NIGERIA – Olam Agri, a leading provider of differentiated food, feed and fibre products in Nigeria has declared a temporary halt in the purchase of maize and sorghum due to escalating prices nationwide.
In a statement, the company said that it recognizes the nation’s significant challenges of food insecurity, and as a major buyer and processor of food staples, it shares the concerns around the high prices and supply chain disruptions affecting the availability of essential grains.
“As part of our proactive approach, Olam Agri in Nigeria has decided to temporarily suspend the procurement of essential grains such as maize and sorghum immediately which will allow us to closely monitor market trends and adjust to market realities.
“This decision follows wide consultations with relevant authorities and is part of our commitments to manage the ongoing crisis,” read the statement.
In response to these challenges, Olam Agri noted that they are actively collaborating with industry peers and government authorities to identify and implement strategic solutions to alleviate any additional stress on food availability.
In addition, the company assured of its commitment to contribute to local food production capacities remains unwavering as we will ensure uninterrupted distribution of food supplies to the public during this period.
“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 stabilizing the current market challenges.”
The decision come at a time when Nigeria is undergoing tough economic period, currently facing a food security crisis with food inflation for January reported at 35.41%.
As a result, prices for major staple foods like rice, maize and other grains have risen to an all-time high.
To find a temporary solution to the food security crisis, the federal government, recently decided to release grains from the national reserve as a measure to crash prices of the commodities.
The federal government has also mooted plans to set up commodity boards to strategically regulate food prices across the country and reduce hoarding. However, plans to import food were outrightly ruled out by the President stating, “Nigeria can produce the food it needs”.
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