Malnutrition among children and adults is a global concern. Overall, nearly one-third of children in developing countries are underweight or stunted, according to the World Bank, and 30 percent of the world’s population suffers from micronutrient deficiencies. NutraCea has risen to the task and has realized that highly nutritious products derived from stabilized rice bran are economically sound solutions for helping conquer malnutrition worldwide. Rice is a staple food for approximately 70 percent of the world’s population but more than 60 percent of rice’s nutrients are destroyed during traditional milling processes.
NutraCea is a leader in stabilized rice bran nutrient research and dietary supplement development. Through its wholly owned subsidiary, RiceX, the company manufacturers as well as distributes products and food ingredients made from Rice Bran through its proprietary technology and processes. The proprietary technology enables the creation of food and nutrition products from rice bran, normally a wasted by-product of standard rice processing. The company uses the patented technology to produce stabilized rice bran, a process which no other company or competitor has been able to replicate.
Stabilized rice bran is a high demand product of which, between 50-60 million tons is spoiled every year. NutraCea processes the inedible outer bran husk, which before was considered too perishable and unable to be processed for human consumption, into edible rice bran that is both highly nutritious and affordable.
According to Good Nutrition Center, “Rice bran is being hailed as the new super-food. Rice bran contains a quite amazing number of nutrients. Advocates cite the presence in rice bran of 120 antioxidants. Rice bran contains just about all the vitamins you would ever need (except D and C, which are added to rice bran products to make up a full complement)”.
NutraCea’s has many customers including General Mills (NYSE:GIS), Pepperidge Farms, Con Agra (NYSE:CAG), Archer Daniels Midland (NYSE:ADM), and Purina. In addition, some 500 companies have signed nondisclosure agreements with NutraCea to test its product in their products. The company has also developed a new product in the fight against arthritis. Made from natural ingredients, FlexProtex is a cutting-edge dietary supplement to help increase mobility and joint flexibility in arthritis patients.
In December of last year Thomas Bishop, editor of BI Research listed NutraCea as one of his “favorite aggressive idea for 2008”. He also noted that the company faced a number of problems in 2007 that has reflected on the low stock price, however he believes that the future looks bright for NutraCea.
NutraCea’s rice bran products are facing high demands that are expected to exceed its ability to supply it for years to come. But what concerns industry leaders like Thomas Bishop is whether the firm can handle all the expansion.
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