Arla Foods makes commitment to invest in Nigerian dairy production
Arla Foods, the Danish dairy company and maker of Dano milk has officially made a commitment to investing in local dairy production in Nigeria and to sharing knowledge about agricultural practices and other aspects of dairy production that will improve the local raw milk production and quality. The company wants to contribute to a sustainable dairy sector development and growth in Nigeria.
Arla made the commitment when a delegation of Danish businesses led by the director of Arla’s regional office in Sub Saharan Africa, Steen Hadsbjerg, paid a courtesy visit to the Minister of Agriculture, Chief Audu Ogbeh, where the letter of intent was signed.
“In order for Arla to have a long term successful business in Nigeria, it’s important that we engage in the development of the local dairy sector. The Nigerian government looks very positively on the companies that commit to taking a local responsibility and help create a better balance between imported and locally produced dairy products in the market,” Steen Hadsbjerg said.
He further said that Arla has begun talks with a local Nigerian dairy company and expects to disclose further details shortly.
The letter of intent is a natural next step in Arla’s engagement in The Milky Way to development, an alliance lead by CARE to develop a socially, environmentally and economically sustainable market for milk in West Africa.
In a comprehensive review and analysis of the Nigerian dairy sector carried out by Arla in 2015, the company discovered that the sector was suffering from a number of barriers and that the best way to address the issues was for the company to engage in the development of the local dairy value chain.
In Arla’s new strategy 2020, the company wants to triple its revenue from consumer sales in Sub Saharan Africa by 2020 (most of which is expected to come from Nigeria and West Africa). Arla’s revenue in the region in 2015 was €75m.