Arla Foods expands Nigeria bet with local yoghurt production

Arla Foods has started producing yoghurt in Nigeria, expanding local manufacturing as consumer goods companies seek to manage currency volatility and rising import costs.

The farmer-owned cooperative, known locally for its Dano Milk brand, said it has launched “Cool Cow Yoghurt,” its first yoghurt made in the country. The product is being produced at a newly commissioned facility in Kaduna State using fresh milk sourced from the Arla-Dano farm.

The step moves part of Arla’s Nigerian operations beyond imported milk powder into fresh milk processing, aligning with government efforts to deepen backward integration in agriculture and reduce reliance on dairy imports.

“We’re thrilled to introduce Cool Cow Yoghurt to Nigeria,” said Ifunanya Obiakor, head of marketing at Arla Foods Nigeria. “This launch is a big step in our journey to make high-quality, locally produced dairy more accessible.”

Nigeria consumes more dairy than it produces, depending largely on imported milk derivatives. That has left manufacturers exposed to exchange-rate swings that have driven up costs across the food sector since currency reforms took hold.

By sourcing milk locally, Arla is betting it can build a more resilient supply chain while appealing to consumers increasingly drawn to fresh and minimally processed products.

The yoghurt will be available in sweetened and unsweetened variants in 300ml and 470ml bottles. Obiakor said the product reflects the company’s focus on quality and local production. “It’s made right here in Nigeria,” she said.

Nigeria’s yoghurt market remains fragmented, with regional producers competing alongside multinational brands. While urban demand has grown, high inflation continues to strain household budgets, making pricing and distribution critical to success.

Arla’s Kaduna investment adds to its existing dairy farming initiatives in northern Nigeria and signals a longer-term commitment to building out local milk collection and processing capacity in West Africa’s largest economy.

Wasiu Alli

Wasiu Alli is a business, economics cum data journalist with strong expertise covering macro trends, capital markets, government policies, corporate earnings and comparative economics analysis. Alli turns raw data into trends that not only tells compelling stories but nudges investors to make valued and informed decisions. He’s an alumnus of Lagos State University and trained at Lagos Business School. He formerly heads the Companies and Markets desk at BusinessDay where he writes and supervises the production of well researched articles on earnings updates, corporate sectoral comparisons, market intelligence as well as interviews with C-suite executives.