Louisiana Rice Mill LLC
Today, quality has got to come back into the discussion across all segments of the U.S. rice industry. We are seeing a higher demand for quality rice from our customers and have to strike a balance between a farmer’s goal for higher field yields and the market’s desire for higher quality rice. A variety has to perform well for the farmer or he won’t grow it, and rice has to meet the standards of our markets or they won’t buy it. For example, Kellogg’s® uses medium grain in its Rice Krispies® products, and chalk is a problem. At Louisiana Rice Mill, we grade Kellogg’s rice at a different chalk level than other rice coming in here. Kellogg’s is looking for consistent quality, consistent characteristics and stability in the variety being grown for a while.
DIFFERENTIATE ON PRICE
In determining premium varieties, the expectation is 80 percent of the rice bought from that particular variety is going to be high quality. For the varieties that offer this stability in quality versus a lower quality variety, where 50 percent or less is considered high quality, we’re going to differentiate on price. When a farmer decides to plant a premium variety that might have a little bit lower yield potential, he can count on a higher price and potentially getting contract plus instead of contract minus. At the end of the day when a farmer has good quality rice and sells it for contract plus, he feels good about it. These farmers work hard, and they take pride in producing a high-quality product.
CONSISTENT QUALITY DRIVES MARKETS
If a variety has good yield potential, good milling quality and you can count on it being consistent year in and year out, then we want you to get a higher price. When you are in the market, there should be higher demand for those varieties. High-quality rice is much easier to sell and move. Consistency in grain quality means more consistent markets.
“A variety has to perform well for the farmer or he won’t grow it, and rice has to meet the standards of our markets or they won’t buy it.”
– John Morgan
FROM SEED TO FEED
• Strike balance between farmer and market
• Consistency is key quality characteristic
• Good quality means contract-plus potential
• High-quality rice sells, moves easier