Deal #4780

Location #1

Spatial accuracy level
Administrative region
Location
Niger, Nigeria

Target country
Nigeria
Comment on location
Gbako L.G.A, Niger State, Nigeria. Gbako is a Local Government Area in Niger State, Nigeria. Its headquarters are in the town of Lemu. The Kaduna River forms its western boundary. Note: Not Gboko- this is in Benue State.

Land area

Intended size (in ha)
13050
Size under contract (leased or purchased area, in ha)
[2015] 13050
Comment on land area
50ha for factory (which was purchased), 13000ha for outgrowers (which was leased). Another source states the company has 13500ha of farmland.

Intention of investment

Intention of the investment
Food crops, Agriculture unspecified
Comment on intention of investment
Soya and palm oil - primarily for production of Vegetable Oil and Oil Meal for local consumption

Nature of the deal

Nature of the deal
Outright Purchase
Lease
Comment on nature of the deal
50ha for factory (which was purchased), 13000ha for outgrowers (which was leased).

Negotiation status

Negotiation status
[2015] Concluded (Contract signed)

Implementation status

Implementation status
[2015] Startup phase (no production)
Comment on implementation status
The company is looking for partners for the outgrower scheme (2015) and additional funding for the factory.

Contract farming

Contract farming
Yes
On leased / purchased area
Yes
On leased / purchased area (in ha)
13000
On leased / purchased farmers
2000
Comment on contract farming
Expect between 2000-5000 farmers. The company is looking for partners for its outgrower scheme (to provide management, training, inputs /input support or input financing).

Contract #1

Duration of the agreement (in years)
10

Number of domestic jobs created

Jobs created (domestic)
Yes
Planned employees (domestic)
1160
Current number of jobs (domestic)
2500
Comment on jobs created (domestic)
160 full time staff at the factory and 1000 farmers who will train and mentor outgrowers. One report states current number of jobs created to date are 2500 (factory establishment).

Operating company

Operating company
Comment on investment chain
The company’s technical partner is COFCO (China National Cereals, Oils & Foodstuffs Corporation).

 

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Data source #1

Data source type
Media report
File
Date
2015-04-30
Comment on data source
Grow Africa -- Millstones FZE - Soya Outgrower Scheme

Data source #2

Data source type
Company sources
File
Comment on data source
Millstone company website

Data source #3

Data source type
Media report
File
Date
2015-08-16
Comment on data source
Agrique Africa -- 500 Tons Per day Soybean Processing Plant and 100 tons Per Day Vegetable Oil Refinery For local Nigerian Market

Former land owner (not by constitution)

Former land owner
Community

Former land use

Former land use
Smallholder agriculture

Former land cover

Former land cover
Cropland
Marginal land

Detailed crop, animal and mineral information

Crops area
Oil Palm, Soya Beans

Use of produce

Has domestic use
Yes
Has export
Yes
Comment on use of produce
Primarily for local consumption - however the company aims to export produce as well.

In country processing of produce

In country processing of produce
Yes
Comment on in country processing of produce
The company is building a 500 Tons Per day Soybean Processing Plant and a 100 tons Per Day Vegetable Oil Refinery.

Overall comment

Overall comment
The company’s technical partner is COFCO (China National Cereals, Oils & Foodstuffs Corporation). COFCO has a 5-year contract to fabricate, construct, commission and run the factory for a minimum period of 5 years with a renewal clause. The Construction Period for the factory is about 10-12 months. COFCO will guarantee an All Plant and Equipment NO Defects Liability Policy for 5 years. COFCO will provide all spares for plant and equipment for 5 years, as well as 24/7 (All year Round) Maintenance and Support on site for 5 years. Millstone is currently seeking funding for the project.

Sept. 22, 2015, 2:01 p.m.

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