Global agrifood investor Saudi Agriculture & Livestock Investment Company (SALIC) has completed the integration of Ukrainian subsidiary Continental Farmers Group (CFG) into Olam Agri, a global agrifood company in which it has an 80% ownership stake.
SALIC, the agricultural arm of the Public Investment Fund owned by the Saudi Arabia’s sovereign wealth fund, said the integration of CFG into Olam Agri was part of its strategy to connect its global portfolio in a more efficient and resilient agrifood system that generated long-term growth and value.
Acquired by SALIC in 2018, CFG had built a strong operational base as a leading integrated agricultural company following years of development and expansion, SALIC said on 1 July.
CFG manages around 200,000ha of agricultural land in western Ukraine, operates storage facilities with a capacity of approximately 530,000 tonnes and produces more than 1M tonnes/year of grain.
“The move is expected to broaden CFG’s presence across agrifood value chains, enable access to new markets and leverage Olam Agri’s commercial, operational and logistics capabilities to support its long-term growth and expansion,” SALIC said.
Singapore-based Olam Agri – part of global food and agribusiness company Olam Group – is a leading global agrifood company operating in more than 30 countries and is active in sourcing, trading, processing, logistics and distribution.
The integration was also expected to expand Olam Agri’s sourcing options by leveraging CFG’s agricultural and operational strengths in key crops, while improving efficiency across the value chain.
Earlier this year, SALIC increased its ownership stake in Olam Agri to 80% in a US$1.88bn transaction with Olam Group.
Established in 2009, SALIC aims to achieve food security for Saudi Arabia through domestic and international investments.
