Olam is one of the world's largest agricultural supply chain companies, with operations in 60+ countries. Urea prices and global PMI are the key signals — and Hormuz matters enormously.
Olam Group (SGX: O32) is one of the world's largest agri-commodity and food ingredient companies, with operations spanning cotton, cocoa, coffee, nuts, spices and animal feed across more than 60 countries. Following a corporate restructuring, Olam operates through two listed entities: Olam Agri (private) and Olamint (private), with the parent listed on SGX.
Agricultural supply chains are critically dependent on fertiliser availability and cost. Urea — the world's most widely used nitrogen fertiliser — is heavily produced in the Middle East and transported through the Strait of Hormuz. When Hormuz was closed earlier in 2026, urea prices spiked from $310/t to $530/t — a 71% increase that directly compressed margins for Olam's farming and ingredient businesses.
The Hormuz reopening announced today (17 April) is a significant positive catalyst for Olam. A return to normal urea flows would reduce input costs across its agricultural supply chain substantially.
| Cycle | Entry | Exit | Return | Signal trigger |
|---|---|---|---|---|
| 2020–2022 | Mar 2020 · SGD 1.20 | Jun 2022 · SGD 1.79 | +134% | PMI recovery + food commodity upcycle |
| 2015–2016 | Sep 2015 · SGD 1.55 | Aug 2016 · SGD 2.03 | +31% | Soft commodity trough |
Olam has been undergoing a major restructuring since 2022, separating its business into Olam Agri (food staples, animal feed, edible oils) and Olamint (ingredients, nuts, spices, coffee). The goal is to unlock value by giving each business a more focused capital allocation and potential separate listings. This restructuring is ongoing and adds both complexity and potential upside to the investment case.
Olam has one of the most comprehensive supply chain sustainability programs in agribusiness, with direct farmer relationships across cotton in Africa and cocoa in Ivory Coast. This creates both a competitive moat (traceable supply chains command premium pricing) and a risk (climate events hit production directly).