Zichis Expands Feed Production Capacity, Targets ₦540m Monthly Turnover

News in Brief:

—Zichis Agro-Allied Industries Plc has upgraded its animal feed mill from two tonnes per hour to five tonnes per hour, generating more than ₦540 million in monthly turnover.

—The company has started clearing a 2,000-acre farm estate as part of a broader expansion plan, even as it works through recent pressure on its share price on the Nigerian Exchange.

Zichis Agro-Allied Industries Plc is deepening its expansion drive with higher animal feed production capacity and clearing a 2,000-acre farm estate, as the company positions itself for stronger revenue growth and broader agricultural operations.

The Executive Director, Finance & Strategies, Mr Chris Ogbaisi, disclosed that the company’s upgraded animal feed mill has increased capacity from two tonnes per hour to five tonnes per hour and has already commenced operations. He said the expansion is part of the firm’s medium-to-long-term value creation strategy aimed at improving shareholder returns and strengthening the outlook for the Zichis brand.

Feed Mill Upgrade and Revenue Outlook

According to Ogbaisi, the upgraded plant is expected to produce about 1,200 tonnes of feed monthly, based on 12 operating cycles across 20 working days. He explained that this output translates to roughly 40,000 bags of feed in a month, with each bag priced between ₦13,500 and ₦14,000.

Using that pricing structure, the company projects a monthly turnover of more than ₦540 million once the plant runs at full capacity. The projection reflects the company’s broader push to expand earnings from its agro-allied operations at a time when demand for animal feed continues to rise in Nigeria’s livestock and poultry value chains.

Ogbaisi said the feed mill upgrade is not an isolated move, but part of a wider operational roadmap that includes the company’s poultry arm and other agricultural interests. He added that the new capacity should feed into stronger audited results in 2026 and beyond.

Farm Expansion and Planting Season

The company has also commenced clearing a 2,000-acre farm estate, a step Ogbaisi described as strategic because it aligns with the ongoing planting season. The expansion is expected to strengthen the agricultural base that supplies raw materials for the feed business.

For a company in the agro-industrial space, the move could help deepen backward integration, reduce supply pressure and support long-term output stability. It also signals a commitment to building a more resilient production chain around feed manufacturing and crop cultivation.

The operational update comes against the backdrop of recent weakness in Zichis shares on the Nigerian Stock Exchange, with the company facing a losing streak that Ogbaisi partly linked to profit-taking. The stock’s recent pullback appears to have come after a strong rally that lifted it sharply in the weeks following its listing.

Despite the market pressure, Ogbaisi maintained that the company’s fundamentals remain strong and urged shareholders and prospective investors to be wary of social media narratives that distort facts and figures. He said the company’s current expansion drive should be viewed within the context of long-term growth rather than short-term price movements.

He also noted that the Managing Director, Mrs Anthonia Akabusi, still holds more than 50 per cent of the company, despite a recent share sale transaction filed with the NGX in compliance with regulatory requirements. On the company’s recent shareholders’ approval to raise capital, he declined to comment until the firm receives the relevant approval from the Securities and Exchange Commission.

Zichis has remained one of the more closely watched agribusiness stocks on the NGX since its listing earlier in 2026, with market observers tracking its rapid share-price movement and trading volumes. The company’s recent operational expansion is likely to keep it in focus among investors looking for growth stories in Nigeria’s agriculture-linked equities market.