Olam International Ltd. invested $150 million in animal feed and poultry farms in Nigeria to boost its agricultural and food businesses in Africa’s largest food market.
These include 360.000 tons of bird and fish meals, each located in the Kaduna and northern and western states of Kwara, as well as an incubator that produces 1.6 million chicken weekly, said the trader food industry worldwide.
The production flows are estimated to support the production of 8 billion eggs and 100 million pounds of poultry meat per year, Olam said during a conference held in Singapore.
Nigerian President Muhammad Buhari, labeled the project as “important” for national growth, and said that at one point his government wants agriculture to end the country’s reliance on oil, which provides two-thirds of the state’s revenues.
A drop in revenue caused by falling production and oil prices has led Africa’s most populous country of more than 180 million people to suffer the worst economic downturn in 25 years and undermined Buhari’s ability to keep its promises such as rebuilding infrastructure, revitalizing the energy industry and strengthening the national currency.
Several Nigerian companies have increased their investment in agriculture, while the Dangote group, controlled by Africa’s richest man, Aliko Dangote, plans to invest $ 3.8 billion in sugar and 800 million in dairy products over the next three years.
Olam, who began the operation in Nigeria in 1989 with purchases of cashew nuts, cocoa and nuts, is now one of the world’s largest food retailers with presence in 70 countries. Last year, 16 percent of its $ 20.6 billion revenue came from Africa, led by Nigeria.