ADM Rice, a division of the agribusiness giant, will use NutraCea's proprietary rice stabilization technology at its Arbuckle, California facility.
The plant will produce stabilized rice bran for distribution to the human and animal feed markets.
NutraCea has been promoting the ingredient as a means of eradicating malnutrition around the world, through the use of what is generally discarded as a waste product.
However, the company has been taking steps towards the mainstream food industry of late, and the ADM agreement is large step towards this end.
"This agreement between NutraCea and ADM Rice is timely and a natural strategic step as it allows us to quickly increase our production while still maintaining product integrity of the finished SRB," said Brad Edson, President and CEO of NutraCea.
"We have aligned ourselves with one of the most recognized and respected names in the agricultural industry with a global presence and look forward to significant additional opportunities to expand the current usage of our SRB by ADM as a value added ingredient."
The Californian manufacturer's stabilized rice bran is a rich source of vitamins, minerals and antioxidants.
Production of the stabilized rice bran at the California facility is set to begin in June 2007.
The company recently announced the signing of a distribution agreement with Mexican group FX Morales, whose customers include multinationals Grupo Gamesa (Frito Lay, Pepsico, Quaker, Gatorade) Grupo Bimbo, Grupo Maseca, Kellogg, Nestle, Kraft, Unilever and Bristol Myers Squibb.
Nutracea also brought its technology to Italian Giulio Gross through a distribution agreement.