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Tuesday, 04 August 2009 15:03 |
| Olam is a leading global supply chain manager of agricultural products and food ingredients. They offer an end-to-end supply chain solution to our customers. Olam's distinctive position is based both on the strength of our origination capability and our strong position in the destination markets worldwide. They manage each activity in the supply chain from origination to processing, logistics, marketing and distribution. Their complete integration allows us to add value and manage the various risks along the entire supply chain from the farm gate in the origins or producing countries to the factory gate of our customers in the destination markets. | | Integrated rice farming and rice processing project in Kwara State, Nigeria | Grant Amount USD 750,000.00
Repayable Grant Amount USD 750,000.00
Matching Funds USD 600,000.00
Amount of Grant awarded by AECF US$ 1,500,000.00
Duration July 2009 to September 2012
Sector Agribusiness
Project Summary
Olam are a major company in the food commodities market both globally and in Nigeria. This project involves 12,000 smallholder farmers growing rice with improved inputs. Olam, working through and with local cooperatives, will ensure improved input supplies, better seeds and timely information to improve yields and returns to the farmer. Olam will provide a guaranteed market for the farmers. The development of food crop value chain in this way is in line with AECF's aims and objectives.
The project is suitable for AECF funding because:- - The development of smallholder rice in Nigeria is an important issue
- Olam is a major company with the capacity to implement the project
- The business model suggests that the programme will be profitable for the company and have a positive impact on the incomes of 12,000 farmers; and,
- The project could have a systemic impact on the rice market system plus encourage other companies to undertake value chain development approaches.
| All major milestones for the project period to date have been met with the exception of the start of construction of a mill. 300 hectares of demonstration plot are being used to produce high quality seed for the farmers.
Delays to the factory are due to problems with the funding scheme that the grantee is planning to access for the construction. Construction is expected to commence in the first quarter of 2011. The project, if successful, will have a positive impact on the incomes of 12,000 farmers. More than 3,000 farmers have been recruited to farm over 5000 hectares of land so far with a potential net benefit of $2000 per farm. | |
