Olam Agri to invest $400 million in grain processing and animal feed production in Africa
International agricultural commodities trader Olam Agri plans to invest approximately $400 million in grain processing and animal feed production across Africa by 2028, including in Nigeria and Ivory Coast. The company aims to capitalize on growing demand for meat, fish and processed grain products, Bloomberg reports.
The investment will fund the construction of poultry and fish feed mills, the expansion of grain processing operations and an increase in wheat milling capacity. This comes on top of approximately $115 million that Olam Agri has already invested in processing facilities in West Africa since 2024.
Olam Agri plans to build new animal feed mills in Nigeria, Cameroon and Ivory Coast. In Ivory Coast, the company will enter the food and feed processing markets for the first time.
The agricultural trader also intends to expand pasta production capacity in Ghana and is exploring opportunities to expand into southern African markets, including Angola.
In Nigeria, the company has already broken ground on a new $70 million animal feed mill in Ogwashi-Uku, Delta State.
According to Olam Agri, once the new feed mills in Nigeria, Cameroon and Ivory Coast reach full capacity, they are expected to purchase more than 500,000 tonnes of corn and soybeans annually from over 130,000 smallholder farmers.
The company also plans to invest in storage facilities for locally sourced agricultural commodities. If domestic corn and soybean production is insufficient, Olam Agri intends to cover the shortfall through its global trading network. The same network will be used to supply wheat to African markets that remain dependent on imports.
Saurabh Mehra, Head of Food and Feed Processing at Olam Agri, said the investments reflect changing dietary patterns across Africa.
“Populations are growing, incomes are rising and diets are changing. Demand for food, feed and protein will keep climbing. Processing more of it locally is how that demand can be met more affordably,” Mehra said.
According to forecasts by the Organisation for Economic Co-operation and Development (OECD) and the UN Food and Agriculture Organization (FAO), meat consumption in Africa is expected to increase by approximately one-third over the next decade.
At the same time, African countries remain heavily dependent on imports of wheat, rice and processed food products. This leaves them vulnerable to currency fluctuations and supply disruptions, including those caused by escalating attacks affecting grain exports through the Black Sea region.
As a result, African governments are encouraging investment in local processing facilities to reduce import dependence and help contain food inflation.
