CASE STUDY OF OLAM OUTGROWER SCHEME IN RUKUBI RICE FARMING COMMUNITIES, NASARAWA STATE NIGERIA
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The OLAM’s outgrower scheme in Nasarawa State was established in 2012 among rice farmers in three Local Government Areas (LGAs) of the State and represents one of three strategies adopted by the company to generate paddy supplies for its rice milling factory located in Rukubi, Nasarawa State. Other strategies are rice cultivation in a nucleus farm located near the factory and purchase of paddies in the open market. Over the last three years, the company has been able to process 18,000–30,000 metric tons of polished rice annually, compared to the mill’s capacity of 60,000 metric tons, yielding average capacity utilization rate of below 50%.