By Alex C
Olam Nigeria Limited, an agribusiness firm, has set up a multi-million dollar integrated rice mill in Nasarawa State, with the capacity to produce 36,000 metric tonnes of milled rice annually.
Venkataramani Srivathsan, Olam’s managing director for Africa and Middle East, said 3,000 hectares of land is already under cultivation on the 6,000 hectares of mechanised paddy farm where the rice mill is located.
Srivathsan noted that Olam plans to increase acreage in Nasarawa to 10,000 hectares. “This will bring Olam’s total investment in the integrated farm and milling facility to over N18 billion ($111 million),” he said.
Olam Nigeria Country Head, Mukul Mathur expressed the company’s pride to have been part of Nigeria’s development of its export chains, noting that the Singapore-headquartered firm was the first to export sesame from Nigeria.
“…we hope that the success of our rice model will kick-start domestic production in a similar manner, unlocking the opportunity for businesses and smallholders alike, and reducing Nigeria’s need to import 1.9 million tonnes of rice each year,” said Mathur.
A statement by Olam described the company as being the largest non-oil exporter in the country for the last 10 years, a feat that has won it several awards both locally and internationally.
Srivathsan also noted that the mill demonstrates how large-scale commercial farms can work hand in hand with smallholders to help advance Nigeria’s Agricultural Transformation Agenda, generating rural prosperity through local processing.
The company which started in Nigeria 25 years ago employs more than 2,500 direct workers and over 6,000 workers on contract.
The nation’s dream of becoming a net exporter of rice, stakeholders stated, will be fast-tracked by encouraging large commercial farms as a way of complementing small-scale farmers.