Rice Cultivation in Nigeria - The OLAM ONDORIE NUCLEUS Rice Farm

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Tuesday, February 07, 2017 07.25PM / Olam

Proshare will be running a feature series on agricultural endeavours in Nigeria, seeking to showcase the work ongoing, the gaps and opportunities – all with a focus on sheding more light on how policies impact engagements in this all important sector but for which there is a dearth of focus on the how, who and where.

Today, we share with you some fast facts on arguably one of the country’s largest investor in the agricultural sector, Olam Nigeria.    

The OLAM ONDORIE NUCLEUS Rice Farm – Value & Deliverables

Enhancing domestic food security through scaling up rice cultivation

         Olam is developing a 10,000 hectare fully irrigated paddy farm on greenfield site in Ondorie, Nasarawa State

         The farm is expected to yield 10 MT per hectare (over two annual crop cycles), based on four varieties of high-yield rice tested with the West African Rice Development Association

         4,351 hectares are already under cultivation, with a further 3,000 hectares on target for 2018/19

         Up to 1000 workers are employed on the farm depending on seasonality


Integrating processing to add value at origin

         At the heart of the rice farm is a mechanised rice milling facility

         The state of the art mill incorporates Satake milling technology and Italian par boiling technology.

         The mill has a capacity to process 105,000 mts of Rice per annum.

         Only ISO 22000 FSMS and FSSC certified rice processing company in Nigeria.

         Received Global best quality rice product of the year award FY-2015 for our brand Mama’s Pride.

Linking large scale agriculture with smallholders to boost rice production

         The ‘nucleus’ model combines the quality control of a large scale commercial farm with the cost and scalability  benefits of smallholder ‘outgrower’ networks

         The rice-growing communities in Nasarawa, Benue and Kaduna States are supported by Olam with group formation, training and all agri-inputs on credit in order to improve their own paddy yields and revenues with assured buy back system.

         Federal Government of Nigeria, CBN, IFAD, USAID MARKETS are the major stakeholders in these Olam Initiatives.

         Over 5000 farmers including women are currently engaged in the programme with an area of 5563 ha, with a target of 16,000 by 2018, ultimately supplying 30-40% of the mill’s capacity. .

         Olam buys paddy from all producing states, controls quality and hires transport to factory.


Supporting Nigeria’s Agricultural Transformation Agenda 

         Quality rice that can compete with imported products in the domestic market - creating high-end rice from Nigeria, for Nigeria

         Scalability of the nucleus model is significant, and it is hoped that other players will replicate the success of Olam’s rice farm to further enhance Nigerian food security


Helping farming communities to thrive

         Commitment to the next generation through providing school buildings, materials and scholarships for students
         Connecting communities through development of 54km of roads between surrounding villages
         Ensuring access to clean water and electricity through provision of bore wells and solar lamps

Key Rice Farm Facts
Location:    Ondorie, Nasarawa State. 265km south east of Abuja, on the banks of the river Benue.

Project commencement:          July 1, 2010

Investment till Dec 2015:         N20 billion

Total area of the farm:  12,920 ha

Current area under cultivation: 4351 ha

Number of employees:    
– 1044 (594 regular, 450 seasonal)
Mill – 959 (81 regular, 878 seasonal)
90% of workers from local community

Current number of outgrowers:  5633
Target number of outgrowers: 16,000 by 2018
Length of roads: 269.6km

Length of irrigation canals: 375.9km

Length of drainages:  372.5km

1st Crop cycle  : 952 Ha
2nd Crop cycle : 2304 Ha
3rd Crop cycle  : 2649 Ha
4th Crop cycle  : 1327 Ha

5th Crop cycle  : 2881 Ha

6th Crop Cycle  : 3912 Ha

7th Crop Cycle  : 3651 Ha

8th Crop Cycle  : 4351 Ha

High yield nutritious rice varieties:  44, C19,C20

Expected yield:  10 metric tonnes per hectare Per Annum


Source: Rukubi rice farm, Nasarawa State, Nigeria

Download related Materials on OLAM (PDF’s)
1. New Olam Africa Factsheet

2. New Olam Nigeria Factsheet

3. Animal Feed Factsheet

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