Olam Agri: A Deep Dive Into Agricultural Intervention In Nigeria

Olam Agri, a global leader in agricultural supply chains, is an important player in Nigeria’s agricultural landscape. This in-depth look at Olam Agri’s interventions in the country examines their impact on various aspects of agriculture, including production and processing, market access, and sustainability. ROLAND OGBONNAYA examines the advantages and disadvantages of their activities, assessing their impact on Nigeria’s food security and economic development.

Olam Agri Nigeria, a subsid­iary of global agribusiness Olam International, is a major player in the Nige­rian agricultural landscape. With over three decades of experience in commodity procurement and ex­port, the company has established a vast network that affects the liveli­hoods of countless Nigerians while also contributing to the country’s food security.

Olam Agri Nigeria’s intervention in the country’s agricultural sector is significant, highlighting its size, impact, and potential future con­tributions to the sector. Olam Agri Nigeria has a significant footprint, having been established in 1989. The company has over 18 process­ing facilities strategically placed throughout the country, including key locations such as Lagos, Kadu­na, Illorin, Nasarawa, Sagamu, and Port Harcourt.

This widespread presence en­ables them to access diverse ag­ricultural regions and effectively manage the supply chain, from farm to processing and export. The company’s diverse business units, which include edible oils, rice, an­imal feed and protein, grains and wheat milling, sesame, and cotton, demonstrate a comprehensive ap­proach to agricultural value chain development. The company’s in­vestment of more than $1 billion demonstrates its commitment to long-term growth and impact in Nigeria’s agricultural sector.

The Managing Director of Olam Agri, Anil Nair, told the Saturday INDEPENDENT that the most im­portant aspect of Olam Agri Nige­ria’s contribution is its work with over 100,000 smallholder farmers. This engagement goes beyond pro­curement to include technical sup­port, access to improved inputs, and fair pricing mechanisms.

This critical component directly addresses the challenges faced by Nigeria’s smallholder farmers, who frequently lack access to resourc­es, technology, and market connec­tions. By incorporating these farm­ers into its supply chain, Olam Agri provides a critical safety net while also encouraging sustainable farm­ing practices.

The indirect job creation—tens of thousands of jobs through its net­work of farmers, suppliers, whole­salers, local buying agents, and service providers—demonstrates the impact of its operations on the Nigerian economy.

Olam Agri’s investment in di­versified processing facilities is critical to its success. The compa­ny’s processing infrastructure does more than just add value to raw ag­ricultural products; it also enables the production of finished goods, reducing reliance on imports and increasing domestic supply.

The presence of rice mills, grain mills, soybean processing factories, edible oil refineries, ses­ame processing plants, and cotton ginneries demonstrates a vertical integration strategy for quality con­trol and efficient production. This integration also opens up opportu­nities for additional processing and value addition, which could lead to the development of higher-value products for both domestic and ex­port markets.

The presence of animal feed and aqua feed processing units indicates a comprehensive approach aimed at improving livestock production and food security.

The rice farm and mill in Nasar­awa contribute significantly to Ni­geria’s rice production, reducing reliance on imports and potential­ly increasing food security. The numerous grain milling facilities throughout the country demon­strate a strong commitment to pro­cessing various grains and produc­ing value-added products for local consumption. .Also, the edible oil refinery in Lagos contributes to the supply of essential cooking oils, re­ducing import dependence and po­tentially lowering consumer costs.

The sesame and cotton process­ing facilities help to develop these cash crops, providing farmers with income opportunities and poten­tially increasing export earnings, whereas the animal feed and aqua feed units help to improve livestock productivity and food availability. The link between crop production and animal husbandry exemplifies a well-integrated and efficient agri­cultural system.

Despite its significant contri­butions, Olam Agri faces several challenges within the country. In­frastructure limitations such as poor roads, electricity, and storage facilities impede the efficient trans­portation and processing of agricul­tural products. There is also climate variability, and extreme weather events can hurt crop yields and ag­ricultural production.

Competition from other agricul­tural businesses and informal mar­kets, particularly the importation of similar products, has an impact on Olam Agri’s market share and profitability, while inconsistent regulatory frameworks and policies can create uncertainty and impede investment.

Despite these challenges, op­portunities abound, including the expansion into new value chains. The company is looking for new opportunities in other agricultur­aagriculturalilandscape. ify Olam Agri’s portfolio and contribute to national food security. It is also implementing new technologies, such as precision agriculture and advanced processing techniques, to increase efficiency and productivity.

Strengthening farmer partner­ships and investing in farmer train­ing and capacity building can lead to better agricultural practices and yields. Olam Agri is collaborating with the government because work­ing closely with the government on agricultural pollandscape.nitia­tives can create a more conducive environment for investment and growth.

The agricultural firm has also done well in the area of corporate social responsibility. Its CSR ini­tiatives are deeply rooted in its commitment to improving people’s lives in the communities in which it operates. Guided by the principle of shared prosperity, the company has implemented several effective measures to improve livelihoods and address critical community needs.

Olam Agri Nigeria’s CSR initia­tives are most visible in its response to emergencies and commitment to improving healthcare access. The company’s commitment to commu­nity well-being is demonstrated by its actions during the devastating floods of 2019 and 2022.

Over 201 flood victims received medical treatment at established camps in 2019, and this figure is ex­pected to rise significantly to 730 by 2022. These interventions included providing qualified medical doctors and nurses, donating essential med­ical equipment to local centres, and directly addressing victims’ health needs by treating ailments such as typhoid and malaria, as well as diar­rhoea, hypertension, and stress-re­lated illnesses.

Beyond emergency response, Olam Agri Nigeria takes a proac­tive approach to healthcare. The company donated Personal Protec­tive Equipment (PPE) to the Ruku­bi Primary Health Care Centre in Nasarawa State and handed out handwashing supplies to schools in its host communities, emphasising preventative healthcare measures.

Following the 2022 floods, the company assisted 5,000 victims in ten Nasarawa State communities, providing essential supplies to al­leviate immediate suffering.

Adefeko says Olam Agri Nige­ria’s CSR initiatives include ad­dressing food security and econom­ic stability. In 2022, a collaboration with the Lagos Food Bank resulted in the distribution of 150 food boxes to vulnerable women and families in remote areas, directly benefiting 150 households and an estimated 750 indirect beneficiaries.

Furthermore, during the COVID-19 lockdown, the compa­ny distributed rice palliatives and packaged food to women in host communities, reducing the pan­demic’s impact on vulnerable pop­ulations.

Recognising the impact of the COVID-19 pandemic on the rice supply chain and farmer incomes, Olam Agri Nigeria awarded ap­proximately N10 million in grants to selected farmers in Benue State in 2020. This initiative helped to sta­bilise the rice supply and support the livelihoods of farmers facing economic difficulties.

Olam Agri Nigeria’s CSR pro­gram exemplifies a multifaceted ap­proach to improving the lives of the communities in which it operates. Through strategic interventions in healthcare, emergency response, and food security, the company ac­tively promotes shared prosperity and long-term development.

These initiatives demonstrate Olam Agri Nigeria’s commitment to not only operating in its environ­ment but actively contributing to its improvement. The company’s pro­active and responsive approach sets a high standard for corporate social responsibility in Nigeria.

Olam Agri’s involvement in the Nigerian agricultural sector is extensive and multifaceted. Its significant investments, extensive network, and commitment to en­gaging smallholder farmers have resulted in positive economic and food security outcomes.

The company’s emphasis on val­ue chain integration, processing, and export demonstrates a long-term commitment to agricultural development. While challenges remain, Olam Agri Nigeria has significant opportunities to expand its contributions to the Nigerian ag­ricultural sector.

Continued investment in infra­structure, technology, farmer sup­port, and government collaboration will be critical for maximising the positive impact and contributing to a more food-secure and prosperous Nigeria.

Olam Agri Nigeria’s future success is dependent on its abil­ity to navigate challenges while capitalising on existing opportu­nities to build a sustainable and resilient agricultural ecosystem in Nigeria.