RiceBran Technologies (NASDAQ: RIBT and RIBTW), a global leader in the production and marketing of value added products derived from rice bran, announced today that its Brazilian subsidiary Irgovel has entered into an agreement with Cooperativa Agroindustrial de Alegrete Ltda (CAAL), a Brazilian rice growing and milling cooperative located in Alegrete, Rio Grande do Sul, Brazil, to install RBT's proprietary extruders in CAAL's rice milling facility in exchange for exclusive rights to purchase and stabilize rice bran produced as a by-product of CAAL's rice milling business.
As part of the agreement, Irgovel will install two of RBT's proprietary extruders in CAAL's Alegrete rice mill. In return, CAAL will construct a building for the processing of raw rice bran and storage of the stabilized rice bran. Irgovel will have a right of first refusal to purchase all raw rice bran from CAAL. The construction of the facility and the installation of equipment is expected to be completed within the next 180 days. Upon completion of the project CAAL will begin shipping stabilized rice bran to Irgovel for oil extraction.
W. John Short, CEO and president of RBT, commented: "We are pleased that Irgovel reached this agreement with CAAL. When the project is complete, Irgovel will receive a steady supply of high quality, high oil content stabilized rice bran produced using RBT's proprietary extrusion equipment. This will help to improve oil extraction efficiency at Irgovel and CAAL will be able to sell all of its bran to Irgovel, improving margins and financial performance for its co-op members. We see this arrangement as a win-win scenario for all parties involved and look forward to a long lasting relationship with CAAL."