Olam Agri Begins Construction of $70 Million Integrated Feed Mill in Delta State to Reduce Feed Costs and Boost Local Protein Production

Olam Agri has broken ground on a $70 million integrated animal feed manufacturing facility in Ogwashi-Uku, Aniocha South Local Government Area of Delta State, marking a major expansion of its animal feed operations in Nigeria.

The facility will feature a 1,500-tonne-per-day poultry feed mill, a 300-tonne-per-day aqua feed mill, and 125,000 tonnes of silo bag storage capacity. It is expected to be completed and operational in 2027. The company acquired 99.99 hectares of land for the project.

The mill is strategically located to serve farmers across the South-South and South-East regions, bringing production closer to poultry farmers, aquaculture operators, and livestock producers.

It is expected to reduce the region’s dependence on feed supplies transported from the South-West, improving supply chain efficiency and product accessibility.

Delta State Governor Sheriff Oborevwori, who performed the groundbreaking ceremony on Wednesday, said the investment was a direct outcome of the Delta State Economic and Investment Summit held in August 2026.

He noted that animal feed accounts for between 60 and 80 per cent of livestock and poultry production costs, making its affordability critical to farmers’ survival.

“The absence of a major animal feed manufacturing facility in the region had remained a major constraint to livestock and poultry production, forcing farmers to depend on supplies from distant locations, particularly the South-West and Middle Belt,” Oborevwori said. He expressed confidence that the new facility would reduce transportation costs and ultimately make chicken, eggs, and fish more affordable.

The governor disclosed that the state government provided approximately 99.99 acres of land for the investment without charging the company, and also paid the necessary compensation to facilitate the project take-off. He warned against illegal payments to investors.

“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 said.

Amit Agarwal, Senior Vice President and Business Head of Integrated Feeds and Proteins at Olam Agri Nigeria, said the investment reflects confidence in Nigeria’s agricultural potential.

“By establishing production capacity closer to customers in the South-South and South-East, we aim to improve access to quality animal feed, support the productivity of livestock farmers and contribute to the development of a more efficient and competitive livestock sector,” Agarwal said.

Sharad Gupta, President and Global Head of Integrated Feed and Protein at Olam Agri, said the facility aligns with the company’s renewed investment drive.

“It will significantly expand our production with dedicated capacity for poultry and aquaculture feed, alongside substantial storage infrastructure,” he said.

Olam Agri currently operates two major facilities in Kaduna and Kwara, with a combined annual capacity of 660,000 tonnes of poultry feed and 150,000 tonnes of aquafeed.

The Ogwashi-Uku facility will add 450,000 tonnes of poultry feed and nearly 100,000 tonnes of aquafeed to the company’s production capacity.

The company also plans to establish an Aquaculture Centre of Excellence in Delta State to develop the Asaba-Warri axis into a major catfish production hub.

The Obi of Ogwashi-Uku, Ifechukwudi Okonjo II, welcomed the investment and said the community looked forward to a mutually beneficial partnership.

“We are particularly interested in ensuring that our people become active participants in the opportunities that this investment will create,” he said.