Taraku Mills Begins Test Production With 300 Tonnes of Soybeans, Offering New Market for Benue Farmers

By Simpson Global Media News Desk

Taraku Mills Limited in Benue State has entered a new phase of its long-delayed revival, beginning test-run production after the delivery of about 300 tonnes of soybeans to the rehabilitated facility.

The development, reported on October 3, 2026, marks the latest step in efforts by the Benue Investment and Property Company Limited (BIPC) to return the government-owned agro-industrial plant to productive use after years of inactivity.

The immediate objective is to restart production of the locally known Golden Soya Oil while creating a more dependable market for soybean and other grain farmers in the state.

According to BIPC and reports from the factory, the first batch of soybeans has entered the purification stage. Crushing is expected to follow, after which oil extraction and refining will take place.

Plant Manager James Terngu Ikyuve said the facility is beginning cautiously because the machinery had remained unused for an extended period. BusinessDay reported that the plant has an installed capacity of 200 tonnes per day but is initially operating at about 50 tonnes daily during the test phase. :contentReference[oaicite:1]{index=1}

The development is significant beyond the factory itself because it connects agricultural production with processing, market access and employment.

For soybean farmers in Benue, one of the central questions has always been what happens after the crop leaves the farm.

A farmer can produce a good harvest and still face difficulties if there is no reliable buyer, adequate storage, affordable transportation or nearby processing facility.

The revival of Taraku Mills is intended to address part of that problem by creating an industrial off-take point for soybeans and other agricultural raw materials.

BIPC Group Managing Director Raymond Asemakaha said the company was deliberately reviving the factory to provide a ready market for soybean and grain farmers while also creating direct and indirect employment.

He urged soybean, maize and other raw-material producers to increase production, saying the revived industrial facility would provide opportunities for farmers to sell their output. :contentReference[oaicite:2]{index=2}

### From A Dormant Factory To Test Production

Taraku Mills is not a newly constructed agricultural processing facility.

It is an old industrial asset that has been undergoing rehabilitation in stages.

BIPC said in September that the first phase of rehabilitation had passed the 80 percent completion mark and that the company was preparing the plant for production.

At the time, BIPC said the facility needed raw materials before technical testing could proceed. It also said the revival was expected to strengthen Benue's agricultural value chain by giving farmers a market for their produce and increasing local processing. :contentReference[oaicite:3]{index=3}

The latest test run therefore represents a transition from rehabilitation into actual production activity.

That transition is important because repairing an industrial facility and making it commercially operational are two different stages.

Machinery can be restored without automatically guaranteeing that a factory will receive enough raw materials, maintain reliable energy supplies, find buyers, manage production costs or operate consistently.

The test-run provides an opportunity to identify technical problems before the factory moves toward sustained commercial production.

According to the plant management, the machinery is being operated at a lower initial rate while the equipment is brought back into service.

That approach is particularly relevant for a plant that has spent years outside active production.

Rather than immediately attempting to operate at full capacity, the facility is expected to increase activity as its systems are tested and stabilised.

### The 300-Tonne Soybean Delivery

The first major input for the test run is approximately 300 tonnes of soybeans.

BusinessDay reported that the consignment arrived in eight trucks. The soybeans have entered purification, with crushing expected shortly afterwards. :contentReference[oaicite:4]{index=4}

The raw-material delivery provides a practical test of the relationship between agriculture and processing.

For the mill to remain operational, it will need a steady supply of soybeans beyond the initial test quantity.

That means the long-term success of the factory will depend partly on whether Benue's soybean production can provide enough raw material at the required quality and price.

BIPC has already said it wants to establish stronger links with farmers.

In September, the company said it had registered 2,847 soybean farmers across 12 local government areas and had established three aggregation centres in Taraku, Gboko and Otukpo with combined storage capacity of 3,000 tonnes. :contentReference[oaicite:5]{index=5}

Those figures suggest that the revival is being planned around a broader supply network rather than relying only on spot purchases of soybeans.

A functioning aggregation system can make it easier for a processor to obtain raw materials in commercial quantities.

It can also help farmers who would otherwise have to search for individual buyers after harvest.

### Why The Factory Matters To Farmers

Agriculture does not end when a crop is harvested.

A functioning agricultural economy requires connections between farmers, aggregators, processors, transporters, manufacturers, retailers and consumers.

When those connections are weak, farmers can be forced to sell quickly, sometimes at unfavourable prices, because they lack storage or alternative buyers.

Processing plants can provide another route.

If Taraku Mills maintains a regular purchasing programme for soybeans, farmers may have a clearer understanding of where part of their harvest can be sold.

That does not automatically guarantee higher prices, because farm-gate prices depend on supply, demand, production costs, quality and wider market conditions.

But a reliable processor can provide an additional market and reduce dependence on a limited number of middlemen.

BIPC has specifically described market access as one of the problems affecting farmers and said the revived mill is intended to create an off-take opportunity for soybean and grain producers. :contentReference[oaicite:6]{index=6}

The importance of that objective extends beyond soybean.

If the factory operates consistently, it could encourage farmers to increase production because they have greater confidence that buyers will be available.

That can create a feedback cycle.

More predictable demand can encourage production; greater production can provide processors with more reliable supplies; increased processing can generate jobs and products; and the resulting economic activity can strengthen demand for agricultural raw materials.

But the cycle only works if the factory itself remains commercially viable.

### A Gradual Return To Full Capacity

The plant is not expected to begin immediately at its maximum operating level.

Ikyuve told reporters that the facility is starting at approximately 50 tonnes per day because its equipment had been unused for years.

BusinessDay reported an installed capacity of 200 tonnes per day, while other reports have cited different figures for the plant's longer-term processing capacity. BIPC's earlier official communication also described the facility in the context of its 200-tonne-per-day capacity. For this report, the 200-tonne figure is treated as the documented installed capacity, while the 50-tonne figure represents the initial test-run rate. :contentReference[oaicite:7]{index=7}

The distinction matters.

Installed capacity is not the same thing as actual daily production.

A factory may theoretically process a certain quantity of raw material but operate below that level because of energy constraints, maintenance, availability of raw materials, equipment condition, labour requirements, market demand or other operational factors.

The decision to begin at a lower rate allows the technical team to monitor the machinery as it returns to service.

The first stage involves purification of the soybean input.

That will be followed by crushing, oil extraction and refining.

The final product is expected to be Golden Soya Oil, the product historically associated with Taraku Mills. :contentReference[oaicite:8]{index=8}

### The Road From Soybean To Cooking Oil

The process being restarted at Taraku Mills represents the value-addition side of agriculture.

Soybeans harvested by farmers are not simply being sold as raw agricultural produce.

They are being prepared for industrial processing to extract oil and produce a consumer product.

That transformation creates opportunities at several stages.

Farmers supply soybeans.

Aggregators can collect and store the crop.

Transporters move the raw material to the factory.

Factory workers handle cleaning, purification, crushing, extraction and refining.

Packaging and distribution can then connect the finished product to retailers and consumers.

Each stage creates potential economic activity.

This is why agro-processing is frequently treated as an important part of agricultural development.

A country can increase agricultural output without achieving the full economic benefits if raw commodities leave the production area without sufficient processing.

Local processing can retain a greater portion of the value chain within the producing region.

For Benue, the Taraku Mills revival is therefore being presented as more than the reopening of a factory.

It is an attempt to strengthen the connection between the state's farmers and an industrial processing market.

### Benue's Agricultural Base

Benue is widely associated with agricultural production and is often described as one of Nigeria's major food-producing states.

Its farming economy includes crops such as soybean, maize, cassava, yam and other food and commercial crops.

Soybean has particular importance because it serves multiple purposes.

It is used for edible oil production and is also relevant to animal feed and other food and industrial applications.

That gives soybean farmers access to a commodity with uses beyond direct household consumption.

A local soybean-processing plant can therefore support several layers of the agricultural economy.

The key issue is whether the processor can maintain sufficient demand and whether farmers can produce enough high-quality soybeans consistently.

BIPC has indicated that it wants farmers producing soybean, maize and other raw materials to scale up production because of the anticipated off-take opportunities. :contentReference[oaicite:9]{index=9}

The message to farmers is consequently linked directly to the factory's requirements.

The more consistently the plant operates, the more important dependable agricultural supply becomes.

### Farmers Need More Than A Factory

The reopening of Taraku Mills can improve market access, but it cannot by itself solve every challenge facing Benue farmers.

Farmers still need seeds, fertiliser, land, labour, machinery, finance, roads, storage and information.

They also face weather and climate risks.

Production can be affected by drought, excessive rainfall, flooding, pests, disease and changes in input costs.

Even when a processing facility is available, farmers must still be able to produce enough to supply it.

This is why the development of an agro-processing industry needs to be accompanied by continued investment in primary production.

BIPC has said it is working with registered farmers and aggregation centres as part of the raw-material supply structure.

The company has also previously said it intends to provide improved seeds for subsequent production cycles. :contentReference[oaicite:10]{index=10}

If those measures are implemented effectively, they could help strengthen the supply relationship between the mill and surrounding farming communities.

### The Importance Of Aggregation

Aggregation is particularly important for an industrial processor.

A factory requiring commercial volumes of soybeans cannot depend entirely on buying small quantities from individual farmers scattered across the state.

Aggregation centres can bring produce together.

They can provide storage and simplify collection.

They can also help processors understand how much raw material is available and where it is located.

BIPC has said three aggregation centres are being used at Taraku, Gboko and Otukpo, with combined storage capacity of 3,000 tonnes. The company also reported 2,847 registered soybean farmers across 12 local government areas. :contentReference[oaicite:11]{index=11}

If maintained and properly managed, such a system could help reduce one of the risks faced by agricultural processors: raw-material shortages.

However, aggregation must work for farmers as well.

Farmers need transparent purchasing arrangements, timely payments, fair quality assessments and dependable collection systems.

Without those elements, a formal aggregation structure may not produce the expected benefits.

### The Price Question

One of the important questions surrounding the factory's revival is the price farmers will receive for their soybeans.

In its September response concerning the Taraku Mills project, BIPC said it planned to offer soybean farmers N620,000 per tonne, describing the figure as 18 percent above the price offered by middlemen at the time. :contentReference[oaicite:12]{index=12}

That figure was part of the company's earlier explanation of its planned farmer-supply model.

It should not automatically be interpreted as a permanent market price.

Commodity prices can change according to season, supply, demand, quality, transport costs and broader market conditions.

What matters for farmers is whether the processor maintains transparent and commercially sustainable buying arrangements.

If a factory offers competitive prices but cannot purchase consistently, farmers may continue to depend on alternative buyers.

Conversely, if the factory purchases reliably but at prices that do not cover farmers' production costs, the supply base could weaken over time.

The sustainability of the relationship will therefore depend on both sides.

The processor needs economically viable raw materials.

Farmers need commercially viable prices.

### Employment And Rural Economic Activity

The Taraku revival also carries an employment dimension.

BIPC has said the project could create direct and indirect jobs as the factory expands.

In a September disclosure, the company said 47 professional staff had already been employed, including engineers, technicians and operators. It projected 1,500 direct jobs and more than 5,000 indirect jobs at full capacity across the wider operation. :contentReference[oaicite:13]{index=13}

Those figures are projections rather than jobs already created.

They therefore need to be distinguished from the employment that exists today.

The current test run is a much smaller stage of operation.

If commercial production expands successfully, however, additional workers could be needed in processing, maintenance, logistics, quality control, administration, packaging and distribution.

There can also be indirect employment outside the factory.

Farmers may expand production.

Transporters may move more raw materials.

Aggregators may employ additional workers.

Retailers and distributors may handle the finished oil.

Maintenance contractors and other service providers can also benefit from a functioning industrial plant.

That is why the economic impact of agro-processing can extend beyond the factory gates.

### The Energy Challenge

One of the most important issues for an industrial processor is energy.

A factory can have functioning machinery and sufficient raw materials but still struggle if energy costs are too high or electricity supply is unreliable.

BIPC has previously identified energy as one of the challenges associated with Taraku Mills.

In its September disclosure, the company said it had introduced Low Pour Fuel Oil at the facility and was working toward a dedicated 2-megawatt power supply. It also said a 5,000 KVA transformer was available. :contentReference[oaicite:14]{index=14}

The significance is straightforward.

Oil extraction and refining require industrial machinery to operate consistently.

Frequent interruptions can reduce output, increase costs and complicate production scheduling.

Energy costs also affect the final price of processed food products.

If a processor spends too much on power, the cost can eventually be reflected in its operating margins and product prices.

BIPC has said its energy measures are intended to reduce production costs.

Whether those measures deliver the expected savings will become clearer as the factory moves from testing into sustained commercial production.

### The Factory's Previous Problems

The current rehabilitation effort follows a long period in which Taraku Mills was not functioning normally.

BIPC said in September that when it took over the factory in 2023, less than five percent of the machinery was functional.

The company also said the facility lacked reliable power and industrial water supplies and had significant infrastructure problems.

It described the rehabilitation as a phased process intended to restore the plant before full commercial operations. :contentReference[oaicite:15]{index=15}

That history explains why the present test run is being approached cautiously.

Restarting a dormant industrial facility can expose problems that are not always obvious during rehabilitation.

Machinery may require further adjustment.

Electrical systems may need additional work.

Pipelines, pumps and other components may behave differently under continuous operating conditions.

The test phase provides an opportunity to identify such problems before the plant attempts sustained production.

### A Different Approach To Government-Owned Assets

BIPC's management has also presented Taraku Mills as part of a broader effort to change how government-owned commercial assets are handled.

Asemakaha has argued that government companies should operate as productive enterprises rather than simply existing as institutions that consume public resources.

He said the company wants dormant factories under its management to become operational and deliver measurable results. :contentReference[oaicite:16]{index=16}

The approach represents a shift in emphasis from simply owning an industrial asset to demonstrating that the asset can function commercially.

For Taraku Mills, that means production will ultimately be more important than rehabilitation announcements.

The factory will have to process raw materials, sell finished products, pay operating costs, maintain equipment and sustain a market.

It will also need to build confidence among farmers and other suppliers.

A factory that operates briefly and then becomes inactive again would not solve the structural problem it was intended to address.

### Why The Next Few Months Matter

The immediate timeline is now clearer.

The factory has begun test production.

Purification is underway.

Crushing is expected to follow.

Oil extraction and refining will come after that.

The plant management has said the finished Golden Soya Oil is expected to reach the market before the end of October. :contentReference[oaicite:17]{index=17}

That creates a measurable near-term target.

The question will not simply be whether machinery starts moving.

The more important question will be whether the facility can move from test production to stable commercial production.

That requires adequate raw materials, functioning machinery, reliable energy, quality control, financing and a market for the finished product.

The October target will therefore be an important early indicator of whether the rehabilitation has reached the stage at which the plant can begin operating commercially.

### What The Revival Could Mean For Soybean Farmers

If Taraku Mills establishes regular procurement, soybean farmers could gain an additional route to market.

The impact would depend on the volume of soybeans purchased and the terms offered.

Farmers could potentially plan production with a clearer understanding of industrial demand.

Aggregation centres could also make it easier for producers to combine their output and deliver larger quantities.

For a smallholder farmer, that can be important.

Selling a small quantity individually can involve significant transport and transaction costs.

Selling through a recognised aggregation structure can potentially reduce some of those costs and improve access to larger buyers.

However, farmers will still need to compare the available buying options.

The presence of one processor does not eliminate competition among buyers.

Instead, it can add another participant to the market.

A more competitive market can benefit farmers if buyers are actively competing for quality produce.

### Value Addition And Food Manufacturing

The project also fits into the wider conversation about value addition in Nigerian agriculture.

Nigeria produces large volumes of agricultural commodities, but the country continues to face challenges in processing, storage and manufacturing.

When raw materials are processed locally, more economic activity can occur within the country.

For soybeans, that can mean converting an agricultural commodity into edible oil and potentially other products.

The factory can therefore become a link between agriculture and manufacturing.

This is particularly relevant at a time when Nigeria is seeking to strengthen domestic production and reduce dependence on imported food and agricultural products.

BIPC said in its September disclosure that the Taraku project could contribute to reducing edible-oil import costs, projecting annual savings of more than $2.5 million at the planned scale of operation. That is a company projection, not a result that has already been achieved. :contentReference[oaicite:18]{index=18}

The distinction is important.

The savings will depend on actual production volumes, product quality, consumer demand, pricing and the amount of imported oil displaced.

The same applies to the company's employment and turnover projections.

They represent anticipated outcomes rather than established results.

### The Role Of Quality And Certification

Before a food product reaches consumers, quality and regulatory requirements also matter.

The factory's transition from test production to commercial sales will therefore involve more than producing oil.

The product must meet applicable quality and safety requirements.

BIPC previously said the mill would proceed toward SON and NAFDAC certification before full market rollout. :contentReference[oaicite:19]{index=19}

Those processes are important because edible oil is a food product consumed by households.

Quality assurance needs to cover the raw material, processing environment, refining process, packaging and finished product.

The factory's reputation will depend partly on consistency.

Consumers who buy the revived Golden Soya Oil will expect the product to meet an acceptable standard each time they purchase it.

That makes quality control an important part of the commercial revival.

### The Community's Role

The host community around Taraku has also become part of the story.

A youth leader and worker at the facility, Moses Iortuhwa, said the community welcomed the revival and expected it to create employment and stimulate economic activity.

He also said community members had faced the challenge of protecting the facility from vandalism while it remained dormant. :contentReference[oaicite:20]{index=20}

That community dimension matters because industrial facilities require local support.

Road access, security, labour, land use and relations between the factory and neighbouring communities can all affect operations.

A facility that provides employment and markets for local agricultural produce may generate stronger incentives for communities to protect it and support its continued operation.

But that relationship must be sustained through practical benefits rather than expectations alone.

### The Supply Challenge Ahead

The initial 300 tonnes of soybeans are enough for the test phase, but they are not enough to sustain a large industrial operation indefinitely.

The factory will require continuing supplies if production is to expand.

BIPC's earlier disclosures indicate that the company is already developing a farmer network and aggregation system to support that requirement.

It reported more than 2,800 registered soybean farmers and substantial quantities of raw materials being prepared for the operation. :contentReference[oaicite:21]{index=21}

The real test will be whether those arrangements remain functional once commercial production begins.

A processor needs raw materials throughout the year.

Farmers, meanwhile, have production cycles.

That means the company must plan procurement around planting and harvesting seasons and maintain storage capacity sufficient to bridge periods of lower supply.

The quality of stored soybeans will also matter.

Poor storage can result in losses, contamination or deterioration of raw materials.

The success of the aggregation centres will therefore be as important as the factory itself.

### What Farmers Will Be Watching

For soybean producers in Benue, several issues will determine whether the factory becomes a meaningful long-term buyer.

The first is price.

The second is payment reliability.

The third is how easy it is to deliver produce.

The fourth is whether the factory purchases consistently.

The fifth is whether quality standards are clearly communicated.

Farmers also need confidence that increased production will not leave them with unsold crops.

Those questions cannot all be answered by the start of test production.

They will become clearer as the plant moves through its first commercial cycles.

If Taraku Mills purchases consistently and pays farmers promptly, confidence in the supply relationship could grow.

If production interruptions occur frequently, farmers may continue to rely primarily on other buyers.

The relationship will therefore be built through performance over time.

### What Happens Next

The immediate next step is to complete the test-production process.

The 300 tonnes of soybeans already delivered are being prepared for crushing.

The plant management says crushing should begin shortly, followed by oil extraction and refining.

The factory is expected to operate initially at a reduced rate while its machinery is tested after years of inactivity.

If the process proceeds as planned, Golden Soya Oil could reach the market before the end of October. :contentReference[oaicite:22]{index=22}

The next phase will be the transition from testing to sustained commercial operations.

That will require continued raw-material supply and operational stability.

BIPC has also indicated that further rehabilitation and expansion will form part of the longer-term plan.

The company previously projected significant employment and turnover at full operation, but those figures remain targets that will have to be demonstrated by actual performance. :contentReference[oaicite:23]{index=23}

### The Larger Lesson For Nigerian Agriculture

Taraku Mills illustrates a central challenge in Nigerian agriculture: producing crops is only one part of building a strong agricultural economy.

Farmers also need markets.

Processors need raw materials.

Consumers need affordable and reliable food products.

Manufacturers need dependable energy and infrastructure.

Transporters need functioning logistics networks.

Financial institutions need commercially viable agricultural businesses to finance.

When these parts operate separately, agricultural production can struggle to generate its full economic value.

When they are connected, the potential benefits are broader.

A soybean farmer can sell to an aggregator.

The aggregator can supply a processor.

The processor can manufacture edible oil.

The finished product can move through distributors to consumers.

Workers can earn wages throughout the chain.

The farmer can then reinvest in another production cycle.

That is the value-chain model that the Taraku revival is attempting to strengthen.

### A Test For Agro-Industrial Revival

The start of test production is an encouraging operational milestone, but it should not be confused with the completion of the revival.

The factory still has to demonstrate that it can operate continuously and commercially.

It has to secure raw materials.

It has to manage energy costs.

It has to maintain machinery.

It has to meet regulatory standards.

It has to sell its finished products.

And it has to build a sustainable relationship with farmers.

Those are the conditions that will ultimately determine whether Taraku Mills becomes a durable agricultural processing centre or merely experiences another temporary return to activity.

The history of dormant industrial assets in Nigeria shows why sustainability matters.

Rehabilitation expenditure has value only when an asset remains productive after the initial reopening.

For Benue farmers, the immediate hope is that Taraku Mills will become a dependable buyer.

For the state government and BIPC, the objective is broader: demonstrate that a previously dormant public industrial asset can return to productive operation.

For consumers, the potential benefit is an additional source of locally processed vegetable oil.

For workers and surrounding communities, the expectation is increased economic activity and employment.

### From Test Run To Commercial Reality

The coming weeks will provide the first serious evidence of whether those expectations can be met.

The factory has raw materials.

Its machinery is being tested.

The rehabilitation programme has moved into production.

The management has set an October target for the return of Golden Soya Oil to the market.

The next stage will be to show that production can continue after the first batch.

That will require a dependable supply chain from farmers to the factory.

It will require technical management capable of keeping machinery operational.

It will require energy solutions that keep production costs manageable.

And it will require a market capable of absorbing the finished product.

The role of farmers will be particularly important.

BIPC has already called on soybean and other grain producers to increase output in anticipation of the revived processing capacity. :contentReference[oaicite:24]{index=24}

If farmers respond with increased production, the factory will have to demonstrate that it can purchase and process the additional supply.

That interaction between production and processing will determine whether the revival becomes a genuine agricultural value-chain development.

### A New Market Opportunity, But Not Yet A Finished Story

Taraku Mills has now moved beyond rehabilitation on paper and into physical test production.

The delivery of approximately 300 tonnes of soybeans has allowed the plant to begin testing its processing systems, while management prepares for crushing, oil extraction and refining.

The facility is beginning at a reduced production rate, reflecting the need to restore machinery gradually after years of inactivity. :contentReference[oaicite:25]{index=25}

For Benue's soybean farmers, the development offers the prospect of a stronger local market.

For the state, it offers an opportunity to convert an idle industrial asset into a functioning component of the agricultural economy.

For consumers, it could eventually mean the return of locally produced Golden Soya Oil.

But the decisive evidence will come after the test run.

The factory will have to prove that it can sustain production, obtain raw materials, meet quality requirements and operate commercially.

The farmers will have to determine whether the new market delivers reliable and competitive opportunities.

And BIPC will have to demonstrate that the rehabilitation can translate into long-term productivity.

The first 300 tonnes of soybeans are therefore more than a shipment of raw material.

They represent the first major production test for a factory that Benue hopes can reconnect its farmers to industrial processing after years of inactivity.

If the plant successfully moves from test production to stable commercial operations, Taraku Mills could become an important link between Benue's soybean fields and Nigeria's food-processing market.

For now, however, the most immediate milestone remains the same: complete the test run, process the first batch successfully and bring the promised Golden Soya Oil back to the market before the end of October.

That will be the first practical measure of whether the revival has moved from rehabilitation to sustainable agricultural production.