Olam Agri Commits $400 Million to Expand Food Processing and Feed Mills Across Africa

Agricultural commodities trader Olam Agri has announced a commitment to invest approximately $400 million in African food processing through 2028. Disclosed in a statement on Wednesday, November 4, 2026, the capital injection will fund the construction of new animal feed mills in Nigeria, Cameroon, and Ivory Coast as part of a broader continental expansion by the company.

The investment will enhance food and feed processing capacity to address shifting consumption patterns driven by population growth and rising incomes across the region. According to Saurabh Mehra, Olam head of food and feed processing, the initiative builds upon approximately $115 million already invested by the company in West African processing operations since 2024. The plans encompass increased grain processing, wheat milling, and pasta production in selected markets.

Operational plans vary by country. In Nigeria, the company intends to build its third animal feed plant, expand semolina production capacity, and add 850 trucks to its distribution fleet. Cameroon is slated to receive a 300,000-tonne poultry feed plant targeted for operations in early 2028, while Ghana will see an expansion in pasta-making capacity. In Ivory Coast, Olam Agri will enter the local market for the first time with investments spanning wheat milling, animal feed production, and poultry breeding, alongside explorations into southern African markets such as Angola.

The scale of the operational expansion is projected to drive primary production impacts. At full capacity, the new feed mills across Nigeria, Cameroon, and Ivory Coast are expected to create annual purchase demand for more than 500,000 tonnes of corn and soybeans sourced from over 130,000 smallholder farmers. This expansion coincides with broader national agricultural policy goals in markets like Nigeria, where domestic wheat production has increased following government implementation of the National Agricultural Growth Scheme and Agro-Pocket, alongside parallel foreign and domestic investments in dairy, tomatoes, and other agricultural value chains.

Why This Matters

Private capital commitments of this magnitude directly reinforce state-level efforts to build domestic agro-industrial capacity and reduce reliance on imported food commodities. By tying commercial processing expansion to local supply chains, the investment establishes structured off-take markets for tens of thousands of smallholder farmers growing corn and soybeans. This integration helps anchor upstream agricultural productivity in structural demand, mitigating some of the supply volatility that typically affects local farming communities.

At the operational level, expanding dedicated processing facilities alongside heavy logistics investments, such as adding hundreds of distribution trucks in key markets, addresses critical supply chain bottlenecks. Strengthening local milling and manufacturing infrastructure shortens the distance between raw agricultural output and consumer-ready goods, enhancing food security resilience across West and Central Africa while responding directly to demographic shifts in urban and rural consumption.

Opportunities

• Contractors and Builders: Commercial construction firms specializing in industrial facilities, silos, and manufacturing plants can pitch for upcoming engineering and infrastructural tenders tied to the new feed mills and processing sites.
• Logistics Operators: Fleet management and commercial transport providers can secure supply chain and distribution contracts to support Olam Agri's expanded delivery networks and vehicle fleet additions.
• Agricultural Aggregators: Farmer cooperatives and grain aggregators can position themselves to secure high-volume supply contracts for the projected 500,000 tonnes of corn and soybeans required annually.
• Financiers and Lenders: Regional banks and development finance institutions can structure trade finance and working capital facilities for smallholders and medium-scale input suppliers integrated into the expanded value chains.

Moto Seen Africa - Africa's View, Seen Clearly

#MotoSeenAfrica #SeenAfrica #SeenNetwork #AfricasView #SeenClearly #SeenInsights #Agribusiness #FoodSecurity #SupplyChain #WestAfrica #Agriculture