U.S. rice millers and repackagers distributed 38.3 million hundredweight (cwt) of rice in marketing year 1986/87 for three domestic uses: direct food, processed foods, and beer. This figure represents a 13.8-percent increase over shipments in 1984/85, the previous survey year. Between 45 and 50 percent of U.S. rice is consumed domestically (including seed use and residual) the rest is exported. Rice shipments for use directly in food rose by 1.76 million cwt, shipments for use in processed foods rose by 2.10 million cwt, and, although reported rice shipments to the beer industry increased by only 787,400 cwt, use increased by 1 million. The sharp drop in U.S. rice exports in the early eighties may contribute to further expansion in the domestic rice market. This report assesses rice market shares and trends