Described herein is a process for producing nutraceutical compositions that includes fermenting a species of Monascus in the presence of one or more co-products produced during corn ethanol fermentation, milo ethanol fermentation, or a combination thereof. During fermentation, the Monascus species produces valuable nutraceuticals that have numerous health benefits. In one aspect, the nutraceutical composition containing the microbial cells and nutraceuticals is then processed directly into animal feed in order to improve animal health. The processes and compositions described herein represent significant savings of time and materials and optionally make use of co-products of biofuel production. In other aspects, one or more nutraceuticals can be extracted from the nutraceutical composition and used to improve human health in pharmaceutical applications.
