NutraCea to acquire rice bran facility in Brazil

by Staff
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PHOENIX — NutraCea has reached a definitive agreement to buy a rice bran oil processing facility in Brazil. The facility is the largest of its kind in South America.

"The establishment of our facilities in the major rice-growing regions around the world is essential to our long-term strategic growth plan," said Brad Edson, president and chief executive officer. "We believe our Brazilian facility will provide NutraCea with the opportunity for increasing revenues going forward not just for stabilized rice bran but also for healthful edible oils and value-added products derived from the rice bran and oil."

As a part of the agreement, which is expected to close before the end of the month, NutraCea has secured arrangements for the supply of raw rice bran with local mills to initially provide 70,000 tons annually to be used for rice bran oil production. As a result of the transaction, the company will enter the edible oils market and have a location for distribution of proprietary products in South America. The acquisition also allows for a platform to introduce new value-added products NutraCea has been preparing to roll out.

"The consumer trend away from trans fatty acids and the global demand for more healthful choices in edible oils has helped to drive rice bran oil prices higher," said Leo Gingras, chief operating officer. "With the purchase of this new facility, we are poised to take advantage of the growing worldwide demand for healthy edible oil and create new, patented and proprietary value-added derivatives from rice bran utilizing technologies developed at NutraCea."

Products from the facility in Brazil will be sold in South America and exported around the world. The company has been researching and developing resources to incorporate its proprietary stabilization technology into the rice bran oil extraction business.

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