Olam Agri to invest US$400M in Africa’s grain, feed processing
The investment will focus on Nigeria, Cameroon, Côte d’Ivoire and Ghana, while the company also explores opportunities in southern Africa, including Angola.
AFRICA – Olam Agri plans to invest approximately US$400 million in grain processing and animal feed production across the continent by 2028, as the company seeks to capitalize on rising demand for processed foods and animal protein driven by population growth, urbanization and changing consumption patterns.
The investment, announced by Saurabh Mehra, Head of Food and Feed Processing at Olam Agri, in an interview with Bloomberg, will build on approximately US$115 million already invested in West African processing operations since 2024.
The expansion will focus on strengthening local food manufacturing, increasing processing capacity and improving the supply of affordable food and animal feed across key African markets.
The company’s expansion strategy includes establishing new animal feed mills in Nigeria, Cameroon and Côte d’Ivoire, alongside investments in wheat milling and pasta production.
These developments are intended to serve growing demand for poultry and fish feed, as well as convenience foods such as bread, noodles and pasta.
In Nigeria, the investment will support the establishment of a third animal feed manufacturing plant to serve the poultry and aquaculture industries.
Olam Agri also plans to expand semolina production and add 850 distribution trucks to strengthen product delivery across the country.
A major development is the US$70 million integrated feed mill in Ogwashi-Uku, Delta State, where construction has commenced.
The facility will include a poultry feed mill with a capacity of 1,500 tonnes per day, an aquafeed plant producing 300 tonnes daily and storage infrastructure with a capacity of 125,000 tonnes. Operations are expected to begin in 2027.
In Cameroon, Olam Agri plans to establish a 300,000-tonne poultry feed manufacturing facility, with operations targeted for early 2028.
Ghana will benefit from increased pasta production capacity, while Côte d’Ivoire will serve as a new market for the company’s food and animal feed processing operations.
The group is also exploring expansion opportunities in southern Africa, including Angola.
Beyond expanding industrial capacity, the investment is expected to strengthen agricultural supply chains by creating additional markets for locally produced raw materials.
Once the planned facilities in Nigeria, Cameroon and Côte d’Ivoire reach full capacity, Olam Agri estimates that they could collectively purchase more than 500,000 tonnes of maize and soybeans annually from over 130,000 smallholder farmers. International sourcing will supplement domestic supplies where necessary.
The investment comes as African countries seek to reduce dependence on imported food products and strengthen domestic food manufacturing.
With urbanization and changing dietary preferences driving demand for wheat-based products, poultry and fish, increased local processing capacity could improve supply availability, support agricultural producers and retain more value within African economies.
By expanding its grain and feed processing footprint, Olam Agri aims to strengthen its position in Africa’s growing food and animal protein markets while supporting the development of more integrated regional agricultural value chains.
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