Ricegrowers, one of the largest rice food companies in the world and one of Australia's largest exporters of processed branded foods, has invested in a new US joint-venture rice milling and marketing company.
The Australian-based group will have a majority 65pc stake in SunFoods, to be based in California.
Ricegrowers, which trades as SunRice and is listed on the National Stock Exchange, has invested $US10.4 million in the newly formed division to broaden its international rice food operations.
SunFoods holds the amalgamated milling assets and brands of Gold River Mills and Pacific Basin Milling.
Its popular rice brands include the Hinode label.
The current president of Gold River Mills, Tom Atkinson II, will be appointed president of the newly formed SunFoods.
SunFoods will help SunRice increase its business and will complement the traditional Australian rice supplies at a time of increasing global demand for rice and rice-based foods, SunRice chief executive Gary Helou said.
Last month SunRice released its full-year results and reported a net profit of $14.1 million for the year to April 30, 2008, down slightly from a profit last year of $14.48 million.
The company's brands, which include SunRice, Tastic, Sunbrown and the Always Fresh stable of Mediterranean-type foods, generated total sales revenue for the period of $707.7 million, down from $733.9 million.
Mr Helou said the drought and other conditions produced the smallest Australian rice harvest in 2007-08 since 1929 and the company relied more on its international trading and premium brands to generate earnings.
Ricegrowers sources paddy rice from all over the world, and processes it before repackaging under well-known brands.
It markets the rice, and 70pc of Australia's rice production, to more than 60 countries.
Its key markets include Asia, the Pacific and the Middle East.