Olam Agri Commits US$400 Million to Scale Grain and Feed Processing Across Africa

Olam Agri has announced a major capital expenditure plan committing approximately US$400 million toward grain processing and animal feed production across the African continent by 2028. The initiative is designed to capitalize on rising demand for processed foods and animal protein, a market trend propelled by rapid population growth, accelerating urbanization, and changing consumption patterns across the region. The expansion strategy builds directly upon approximately US$115 million that the company has already deployed into West African processing operations since 2024, signaling a sustained long-term commitment to the region's agricultural manufacturing sector.

The investment program, which was detailed by Saurabh Mehra, Head of Food and Feed Processing at Olam Agri, will focus its initial phases across Nigeria, Cameroon, Côte d'Ivoire, and Ghana, while the enterprise also explores new commercial opportunities in southern Africa, including Angola. Core developments include establishing new animal feed manufacturing facilities alongside targeted investments in wheat milling and pasta production. These industrial assets are strategically positioned to serve the expanding consumer appetite for convenience foods such as bread, noodles, and pasta, alongside robust commercial requirements for poultry and fish feed.

Operational execution is already underway in key markets, highlighted by a major US$70 million integrated feed mill project in Ogwashi-Uku, Delta State, where construction has officially commenced. This specific complex will feature a poultry feed mill with a capacity of 1,500 tonnes per day, an aquafeed plant capable of producing 300 tonnes daily, and substantial storage infrastructure holding up to 125,000 tonnes, with operations targeted to begin in 2027. Additional projects include a third animal feed manufacturing plant and an 850-truck distribution fleet expansion in Nigeria, a 300,000-tonne poultry feed facility in Cameroon slated for early 2028, increased pasta capacity in Ghana, and new market entry in Côte d'Ivoire.

Beyond industrial milling assets, the capital deployment is structured to deeply integrate agricultural supply chains by establishing reliable, large-scale commercial markets for locally produced raw commodities. Once the new facilities in Nigeria, Cameroon, and Côte d'Ivoire achieve full operational capacity, Olam Agri projects they will collectively source more than 500,000 tonnes of maize and soybeans annually. This procurement volume is expected to draw from a network of over 130,000 smallholder farmers, utilizing international sourcing strictly to supplement domestic supplies whenever local harvests require reinforcement.

Why This Matters

This large-scale industrial expansion addresses structural deficits in domestic food manufacturing by targeting the heavy reliance on imported food products that historically drains foreign exchange reserves across African economies. By building localized processing capacity for staple grains and animal protein inputs, the initiative shortens supply chains and insulates regional markets from external global commodity shocks. Expanding milling and feed infrastructure ensures that value addition occurs closer to the point of harvest, mitigating post-harvest losses and retaining economic value within domestic markets.

Furthermore, integrating hundreds of thousands of smallholder farmers into formal corporate supply chains establishes predictable commercial demand that can catalyze broader rural development and incentivize agricultural productivity investments. As African nations navigate demographic shifts characterized by dense urban centers and rising middle-class disposable incomes, the availability of affordable, locally processed nutrition becomes a critical pillar of food security and regional economic resilience.

Opportunities

• Civil Contractors and Builders: Direct contracting opportunities for industrial engineering, construction, and silo infrastructure development tied to large projects like the Delta State integrated feed mill.
• Logistics and Fleet Operators: Commercial expansion contracts for heavy transport, long-haul trucking, and distribution fleet management to support the addition of hundreds of new delivery vehicles.
• Smallholder Aggregators and Cooperatives: Structured commercial partnerships to aggregate and supply over 500,000 tonnes of locally grown maize and soybeans to industrial processing plants.
• Equipment and Technology Vendors: Supply agreements for specialized milling machinery, aquafeed processing technology, automated quality control systems, and large-scale grain storage monitoring solutions.

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