EL DORADO HILLS, Calif. -- NutraCea has entered into a raw rice bran supply agreement with Louisiana Rice Mill LLC and will construct its stabilization facility at the LRM rice-milling facility in Mermentau, La.



The agreement triples NutraCea's capacity to produce its proprietary stabilized rice bran production in the United States.



Under the terms of the agreement, Louisiana Rice Mill will supply raw rice bran from its rice milling operations to NutraCea. The supply agreement is intended to triple NutraCea's current supply of raw bran, which will be processed through NutraCea's exclusive proprietary stabilization system to produce stabilized rice bran and other value added-products for both the human and animal nutrition markets.



The stabilization process will be implemented at LRM with the construction of a facility that retrofits NutraCea's proprietary engineering process to the equipment at LRM. NutraCea has the ability to fund this project with existing cash resources. The new facility is expected to be completed prior to the end of the 3rd quarter of this year.



Bobby Hanks, CEO of LRM, said, "We look forward to the addition of NutraCea's facility to our milling operation. 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.



"NutraCea's commitment to invest significant capital for the construction of a stabilization plant connected to our milling operation demonstrates a strong belief in Louisiana rice farmers and millers to assist NutraCea in serving its customers," Hanks said.



Ike Lynch, COO of NutraCea, said, "The rice bran supply agreement with LRM is a strategic move for our company. A production facility at LRM puts us in the heart of one of the most significant rice production areas in the U.S. and gives us the ability to offer enhanced service and improved logistical support to our customers.



"We are most impressed with the management of LRM and look forward to a long-term business relationship that is mutually beneficial and allows both companies to better serve their respective customers, both foreign and domestic."

SOURCE: NutraCea via PR Newswire.