Since rice is one of the most widely traded commodities globally, wholesalers want to have high-quality rice sources at reasonable prices. Hence, rice factories are the right choice when they are in charge of processing and supplying.
- 1 General information about rice factories
- 2 Rice factories’ main location
- 3 Leading products from rice factories and wholesale prices
- 4 Factors affecting the prices of rice factories
- 5 Rice factories: channels to find them
- 6 Distinguishing reliable rice factories and scammers
- 7 Top 5 famous rice factories
General information about rice factories
Rice factories are units that focus on rice processing from milling to packaging. They collect dried rice and mill them into two types: material rice and finished rice. Besides, the rice factories can act like suppliers providing finished rice to other wholesalers and retailers.
The two most outstanding features of rice factories are:
- Diverse products: Having rice processing chains, rice factories can bring many products with different qualities to meet specific customer needs. Besides the international standards such as 5% broken rice, rice factories can produce customized rice based on the specification of the customers.
- Competitive price: Since rice factories are the first supplier in the rice supply chain, their prices are reasonable. Rice prices of intermediate suppliers include additional fees such as local transportation charges, profits, company fees, etc. Therefore, it will be much higher than the prices of rice factories.
Rice factories’ main location
Rice factories often choose major rice-growing areas as their location due to 2 main reasons:
- With huge rice production volumes, rice-growing areas provide stable sources for processing.
- Transportation costs can be reduced significantly if rice factories are near rice-growing areas.
Regarding the continent, the majority of rice factories are from Asia because this continent has the biggest milled rice production volume accounting for 84% of the world’s rice production in 2019, ensuring stable input for the rice processing of rice factories.
Regarding the country, most rice factories are mainly located in China, India, Bangladesh, Indonesia, and Vietnam which are the top 5 major rice-producing countries in the world.
- In 2019, China milled 146,73 million tons, standing first on the list of the major rice producers. Since the country has a large population so that the capacity of the Chinese rice factories only meets the domestic consumption.
- Rice factories in India and Vietnam supply not only for the local consumption but also the international market. Among 118,87 million tons of rice production, Indian rice factories exported 9,87 million tons in 2019. Vietnamese rice factories exported 6,37 million tons out of 27,1 million tons of rice production.
Leading products from rice factories and wholesale prices
Product diversity is one of the most attractive features making rice factories the best choice for wholesalers. In general, rice factories provide four rice types: long grain rice, medium and short grain rice, aromatic rice, and glutinous rice.
Long grain rice
This is the most popular rice type, making up for 75% of the world’s rice trade. Therefore, the majority of products from rice factories are long grain rice varieties. Major importers of long grain rice are countries in South Asia, Southeast Asia, the Middle East, sub-Saharan Africa, and Latin America.
As rice factories produce many long grain rice varieties with different qualities, the prices will be various.
- ST rice is widely traded by Vietnamese rice factories to China. Due to its premium quality, ST rice is sold at 800 – 900 USD/MT. ST rice lines have a high yield (over 5 tons/ha) with 2-3 crops/year. Not only has the scent of pineapple, but ST rice also has a faint scent of Vietnamese green rice. This is a unique feature of ST rice.
- India parboiled 5% rice is offered by rice factories at 360 – 373 USD/MT (FAO).
Medium and short grain rice
12% of the total rice production of rice factories is medium and short grain rice. This rice type is mainly exported to Korea and Japan since its stickiness is suitable for making tokbokki (Korean rice cake) and sushi.
- Japonica is the most famous short grain rice, mainly provided by rice factories in Vietnam. It costs 580 – 660 USD/MT (FAO).
- Calrose 4% broken is a medium grain rice variety from American rice factories. It costs 823 – 827 USD/MT (FAO).
Aromatic rice accounts for 12% of the rice factories’ production. This rice type is primarily imported by the Philippines, Ghana, Ivory Coast, and the EU. The wholesale price of aromatic rice is twice as much as that of normal long grain rice due to its premium quality and fragrance. Rice factories focus on 2 main aromatic rice types: basmati and jasmine rice.
- Basmati rice has a delightful fragrance and a sweet taste, originating from the Himalayan foothills. Therefore, Indian rice factories dominate the market of basmati rice in bulk, with a price range of 1075 – 1231 USD/MT (FAO).
- Jasmine rice is native to Thailand and is produced by rice factories in Vietnam and Thailand. This rice is widely favored due to its distinct fragrance and soft texture when cooked. The price of wholesale Vietnamese jasmine rice is 528 – 532 USD/MT, and that of wholesale Thai jasmine rice is 1148 – 1152 USD/MT.
Even though accounting for 1% of the rice production of rice factories, glutinous rice is popular in Asian countries such as China, Malaysia, and the Philippines. Vietnamese and Thai rice factories dominate the glutinous rice market.
- Vietnamese glutinous rice belongs to short grain rice and has a light sweet taste. Rice factories provide Vietnam’s glutinous rice at 501 – 570 USD/MT (FAO).
- Thai glutinous rice has long grains with a sticky texture. The wholesale price offered by Thai rice factories for glutinous rice is 840 – 1064 USD/MT (FAO).
Factors affecting the prices of rice factories
The prices offered by rice factories will be affected by many external factors related to supply chains, demand, and logistic costs.
Read more: An updated list of rice wholesale price
Rice supply volume
The prices will fluctuate depending on the output volume of rice factories. A decrease in the total rice production of rice factories will make the wholesale price higher. For example, in 2019, the production of Vietnamese rice factories was 20,47 million tons, down 133 thousand tons compared to 2018. As a result, Vietnamese 5% broken rice increased to 535 – 537 USD/MT (FOB Saigon).
The demand of major rice importers such as the EU, Africa, China, and the Philippines is also a vital component to the price fluctuation of rice factories. Amid the outbreak of Covid-19, the need for rice in Bangladesh has been increasing significantly, which benefits the wholesale price of Indian rice.
The Covid-19 epidemic results in crises in transportation activities such as lack of empty containers, and high shipping costs. This leads to a considerable increase in the CIF offered by rice factories. In fact, in 2020, Thai rice factories raised their wholesale rice price from 498 USD/MT to 510 USD/MT. The same with Indian rice factories when their wholesale rice price rose from 378 USD/MT to 383 USD/MT.
Rice factories: channels to find them
Wholesalers and retailers can research necessary information about rice factories through online and offline sources.
By searching on Google or E-commercial platforms, and joining online B2B agriculture groups, people can have a list of many rice factories.
- Searching on Google: People can find rice factories by keywords such as “rice factories”, “Vietnamese rice factories”, “rice factories in India”, etc. The top reliable rice factories will appear at the top search results.
- Searching on E-commercial platforms such as Alibaba, EC21, Go4world, etc. These are famous B2B platforms in which many rice factories have their online stores.
- Joining agriculture groups or forums is another effective way to find rice factories. In these groups, people not only share contact information about rice factories but also review whether they are good or not.
One benefit of the offline source is that wholesalers or retailers will have face-to-face interaction with rice factories and their products.
- Attending agricultural fairs is a good chance when many famous rice factories will be involved. However, due to the outbreak of Covid-19, it is impossible for agricultural fairs to be held.
- Working with professional brokers is another choice for wholesalers who have little experience in this field. Professional brokers have relationships with many rice factories and will recommend suitable ones with wholesalers’ requirements. Experienced wholesalers or retailers can look for the help of professional brokers for time-saving in finding and evaluating.
Distinguishing reliable rice factories and scammers
One important step to finding rice factories, wholesalers, and retailers have to know how to distinguish reputable rice factories from scammers.
Reliable rice factories will have the following features:
- Clear information and licenses: If rice factories are trustworthy, they will publish their basic information such as an address, website, factory profile, and production capacity on the Internet. A business permit is another important document to verify the rice factories.
- Certificate profile: To check the rice quality of rice factories, wholesalers and retailers can rely on the certificate of quality, certificate of origin, phytosanitary certificate, fumigation certificate, etc.
- Past performances are one reliable criterion to evaluate the reputation of rice factories.
Signs of scam rice factories include:
- Too low prices: People should compare the price of rice factories with the average one updated in FAO. If it is too low, people should be careful and double-check the reputation of rice factories.
- Unclear information: If wholesalers cannot find any basic information such as location and factory profile, there is a high risk that the rice factories are unreliable.
- Early payment urge: If the rice factories insist on early payment before the good arrival, wholesalers should question their trustworthiness. The common payment method is 50% deposit and 50% on board, which can ensure the right of both parties.
Top 5 famous rice factories
Rice factories play a vital role in the wholesale rice trade because they are in charge of supply chains. Wholesalers can consider 3 rice factories as follow.
KLA rice factory
Among many rice factories in India, KLA stands out with a long history of development and global distribution. The supply capacity of KLA is 40 million per year, reaching many countries such as Singapore, Ghana, Ivory Coast, etc.
Non-basmati rice is the strength of KLA when the factory produces and distributes many rice varieties including IR64, PR106, IR36, etc.
Having 25 years of development, K-Agriculture Factory is one of the best rice factories in Vietnam. The company has many factories located in the Mekong Delta – Vietnam’s largest rice-growing area, therefore, the milling capacity can reach 2,500 MT/day with a storage capacity of 400,000 MT. As a result, K-Agriculture Factory is one of the rice companies in Vietnam having the ability to supply Vietnamese rice to 80 countries around the globe such as the Philippines, Dubai, The USA, etc.
K-Agriculture Factory also offers a wide variety of rice such as ST rice, Jasmine rice, Japonica rice, etc. with the highest quality and at the most competitive price.
To buy the best Vietnamese rice, contact us via:
WhatsApp: +84855555837 (Ms. Kris)
Ake Rice Mill Company Limited.
When mentioning Thai rice factories, Ake Rice Mill Company Limited is an outstanding name. After 50 years of experience, Ake Rice Mill has a 4000m2 factory in Nonthaburi Province, producing 150,000 MT per year.
Ake Rice Mill is a trustworthy partner of wholesalers from the USA, Canada, Australia, etc. Three rice types of the factory are jasmine rice, white rice, and glutinous rice, which are the strength of Thailand.
In conclusion, this article provides you with the information you need to know about rice factories. Hope you find this article useful. Please leave a comment for further explanation from experts from K-agriculture which is one of the biggest factories in agriculture in Vietnam!