Olam International Limited has announced that it is planning to expand animal feed and related businesses in Nigeria. The investment in Nigeria is in accordance with the strategy of Olam to invest in prime platforms, which includes Grains platform. The expansion strategy involves making investments in constructing poultry & fish feed mills and hatcheries to feed day-old-chicks in Nigeria.
Olam international limited is a leading company in agri-business, established in 1989, operating 65 counties worldwide, supplying food and raw materials for industries across 16 platforms. It grew from one product, one country to multiple products, multi-national company with over 23,000 employees.
The officials of Olam said that the global animal feed industry is a large and growing part of agri-commodity complex with great returns and strong growth opportunities in emerging markets. The company has chosen Nigeria as a preferred market after a detailed analysis of sector as it ranks high on the country selection criteria, which include degree of fragmentation, meat consumption per capita, scalability potential, extent of vertical integration & commercial feed penetration, and supply and demand factors impacting the feed raw material trade.
The officials of Olam added that the growing urbanization, changing eating habits of consumers and preference to protein-rich diets is driving factor for the rising demand for poultry and fish feed mills. The commercial animal feed market is estimated to grow at a CAGR of 10% over next five years.
Olam was founded in Nigeria in 1989. The strengths of Olam in origination, which include cost efficiency in extracting raw material, sharing of port infrastructure, trading, sourcing arbitrage, ocean freight and risk management, gives stronghold for investment in animal feed industry in Nigeria. With the great execution capabilities and available technical expertise, it has been successful in Nigeria in executing cost competitive projects and operating at higher efficiency level. Its projects, brownfield and greenfield have been successfully operated in Nigeria. Along with these two projects, Olam is successfully running and growing wheat milling business.
Olam also aims for enriching Nigerian economy by implementing several strategies in their new project. It will use its local network to purchase a majority of raw material required to produce poultry and fish food. This strategy will reduce the import dependence, benefit local farmers and create jobs for youth, which consequently improves economy of Nigeria.
The investments will also develop Nigerian poultry and aquaculture sectors. The productivity and returns in the market will be higher by providing technical support to local poultry and fish farming communities.
Many studies have been done to analyze current market status and development trend of animal food industry. Recently, Prof Research Reports has added a report titled â€œMarket Research Report on Global and Chinese Animal Feed Industry, 2009-2019.â€ The report offers an extensive study on economic impact, industry chain structure, detailed segmentation of market, market-entry strategies and feasibility analysis for new projects.