Olam Agri has commenced construction of a $70 million integrated animal feed manufacturing facility in Ogwashi-Uku, Delta State, as the agribusiness company moves to expand production capacity and reduce supply costs for poultry and fish farmers in southern Nigeria.
The facility, expected to become operational in 2027, will have the capacity to produce 1,500 metric tonnes of poultry feed and 300 metric tonnes of aquaculture feed daily, alongside storage infrastructure capable of accommodating 125,000 tonnes of agricultural commodities.
The investment covers a 99.99-hectare site in Aniocha South Local Government Area, where a groundbreaking ceremony was held on Wednesday, November 4, 2026.
At full installed capacity, the two production lines could manufacture approximately 1,800 tonnes of feed daily, although actual output will depend on operating schedules, raw material availability and market demand.
The project is intended to address a longstanding distribution challenge facing poultry and aquaculture businesses in the South-South and South-East, where farmers frequently obtain animal feed from production centres in other parts of the country.
Transporting feed over long distances increases distribution expenses and exposes farmers to fluctuations in fuel prices, logistics costs and supply availability.
By establishing manufacturing operations closer to these markets, Olam Agri expects to improve distribution efficiency and provide farmers with more reliable access to essential production inputs.
The investment will also expand the company’s existing agricultural operations in Nigeria, which include animal feed manufacturing, poultry breeding, hatchery operations and soybean processing.
Speaking at the groundbreaking ceremony, Olam Agri’s Senior Vice President and Business Head of Integrated Feeds and Proteins in Nigeria, Amit Agarwal, said the project reflects the company’s confidence in the country’s agricultural potential.
Delta State Governor Sheriff Oborevwori described the investment as an opportunity to strengthen agricultural production, attract additional businesses and generate employment in the state.
Beyond the immediate manufacturing investment, the facility could create additional demand for maize, soybeans and other agricultural commodities used in feed production.
This presents opportunities for local farmers and commodity suppliers, particularly if the company increases domestic sourcing of raw materials.
However, the extent of these benefits will depend on procurement arrangements, agricultural productivity and the competitiveness of locally produced inputs.
The project could also influence the cost of producing chicken, eggs and fish, given the substantial contribution of animal feed to livestock and aquaculture operating expenses.
Nevertheless, increased production capacity does not automatically guarantee lower consumer prices. Feed costs will continue to depend on grain prices, energy expenses, financing conditions and distribution margins.
For Nigeria’s agricultural sector, the investment represents an expansion of domestic processing capacity at a time when high production costs remain a major constraint on food supply.
The project’s economic impact will ultimately be determined by whether Olam Agri completes the facility on schedule, operates it efficiently and delivers measurable improvements in feed availability and affordability.
If successfully commissioned in 2027, the Delta facility could strengthen competition in the animal feed market while supporting the expansion of poultry and aquaculture production across southern Nigeria.