Olam Agri expands its feed capabilities in Senegal with strategic Avisen acquisition

04 Mar 2024 --- Olam Agri, an agribusiness in food, feed, and fiber, has acquired Avisen SARL, Senegal’s second-largest poultry feed supplier, for €17.0 million (US$18.45 million). This acquisition marks a step in Olam Agri’s strategic expansion, bolstering its animal feed business in West Africa while strengthening its feed and protein capabilities across the region.

Avisen, established in 2000 by a duo of veterinarians, has emerged as a major player in Senegal’s feed industry, producing over 100,000 metric tons of feed annually from its Rufisque facility. 

This acquisition enhances Olam Agri’s product offerings in West Africa, where it already has a dominant position as a leading provider of animal feed and day-old chicks in Nigeria.

“Avisen has earned an excellent reputation in Senegal thanks to the high quality of its products, efficient distribution network and field teams providing technical advice to poultry growers,” says Sharad Gupta, president of the integrated feed & protein business at Olam Agri.

Synergistic integration
According to Gupta, by leveraging Olam Agri’s global commodity sourcing networks and manufacturing and formulation expertise alongside Avisen’s deep understanding of the local market, the company can enhance both the quality and cost-effectiveness of feed within the Senegalese market.

“We expect continued strong growth in the poultry sector and the attendant demand for high-quality feeds, and will make necessary investments to grow our feed volumes. This is instrumental in enabling farming communities to prosper and contribute to long-term food security.”

The integration of Avisen into Olam Agri’s portfolio is expected to generate synergies, especially with its wheat milling operations in Senegal and its animal feed production in Nigeria. Olam Agri operates one of Nigeria’s largest poultry feed mills and day-old-chick facilities in Kaduna State, along with an aqua feed plant and a poultry feed mill in Kwara State, marking firsts in Sub-Saharan Africa.

Papa Seck, CEO of Avisen, says: “As a key player in the agribusiness industry, Olam Agri has the financial and technical capabilities to support and develop Avisen. It will bring industry best practices and a wealth of relevant experience drawn from its strong positions in other markets such as Nigeria.”

Eggs and chicken meat are affordable animal protein and are consumed by many people in Senegal.Sustainable growth initiatives
This acquisition is poised to be earnings accretive from 2024. Olam Agri’s strategy focuses on sourcing ingredients locally to provide affordable feeds fortified with amino acids, vitamins, minerals, and feed additives that meet national and international standards. 

Olam Agri was the first company in Nigeria to introduce heat-treated mash and pelleted feeds for high microbial safety.

Through this acquisition, Olam Agri continues its strategy to re-imagine global agriculture and food systems, addressing the challenge of meeting the needs of a growing global population. 

The company, supported by a US$200 million loan from the International Finance Corporation, is trying to alleviate food insecurity by purchasing wheat, maize, and soy in bulk, processing it, and delivering it to developing nations heavily reliant on imports of these staple foods. 

This initiative aims to feed over 40 million people facing food insecurity in Nigeria, Senegal, and other developing countries by facilitating the delivery of millions of metric tons of commodities.

Edited by Sichong Wang