In conversation: Olam’s Venkataramani Srivathsan

 

In terms of challenges on the ground, poor infrastructure is the most significant issue as it creates bottlenecks and inefficiencies. This issue is common to many of the emerging markets where Olam operates, and the company is well practised in meeting this challenge through the development of roads, warehouses and alternative transport networks. For example, in the area surrounding our rice nucleus in Nasarawa state, we have constructed over 40km of roads to facilitate access and egress at the farm. 

Today, our “Rite of Passage” programme (which is known at Olam as ‘Sunny’s MBA’) sends our management team to some of the most physically, socially and demographically challenging geographies within our business footprint. This embeds the entrepreneurial spirit which permeates the Olam culture, and gives these individuals perspective, teaches them respect for each role within our organisation and within a community, and creates an appreciation of what growing responsibly really means. Transparency and fairness have always been key watchwords and remain part of our commitment to long-term growth and investment.

 

 

 

Olam’s 6,000ha rice farm is the largest in West Africa, and will provide 36,000 metric tonnes of milled rice to the domestic market, thanks to the four varieties of high-yield rice that have been developed with the West African Rice Development Association. From this central rice farm ‘nucleus’ we are operating a highly scalable outgrower programme, whereby surrounding rice-growing communities are supported by Olam with training, pre-finance and agri-inputs in order to improve their own paddy yields.

 

There are currently 3,000 smallholders engaged in the programme, with a target of 16,000 by 2018. Ultimately, 20,000 smallholder farmers will supply 30-40% of the mill’s capacity. It is our hope that other players will replicate the success of Olam’s rice farm both in Nigeria and elsewhere to support the ongoing effort to scale up production of food staples in Africa, for the African market. During his recent visit to the Olam rice farm, President Goodluck Ebele Jonathan commented:

 

“Our goal of making Nigeria a net exporter of rice will be achieved faster by encouraging large commercial farms that will complement our small-scale farmers.Large mechanised rice farms like Olam’s 6,000-hectare farm will not only boost food production but also provide significant opportunities for jobs in rural areas. These mills are producing high-quality local rice that meets international standards and competes well with imported rice.” 

 

Africa will always hold a special place in my heart – it is a unique and hugely diverse continent that holds so much energy and so much potential. It is a very exciting thing that today Africa has the youngest population in the world. The next generation must be equipped to seize the opportunities that are on the horizon in the next 30-40 years, and that are already right under our noses. Quite simply, Africa is the place to be – and the best is yet to come. 

 

 

I see a huge opportunity for sub-Saharan Africa to catch up and even overtake other regions as a global agricultural powerhouse. If Africa could double its yield to 50%, the continent would be able to not only feed itself, but also become a net food exporter.