Two new feed mills constructed for Olam Group aim to help Nigeria improve its level of self-sufficiency in quality poultry meat.
Part of Singapore-based Olam International, Olam Group is set to open two new poultry feed mills in the West African country, each with an annual capacity of 360,000 metric tons. Corn and soybeans for the feeds will be sourced from local farms.
The new facilities, located in the states of Kaduna and Kwara, will add to Nigeria’s poultry feed capacity of 2.5 million metric tons, the firm told Punch at the inauguration. The hope is that the additional output will boost the country’s output of quality poultry meat and reduce imports.
“We want to increase the per-capita consumption of eggs from the current 80 to about 120 by 2020 at an affordable price to consumers,” said Olam Grains’ Business Head for Animal Protein Dr. Vinod Mishra. “This we believe is part of contributing our own quota in ensuring that Nigerians get easy and affordable access to quality nutrition.”
New hatchery, poultry farm
As well as the poultry feed mill, Olam has invested NGN20 billion (US$55.6 million) in a hatchery and poultry farm in Kaduna state. Capacity of the hatchery will reach four billion eggs per year, and annual poultry meat production will be up to 100,000 metric tons. The firm will employ 600 people, and indirectly provide work for a further 400,000.
Farmers have received training in poultry production from the firm’s own veterinarians, and Olam has offered two-year internships to 60 students from some of the country’s top colleges.
Olam announced plans to invest US$130 million in the new feed and poultry facilities in Kaduna and Kwara in April 2016.
With businesses in 70 countries, Olam International sources and processes a wide range of agri-food products, and is among the top 30 primary listed companies on the Singapore Stock Exchange in terms of market capitalization.
In its latest financial report, the Group records significantly improved half-year results, particularly in its Food Category. This includes its Grain and Edible Oils business, which increased sales volume, revenue and profitability from the same period last year. The firm’s wheat milling operations in West Africa continued to perform well, the report noted.
Nigeria was the launchpad of Olam’s global business in 1989, originally focusing on the production of nuts and cocoa. Its products now also include rice, sesame and cotton, as well as a range of foods.