• Tuesday, May 28, 2024
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BusinessDay

Like Premier Feed Mills, Olam Agri quits offtaking maize, sorghum in Nigeria

We will continue to assist farmers, communities – Olam

Olam Agri in Nigeria says it has suspended off taking maize and sorghum in Nigeria. The suspension follows the food security challenges being experienced by the country, according to the company.

The company, one of the major makers of differentiated food, feed, and fibre products in Nigeria said it recognises the nation’s significant challenges of food insecurity, and being a major buyer and processor of food staples, it shares concerns around the high prices and supply chain disruptions affecting the availability. of essential grains.

“In response to these challenges, we are actively collaborating with industry peers and government authorities to identify and implement strategic solutions to alleviate any additional stress on food availability. As part of our proactive approach, Olam Agri in Nigeria has decided to temporarily suspend the procurement of essential grains such as maize and sorghum immediately which will allow us to closely monitor market trends and adjust to market realities. This decision follows wide consultations with relevant authorities and is part of our commitment to manage the ongoing crisis,” the company said.

“During this period, our commitment to contribute to local food production capacities remains unwavering as we will ensure uninterrupted disruptions to food supplies to the public. Our longstanding practice of sourcing essential grains from local Nigerian farmers has supported thousands of livelihoods and met the country’s demand for critical nutrients in daily diets.”

The firm emphasised that it is commitment to driving sustainable socio-economic development and food security in Nigeria. It vowed to continue working closely with authorities to contribute to stabilising the current market challenges

Olam Agri Nigeria’s announcement comes the same time Premier Feed Mills made a similar announcement.

Premier Feed Mills pointed out that over the years, it has sourced its key raw material, maize and sorghum, from Nigeria’s local maize farmers, thus employing over 150,000 Nigerian farmers, while meeting the demand for animal feed rations and animal protein in the country.

However, the feed maker said it will temporarily suspend its offtaking of maize and sorghum because of the food security crisis in the country which has led keeping the price of the commodities artificially high.

It said in the interim, it will continue its commitment to local content development, finding innovative ways of serving is customers’ needs with the products they love.

Premier Feed Mills quits buying maize, sorghum as prices surge

Premier Feed Mills Ltd (PFM), subsidiary of Flour Mills of Nigeria Plc and producers of TOPFEEDS says it is suspending purchase of maize and sorghum because of the difficulty in the Nigerian operating environment.

The company which is a leading Animal Feed Brand in Nigeria and the largest producer of Aqua Feed in Sub-Saharan Africa said in a statement at the weekend that it acknowledges the current state of food insecurity in Nigeria and its impact on citizens.

“As significant off-takers and processors of maize and sorghum, we can attest to maize and sorghum prices being artificially high at present, with ripple effects on prices of finished products like poultry and other livestock. In the course of our active private-public sector collaborations, we have been in constant consultation with the government to establish viable ways of managing the ongoing food crisis especially as it pertains to maize and sorghum, the company said in a statement seen By BusinessDay.

“In view of this, PFM will temporarily suspend its offtaking of maize and sorghum as we monitor the market environment. In the interim, we will continue our commitment to local content development, finding innovative ways of serving our customers’ needs with the products they love.

“Over the years, we have also sourced our key raw material, maize and sorghum, from Nigeria’s local maize farmers, thus employing over 150,000 Nigerian farmers, while meeting the demand for animal feed rations and animal protein in the country.”

Premier Feed Mills vowed to continue to create viable growth opportunities for the country while providing employment prospects for Nigerians.