Olam Agri plans to invest around 400 million dollars in food processing and animal feed in Africa by 2028. Announced on 4 November, the programme was confirmed by the company in a public statement reporting an interview with Saurabh Mehra, who heads these activities, with Bloomberg.
The group plans to build animal feed plants in Nigeria, Cameroon and Ivory Coast. Its expansion also includes grain processing and milling, as well as increased pasta manufacturing capacity in Ghana. In Ivory Coast, this would be its first presence in food and animal feed processing.
Farm purchases linked to new capacity
For farm producers, the stated issue is supply. At full capacity, the new Nigerian, Cameroonian and Ivorian plants are expected to buy more than 500,000 tonnes of maize and soybeans each year from more than 130,000 smallholder farmers. These outlets remain dependent on the completion and ramp-up of the facilities.
A first concrete step was taken on 4 November in Ogwashi-Uku, Delta State, Nigeria, with the launch of construction of an integrated 70 million dollar plant. Expected in 2027, it plans daily capacities of 1,500 tonnes of poultry feed and 300 tonnes for aquaculture, as well as 125,000 tonnes of storage in silo bags.
The plant is intended to bring production closer to livestock farmers in Nigeria's South-South and South-East, who currently rely on supplies transported from the South-West, Olam Agri explains. The Nigerian programme also includes an expansion of semolina production and the addition of 850 distribution trucks.
A supply chain developed over several years
The group has been developing this sector for several years. In April 2016, Olam had announced 150 million dollars for two animal feed plants, breeding farms and a hatchery in Kaduna and Kwara states. That earlier commitment concerned Nigeria and does not represent a measure of the investment in the new African programme.
The strategy was already based on links between industrial activities and agricultural purchases. Olam explained at the time that it could use bran from its mill in poultry and fish feed, while buying maize and soybeans from local farmers.
The new programme builds on around 115 million dollars already invested in processing in West Africa since 2024, according to the company. Its timetable remains gradual. In Cameroon, the announced poultry feed plant, with a capacity of 300,000 tonnes, is expected in early 2028.