Olam Agri’s acquisition of Avisen boosts Senegal’s poultry feed market

SENEGAL – The Senegalese animal feed market has experienced a significant boost with the acquisition of Avisen SARL by Olam Agri, a prominent international player in the food, feed, and fiber sectors in emerging markets, according to an article by World Grain. 

The acquisition, valued at €17 million (US$18.4 million), was completed on a willing-buyer, willing-seller basis, reflecting both Avisen’s business performance and the synergistic potential between the two companies.

Founded 24 years ago by two veterinarians, Avisen is Senegal’s second-largest poultry feed producer and has grown to become a major supplier of animal feed in Senegal. 

The company operates a feed manufacturing facility in Rufisque, with an annual production capacity exceeding 100,000 tonnes. 

This acquisition aligns with Olam Agri’s strategy to expand its animal feed and protein capabilities in Africa, particularly in markets with strong growth potential.

Olam Agri’s expansion into Senegal is driven by the rapid growth of the country’s poultry industry, which has seen significant development since 2005, following Senegal’s decision to halt poultry imports. 

The private sector’s enhanced production models and dynamic growth have further fueled this expansion, as noted in a study by the Netherlands Enterprise Agency (NEA) on Senegal’s poultry value chain. 

The study highlighted a remarkable increase in poultry production between 2015 and 2019, with broiler chick production rising by over 40%. This, in turn, has driven demand for quality poultry feed.

Senegal’s feed milling industry, which produces an estimated 300,000 tonnes of poultry feed annually, is dominated by eight major companies, including Sedima, Olam, NMA Sanders, and FKS Mills. 

These companies cater to the growing demand for high-quality feed, driven by the expanding poultry sector. 

Avisen’s strong reputation for quality products, an efficient distribution network, and technical support for poultry growers have made it a valuable acquisition for Olam Agri.

Sharad Gupta, president of Olam Agri’s Integrated Feed & Protein business, emphasized the strategic benefits of the acquisition, stating, “Combining Olam Agri’s global commodity sourcing networks and strong manufacturing and formulation expertise with Avisen’s local market knowledge will enable us to further improve the quality and cost efficiency of feed in the Senegalese market.”

Olam Agri’s acquisition of Avisen comes at a time when West Africa’s animal feed market faces persistent challenges, including a shortage of quality feed and trade barriers that hinder access for livestock farmers.

A recent study by the University of Edinburgh highlighted the region’s widening gap in feed supply, driven by a growing livestock population. 

Olam Agri’s investment in Senegal is part of a broader strategy to address these challenges and support the development of the animal feed industry in West Africa.

In addition to its feed operations, Olam Agri is involved in several initiatives across West Africa, including the ongoing construction of a 250,000-tonne soybean crush processing facility in Nigeria. 

This facility is expected to boost local soybean value chains and enhance the productivity of local farmers.

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