How to Set Up a Rice Milling Business in Guyana | GBTI

As the largest lender to Guyana’s agricultural industry, GBTI has extensive experience supporting and working with the farmers responsible for producing the country’s most important crop: rice. Through its specially designed Rice Farming Loan program, GBTI offers accessible financial support tailored to the unique needs of enterprises involved in every step of the rice farming and production process.

For entrepreneurs who are thinking about entering the rice sector, one of the most popular types of businesses to consider is a rice mill. A crucial step in rice post-production, rice milling can offer significant opportunities without the high levels of risk that some other areas of rice production involve. Read on for a closer look at rice milling and how to establish a rice mill in Guyana.

What is rice milling?

A raw grain of rice is made up of three layers: an outer husk, a middle layer of bran, and an inner kernel. During the rice milling process, the husk and the bran layers are removed, leaving behind the edible white kernel that is free from impurities. Depending on the system used, rice milling can happen in a single step, in which the husk and bran removal are done together; in a two-step process, in which the husk and bran are removed separately; or in multiple stages, in which the various processing activities such as pre-cleaning, dehusking, and whitening are carried out step by step.

What are some of the benefits of starting a rice milling business?

For enterprising business owners, starting a rice mill can be a very smart business decision. Some of the benefits associated with the rice milling business include the following:

An abundance of raw material -Rice production is the largest single area in Guyana’s agricultural sector, so there is always plenty of raw material-and thus plenty of potential clients-available for rice millers to work with.

Multiple opportunities for profit-As described, the main objective of the milling process is to remove the husk and the bran, but did you know that these by-products of rice processing have their own value? Rice husks are often used for livestock feed, while rice bran can be further processed and sold as-is or transformed into various other value-added products such as rice bran oil.

Job creation -Establishing a rice milling business is a great way to create secure and stable jobs in Guyana’s agricultural sector and to help reduce unemployment in the communities surrounding the mill.

What are some guidelines for good milling?

According to the International Rice Research Institute (IRRI), the production of good quality rice depends on the use of proper milling techniques. Some of the best practices for rice milling recommended by the IRRI include:

Mill at the right moisture content -Ideally, rice should be milled at a moisture content of 14 percent; much lower than this and the rice is far more likely to break, resulting in a significant loss of market value. The IRRI recommends the use of technology such as a moisture meter, rather than simple visual inspection, to get an accurate reading of moisture content.

Do not pre-mix rice varieties -If your mill is handling many different types of rice, it may seem easier to pre-mix them so they can all be milled together. However, the varying characteristics of different rice varieties require specific individual mill settings to produce the highest-quality milled rice possible, so pre-mixing is not recommended.

Monitor equipment regularly -The quality of milled rice can only be as good as the quality of the equipment used to produce it, so it’s important for you to conduct regular reviews of your rice milling machinery and to replace key parts such as rolls and screens before they become too worn out.

What are the requirements for setting up a rice mill in Guyana?

For anyone who wishes to establish a rice milling business in Guyana, it’s important to understand the requirements that have been set out under Guyana’s Rice Factories Act of 1998. The Guyana Rice Development Board offers a good breakdown and overview of these requirements on its website. Some of the most important points that potential business owners need to be aware of include:

Environmental requirements -As is the case with any type of industrial facility, there are very specific environmental requirements that rice mills must fulfill. For example, the mill must be located away from residential areas if possible, the area should have good drainage and a readily available potable water supply, and the business must have an adequate waste disposal plan that complies with relevant environmental protection laws.

Mill construction -New mills must be constructed according to specific building regulations laid out in the Rice Factories Act. For example, all floors should have a slight inclination and should be water and gas proof, any wall openings should be meshed to protect against pests, and adequate ventilation must be provided.

Staff facilities -In compliance with relevant labor laws, rice mills must incorporate proper staff facilities such as washrooms, restrooms, and a canteen.

Originally published at https://gbtiblog.com on February 13, 2020.