More than a staple food: Rice by-products generate billions in global revenues

The rice by-products industry the world over has evolved into a multi-billion dollar venture.

In Thailand, now highly commercialized is rice bran cooking oil, perceived as the healthiest plant-based edible oil in the world.

Chicken-flavored instant porridge (arroz caldo) is in the market in Japan. Also popular are rice milk and rice wine.

In the United States, the most popular breakfast cereals are Kellog’s rice Krispies. In California, Knorr is marketing instant goto and champorado.

Snack items (puto, suman, bibingka, etc.) have become common in the Philippines. Rice-based chiffon cakes, brownies, and cream puffs have also been developed. Likewise, now in the pipeline are rice-based drinks or beverages (beer, tea, coffee, wine) and fortified products (rice noodles, espasol, canned rice, and sprouted brown rice).

Scientists from Korea, Thailand, Japan, and the Philippines met recently in Manila and reported the progress of rice by-products ventures in their respective countries.

Billed “Beyond Boiled Rice: Value-added Products and Entrepreneurship,” the conference was organized by the Asia Rice Foundation (ARF), Department of Agriculture-Bureau of Agricultural Research (DA-BAR), DA-Philippine Rice Research Institute (PhilRice), Philippine Council for Agriculture, Forestry and Natural Resources Research and Development (PCARRD), and Butil Party-List.

In Korea, processing of rice by-products such as rice cakes, sweets, gruels, flavors, wines, and drinks has been expanding every year, reported Kim Kee-Jong and Jeong Heon-Sang of the Rural Development Administration (RDA).

Currently, Korea’s leading business of processed rice foods is the aseptic-packaged cooked rice called Haetban.

One food manufacturing company alone, Chailjedang (CJ), recorded sales of $78 million from Haetban in 2007. Since CJ launched the aseptic packed rice business in 1996, the Haetban market has grown to a $12 billion dollar venture, which is presently shared by four major companies.

Kim and Jeong also reported: “Since 1986, when the processed rice foods appeared for the first time in the market, entrepreneurs of processed foods have increased significantly, reaching 556 companies by the end of 2007.”

Thailand, at present the top rice-exporting country, is also the biggest exporter of crude and refined rice bran oil, reported Pravit Santiwattana of the Thai Edible Oil Co., Ltd. In Bangkok.

Today, Thai Edible Oil Co. exports rice bran oil, with the major importers being the European Union, US, Australia, New Zealand, Korea, Hong Kong, and Singapore.

Japan is now developing functional rice flour using germinated brown rice, reported Kietar Suzuki of the National Food Research Institute in Tsukuba. The technology has been patented and it is under feasibility test in cooperation with some food processing companies in Japan.

In the Philippines, many products are made from various forms of rice — rough, brown, milled, brokens, flour, and starch, reported Dr. Marissa V. Romero of DA-PhilRice.

Also being produced are rice-based drinks or beverage such as beet, tea, coffee, and wine.

Long been popular are puto, suman, bibingka, calamay, espasol, puto bumbong, sapin-sapin, palitaw, and bihon.

The baked rice products developed by PhilRice are chiffon cake, brownies, and cream puff. The snack items include shangrice, hougat, and puto-pao.

Fortified products include rice noodles, espasol, canned rice, and sprouted brown rice.

Dr. Romero said that the major challenge of entrepreneurship in commercializing rice products in the country is the issue of self-sufficiency.

“Since there is not enough rice to feed the population, the argument of not utilizing rice for purposes other than table rice remains. This makes value-adding difficult because of the competition for the availability of raw materials and high cost,” the PhilRice scientist stated.

However, Dr. Romero noted, Filipinos continue to make rice-based food products because it provides decent income for many and even huge profits for some.