Nigeria’s milk production has grown from 229,000 metric tons in 1972 to 700,000 metric tons in 2021, according to the federal ministry of agricultural and rural development.
The country’s dairy industry is projected to grow by 6.56 percent in the next five years to hit $27 billion in 2028, experts say.
Whereas fresh milk production in Nigeria annually hovers around 560,000 to 570,000 litres, the country’s demand for the product is estimated at about 1.7 million tons per year, leaving a huge demand gap that must be bridged by local and foreign investment.
In a move targeted at bridging this gap, Arla Foods recently commissioned a dairy farm in Kaduna, Northwest Nigeria. Arla Foods, the fifth-largest dairy company in the world, operates with a philosophy of producing natural and quality dairy products which dates back to the 1880s when dairy farmers in Denmark and Sweden joined forces with one common goal to create and provide the best dairy products.
Over the years, Arla has combined traditional craftsmanship and world-class technologies to ensure its products remain closer to nature, from farm to fridge. The Dano Milk maker inaugurated its state-of-the-art Kaduna dairy farm towards the sustainability of milk production in Nigeria. Located in Damau, a village in Kubau Local Government Area of Kaduna, the farm, the first of its kind in Nigeria, aims to create the future of dairy in Africa’s biggest economy.
The farm, according to Arla Foods, covers a 400-hectare land, with the capacity for 400 milking cows and 1,000 animals in total, and is currently home to 216 Danish Holstein cows, which arrived in Nigeria in May 2023, and are settling well into their new environment.
At the commissioning of the farm in May, Nasir El-Rufai, the immediate past governor of Kaduna State, described it as a significant milestone and game-changer for the dairy sector in Nigeria.
El-rufai extolled the management of Arla Foods for having faith and confidence in Nigeria and the Kaduna State government, especially at a time when the nation is experiencing harsh economic times.
The former governor said that the Arla Dairy Farm was another testament to the commitment of the Kaduna government to collaborating with private organisations and providing the enabling environment for businesses to set up and thrive in the state. He urged the new governor of the state, Sani Uba, to continue to support Arla and other companies with investments in the state for economic prosperity.
Simon Stevens, the executive vice president, Arla Foods International, on his part, described the completion of the farm as a massive achievement for Arla Foods in Nigeria and globally, noting that this success exemplifies the significance of solid partnership and the vast potential available in Nigeria.
He informed that the project was conceived in line with the quest to achieve a number of United Nations’ Sustainable Development Goals, including 2, 8, 12, and 17.
“This milestone symbolises what can be achieved with strong partnerships. We can see how the contribution of the Kaduna State government, the Federal Ministry of Agriculture and Rural Development, non-governmental organisations, the farming community, and many more have helped to deliver a big project.
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“I’m happy that many of my colleagues are celebrating this joyous occasion in Nigeria and at the global headquarters in Denmark. And when you look around at these facilities, I hope you are filled with pride as I am, Stevens said.
He believed that the achievement not only symbolises the massive potential Arla sees in Nigeria but an exciting journey in the country’s quest for quality dairy products.
“We have been part of this journey for quite some time, and we are extremely committed to continuing to play a part and contributing to the development of the dairy industry,” said Stevens.
He added that the farm, delivered at an investment cost of over 10 million Euros, will serve as a place of milk production and an epicenter of dairy farming knowledge.
Sune Krogstrup, the Danish ambassador to Nigeria, is no less excited. According to Krogstrup, the project demonstrates Arla Foods’ commitment to boosting the local dairy segment of the agricultural value chain. This, he believed, will positively impact the economy of Kaduna State and contribute significantly to Nigeria’s gross domestic product (GDP).
Anna Månsson, head of Arla Foods West Africa, said the inauguration of the farm is a culmination of a series of events that began with the signing of a lease agreement with the Kaduna State government in 2021, resulting in the securing of farmland and followed by construction work.
Månsson also noted that the state-of-the-art dairy farm is the first of its kind in Nigeria and poised to define the future of dairy in the country.
Månsson said that the farm would employ over 40 people directly and serve as a means of livelihood to Nigerians, especially those within the Damau community in Kaduna. The farm, according to her, is expected to produce 1.6 million kg of milk in 2024, with a target of 4 million kg annual production.
Similarly, Steen Futtrup, vice president of finance for the international zone, Arla Foods, stated that the official opening of the farm is a reaffirmation of the company’s commitment to Nigeria. He expressed optimism that the farm would make a significant impact on the local dairy industry.
Peder Pedersen, managing director, Arla Nigeria, said the project, which sits across 400 hectares of land, is designed to ensure optimum animal welfare and productivity.
Pedersen noted that the farm is home to 216 Danish Holstein cows, which arrived a few days ago and are settling well into their new environment. According to him, the Holstein breed, known to have a higher yield per cow than local breeds, is expected to produce 5 million kg of milk per year at the farm’s full capacity.
He stated that the farm has state-of-the-art technology that offers comfort for animals and helps a great deal in producing high-yielding milking cows.
Tamar Nandul, managing director, of Kaduna Markets Management and Development Company, said the agency was proud to be associated with Arla Foods and the value addition to Kaduna State investment.
Nandul acknowledged that the farm was the “most advanced single farm in Nigeria” adding that “this project would go a long way to improve profitability for herders, revolutionise the state’s dairy value chain and bring about permanent solutions to the herder-farmer crisis.”
Excited at the development, Ahmed Nuhu Bamalli, the Emir of Zazzau, who witnessed the commissioning, said he was proud to be associated with the massive investment. He believed the project would bring about economic transformation to the people of Kaduna State and beyond.
“I am happy to have witnessed many strategic investments in my domain over the last few years. This kind of investment – Arla Farm, can only be found in other climes, but I am glad I am witnessing such in my reign. On this basis, I would like to say a big thank you to Arla Foods, and the Kaduna State government for this investment,” Bamalli said.
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