Key facts
- Olam Agri has launched a new cattle feed range called "True Value" in Nigeria.
- The company has invested $150 million in Nigeria's animal feed and poultry value chain.
- Nigeria has an estimated 55 million cattle, 139 million goats, and 65 million sheep.
- The Nigerian government supports the expansion as part of its Livestock Economic Advancement Programme (LEAP).
- Olam Agri's existing operations produce over 800,000 tonnes of poultry feed annually.
Olam Agri has entered Nigeria's ruminant nutrition market with the launch of its "True Value" cattle feed, expanding its existing animal feed business. This strategic move builds upon the company's substantial $150 million investment in Nigeria's animal feed and poultry value chain.
The company aims to tap into Nigeria's vast livestock population, estimated by the Food and Agriculture Organization (FAO) to include approximately 55 million cattle, 139 million goats, and 65 million sheep. Olam Agri's expansion into cattle feed is supported by the Nigerian government's Livestock Economic Advancement Programme (LEAP), which seeks to enhance livestock productivity and develop a commercially viable beef and dairy industry.
According to Mukhtar Idi Maiha, Nigeria's Minister of Livestock Development, affordable and nutritionally balanced feed is critical for improving livestock productivity. He noted that proper nutrition can enhance feed conversion, accelerate weight gain, and shorten finishing periods, leading to healthier animals for market. The government is also developing processing infrastructure, including new abattoirs, to support the shift towards modern livestock processing.
Sharad Gupta, Olam Agri's President and Global Head of Animal Feeds and Proteins Business, highlighted that the cattle segment represents a new frontier for investment, particularly in Northern Nigeria. The company plans to leverage its established feed business and distribution network, combining existing dealers with players already connected to livestock farmers. Olam Agri already sources over 90% of raw materials locally for its poultry feed business and has access to wheat bran, an ingredient for ruminant feed.
Olam Agri's existing operations in Nigeria include significant investments in animal feed facilities and poultry breeding farms, with an annual production capacity of over 800,000 tonnes of poultry feed and over 150,000 tonnes from its aqua-feed plant.