(Ecofin Agency) - Singaporean trader Olam has entered Nigeria’s animal feed industry. The group just announced it has injected about $150 million to develop a hatchery, poultry breeding farms, and two animal feed mills. It should be Nigeria’s biggest animal feed project.

The infrastructures will be established in Kaduna and Kwara states. Kaduna will host the hatchery, poultry breeding farms and a feed mill while a poultry and fish feed mill will be established in Kwara state.

The firm said the investment will help it reinforce its supply network to local producers and develop an industry such as poultry.

The investment perfectly falls in line with Olam’s other projects in Nigeria as it plans to re-use the wheat bran produced at its BUA Nigeria subsidiary (owned by Amber Foods), Nigeria’s number two cereal producer, in the new animal feed project.

Olam’s goal is to “help reduce the country’s reliance on imports”, said the group’s CEO for Africa, Venkataramani Srivathsan. “This new venture into animal feed is a win-win for Olam and Nigeria. Domestically produced meat is being hampered by a lack of good quality feed, support for farmers and availability of young stock, but consumption is set to increase,” he added.

Aaron Akinocho