NutraCea to triple capacity with Louisiana agreement
Louisiana Rice Mill LLC (LRM) that could see the company's
Stabilized Rice Bran capacity tripled.
The news comes hot on the heels of NutraCea's announcement that it would expanding its Dillon, Montana facility by more than 50 per cent due to increased demand.
"The rice bran supply agreement with LRM is a strategic move for our Company," said Ike Lynch, COO of NutraCea.
"A production facility at LRM puts us in the heart of one of the most significant rice production areas in the US and gives us the ability to offer enhanced service and improved logistical support to our customers."
The implementation of NutraCea's exclusive proprietary stabilization system for the supply of raw rice bran will require the construction of a new stabilization plant that will be connected to the milling operation of LRM.
"Our raw rice bran supply agreement with them will provide an opportunity to LRM to improve its competitive position relative to other rice milling companies in the region," said Bobby Hanks, CEO of LRM.
NutraCea will finance the construction and this stabilization plant, expected to be finished before the end of the third quarter of 2006, with existing cash resources.
Stabilized rice bran is a naturally rich source of vitamins, minerals, and antioxidants, yet it is normally discarded during rice processing. NutraCea now controls 100 per cent of the human market for rice bran and 50 percent of the combined human and animal markets, which have a total value of $12 million.
As well as whole food products and food ingredients, the company also develops nutraceuticals aimed at health indications such as arthritis and high cholesterol.
