NAICS 311212 Quarterly Industry Report
Rice Milling
Comprehensive industry research for valuation professionals, business owners, buyers, and lenders
NAICS Code: 311212Sector: 31Updated: Q1 2026
About This Report
This Fair Market Value industry report for NAICS 311212 provides valuation-focused intelligence for professionals assessing rice milling businesses and facilities. Additional data is drawn from Bureau of Labor Statistics[7], U.S. Census Bureau[8].. Data is sourced from USDA NASS[6] rice production and stocks data, USDA ERS[5] rice market analysis, and SBA size standards[9] to support business appraisals, acquisition due diligence, lending decisions, and investment analysis for rice milling enterprises.
Industry Definition & Overview
Rice Milling (NAICS 311212) encompasses establishments primarily engaged in milling rice, including cleaning, hulling, polishing, and packaging rice for consumer and commercial food manufacturing markets. Operations range from large integrated milling facilities processing rough (paddy) rice into white, brown, parboiled, and specialty rice products to smaller specialty mills producing organic, aromatic, and value-added rice products. The U.S. Census Bureau[4] classifies rice milling separately from flour milling (NAICS 311211) and other grain processing, recognizing the distinct processing technology and market channels for rice products.
The U.S. rice industry is concentrated in six states with Arkansas, Louisiana, California, Mississippi, Missouri, and Texas producing the majority of domestic rough rice. The USDA Economic Research Service[5] tracks rice production, milling capacity, per-capita consumption, and export data. Long-grain rice dominates production in the Southern states while medium and short-grain varieties are grown primarily in California. Both domestic consumption and export markets drive milling demand, with the U.S. exporting milled and rough rice to markets in Central America, the Middle East, and Asia.
Business valuations for rice milling operations center on daily milling capacity measured in hundredweights, hulling and polishing equipment condition, rough rice storage and drying infrastructure, customer relationships with food manufacturers and foodservice distributors, and branded product portfolio strength. Appraisers evaluate milling yield percentages, head rice ratios (whole kernel recovery), byproduct revenue from rice bran and rice hulls, and geographic positioning relative to rice production regions and port facilities for export access. The USDA NASS[6] rice stocks and production data inform supply analysis for rice milling valuations.
What's Included in This Industry
- Sector-specific valuation multiples and financial benchmarks for rice milling operations
- Revenue and profitability analysis across white rice, brown rice, parboiled, specialty varieties, and byproduct segments
- SBA size standard classification and lending threshold data for NAICS 311212
- Comparable transaction data from recent rice mill acquisitions, facility sales, and milling company transactions
- Regional market analysis covering Arkansas, Louisiana, California, and other rice producing state milling capacity and output
- Workforce and labor cost benchmarking for mill managers, equipment operators, quality graders, and packaging line workers
- Industry risk assessment including rough rice price volatility, import competition, water availability, and customer concentration risks
- Regulatory compliance overview covering FDA food safety standards, USDA rice grading requirements, and FSMA preventive controls
- Capital expenditure profiles for hullers, polishers, color sorters, parboiling systems, dryers, and packaging equipment
- Production metrics including milling yield percentages, head rice ratios, daily throughput capacity, and cost per hundredweight benchmarks
NAICS Classification Hierarchy
| Level | Description | Code |
|---|---|---|
| Subsector | Food Manufacturing | 311 |
| Industry Group | Grain and Oilseed Milling | 3112 |
| NAICS Industry | Flour Milling and Malt Manufacturing | 31121 |
| National Industry | Rice Milling | 311212 |
Related NAICS Codes
| Code | Description | Relationship |
|---|---|---|
| 311211 | Flour Milling | Flour milling operations that share grain processing equipment technology, food safety compliance frameworks, and commodity procurement strategies with rice milling facilities |
| 424510 | Grain and Field Bean Merchant Wholesalers | Grain and field bean merchant wholesalers purchasing milled rice products from mills for distribution to grocery retailers, foodservice accounts, and export markets |
| 311999 | All Other Miscellaneous Food Manufacturing | All other miscellaneous food manufacturing operations using milled rice as an ingredient in rice cakes, rice-based snacks, and prepared food products |
| 311230 | Breakfast Cereal Manufacturing | Breakfast cereal manufacturing operations purchasing milled rice for rice-based cereal production including puffed rice and rice flake products |
| 311119 | Other Animal Food Manufacturing | Animal food manufacturing operations purchasing rice bran, rice hulls, and broken rice byproducts from milling facilities for livestock feed ingredients |
| 493130 | Farm Product Warehousing and Storage | Farm product warehousing and storage facilities including rice dryers and storage elevators that supply rough rice to milling operations during processing seasons |
Geographic Concentration
Top states by share of national establishments.
| # | State | % Est. | Total Est. |
|---|---|---|---|
| 1 | Arkansas | 38.0% | 30 |
| 2 | California | 21.5% | 17 |
| 3 | Texas | 12.7% | 10 |
| 4 | Louisiana | 12.7% | 10 |
| 5 | Missouri | 6.3% | 5 |
| 6 | Minnesota | 5.1% | 4 |
| 7 | Mississippi | 3.8% | 3 |
% Of Establishments
0%
38%
Source: County Business Patterns, U.S. Census Bureau[3]
Frequently Asked Questions
Common questions about this industry.
What is the NAICS code for rice milling?
Rice Milling is classified under NAICS code 311212, covering establishments engaged in cleaning, hulling, polishing, and packaging rice per the U.S. Census Bureau[4] industry classification system.
What is the SBA size standard for rice milling?
The SBA[10] sets the size standard for NAICS 311212 at 1,250 employees, qualifying eligible rice milling operations for small business lending programs and government contracting preferences.
How are rice mills valued?
Valuations focus on daily milling capacity, equipment condition, rough rice storage infrastructure, customer contracts, branded product strength, and head rice yield percentages per USDA NASS[6] rice production and stocks data.
Where are U.S. rice mills concentrated?
Rice milling facilities are concentrated in Arkansas, Louisiana, California, Mississippi, Missouri, and Texas per USDA NASS[6] rice production data, with mill locations positioned near rice-growing regions and port access.
What products do rice mills produce?
Products include white milled rice, brown rice, parboiled rice, specialty aromatic varieties (jasmine, basmati), rice flour, and byproducts including rice bran, rice hulls, and broken rice per USDA[15] rice grading standards.
What risks affect rice milling operations?
Major risks include rough rice price volatility, import competition from Asian producers, water availability constraints in growing regions, customer concentration, and the capital intensity of maintaining modern milling and sorting equipment.
How does the export market affect rice milling?
U.S. rice exports to Central America, the Middle East, and Asia create additional demand for milling capacity, with export-oriented mills positioned near Gulf Coast ports per USDA ERS[5] rice trade and export data.
What food safety standards apply to rice mills?
Rice mills must comply with FDA[16] Food Safety Modernization Act preventive controls, good manufacturing practice requirements, USDA rice grading and inspection standards, and arsenic testing protocols for rice products.
Sources & References
Government datasets and editorial sources used in this report.
- [1]U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages bls.gov
- [2]U.S. Census Bureau, Economic Census census.gov
- [3]U.S. Census Bureau, County Business Patterns census.gov
- [4]U.S. Census Bureau census.gov
- [5]USDA Economic Research Service ers.usda.gov
- [6]USDA NASS nass.usda.gov
- [7]Bureau of Labor Statistics bls.gov
- [8]U.S. Census Bureau census.gov
- [9]SBA size standards sba.gov
- [10]SBA sba.gov
- [11]SBA-backed lending sba.gov
- [12]Farm Service Agency fsa.usda.gov
- [13]SBA 7(a) loans sba.gov
- [14]504 loans sba.gov
- [15]USDA usda.gov
- [16]FDA fda.gov
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