Feasibility study of bulk handling of paddy and rice in Malaysia

Malaysia currently produces about 75% of its rice requirements, and could improve this percentage significantly it the present postharvest losses could be reduced. Ironically, the Malaysian farmers' speedy adoption of mechanical paddy harvesting, and of other innovations in field operations, has shortened the harvest period and placed additional pressure on postharvest losses (from the present 18 to 9%) could lead to a revenue increase of A$3-4 million. Rationalisation of existing grain-handling facilities and transport networks also has potential for significant benefits.
Introduction of innovations in handling paddy, such as the use of bulk-handling equipment, more efficient drying equipment and increased milling capacity to reduce delays prior to millingtogether with an improved grading systemwill reduce losses significantly. However, the associated long-term investment planning raises the complex recurring problem of determining the most efficient locations for such facilities, and their numbers and capacities. The responsible government authorities have requested Australian assistance to conduct as systems analysis of grain handling in Malaysia.
The South Australian Department of Agriculture will develop a computer model of the Malaysian rice economy, which integrates the various component of the paddy and rice handling industry. Various Australian specialist consultants will advise on specific aspects of the project. In particular, personnel from the Rice-growers Co-operative Mills Ltd, who are already undertaking a study on grain drying in Malaysia, will provide advice on the technical feasibility of improved bulk-handling, drying and milling equipment.
The Malaysian research team will assemble the data base, putting the data in a form suitable for processing, while their research economists will provide back-up support to the Australian members of the team.
Consultants will use the model which emerges to evaluate a range of variables, including handling, storage and transportation costs, location of paddy handling facilities, efficiency of movement of paddy from farm to handling facilities and of milled rice to final destinations. Data will be drawn from the Tanjung Kerang area in northwest Selangor.
Project team members will then assess its applicability to other rice-producing regions of Malaysia. The model will allow them to analyse alternative paddy transport, handling and grading systems, and to determine the most socially efficient locational pattern, number and size of handling and distribution facilities. The team will also conduct sensitivity analyses to determine how various specific changes in the decision variable - including the costs, timeliness and capacities of the different systems involvedwill affect a range of rice qualities such as moisture content, and therefore price.
As well as helping to establish a more efficient handling system at minimal cost, the project should strengthen the capacity of Malaysian institutions to undertake applied economic research. Its results should also have application to similar modelling systems in Australia.