Olam diversifies into animal feed business
According to the Head Corporate and Government Relations at Olam Nigeria Limited, Ade Adefeko, the expansion involves investments in setting up poultry and fish feed mills as well as hatcheries to produce day-old-chicks.
“These investments are consistent with Olam’s strategy to selectively invest in prioritised platforms, which includes the grains platform,” he disclosed.
He further highlighted that “the global animal feed industry is a large and growing part of the agri-commodity complex with attractive returns and a strong growth outlook, particularly in emerging markets. Following a detailed study of the sector, the company has chosen Nigeria as its preferred entry market as it ranks favourably on the country-selection criteria.
Such criteria include meat consumption per capita, degree of fragmentation, extent of vertical integration and of commercial feed penetration, scalability potential as well as supply and demand factors impacting the feed raw material trade.”
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