
Solvent extraction milling (SEM) is a relatively new
which bran layers are chemically softened with a spraymethod in
rice oil and then milled in the presence of an oil of warm
milled rice is screened, rinsed, and dried. solvent. The
The solvent is then
removed in a two-stage process. The advantages of this process
are fivefold (Kent, 1983):

10
 (1) The head rice yield is about 10% higher.
(2) The rice produced is almost fat-free, and can, as a result,
be stored for longer periods.
(3) The bran by-product has a much higher protein content.
(4) The stability of the bran is higher.
(5) About two kg of rice oil is obtainqd from each 100 kg of
brown rice milled.

Brushing/Polishing
Brushing or polishing removes the innermost bran coat (known as
polish) by means of mild abrasion. One type of brushing machine
is similar in principle to a vertical cone mill. Instead of an
abrasive cone, however, leather strips are used. The milled rice
is rolled under mild pressure between the leather and a filtering
screen. The result is polished rice. Polishing lowers the risk
of developing oxidative rancidity, thereby extending the storage
life of the rice.

O Trumbling/Coating
Trumbling is the coating of polished rice with a mixture of talc
(magnesium silicate) and syrup sugar in order to increase rice
shine. Rotation of a trumble evenly distributes the talc/glucose
mixture over the rice. The possibility of a causal relationship
between asbestos-contaminated talc and stomach cancer in Japan
has resulted in reduced talc usage (Kent, 1981). Possible
substitutes include calcium phosphate, calcium acetate, calcium
lactate, and calcium citrate.

Sizing
The finished product must be separated according to kernel size.
Preliminary sizing is accomplished with the use of screens.
Final sizing, where more precision is demanded, requires the use
of screens or cylinders, the inside of which is covered with
thousands of small indentations or pockets, each large enough to
hold a single grain of rice. Both long and short kernels are
. picked up in the pockets and, as the wall of the cylinder
approaches a vertical position, the longer kernels, which extend
over the edge of the pocket, fall out.

11
Milled rice is classified by length as long, medium, and short,
and by shape (length/width) as slender, medium, bold, and round.
Specifications for each are presented in Table 1, in the Data-
Sheet.

Parboiling
Parboiling is an optional process which involves soaking or
steeping paddy in unheated water, heat treatment (steaming or
boiling), and drying prior to milling. This results in an
increase in the nutritive value of the grain, since water-soluble
minerals and vitamins in the bran are introduced into the
endosperm of the kernel. Other advantages include (Considine,
1982): (1) strengthening of the grain and reduction of breakage
in milling; (2) improved cooking quality, i.e., parboiled rice.is
less sticky; (3) improved storing qualities; (4) loosening of
hulls, which facilitates de-hulling; and (5) more resistance to
insect attack. Parboiled rice normally commands a premium in the
market.
Disadvantages include (Wimberly, 1983; Kent, 1983): (1) longer
cooking time requirements; (2) higher total costs of processing;
(3) the possibility of discoloration or deterioration in flavor;
(4) increased difficulty and cost in bran removal; (5) greater
capital investment requirement; and (6) an increased tendency to
become rancid. Steeping in a sodium chromate solution (0.05%)
will minimize flavor change; steeping in a metabisulphite
solution (0.3%) will bleach the rice.

12
 MARKETING ASPECTS

Quality/Grade
Milling quality; cooking, taste and further processing quality;
nutritive quality; and specific measures of cleanliness and
purity comprise the four broad categories of rice quality. (Luh,
1980). Specific quality determinants include (Ibid):
(1) Type, which is classified according to grain length, shape,
weight and uniformity.
(2) Moisture, which affects keeping quality, milling yield, and
cooking and processing qualities.
(3) Chalkiness, which is an indicator of grain weakness (leading
to breakage in milling) and detracts from appearance.
(4) Milling yields, as measured primarily by percentage yield of
head rice.
* (5) Degree of milling, which indicates the extent to which bran
layers have been removed.
(6) Color, which varies from greyish to reddish for milled rice
and from light to dark for parboiled rice. Rice is graded
visually.
(7) Dockage, or impurities which can be readily removed by
cleaning.
(8) Damaged kernels, which have been discolored or otherwise
damaged by water, insects, or heat.
(9) Red rice, which contains large amounts of red kernels or red
bran.
(10) Odors, e.g., musty, sour, earthy, rancid, or any other
considered to be objectionable.
(11) Seeds, or grains from any other kind of plant.
* Grades and prices of milled rice are also dependent on broken
kernel content, with classifications ranging from 5% to 45%
brokens in intervals of 5-10% in Thai rice, for example.

-
13
Uses
The vast majority of rice is consumed in grain form, either
brown, milled, parboiled, enriched, quick-cooking or puffed as
rice.
Enriched rice is that which has been fortified with additional
vitamins or minerals to compensate for those lost during milling.
Enrichment with B-vitamins is common when rice comprises the
principal component of the diet, since a vitamin-B deficiency
lead to beri-beri. can

Quick-cooking rice takes between one and five minutes to cook,

opposed to 20-30 minutes for milled rice. It is produced by as
a
combination of soaking, pressure-cooking, and air-drying under
controlled conditions.
Puffed rice is used as a base for breakfast cereals and sweets.
Its manufacture involves the injection of steam into the grain
under pressure, expansion of the steam to puff the rice, and
drying of the resultant kernel. A puffed kernel is usually
times the size of a normal kernel. 10

By-Products
Rice brokens, bran, hulls, and straw are the by-products of
milling. rice

Brokens are used in flour, starch, and alcoholic beverage

production. Rice flours can be parboiled or non-parboiled, and
enriched or unenriched. Most are ground from second-head
Since rice flours contain no gluten they are generally not rice.
used
for bread-baking, except in mixtures with other grain flours.
Flour produced from glutinous rice is used in the preparation
processed foods. It is especially well-suited as a thickener of
sauces, gravies, and puddings, for example, because it reduces in
separation following freezing and thawing.
Starch produced from over-boiled rice is used by laundries
foods, cosmetics, and textile manufacturing. and in

Fermented rice is used in the production of alcoholic beverages,

such as saki in Japan and wang-tsiu in China. It is also used in
brewing because of its good flavor and aroma, and its tendency
extend beer shelf life. to
In the U.S., for example, 25% of all
rice consumed goes to breweries (Grist, 1975).
Rice bran contains 10-13% protein in addition to a range of

14
 vitamins and minerals (Ibid). It is generally used as a
high-nutrition animal feed. Oil can be extracted from the bran
and refined. It is then used in cooking, in the production of
shortening and margarine, and for industrial purposes.
Hulls are undigestible because of their high silicon content
(Ibid). They can be used as fuel for milling operations
(according to Grist [1975] they can supply the mill's entire
energy needs). They are also used as stable and poultry litter,
fertilizer, a medium for hydroponic cultivation of vegetables,
and in making building materials, paper, abrasives, soaps and
resins. (Note: 'Rice paper' is not related to the rice grain
nor its by-products.)
Rice straw can be used in a mix for cattle feed, as mulch for a
mushroom culture, in woven craft products, and in the manufacture
of building materials.

Substitutes
Most cereals are processed and used as an ingredient in the
preparation of another product, e.g., bread or pasta. For this
reason there is some degree of substitutability among grains.
This generally does not hold for rice, however, since most rice
is consumed in grain form.
Grist (1975) reports that other grains now compete with rice in
different areas of the world, e.g., wheat in parts of China,
India, and Pakistan; maize in Cambodia, Indonesia, and the
Philippines; beans, maize, and starchy roots in Latin America;
and millet, sorghum, and roots in West Africa. These shifts are
normally a cultural reaction to changing incomes.
Where rice is the preferred grain, increases in income result in
an increase in rice consumption until a 'saturation level' is
reached. Beyond this level livestock products and other more
costly food items increasingly displace the share of rice in the
diet. The saturation level is being reached in countries such as
Burma and Thailand, and has been passed in Japan, where annual
per capita consumption has fallen from a 1920 high of 140 kg to
the present (1978) level of 86 kg (World Bank, 1981).

-
15
Market Structure
International trade in rice is small compared to that
of many
other grains since most of the world's large-scale producers
consume the majority of their domestic production. According
the World Bank (1981), 96% of world production is consumed to
domestically. Long and medium grains comprise 85% of the total
traded volume. Rice is generally traded in milled and bag form.
The market structure for rice is characterized by (1)
proportion of concessionary or subsidized transfers; a high
and (2) a
high proportion of sales by government contract (Ibid).
portion of trade conducted through commercial channels is,The
result, relatively small, and open market rice prices are as a
consequently unstable. This situation is exacerbated by weather
conditions (especially monsoons) in Asia, where 90% of the
world's rice is grown.

Barriers to Market Entry

Barriers to market entry are numerous; domestic markets
are
heavily protected due to the importance of rice in the food
security position of many countries. Accumulation of buffer
stocks is common to help insure adequate domestic supplies.
The role of the Generalized System of Preferences in rice
is limited. trade

OTHER FACTORS

Location
The overriding concern in the determination of a rice mill
is the immediate availability of paddy. Mills in close site
to paddy supplies will minimize transportation costs as proximity
well as
losses due to delays between harvest and drying (deterioration
begins within 24 hours of harvest).

16
Storage
Storage capacity requirements are determined to a large extent
by: (1) the number of rice crops harvested per year; (2) how
these crops and their harvest are staggered; and (3) the
relationship between quantity and timing of consumption versus
that of harvest. (Wimberley, 1983)
To maintain paddy quality during storage it is important that it
be clean and have moisture content of 14% or less. 12% or less
is ideal since that level of grain moisture equates to 70%
relative humidity in the air surrounding the grain, below which
mould formation will not occur during long-term storage. Safe
short-term storage life of paddy at higher moisture levels is
presented in Table 5.
once stored, grain must be protected against (Ibid):

(1) Rodents and birds, which not only can consume large amounts
of grain, but can also contaminate it with disease-
transmitting droppings and urine.
(2) 'Insects, which can contaminate the grain and cause its
temperature and moisture levels to rise. Basic sanitation
measures combined with chemical sprays or fumigants are
effective in controlling insect damage.
(3) Microorganisms (fungi and bacteria), which can cause
substantial losses through discoloration, and development of
toxins, mustiness, weight loss, and disagreeable odors and
flavors. Microorganism growth is a frequent problem in high
humidity, high temperature tropical environments.
Aeration systems which move fresh air through the stored paddy
are recommended to (1) cool the grain; (2) minimize odor
development; (3) reduce moisture; and (4) introduce fumigants.
Common airflow rates range from 0.07 to 0.28 cubic
meters/minute/ton (Ibid).

17
 Table 5: Safe Storage Life of Paddy at Different Moisture
Levels and at Different Grain Temperatures.
Source: Wimberly (1983)

Grain Safe storage life (days) at indicated

Temperature moisture content
(degrees C) 14% 15.5% 17% 18.5% 20% 21.5%

38 8 4 2 1 0
32 16 8 4 2 1 0
27 32 16 8 4 2 1
21 64 32 16 8 4 2

18
BIBLIOGRAPHY

01.. Araullo, E.V., D.B. de Padua, M. Graham (1976) Rice:

Post Harvest Technoloqy.
Ottawa: International Development Research Centre.

02. Baron, C.G. (Editor) (1980) Technology, Employment, and

Basic Needs in Food Processingq in Developing Countries.
Oxford: Pergamon Press.
03. Christensen, C.M. (1982, Third Edition) Storade of Cereal
Grains and their Products.
St. Paul: American Association of Cereal Chemists, Inc.

.04. Clarke, P.A. (1978) Rice Processing: A Check List of Com-

mercially Available Machinery.
London: Tropical Products Institute.

05. Considine, D.M. (Editor) (1982) Foods and Food Production

Encyclopedia.
New York: Van Nostrand Reinhold Co.
06. DeDatta, S.K. (1981) Principles and Practices of Rice
Production.
New York: John Wiley and Sons.
07. Desikachar, H.S.R. (1980) Three Decades of Research on the
Processing and Utilization of Foodgrains.
Journal of Food Science and Technology, 17 (1-2):
24-32.

08. Esmay, M. Soemangat, Eriyatno, and A. Phillips (1979) Rice

Postproduction TechnoloQy in the Tropics.
Honolulu: University Press of Hawaii.

09. FAO (1971) Report on the Meeting of Experts on the Mech-

anization of Rice Production and Processina.
Rome: FAO.

10. Flynn, G. and P.A. Clarke (1980) An Industrial Profile of

Rice Milling.
London: Tropical Products Institute.

11. Grist, D.H. (1975, 5th Edition) Rice.

Essex: Longman Group, Ltd.

19
12. Kent, N.L. (1983, 3rd Edition) Technoloav of
Cereals: An
Introduction for Students of Food Science and
Agriculture.
Oxford: Pergamon Press.
13. Korthals Altes, F.W. (1982) Appropriate Technology
Processing Agricultural Products in Developing for
Countries,
IN Appropriate Technology for Developin' Countries,
W.
Riedijk, Editor.
Delft: Delft University Press.
14. Luh, B.S. (1980) Rice: Production and Utilization.
Westport: Avi Publishing Co., Inc.
15. Osifo, D.E. (1971) Economics of the Rice Industries
of
the Western State of Nigeria.
IBADAN (Nigeria): Nigerian Institute of Social
and Economic
Research.

16. Pyke, M. (1981, 4th Edition) Food Science and TechnoloQy.

London: John Murray (Publishers) Ltd.
17. UNIDO (1979) Appropriate Industrial TechnoloQy for
Food
Storage and Processing.
New York: UN.
18. University of the Philippines, College of Agriculture
(1970
Revised Edition) Rice Production Manual.
Laguna: University of the Philippines.
19. USDA, Economics, Statistics, and Cooperatives Service
(1979)
Conversion Factors and Weights and Measures for
Agricultural Commodities and their Products.
Washington: USDA.
20. van Ruiten, H. and H.P. Rozeboom, with the FAO (1980)
Post-
Production Rice Technologies in the WARDA Region.
Monrovia: WARDA.
21. Wimberly, J.E. (1983) Technical Handbook for the
Paddy Rice
Post-Harvest Industry in Developing Countries.
Manila: IRRI.
22. World Bank, Commodities and Export Projection Division
(1981) Rice Handbook.
Washington: World Bank.

20
 23. World Bank, South Asia Projects Dept., Agro-Industries and
Credit Division (1984) Staff Appraisal Report on Burma:
* Grain Storage and Processing Project.
Washington: World Bank.

0
21
i

I
i
I
I

I
i
I

I
 ANNEX I:

EXAMPLES OF INVESTMENTS AND OPERATING COSTS

*
 I
I

i
 RICE MILLING
EXAMPLE 1
Page 1 of 2
Representative Investment and Operating Costs
---------------------------------------------

RICE MILL

Establishment of a one ton/hour rice milling unit to produce

high
high grade rice (10% broken or less).

COUNTRY: Uganda (Busembatya Millers Ltd.)

NOTE: These data are intended as indicative only and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations may
vary considerably.

Annual Full Development Production:

-----------------------------------

fine rice 1,048.5 metric tons

broken rice 116.5 metric tons
Capacity Utilization at Full Development: 80.00%

-------- US$ '000-------

end 1983 prices
Local Foreign Total
I. Investment Costs:
____________________

Land and Buildings 8.33 8.33

Machinery & Equipment 0.00
(cleaner, husker, whitening 71.33 71.33
machine, etc., and 0.00
including transport to site).
Installation 0.67 3.77 4.43
Import Duties 0.47 0.47
Pre-Operating Expenses 17.87 17.87
Total Investment Costs 27.33 75.10 102.43

.9

-~~~~~~~~~~~------------
 RICE MILLING
EXAMPLE 1
Page 2 of 2
Representative Investment and Operating Costs
---------------------------------------------

NOTE: These data are intended as indicative only and

are unique
to the time, circumstance, and country of the
identified
investment. Their applicability to other situations may
vary considerably.

US$ '000
end 1983 prices
Total Cost

II. Full Development Annual Operating Costs:

--------------------------------------------

Variable Costs
raw materials
packing materials 597.33
utilities 21.50
production labor 2.83
Sub-Total Variable Costs 5.20
626.87
Fixed Costs
overhead labor
depreciation 6.37
maintenance 19.77
administration 0.83
Total Fixed Costs 3.03
30.00
Total Operating Costs
656.87

DATA SOURCE: Adapted from World Bank OPEC loan 301P-UG, project
file for Sub-Project OP-16, Uganda Development
Bank
appraisal report for the Busembatya Millers Ltd.
NOTES:
Exchange rate - Ugandan Shillings 300 = US$
1.00.
Full development is achieved in fourth year after
Details on local/foreign exchange operating cost project start-up.
breakdown are not
presented in the appraisal report.
Data are net of contingencies.
 RICE MILLING
EXAMPLE 2
Page 1 of 2
Representative Investment and Operating Costs
…--------------------------------------------

RICE MILLING
____________

Establishment of a 2 ton/hour rice mill

COUNTRY: Lao PDR (Sanakham Mill, Vientiane Province)

NOTE: These data are intended as indicative only and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations may
vary considerably.

Annual Full Capacity Production:

________________________________

milled rice 4800 tons

Capacity Utilization at Full Development: not available

--------US$ 000-------
end 1979 prices
Local Foreign Total
I. Investment Costs:
____________________

Civil Works
site preparation 1.00 2.00 3.00
rice mill building 450 m2 34.00 24.00 58.00
paddy operational storage 675 m2 70.00 38.00 108.00
rice storage 675 m2 70.00 38.00 108.00
miscellaneous 2.00 3.00 5.00
Sub-Total Civil Works 177.00 105.00 282.00
Machinery & Equipment
compact type 2 ton/hr mill 200.00 200.00
laboratory equipment 5.00 5.00
workshop equipment 5.00 5.00
water supply equipment 3.00 3.00
fork lift 16.00 16.00
diesel engine (60 hp) 5.00 20.00 25.00
spare parts 40.00 40.00
Sub-Total Machinery & Equipment 5.00 289.00 294.00
Installation Charges 5.00 14.00 19.00
Total Investment Costs 187.00 408.00 595.00
. ~ ~~~~~~~~~~------------

I| I ~ ~ ~ ~ - - - - - - - - - - - - - -
 RICE MILLING
EXAMPLE 2
Page 2 of 2

Representative Investment and Operating Costs

---------------------------------------------

NOTE: These data are intended as indicative only and

are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations may
vary considerably.

-------- US$ O00-------

end 1979 prices
Local Foreign Total
II. Full Development
Annual Operating Costs
(excluding raw materials)
_____________________________

Variable Costs
production labor 5.04
diesel fuel 5.04
5.53 5.53
lubricants
0.55 0.55
Sub-Total Variable Costs 5.04 6.08 11.12
Fixed Costs
overhead labor 3.40
maintenance 3.40
0.80 0.80
Sub-Total Fixed Costs 4.20 4.20
Total Operating Costs 9.24 6.08 15.32

DATA SOURCE: Adapted from World Bank project appraisal report

No.
2842-LA, Lao PDR Agricultural Rehabilitation and
Development Project III, Vol. II, Project File,
Annex 2.
NOTES:
All costs expressed in US $.
Details on actual amounts of paddy (raw materials)
procured not
readily available.
Milling extraction rate is assumed at 67%.
Full development is assumed to be second year after
of mill. installation
Data are net of contingencies.
 0 RICE HlILLING
EXAMIPLE 3
Page 1 of 3

Representative Investment and Operating Costs

RICE H4ILL

Establishment of a 150 ton per day capacity rice mill.

COUNTTRY: Burma

NOTE: These data are intended as indicative only, and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations
may vary considerably.

Annual Full Development Production(tons):

paddy 33000.00

Capacity utilization at Full Development: not available

-------- US$ '000-------

mid-1984 prices
Local Foreign Total
I. Investment Costs:

Site Development
access roads 52.83 52.83
fencing 43.99 11.00 54.99
drainage & sewerage 12.89 12.89
other 57.07 57.07
Sub-Tctal Site development 166.78 11.00 177.78
Rice Godowns
foundation 47.30 47.30
structural steelwork 77.88 69.07 146.95
roofing and walling 32.46 28.79 61.25
Sub-Total Rice Godowns 157.65 97.86 255.51
Hill Foundation 78.48 78.48
Mill Superstructure
structural steelwork 91.99 81.57 173.56
roofing and walling 74.89 66.41 141.30.
Sub-Total Mill Superstructure 166.87 147.98 314.85
Mill Utilities 1.43 4.29

-
 RICE 1ILLING
EXAIMPLE 3
Page 2 of 3
Representative Investment and Operating Costs

NOTE: These data are intended as indicative only, and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations
may vary considerably.

-------- US$ 000-------

mid-1984 prices
Local Foreign Total
Milling Equipment
lntake, cleaning, weighing 46.54 98.89 145.43
husking, paddy separation 142.39 302.58 444.98
whitening 111.73 237.42 349.15
pre-sieving/polishing 48.86 103.83 152.70
post sieving/grading 57.80 122.82 180.61
grading, mixing, sacking 57.42 122.02 179.45
husk refining 12.13 25.78 37.91
electrical 53.10 112.84 165.94
feed piping 7.06 15.01 22.07
other/spare parts 73.75 156.72 230.47
Sub-Total Equipment 610.79 1297.93 1908.72
Installation 307.62 307.62 615.25
Transport, Insurance, Storage 89.60 89.60
Total Investment Costs 1579.22 1866.67 3440.18
 RICE MILLINZG
EXANIPLE 3
Page 3 of 3

Representative Investment and Operating Costs

NOTE: These data are intended as indicative only, and are unique
to the time, circumstance, and country of the identified
investment. Their applicability to other situations
may vary considerably.

US $ '000
mid-1984 prices
Total

II. Annual Full Development Operating Costs:

Variable Costs
production labor 15.06
auxillary materials (lubrication, spare parts) 18.99
power 18.99
other 7.59
Sub-Total Variable Costs 60.63

* Fixed Costs
management staff 5.44
maintenance and repair 2.41
building maintenance 4.43
mill overheads 14.18
Sub-Total fixed Costs 26.46

Total Operating Costs 87.09

DATA SOURCE: Adapted from Wlorld Bank appraisal report I-o. 5227-
BU Burma Grain Storage and Processing Project,
Project Implementation Volume, Anne: A Financial
Project Cost Estinates, Sections 1 and 6.

NOTES:
Exchange rate - Kyats 7.9 = US $ 1.00
Detailed breakdown between local/foreign operating costs not
presented in appraisal report.
Data are net of contingencies.

0
i

I . I
I

ANNEX II:

CONVERSION TABLES

-0
I I
I

i
 WEIGHTS AND MEASURES
* avoirdupois
Ton: short ton 20 short hundredweight, 2000 pounds;
0.907 metric tons;
long ton 20 long hundredweight, 2240 pounds;
1.016 metric tons.
Hundredweight cwt;
short hundredweight 100 pounds, 0.05 short tons; 45.359
kilograms;
long hundred weight 112 pounds, 0.05 long tons; 50.802
kilograms.
Pound lb or lb av; also #;
16 ounces, 7000 grains; 0.453 kilograms.
Ounce oz or oz av;
16 drams, 437.5 grains; 28.349 grams.
Dram dr or dr av;
27.343 grains, 0.0625 ounces; 1.771 grams.
Grain gr;
0.036 drams, 0.002285 ounces; 0.0648 grams.

Troy
Pound lb t;
12 ounces, 240 pennyweight, 5760 grains; 0.373
kilograms.
Ounce oz t;
20 pennyweight, 480 grains; 31.103 grams.
Pennyweight dwt also pwt;
24 grains, 0.05 ounces; 1.555 grams.
Grain gr;
0.042 pennyweight, 0.002083 ounces; 0.0648 grams.
 METRIC SYSTEM

Square kilometer sq km or km2 ;

1,000,000 square meters;
0.3861 square mile.
Hectare ha;
10,000 square meters;
2.47 acres.
Hectoliter hl;
100 liters; 3.53 cubic feet; 2.84 bushels;
Liter 1;
1 liter; 61.02 cubic inches; 0.908 quart
(dry); 1.057 quarts (liquid).
Deciliter dl;
0.10 liters; 6.1 cubic inchs; 0.18 pint
(dry); 0.21 pint (liquid).
Centiliter cl;
0.01 liters; 0.6 cubic inch; 0.338
fluidounce.
Metric ton MT or t;
1,000,000 grams; 1.1 US tons.
Quintal q;
100,000 grams; 220.46 US pounds.
Kilogram kg;
1,000 grams; 2.2046 US pounds.
Gram g or gm;
1 gram; 0.035 ounce.
 p

ANNEX III:

RICE CONVERSION FACTORS

0
 p~~~~~~~~~~~~~~

Factors Relating to Rice Content of Specified Products 1/

Source: USDA (1979)

X : Factors for converting--

Hundredweight Pounds of Pounds of Pounds of
Product of rough rice product to : milled rice product to
to pounds hundredweight to pounds pounds of
of product : of rough rice of product : milled rice
Rice, rough 100.0 0.01000 1.5038 0.6650
Brown 82.0 .01220 1.2330 .8110
Milled 2/ : 66.5 .01504 1.0000 1.0000
Brewers 3.0 .33333 .0451 22.1667
Bran : 10.9 .09174 .1639 6.1009
Polish 1.6 .62500 .0241 41.5625
Rice grits 69.5 .01439 1.0451 .9568
Rice flour 64.2 .01558 .9654 1.0358
Rice starch 49.1 .02037 .7383 1.3544
Precooked rice . 63.9 .01565 .9609 1.0407
Dehydrated precooked rice 60.5 .01653 .9098 1.0992
Rice cereals, ready-to-
serve:
Puffed rice 66.5 .01504 1.0000 1.0000
Rice flakes 61.2 .01634 .9203 1.0866
1/ Rice conversion factors vary substantially depending on the type
and variety
of rice milled. These data are based on national averages over a period of time
and
are not a perfect measure of any crop's milling yield.
2/ Excluding brewers' rice;

Note: Miscellaneous factors relating to rice:

1 bushel rough rice equals 45 pounds

1 hundredweight rough rice equals 100 pounds
or 2.22 bushels
1 barrel rough rice equals 162 pounds
or 3.6 bushels

a
I I Ir
 Al

It

0
w W~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
l~ - w
4'>