RiceBran Technologies and Wilmar International Ltd Enter Into Agreements
04 Apr 2013 --- RiceBran Technologies, a global leader in the production and marketing of value added products derived from rice bran, announced that it has entered into a series of agreements to develop rice bran and its derivatives in China for human food ingredient and animal nutrition applications with various affiliates of Wilmar International Limited, Asia's leading agribusiness group.
RiceBran Technologies has licensed to Wilmar its patented and proprietary intellectual property and know-how for stabilizing and further processing rice bran, including technologies resulting from recent research and development efforts regarding extraction and concentration of protein from rice bran. Under the terms of the agreements, Wilmar has acquired certain rights and interests to use and develop such licensed intellectual property and know-how for production and commercialization of rice bran ingredients and derivatives in the People's Republic of China.
As part of the agreements, Wilmar will purchase two proprietary rice bran stabilization extruders designed and manufactured by RiceBran Technologies for use in the People's Republic of China. Payments by Wilmar for licensing rights and extrusion equipment will be used by RiceBran Technologies to repay obligations related to rice bran protein extraction development costs and for general operating purposes. In addition, RiceBran Technologies will have co-investment rights to purchase up to a 45% equity interest of any entity established in the People's Republic of China by Wilmar to commercialize the licensed intellectual property and know-how.
"We are excited to be partnering with the premier agribusiness group in Asia to accelerate the conversion of rice bran -- an underutilized, renewable and sustainable resource -- into high quality, nutritional ingredients for the food industry in the People's Republic of China," commented W. John Short, CEO & President of RiceBran Technologies. "Our company shares Wilmar's vision for environmentally conscious, sustainable growth in the production and commercialization of healthy foods for a growing global population."
China's annual rice output is about 185 million tons, or approximately one third of global rice production, with about 15 million tons of raw rice bran produced annually as a by-product of rice milling. At present, about 10% of raw rice bran production goes to production of rice bran oil for human food applications. The remaining rice bran is used as animal feed. RiceBran Technologies' stabilization and protein extraction IP will support greater conversion of rice bran into high quality animal nutrition, human food, functional foods and nutraceutical applications.
