|Effect of California Long
Grain Production on the
Domestic Rice Milling Industry-84
At the meeting of Rice Technical Working Group in Fayetteville, Louisiana in
June 1984, a University of Arkansas report was presented on the Potential
Impact of California Long Grain Rice Production on the Domestic Rice Milling
The authors concluded that if California was successful with long grain production on a large scale, it would have a significant influence on U.S. rice distribution patterns. Projecting long grain production at 7.5 million cwt, California could satisfy all of the Pacific Region's direct food use and processed food use demand and about 12 percent of the U.S. long grain exports. Their analysis indicated that California could successfully compete for a share of U.S. long grain exports to Mexico, Central and South America, South Korea and Europe.
The studies also showed that Arkansas rice mills would be most affected by long grain market losses to California. The gulf ports would have a transportation cost advantage over Arkansas in the export market of long grain rice grown in Louisiana, Mississippi and Texas. These milling centers could shift much of their domestic long grain marketing losses to the export market. California would lose a substantial share of its medium grain market to the southern rice producing region. Arkansas mills would gain California's medium grain losses in the domestic market and Louisiana, Texas, and Mississippi mills would get most of the sacrificed medium grain exports.
The authors point out that there are factors at work in the real world that could alter these conclusions but that the study does provide general indications of the marketing shifts that are likely to occur.