Model of Integrated Rice Milling and Value Chain Development

In Indonesia, rice postharvest handling losses in traditional supply chains have been reduced up to 10% over 10 years (1996-2007). Rice milling is the central point of the rice agro-industry. Presently, many small scale rice mills operate using simple and old equipment that resulted in low quality of milled rice. To increase milled rice yield and quality efforts are needed to improve the performance, reduce costs, increase value-added products that make an impact on rice business and rice farmers benefit. An integrated agro-industry system will produce quality milled rice with higher income. To establish an integrated system of rice industry, proper facilities to produce high quality rice and commercialization of by-product are a must. The facilities for integrated rice industry may be grouped in line to the bussines scale and variation of products such as premium rice, rice flour, charcoal products, charcoal briquettes and husk.