Agri-business company to tap animal feed market in Nigeria

Olam International Limited through its Grains platform will start investing in animal feed and related businesses in Nigeria. The company plans to invest in poultry and fish feed mills, and hatcheries to produce day-old-chicks.

According to company news, Olam chose Nigeria as entry market since the country ranks well on selection criteria including meat consumption per capita, degree of fragmentation, extent of vertical integration and of commercial feed penetration, scalability potential and supply and demand factors impacting the feed raw material trade.

As a result of urbanization in Nigeria, the local diet is becoming more protein-rich, with demand for poultry and aquaculture products increasing. This is fueling demand for commercial feed which is forecast to grow to more than 10% CAGR over the next five years.   

Olam will play to its strengths in origination, which includes extracting raw material cost efficiencies, sharing of port infrastructure, sourcing arbitrage, trading, ocean freight and risk management, and leverage its expertise and procurement network Nigeria.