Growing Rice as a Business

Turnkey Business Opportunities Food Products Business Ideas 09.01.2017  0 151 0
Growing Rice as a Business

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Rice is the oldest and one of the most popular cereal crops in the world. Over 30 million tons of rice are produced worldwide each year. Despite this large quantity, demand continues to outstrip supply. In Asian countries, where rice is a staple food, people consume it three times a day, with an average annual consumption per person exceeding 150 kg. In European and American regions, the average consumption is currently lower at 25 kg per year, but it is steadily increasing. Therefore, rice cultivation can be a highly sought-after and profitable type of agricultural business.

What are the different varieties of rice?

There are over 8,000 diverse varieties of rice. It is important to note that even within one variety, taste qualities can vary significantly depending on the region of cultivation, type of fertilizers used, and other factors. Rice is often classified by grain size as long-grain (over 6 mm), medium-grain (approximately 5 mm), and short-grain (less than 5 mm). It is also categorized based on grain processing methods:

1) Brown rice: This product is obtained by removing the outer husk of the grain. It retains the full amount of nutrients, making it a popular choice among health-conscious consumers, despite being more expensive.

2) Polished rice: This is the most common type of rice, obtained by removing the bran layer. While this process reduces the nutritional content, it extends the shelf life of the rice. It is also the most cost-effective method of processing, resulting in a lower retail price.

3) Parboiled rice: This premium variety of rice is obtained through parboiling, which preserves most of the nutrients and gives the rice a light brown color. Parboiled rice does not stick together when cooked and maintains its flavor profile for an extended period.

How is the rice cultivation process carried out?

In regions with uneven terrain, rice can be planted in pre-flooded areas by spreading seeds from airplanes. While this method is costly and labor-intensive, it is highly efficient.

First and foremost, rice cultivation requires significant financial investment. To establish a viable operation, a minimum of 500 hectares of land is needed along with various agricultural machinery like tractors, seeders, and grain loaders. Storage facilities for harvested rice are essential, ranging from 10,000 to 40,000 tons depending on production volume.

Approximately, the initial costs for such a venture (excluding plant establishment) could surpass $1 million. However, with efficient management, the enterprise can yield high returns. Although the initial investment may take 5-7 years to recoup, the rice production business has the potential to generate substantial profits thereafter.

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09.01.2017  0 151 0
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