BUA Foods Boosts Flour Milling Capacity With New Deal

BUA Foods Plc, one of Nigeria’s leading food processing companies, has entered into a groundbreaking agreement with IMAS, a prominent Turkish milling equipment manufacturer, to establish four new wheat milling factories in Nigeria.

This ambitious project, set to increase BUA’s milling capacity to an impressive 2.5 million metric tonnes annually, signifies a major stride in the company’s efforts to enhance food security in the country.

The new wheat mills, which will collectively have the capacity to process up to 3,200 tonnes of wheat per day, are part of BUA Foods’ strategic plan to dominate the Nigerian flour market.

The company’s Chairman, Mr. Abdulsamad Rabiu, who signed the agreement on behalf of BUA Foods, emphasised that this initiative underscores their commitment to not only producing high-quality flour products but also contributing to Nigeria’s food security.

“This partnership with IMAS is a testament to our dedication to improving food security in Nigeria. These new factories will significantly boost our capacity to continue to produce high-quality flour products while helping to create additional job opportunities across the country,” Mr. Rabiu stated.

BUA Foods, which has already made a mark in the food processing sector, sees this expansion as a critical step towards increasing its market share in Nigeria’s flour industry. The company’s existing operations, which boast an installed milling capacity of 500,000 metric tonnes per annum, are set to benefit from nearly a 400 percent increase in capacity following the completion of these new mills. This expansion not only reflects the company’s growth ambitions but also its role in addressing the food challenges that Nigeria faces.

The strategic move by BUA Foods comes at a time when Nigeria’s wheat consumption is on the rise, with the United States Foreign Agricultural Service projecting it to reach 6.06 million tonnes. Despite this growing demand, local production remains significantly low, with the Ministry of Agriculture reporting a production level of only 420,000 metric tonnes, far below the country’s annual consumption needs. This discrepancy has led to a heavy reliance on wheat imports, with Nigeria spending approximately N970.22 billion on wheat imports in the past year alone, as per data from the National Bureau of Statistics (NBS).

In light of these challenges, the federal government has been pushing for increased local production, with Honourable Minister of Agriculture, Mr. Abubakar Kyari, announcing plans to end wheat imports within the next four to five years.

The government’s strategy includes a 50 percent subsidy for wheat farmers engaged in dry season farming and the cultivation of over 40,000 hectares of land in Jigawa State. BUA Foods’ new milling factories are expected to play a significant role in this national drive by bolstering the country’s wheat processing capabilities.

The agreement with IMAS is not just about expanding BUA Foods’ operational capacity; it is also about enhancing the company’s ability to meet the diverse needs of the Nigerian market. By increasing its production capacity, BUA Foods will be better positioned to offer a broader range of flour products, which is critical in a market where consumer preferences are evolving and demand for quality is increasing. Moreover, this expansion is likely to have a positive ripple effect on the economy, creating jobs and supporting the livelihoods of thousands of Nigerians involved in the wheat value chain.

As BUA Foods embarks on this significant expansion, the company’s vision of becoming a leading player in Nigeria’s food processing industry is becoming increasingly clear. This bold move not only strengthens BUA Foods’ position in the market but also aligns with national efforts to achieve greater self-sufficiency in food production. As the company continues to build on its success, it is setting a new standard for the food processing industry in Nigeria, one that other players in the sector will likely strive to emulate.