Flour Mills: Expanding Nigeria’s agricultural frontier

In support of Federal Government’s backward integration programme, Flour Mills of Nigeria Plc is increasing its contribution to the development of the nation’s agricultural sector.

This is happening as Nigeria, Africa’s top oil producer, is making determined efforts to diversify away from oil and reverse years of neglect of its farming industry, pushing agriculture as its new frontier for growth.

The company is investing in large-scale commercial farming of different crops across the country in furtherance of its strategic focus and vertical integration of agro-allied business.

Its Kaboji Farm is one of the largest commercial farms in Nigeria with farmland comprising 10,000 hectares near Kontagora, Niger State. This season witnessed cultivation of 2,000 hectares of maize, 1,000 hectares of soybean, 1,000 hectares of cassava and a trial of 50 hectares of sorghum, according to the company.

During the financial year ended March 31, 2013, the company made two strategic acquisitions – Thai Farm International Company Ltd, a leading cassava flour processing company, and ROM Oil Mills, an integrated edible oil processing company.

Thai Farm, which began operations in 2010, grows and processes cassava in Ososa, Ogun State, and is one of the two leading suppliers of high quality cassava flour (HQCF) to flour millers in Nigeria under the cassava flour inclusion initiative of the Federal Government.

The company said it acquired the farm to address the need to increase its capacity in order to meet the growing demand for HQCF by flour millers in the country.

Flour Mills’ future outlook is bright with a strategic focus in growing the company’s food and agro-allied business.

The company says joint venture possibilities, acquisitions, mergers and take-over are being explored with reputable partners to grow and consolidate on its agro-allied business, break new grounds and align fully with Federal Government‘s agricultural and industrial transformation agenda.

Paul Gbededo, group managing director, Flour Mills, on the sideline of the company’s 53rd annual general meeting Wednesday, said: “We are growing our food business. We are also expanding into the agro-allied space and we think we will be able to add more value to the country. We are still restructuring. We are consolidating. We are looking for areas to create and add value, not only to our stakeholders, but also the Nigerian populace.”

“We are making substantial effort in the direction of food security in the country. We are growing soya beans, cassava, sorghum and we are expanding the list. If you go to Sunti, Niger State, we have acquired over 17,000 hectares of land, growing basically sugarcane. And this is part of our backward integration programme in support of Federal Government’s agricultural and industrial transformation agenda,” according to Olalekan Saliu, company secretary and director.

By: FEMI ASU