A $70m animal feed factory being built by Olam Agri in Ogwashi-Uku, Delta State, is expected to create a major market for local farmers and boost poultry and fish production in the South-South and South-East.
The facility, which is expected to be completed within one year, will produce 450,000 tonnes of poultry feed and nearly 100,000 tonnes of fish feed annually.
At the groundbreaking ceremony on Thursday, the President and Global Head of Integrated Feed and Protein at Olam Agri, Sharad Gupta, said the company would support farmers growing maize, soybeans and other crops needed for the production of animal feed.
Gupta said the company chose Delta because of the agricultural potential of the South-South and South-East, adding that its programmes would help increase local production of raw materials.
He said boosting the production of chicken, eggs and fish would improve food security and reduce Nigeria’s dependence on imported frozen fish.
Delta State Governor, Sheriff Oborevwori, who performed the groundbreaking ceremony, said the project would address the high cost and inadequate supply of animal feed affecting farmers in the region.
He said feed accounted for between 60 and 80 per cent of livestock and poultry production costs, noting that local production would reduce transportation expenses and improve access to affordable feed.
“The absence of a major animal feed manufacturing facility in this region has remained a major constraint to livestock and poultry production,” the governor said.
Oborevwori said the investment would strengthen the agricultural value chain, create jobs and improve food security.
He disclosed that the state government had provided about 99.99 acres of land free of charge for the project and paid compensation to facilitate its acquisition.
The governor, however, warned against attempts to extort investors, saying that no one should demand illegal payments from the company.
“I have repeatedly told the investors not to give money to anybody in the name of facilitating their project. We do not encourage such practices, and nobody should demand illegal payments from investors,” he warned.
Also speaking, the Senior Vice President and Business Head of Integrated Feed and Protein, Nigeria, Amit Agarwal, said the factory would significantly increase the company’s production capacity.
He said Olam Agri currently operated facilities in Kaduna and Kwara with a combined annual capacity of 660,000 tonnes of poultry feed and 150,000 tonnes of aquafeed.
Agarwal also disclosed that the company planned to establish an Aquaculture Centre of Excellence in Delta to develop the Asaba-Warri axis into a major catfish production hub.
He said the company would work with the state government to support farmers producing maize, soybeans and other raw materials.
The Obi of Ogwashi-Uku Kingdom, Dr Ifeanyichukwu Okonjo, said about 15 multinational and indigenous companies had expressed interest in investing in the kingdom.
He assured investors of the traditional institution’s support, adding that the kingdom was committed to attracting businesses that would create jobs and promote economic development.
The Chairman of Aniocha South Local Government Area, Jude Chukwunwike, described the project as a major boost to the local economy.
