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Olam International strengthens its presence in Nigeria with investments

Ade ADEFEKO: “We recently did the groundbreaking of our animal feed, poultry breeding and hatchery in Northern Nigeria and the investment outlay is about 150 million dollars if you include the integrated poultry and feed fish mill in Kwara. This investment amount is the largest in Nigeria and possibly West Africa.”

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The subsidiary of Olam International has recently made a new investment in Nigeria. Doing the groundbreaking of their animal feed, poultry breeding and hatchery in the country, Olam Nigeria spared 150 million dollars for these investments. Olam international also commits a further 425 million US dollars into Nigeria in 2016. Ade ADEFEKO, Head of Corporate and Government Relations, states that these investments show Olam’s commitment to its long term targets in Nigeria and its commitment to the country.

Saying that the commercial animal feed market in Nigeria is expected to grow 10%per year for the next 5 years, ADEFEKO answered our Magazine’s questions about Olam International’s investments in Nigeria and the its targets in the country.

First of all, how long has Olam International been operating in Nigeria? Could you please give us some information about Olam’s structure in Nigeria?
Olam International actually started in Nigeria in 1989 and the Nigerian subsidiary is one of the largest investors in the country with over a billion dollars in investments. Olam international has grown from a single product exporter to a global agribusiness leader with presence in 70 countries headquartered in Singapore. Globally we are organized into 16 platforms and comprising 47 agri-commodities. Our principal shareholders are Temasek Holdings of Singapore with 51.4% and Mitsubishi Corporation of Japan with 20% stake.

On what areas are you operating in Nigeria? What can you say about the services you provide, your contributions to Nigeria and about your plants in the country?
We operate in about 11 product categories ranging from processed cocoa, cashew sesame, cotton as well rice farming and milling, dairy and juices, biscuits and confectionary, wheat milling, pasta and noodles and culinary products like seasonings and our new foray into Animal feeds and protein business. Most of our products are household names ranging.

Considering the areas that you operate in, what can you say about Nigeria as a market? What is the meaning of Nigeria for Olam International? What is your target for this country?
Olam in Nigeria has found Nigeria to be home and we are here for the long haul hence we operate 18 processing locations and about 115 warehouses. We are one of the largest employers of labor employing over 2,900 employees impacting over 600,000 thousand farmers and have been adjudged as the largest non-oil exporter out of Nigeria over the last few years as well as 30,000 hectares of managed farms in cocoa and rice. We have committed this year alone 425 million dollars as follows; 275 million dollars in acquiring Bua Pasta and Flour Mill and 150 million dollars in animal feed and protein business.

Recently, you have started an investment for animal feed mill, poultry breeding farms and a hatchery in Nigeria and laid the foundation for these. Could you please give us some information about the target and scope of these investments?
We recently did the groundbreaking of our Animal feed, poultry breeding and hatchery in Northern Nigeria and the investment outlay is about 150 million dollars if you include the integrated poultry and feed fish mill in Kwara.

We seek to achieve three major things; enable the development of Nigeria’s poultry sector and this will be done by producing at full capacity every week over 1 million high quality layer (for eggs) and broiler (for meat) and a feed mill capacity of 300, 000 tonnes, spurring local feed production and thirdly developing partnerships with local communities to improve nutrition and minimize environmental impact.

What can you say about the investment budget, technologic infrastructure and production capacity of these plants?
Like I said earlier the investment outlay is 150 million dollars which will make this investment the largest in Nigeria and possibly West Africa.

What will these plants bring both to Olam International’s presence in Nigeria and to the country? Could you give us some information about the importance and gaining of these investments for your company and the country?
This investment will help support domestic protein production as imports of frozen poultry and fish are being phased out progressively by government. It might interest you to note that the commercial animal feed market is expected to grow 10% per year for the next 5 years and we are keen on taking advantage of that.

Could you tell us from where you will supply raw material for the feed plant to be installed? Is the production capacity for feed raw material sufficient in Nigeria currently? Could you tell us about your works and future targets on this subject?
Our feed mill will utilize around 180,000 metric tonnes of corn and 75,000 tonnes of soybean most of which will be sourced from the local communities. In addition, 50,000 metric tonnes of on-site storage plus a similar level of outsourced storage capacity will support food security and price stabilization which is a very important ingredient in our clime.

Olam International is intensely working in Nigeria. Is there any other project for the future? What are your targets for investment and market?
We have been here for over 26 years and proudly Nigerian with our origins and footprint here and investment portfolio of over a billion dollars; with this investments, nothing else best demonstrate our long term belief and commitment to Nigeria.

What would you like to add?
As a company operating from seed to shelf and born in Nigeria, we are committed to Nigeria over the long term particularly in the area of food security and overall economic prosperity and helping to unlock mutual value.

We also suggest you to read our previous article titled "Alexander DÖRING, FEFAC: "Feed industry had a nice story to tell"".

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