What is it about?
This article examines the long-run profitability of rice milling operation in Malaysia and see how sensitive it is to changes in paddy purchases, rice recovery ratio and paddy price.
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Why is it important?
There is a need for better understanding of the rice milling industry to promote its economic sustainability and design effective policies in Malaysia. This paper provides the gap by providing an insight into the long-run profitability of rice milling operation in Malaysia.
Perspectives
The rice milling operation in Malaysia is profitable in the long run, provided that there is a market for by-products such as rice bran and husk. Changes in paddy purchases, paddy prices and recovery ratios affect the short and long run profitability of rice millers to varying degrees, depending on the type and ownership of the rice mills. It seems economically more sound to consolidate the rice milling sector, although that may increase risk of job losses and political instability in Malaysia's relatively poor regions.
Dr Bonhee Chung
Yonsei University
Read the Original
This page is a summary of: Cost analysis of rice milling: a case study of 7 rice mills in Malaysia, Journal of Agribusiness in Developing and Emerging Economies, November 2016, Emerald,
DOI: 10.1108/jadee-05-2014-0019.
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