Dive Brief:

• Last week, Singapore-based Olam International Limited announced the acquisition of the Brooks Peanut Co., based in Alabama. Olam paid $85 million for the nation’s sixth-largest peanut sheller, according to a news release.
• This purchase, along with the 2014 acquisition of McCleskey Mills Inc., allows Olam to be directly involved with farm procurement and shelling.
• The United States is the lowest cost producer of peanuts. It has the available acres to support expansion efforts in order to meet demands in emerging markets in China and India.

Dive Insight:

According to Olam’s 2016 to 2018 strategic plan, its edible nuts platform is one of six prioritized areas for investment and growth.

Olam continues to focus on investments in its ingredients portfolio. While Olam suffered a fourth quarter 2015 loss, its Edible Nuts, Spices, and Vegetable Ingredients division experienced an uptick in volume sales in the quarter, from 240,000 metric tons to 464,000 metric tons, while revenues rose from $1 billion to $1.2 billion.

What’s more, last year Archer Daniels Midland finalized the sale of its global cocoa business to Olam.