Olam Agri to invest $400 mln in grain processing and feed production in Africa

International agricultural company Olam Agri plans to invest around $400 mln by 2028 in expanding grain processing and animal feed production across Africa, particularly in Nigeria, Cameroon and Côte d’Ivoire. The investment program includes building new feed mills, expanding flour milling capacity and developing food production facilities. These investments will come on top of the $115 mln the company has already invested in processing facilities in West Africa since 2024. The main driver behind the expansion is growing demand for meat, fish and processed grain products.

The company plans to build new feed mills in Nigeria, Cameroon and Côte d’Ivoire, where it is entering the food and feed processing market for the first time. In Nigeria, Olam Agri has already begun construction of a $70 mln feed mill in Ogwashi-Uku, Delta State. In addition, the company plans to expand pasta production capacity in Ghana and is considering further business development in Southern Africa, including Angola.

Once the new feed mills reach full capacity, Olam Agri plans to purchase more than 500 thsd tons of corn and soybeans annually from over 130 thsd smallholder farmers across Africa. This is expected to create additional demand for locally grown agricultural commodities and support the development of domestic grain and oilseed markets. The company will also invest in agricultural storage facilities. If local corn and soybean production is insufficient, Olam Agri plans to cover supply shortages through its international trading network, which will also supply imported wheat to African markets.

The expansion of processing capacity is linked to changing food consumption patterns in Africa amid population growth and rising incomes. According to forecasts from the Organisation for Economic Co-operation and Development (OECD) and the Food and Agriculture Organization of the United Nations (FAO), meat consumption across the continent is expected to increase by approximately one-third over the next decade. This will stimulate demand for animal feed, particularly for poultry and aquaculture, as well as flour and other processed grain products.

Meanwhile, many African countries remain heavily dependent on imports of wheat, rice and processed food products, leaving them vulnerable to currency fluctuations, rising logistics costs and disruptions to international trade, including risks in the Black Sea region. According to Saurabh Mehra, head of food and feed processing at Olam Agri, developing local production will help meet growing demand for food and animal feed at more affordable prices. The company’s investments also align with African governments’ efforts to expand domestic processing and reduce dependence on imported finished products.

Tags: Olam, compound feed, grain processing, corn, grain, soybean, Africa