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Rice production: Firm plans N18bn investment in Nigeria

By BusinessNews Staff on July 27, 2014

The newly commissioned integrated rice mill of Olam Nigeria Limited would bring the company’s total investment in the integrated farm and milling facility to over N18bn.

The Managing Director of Olam, Africa and Middle East, Mr. Venkataramani Srivathsan, who stated this during the event held at the company’s 6,000-hectare greenfield farm in Nasarawa State, said the rice mill would produce additional 36,000 metric tonnes for the nation’s domestic market.

Srivathsan stated that the establishment of the rice mill was part of the company’s contribution to the federal government’s quest for the actual inaction of self-sufficiency in rice production.

He said, “This mill, commissioned by President Goodluck Jonathan, characterises three important aspects; it demonstrates how large-scale commercial farms can work hand in hand with smallholders to help advance Nigeria’s agricultural transformation agenda, generating rural prosperity brought local processing.

“It also underlines the country’s ability to grow quality, nutritious rice that can enhance domestic food security by providing an alternative to imports and as Olam’s kicks off its global 25th anniversary celebrations this month, it represents a marker of our ongoing commitment to Nigeria, the country where Olam’s was founded.”

According to him, the target of Olam is to increase its acreage in Nasarawa up to 10,000 hectares, a move he added

While inaugurating the rice mill, President Goodluck Jonathan linked the huge investment in the rice producing sector to the enabling policy put in place by his administration, stressing that the policy had led to exponential increment in the number of rice mills from one to 18 over the last three years.

Jonathan noted, “The private se for is responding strongly to our rice policy, as the number of rice mills has grown from just one three years ago to 18 today. Our goal of making Nigeria a net exporter of rice will be achieved faster by encouraging large commercial farms that will complement our small-scale farmers.

“Large me banished rice farms like Olam 6,000-hectare farm will not only boost food production, but also provide significant opportunities for jobs in rural areas. These mills are producing high quality local rice that meets international standards and competes well with imported rice.”

The Minister of Agriculture, Dr. Akinwumi Adesina, also noted that the thrust of the policy of the government was to make the country a net exporter of rice, rather than being an importer.

According to him, Olam’s investment in commercialised rice farm and integrated mill would help boost domestic production and milling of international quality grade rice in the country.

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