ARI Project: 00-03-028 | Funding Round: Round 1 (1999-2000)  | Start Date: 06/01/2000  | Status: Completed

An Economic Analysis of California Wild Rice Processing

ARI Member Campus: California Polytechnic State University, San Luis Obispo
Research Focus Area: Agricultural Business
Project Personnel: Director: Noel, Jay, Agribusiness Department, College of Agriculture, Food, and Environmental Sciences, Cal Poly State University
Co-Investigator: Ahern, James J., Agribusiness, College of Agriculture, Food and Environmental Sciences, Cal Poly State University
ARI Allocation: $10,288.00
Match Donors: $10,303.00 - Sunwest Foods, Inc
Total Funding: $20,591.00

Project Objective: To perform demand analysis for wild rice and develop a systems approach to production costs. This includes evaluating the economic impact of changes in processing technology, inventory methods, transportation, and location of processing plant.

Project Abstract: The California wild rice industry accounts for approximately 60% of world production while using only about 20,000 acres in the Sacramento Valley. Introduction of a new hybrid variety of wild rice is expected to increase current yields by a factor of 2.5. It is likely that, given the growth in production, output wholesale prices will drop. For the California wild rice industry to grow and prosper, it must search for better and cheaper ways of production and/or increase consumer demand. This project will perform demand analysis for wild rice and use a systems approach to production costs. This will include evaluating the economic impact of changes in processing technology, processing capacity, unit processing costs, inventory costs, transportation costs, and location of processing plant on total cost.

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