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NutraCea (NTRZ.OB) Caters to Chinese Baby Food Market Laden with Tainted Milk Worries

While China wrestles with tainted dairy products revolving around a “milk scandal” responsible for the deaths of four Chinese babies and the sickness of thousands more, companies such as NutraCea are addressing health and food needs in other ways.

NutraCea’s product line includes nutritious ingredients for human and animal food companies, promoting health and nutrient-dense rice bran products for humanitarian feeding efforts. The company today announced it has received a purchase order to introduce nutritionally-fortified baby cereal into the Chinese market.

The products are set to launch in February 2009, and soon after, the company intends for these products to hit the shelves of supermarkets and specialty baby stores in China. NutraCea’s goal is to penetrate about 5 percent of the baby cereal market in the next five years.

“Our customer has over 50 regional sales offices all over China and intends to distribute this custom-made, nutritionally-enhanced baby cereal product on a national scale in China once the initial introduction has been made,” Kody Newland, senior vice president of NutraCea stated in the press release.

According to NutraCea, the baby cereal market is about US$580 million, and the company intends on addressing the needs of these customers by offering a healthy baby cereal.

“We are very pleased to be able to meet the demands of our customer by custom blending to their product specifications and providing them with a very unique, one of a kind baby cereal for the Chinese market,” Newland stated.

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