GAIL subsidiary of FMN Group boosts development of maize, soybean value chain in Nigeria

NIGERIA – Golden Agri Inputs Limited (GAIL), part of the agro-allied division of Flour Mills of Nigeria Group (FMN), has entered into a Memorandum of Understanding (MoU) with Kaduna State government to accelerate development of maize and soybean value chain in the region.

The initiative, which is based on a well-defined Backward Integration Strategy, will be undertaken through the YALWA programme.

According to FMN, the project will be carried out through strategic partnerships, with renowned hybrid seed companies like Corteva Agricscience and Golden Penny Fertilizer Company.

About 25,000 farmers are targeted to benefit from the initiative through provision of input loans, agricultural extension, agronomy training, farm-gate participation, and out-grower programs.

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Mr. Olushola Fashedemi, Head of Commercial, Golden Agri Input, disclosed that the YALWA program was designed to aggressively double maize and soybean output in Nigeria through greater yields, improved quality, and competitive pricing.

He emphasised that the program will significantly improve the availability of raw material in the country, contribute to the improvement of food security, save millions in foreign exchange spending, and improve the lives of numerous smallholder farmers in the state.

“During the course of the year, the YALWA initiative will have a substantial impact on over 25,000 farmers and up to 100,000 individuals through farmer-household empowerment.

“Furthermore, the program is expected to be expanded to other states within the next five years, including Niger, Gombe, and Kwara,” he stated.

It is envisaged that by the end of the program, yields for maize will increase from 2.5mt to 5mt per hectare and soybean from 1mt to 2mt per hectare.

“During the course of the year, the YALWA initiative will have a substantial impact on over 25,000 farmers and up to 100,000 individuals through farmer-household empowerment.”

Mr. Olushola Fashedemi – Head of Commercial, Golden Agri Input

“I am delighted that we are partnering with Flour Mills in implementing this project. It offers us a realistic solution to our quest for economic diversification,” said Hajiya Halima Lawal, Kaduna State Commissioner.

The parent company of GAIL, recently showcased impressive top-line and bottom-line growth in the year ended March 31, 2021.

The owner of the iconic Golden Penny Food brand, has recorded a 34.5% rise in revenue from N573.77 billion (US$1.3 billion) of the previous corresponding period to N771.6 billion (US$1.8 billion).

The growth has been attributed to robust growth across all its segments with an average revenue gain of 34 per cent across all business sectors.

In the food segment, the company recorded a 33.5 percent year-on-year growth to N478.3 billion (US$1.16 billion) and the agro-allied division witnessed a 32.2 percent revenue growth to N139.4 billion (US$338.9m), primarily driven by higher volumes and strategic allocation.

The company’s total sugar revenue grew by 27.7 percent year on year to N124.6 billion (US$302m), driven by volume growth and focus on profitable categories.

Meanwhile, its support segment revenue grew the most at 136.9 percent year on year, driven by the increase in volumes.

This led to its profit before tax jumping by 112 per cent to N37.19 billion (US$90m) from N17.50 billion (US$42.5m), while profit after tax grew faster by 126 per cent to N25.72 billion (US$62.54m) compared with N11.38 billion (US$27.67m) the preceding year.

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