News in Brief:
– Olam Agri, a major buyer of grains in Nigeria, temporarily suspends maize and sorghum purchases due to food security concerns and market disruptions.
– The company claims it is working with stakeholders to find solutions while ensuring uninterrupted food distribution and support for local production.
Global agribusiness firm Olam Agri has announced a temporary suspension of maize and sorghum procurement in Nigeria and has cited concerns about rising food insecurity and market disruptions.
The company, a major buyer and processor of food staples, acknowledges the challenges of high prices and supply chain issues affecting the availability of essential grains. Although, it adds that it is collaborating with industry stakeholders and government authorities to identify solutions.
Furthermore, Olam Agri emphasises that this temporary suspension allows them to closely monitor market trends and adjust their approach accordingly. They have assured of their committment to supporting local food production and ensuring uninterrupted distribution of food supplies during this period.
Meantime, the company’s longstanding practice of sourcing grains from Nigerian farmers has contributed significantly to local livelihoods and national food security. It runs an offtaker program with several farmers which assure them of financing for production cycles. This temporary suspension affects this program and could be a problem for farmers who rely on the company’s finance to poduce crops.
However, Olam Agri reiterated its commitment to working on a solution.
“Our longstanding practice of sourcing essential grains from local Nigerian farmers has supported thousands of livelihoods and met the countryâs demand for critical nutrients in daily diets,” it said.
“We are steadfast in our commitment to driving sustainable socio-economic development and food security in Nigeria. We are committed and will continue to work closely with authorities to contribute to stabilising the current market challenges,” it added.
Olam Agri, founded in 2021, describes itself as a purpose-driven business which contributes positively to improving the prosperity and well-being of people across our supply chains, protecting and regenerating our natural resources, and tackling climate change.
