In a new public-private partnership in Nigeria, Arla Foods has committed to helping 1,000 small scale farmers create better livelihoods, while strengthening its business in the country.
Arla’s new Memorandum of Understanding with Kaduna State and the Nigerian government will see the government offer 1,000 nomadic dairy farmers permanent farm lands with access to water and the opportunity to expand their farms. Securing the infrastructure such as roads, power and water, which are necessary to process and bring the milk to market, is also part of the public commitment.
Arla, as commercial partner will purchase, collect, process and bring the local milk to market.
Nigeria’s population is among the fastest-growing of any nation in the world, and there is growing consumer demand for affordable nutrition in the country. The Nigerian dairy industry is currently able to supply less than 10 per cent of the country’s current demand for dairy products, a gap that is increasing exponentially as the population grows over the next decades.
Arla’s business strategy aims to strike a balance between the development of the local dairy sector and imported milk and dairy products.
“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,” says Tim Ørting Jørgensen, executive vice president and head of Arla Foods International.
The project will primarily be funded by loans provided by the Central Bank of Nigeria and guaranteed by the local state. As the commercial partner, Arla will invest in establishing milk collection centres, which wiill be pivotal to Arla’s role as a processor of the milk produced by the farmers.
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