IFC, Olam support food processors in Nigeria, India

SINGAPORE – IFC, a member of the World Bank Group, and Olam International, a global integrated supply chain manager and processor of agricultural products, have agreed on a five-year $120 million loan to finance upgrades and expansion of five food processing facilities in Nigeria and India. The projects aim to help local communities by generating rural employment and creating new market opportunities for smallholder farmers to sell their crops.

 IFC financing will support the following facilities operated by Olam:

- Hemarus sugar milling, Kolhapur, India (upgrade)

- Spice processing, Cochin, India (upgrade)

- Crown Flour Mill, Lagos, Nigeria (expansion)

- Mechanical cashew processing, Illorin, Nigeria (new)

- Sesame hulling, Lagos, Nigeria (new)

The Crown Flour Mill in Nigeria will process imported wheat into flour for domestic bakers. The remaining four facilities will integrate by 2015 more than 45,000 small-scale farmers from surrounding regions into Olam’s supply chains by allowing them to supply their crops directly to the processing units, thereby guaranteeing a market for their products.

IFC’s agribusiness strategy aims to promote food security, inclusive growth, and environmental and social sustainability in agricultural supply chains.  IFC works with supply chain integrators to provide small farmers and rural businesses with access to finance, access to inputs like equipment and seeds, advice and extension services, and access to markets. In fiscal year 2013, IFC invested $4.5 billion.

Junior