World Grain - August 2018 - 42

REGIONAL REVIEW: NIGERIA'S GROWING MARKET FOR WHEAT FLOUR

Nigerian Flour
Mills is the largest
flour milling company in Nigeria.
Photo courtesy
of Nigerian Flour
Mills.

42

ecutives hosted by the Texas Wheat Producers Board
June 11-14 in Corpus Christi, Texas, U.S.
"Hosting the sub-Saharan African trade team is
part of the ongoing market development efforts of the
board," said Rodney Mosier, executive vice-president
of Texas Wheat. "The event is designed to maintain and
increase wheat exports, which will reduce carryover
stocks and strengthen wheat prices."
Anurag Shukla, CEO of Crown Flour Mill, owned
by international food and agribusiness Olam, explained the opportunities for millers in the country in
an article in the company's OlamInsights publication
in September 2016.
"Nigeria is the largest importer of wheat in sub-Saharan Africa," he said. "It has a growing population of
160 million, more than 50% of which is urbanized."
The country was becoming more urbanized and the
median age of its population was 18 years.
"Nigeria's demographics underpin growth in demand
for downstream food products, such as bread, pasta,
noodles and biscuits, which in turn support demand for
the principal products of the milling industry - bread
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and semolina," Shukla explained. He put the value of
1LJHULD¶VPLOOLRQWRQQHÀRXUPDUNHWDWPLOOLRQ
with growth at 3.5% a year.
Shukla also explained that the Nigerian milling sector is highly consolidated, which means high barriers
to entry.

"Port access and a nationwide sales and distribution
network are critical success factors in this business,"
he said.
OLAM'S RISE
Olam acquired Crown Flour Mill in January 2010 and
it has grown to become the second largest miller in
Nigeria.
Olam announced on Jan. 11, 2016, that it was acquiring Amber Foods Ltd. from the BUA Group at a value
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³7KH%8$*URXSDGLYHUVL¿HGIRRGVDQGLQIUDVWUXFWXUH EXVLQHVV JURXS LQ 1LJHULD LV DPRQJ WKH WRS ¿YH
wheat millers in the country with wheat milling and
SDVWDPDQXIDFWXULQJFDSDFLWLHVRIDQGWRQQHV
per day, respectively," the company said.
The acquisition gave Olam two wheat mills and a
pasta manufacturing facility in Lagos, a non-operating
mill in Kano and a wheat mill and a pasta manufacturing plant under construction in Port Harcourt.
"The acquisition will strengthen Olam's position as
the No. 2 wheat miller by sales volume and make it a
leading pasta player in Nigeria," Olam said.
The move meant an increase in Olam's wheat milling
capacity to 6,140 tonnes a day from 2,380 tonnes.
"Nigeria is a high growth milling market with volumes expected to reach 5 million tonnes in 2020 as
population growth and urbanization increase the demand for wheat-based products," said Keshav Chandra
August 2018 / World Grain / www.World-Grain.com


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Table of Contents for the Digital Edition of World Grain - August 2018

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http://www.nxtbook.com/sosland/wg/2017_10_01
http://www.nxtbook.com/sosland/wg/2017_09_01
http://www.nxtbook.com/sosland/wg/2017_08_01
http://www.nxtbook.com/sosland/wg/2017_07_01
http://www.nxtbook.com/sosland/wg/2017_06_01
http://www.nxtbook.com/sosland/wg/2017_05_01
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http://www.nxtbook.com/sosland/wg/2017_03_01
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http://digital.world-grain.com/sosland/wg/2009_09_01
http://digital.world-grain.com/sosland/wg/2009_08_01
http://digital.world-grain.com/sosland/wg/2009_07_01
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http://digital.world-grain.com/sosland/wg/2009_03_01
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http://digital.world-grain.com/sosland/wg/2008_08_01
http://digital.world-grain.com/sosland/wg/2008_07_01
http://digital.world-grain.com/sosland/wg/2008_06_01
http://digital.world-grain.com/sosland/wg/2008_05_01
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http://digital.world-grain.com/sosland/wg/2008_03_01
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http://digital.world-grain.com/sosland/wg/2007_12_01
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http://digital.world-grain.com/sosland/wg/2007_09_01
http://digital.world-grain.com/sosland/wg/2007_08_01
http://digital.world-grain.com/sosland/wg/2007_07_01
http://digital.world-grain.com/sosland/wg/2007_06_01
http://digital.world-grain.com/sosland/wg/2007_05_01
http://digital.world-grain.com/sosland/wg/2007_04_01
http://digital.world-grain.com/sosland/wg/2007_03_01
http://digital.world-grain.com/sosland/wg/2007_02_01
http://digital.world-grain.com/sosland/wg/2007_01_01
http://digital.world-grain.com/sosland/wg/2006_12_01
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http://digital.world-grain.com/sosland/wg/2006_09_01
http://digital.world-grain.com/sosland/wg/2006_08_01
http://digital.world-grain.com/sosland/wg/2006_07_01
http://digital.world-grain.com/sosland/wg/2006_06_01
http://digital.world-grain.com/sosland/wg/2006_05_01
http://digital.world-grain.com/sosland/wg/2006_04_01
http://digital.world-grain.com/sosland/wg/2006_03_01
http://digital.world-grain.com/sosland/wg/2006_02_01
http://digital.world-grain.com/sosland/wg/2006_01_01
http://digital.world-grain.com/sosland/wg/2005_12_01
http://digital.world-grain.com/sosland/wg/2005_11_01
http://digital.world-grain.com/sosland/wg/2005_10_01
http://digital.world-grain.com/sosland/wg/2005_09_01
http://digital.world-grain.com/sosland/wg/2005_08_01
http://digital.world-grain.com/sosland/wg/2005_07_01
http://digital.world-grain.com/sosland/wg/2005_06_01
http://digital.world-grain.com/sosland/wg/2005_05_01
http://digital.world-grain.com/sosland/wg/2005_04_01
http://digital.world-grain.com/sosland/wg/2005_03_01
http://digital.world-grain.com/sosland/wg/2005_02_01
http://digital.world-grain.com/sosland/wg/2005_01_01
http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
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