Dairy giant Arla has entered into a new public-private partnership in Nigeria to boost efforts in developing long-term sustainable dairy industry in the country.
Arla has signed a Memorandum of Understanding with Kaduna State and the Nigerian government.
This will help around 1,000 small scale farmers to create better livelihoods while strengthening the dairy business in the country, the company said, including offering nomadic dairy farmers permanent farmlands with access to water.
Commercial Partner
Arla will be the commercial partner for purchasing, collecting, processing and bringing the local milk to the market, and will invest in setting up milk collection centres.
The demand for affordable nutrition is increasing in Nigeria, with its population projected to reach close to 400 million people by 2050.
"As a company with a history of successful collaboration on local dairy development projects and a long-term commitment to our Nigerian consumers, customers and partners, we are delighted about this new partnership, because it will make a real difference in many farmers’ businesses and lives," said Tim Ørting Jørgensen, executive vice-president and head of Arla Foods International.
Striking A Balance
The partnership, which Arla claims is the first of its kind in terms of scale in Nigeria, is part of its business strategy to meet consumer demand in the country by striking a balance between the development of the local dairy sector and imported milk and dairy products.
Kaduna State and the Nigerian Government have pledged to improve the condition of the nomadic farmers by providing them a permanent base and farms.
The project will primarily be funded by loans provided by the Central Bank of Nigeria and guaranteed by the local state, the dairy giant said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
