NutraCea, China's Bright Food in Rice Bran Oil JV

Tag : Bran Oil

Phoenix-based NutraCea and a unit of Shanghai-based Bright Foodagreed to set up the world's largest rice bran oil refinery, whichwill process about 500,000 tonnes annually of raw rice bran. Thecompany did not disclose the cost of the project.

"(The tie-up) is a major opportunity for NutraCea to enter China'svast market and introduce our products to one of the world's mostvibrant economies," NutraCea President Brad Edson said in astatement.

NutraCea will fund 80 percent of the project, while holding a 72percent stake in the refinery, which will generate more than $200million in annual sales upon completion in 2010 based on currentmarket prices.

Both sides expect to build more facilities of a similar size in thefuture.

NutraCea is assessing several potential financing options and willmake a choice within 90 days, Edson said in the statement.
World food prices surged 83 percent over the past three years andare expected to rise further through 2015, NutraCea said. Foodmanufacturers are turning to rice bran as a substitute to soy andcorn in many food products to cut costs.

Bright Food, which makes agricultural products, food and beverages,and directly owns more than 4,000 retail outlets, posted 66 billionyuan ($9.6 billion) in sales in 2007.
The company's listed units include Shanghai Bright Dairy & FoodCo Ltd.