Extensive work is ongoing in Lafiagi, Kwara State, with over 20,000 hectares, and we have another 50,000 hectares of farmland in Bassa, Kogi State.
In a deal worth $275m, the BUA Group announced the sale of its flour mill to Olam International.
According to Executive Chairman, BUA Group, AbdulsamadRabiu, “This agreement signing marks a major milestone in our medium-term strategy. Over the years, we have run one of the largest and most efficient flour milling businesses in Nigeria and are confident in the value it will add to the buyer’s operations.”
“Our group’s strategic focus will now be to diversify to business areas with greater potential for export where the sourcing and utilisation of foreign exchange is less and most of the materials needed for production can be sourced locally, whilst also positioning our current line of foods and infrastructure business for market leadership.”
The group is currently working on integration of its sugar plantations in Kwara and Kogi states.
“Extensive work is ongoing in Lafiagi, Kwara State, with over 20,000 hectares, and we have another 50,000 hectares of farmland in Bassa, Kogi State. These two operations form the fulcrum of our backward integration programme for sugar and this will further reduce the country’s dependence on imported raw sugar, while supporting the value chain in sugar production within Nigeria.”
The Managing Director/Chief Executive Officer, Grains, Olam, K. C. Suresh, believes the deal can boost Olam’s flour and wheat milling operations in Nigeria so as to meet consumer needs as well as strengthen its position as a market leader in the food industry.