Ellah Lakes Plc has announced the acquisition of the first batch of expellers and presses for its planned Palm Kernel Oil mill as part of efforts to expand its processing operations and diversify its revenue sources.

The agribusiness company also announced that the number of pigs on its farm has surpassed 1,000, as it continues to scale its livestock operations in Edo State.

This was disclosed in a statement dated June 23, 2026, noting that installation of the palm kernel processing equipment is expected to be completed by the end of the third quarter of 2026.

Following the installation, the company plans to commence the production of Palm Kernel Oil, popularly known as PKO, and Palm Kernel Cake.

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What the company is saying

According to the statement, the planned production of PKO and Palm Kernel Cake will allow Ellah Lakes to extract more value from its existing oil palm operations.

The company said the new processing facility would expand its product range and strengthen its participation across different segments of the agricultural value chain.

  • Palm Kernel Oil is extracted from the kernel of the oil palm fruit and is used in products including food ingredients, cosmetics, soaps and other industrial products.
  • Palm Kernel Cake, which is produced as a by-product of the extraction process, is commonly used as an ingredient in animal feed.

Commenting on the update, Chuka Mordi, Chief Executive Officer of Ellah Lakes Plc, said:

  • “The addition of PKO and PKC production will enable Ellah Lakes to capture further value from its oil palm operations, expand its product base and deepen its participation across the agricultural value chain.”

On its livestock operations, the company said its pig population had crossed 1,000, reflecting the expansion of its piggery business.

Ellah Lakes described livestock as an important part of its integrated agribusiness model, providing an additional source of revenue and supporting near-to-medium-term cash flow while its plantation assets continue to mature.

The company has also commenced the sale of gilts, which are young female pigs that have not yet produced offspring.

The sale of gilts is expected to create an additional revenue line while supporting the development of the livestock value chain.

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Ellah Lakes said the next stage of its expansion would include the installation of an abattoir and cold-chain facility.

The facilities are expected to improve the company’s meat-processing capacity, preserve livestock products, and improve access to wider markets.

An effective cold-chain system would also allow the company to store and transport processed livestock products under controlled temperatures, reducing spoilage and improving product quality.

The Chief Executive Officer of Ellah Lakes Plc, Chuka Mordi, said the developments demonstrated the company’s continued implementation of its integrated agribusiness strategy.

  • “These milestones reflect the continued execution of our strategy to build Ellah Lakes into a more integrated and commercially resilient agribusiness platform,” Mordi said.
  • “The acquisition of equipment for our PKO Mill advances our move into higher-value processing, while the growth of our piggery operations strengthens an important cash-generating vertical within our business model.”

The latest investments indicate that Ellah Lakes is attempting to move beyond primary agricultural production by increasing its exposure to processing and value-added products.

What you need to know

The commercial impact of the PKO mill will depend on the completion of the installation, the volume of palm kernels available for processing, operating efficiency, and the company’s ability to secure markets for its products.

The planned abattoir and cold-chain facility could also improve revenue from the livestock business, although the project will require additional capital expenditure and effective execution.

  • Ellah Lakes’ latest operational update comes as the company continues efforts to improve revenue and reduce its operating losses.
  • The company reported revenue of N359.49 million for the first quarter ended March 31, 2026, representing an increase of about 1,734% compared with N19.61 million recorded in the corresponding period of 2025.
  • Gross profit rose to N285.35 million from N19.61 million, supported by the increase in sales during the period.
  • Despite the revenue growth, Ellah Lakes remained loss-making as its operating expenses continued to exceed its gross profit.
  • Administrative expenses stood at N280.47 million, while personnel expenses amounted to N252.25 million during the quarter.
  • The company recorded an operating loss of N273.42 million in Q1 2026, compared with an operating loss of N514.18 million in Q1 2025. This represents a 46.8% reduction in operating loss.
  • Its loss per share also improved to 7 kobo from 19 kobo in the corresponding period of the previous year.

The company’s ability to translate its expanding palm oil and livestock operations into sustained revenue, positive operating cash flow and profitability will remain a key consideration for investors.