Distribution Patterns of Rice in the United States

Excerpts from the report: The rice industry, traditionally, has had to rely on an unstable world market, including developing foreign countries, to market about one-half of its crop. While the export market has been increasing in recent years, much of the rise has been due to accelerated welfare grants and Government programs. The domestic cash market--the backbone of the rice industry--has long been characterized by a relatively low, stable consumption concentrated in a few areas and influenced by certain ethnic groups. Generally, the demand for rice consumed for direct food in the domestic market is considered to be slow to react to changing conditions. Therefore, means other than price variation were known to be necessary if direct food consumption was to be increased. A study of the patterns of rice distribution in the United States and Territories was conducted covering the marketing years 1955-56 and 1956-57, as a means of acquainting the rice industry with its domestic market and the location of its various segments. Using these market data as benchmarks, the industry increased its sales efforts considerably by three approaches: (1) increased promotional activities; (2) education of consumers in low-consuming areas as to the value of rice as a staple food; and (3) the introduction of specialty rice products. This study was planned in order to measure the changes that have occurred since the last survey and to ascertain shifts in demand that may be attributed to factors other than price. It presents milled rice distribution patterns, including destination of shipments by States, type of rice, kind of buyer, and package information.