Olam International Limited announced that its Grains platform plans to expand into animal feed and related businesses in Nigeria.
Olam is expanding into animal feed business and the expansion involves investments in setting up poultry and fish feed mills in Nigeria. These investments are consistent with Olam’s strategy to selectively invest in prioritized platforms, which includes the Grains platform. The investment builds on Olam’s existing strengths in origination, which includes extracting raw material cost efficiencies, sharing of port infrastructure, sourcing arbitrage, trading, ocean freight and risk management.
In addition to bran from its flour mills, Olam will leverage its local procurement network to source a majority of other inputs required for producing poultry and fish feed. The investments will also contribute to the development of the Nigerian poultry and aquaculture sectors by providing competitively priced inputs and technical support to local poultry and fish farmers, thereby improving productivity and returns for the sector.