Olam is putting together an investment plan for the areas of agricultural production and food distribution, which could equal the amount of investment made since it started operating in Mozambique.
Olam Moçambique plans to make “large investments” over the next four years in Mozambique, which may be in the same amount as the company has invested since it began operating in the country, the company’s managing director told Macauhub.
Ujjwalkanta Senapati said that the company was putting together an investment plan for the areas of agricultural production and food distribution, which could equal the amount of investment made since it started operating in Mozambique.
The Olam International group launched its activities in the country when it built a cashew processing factory, in 1999, in Nampula province. It now has five cashew units in the region and employs 5,200 people.
In 2001 the company started its business to import and distribution rice, which was ended three years later due to “enormous losses” and was re-launched in 2007 with a new commercial strategy.
“We are now the biggest distributors of rice in Mozambique, importing around 90,000 tons per year,” said Senapati, noting that total rice imports are “estimated at 350,000 tons.”
The group’s rice paddies in Zambézia province, central Mozambique, yield over five tons per hectare, compared to the national average of 1,500 kilos.
Cotton processing is also another core area for the business, which has production agreements with 70,000 producers in the provinces of Manica, Tete, Nampula and Zambézia, and in 2012 exported 15,000 tons of cotton.
The company recently began the process of quality and good practices certification for cotton production, known internationally as the Better Cotton Iniciative, which will allow it to sell cotton “to companies such as Ikea or Nike.”
Olam Moçambique is a subsidiary of Olam International, which is present in 65 countries and has its headquarters in Singapore. (macauhub)