Amidst surging prices and supply chain disruptions affecting essential grains in Nigeria, Olam Agri’s Nigerian subsidiary announced a temporary halt in the procurement of maize and sorghum. The decision comes as a response to the escalating prices nationwide, which have contributed to a food security crisis in the country.
Nigeria has been grappling with food inflation, with January figures soaring to 35.41%, marking a concerning trend for staple foods such as rice, maize, and other grains. In a statement addressing the situation, Olam Agri highlighted the challenges posed by supply chain disruptions and emphasized its commitment to working collaboratively with industry peers and government bodies to address the crisis.
“While we share the concerns about high prices and supply chain disruptions affecting the availability of essential grains, we are actively engaging with relevant authorities and industry stakeholders to identify and implement strategic solutions,” the statement read.
The decision to suspend maize and sorghum procurement temporarily reflects Olam Agri’s proactive approach to closely monitoring market trends and adjusting to market realities. This move follows consultations with relevant authorities and is part of the company’s commitment to managing the ongoing crisis.
In response to the broader food security challenges, the Nigerian federal government has taken steps to address the situation. Measures include releasing grains from the national reserve to stabilize prices and plans to establish commodity boards aimed at strategically regulating food prices and curbing hoarding.
The government has ruled out plans to import food, emphasizing its belief in Nigeria’s capacity to produce the food it needs domestically. Despite the temporary halt in maize and sorghum purchases, Olam Agri reassures the public of its commitment to ensuring an uninterrupted supply of food products during this challenging period.
