Consumers are already constrained with the weak income and purchasing power in the economy, unemployment keeps rising and Nigerians are getting poorer.
To expiate the already anaemic situation of consumers, the Central Bank of Nigeria (CBN) plans to restrict Foreign Exchange (FOREX) allocation on the importation of milk and its products in a abide to drive importers to produce milk locally.
And the understanding of this policy according to consumer experts means that prices of milk will increase because importers of milk products will have to source dollars from the black market or the parallel market which is more expensive than the CBN’s window and pass the cost to the final consumer.
Also the country does not have the local capacity and infrastructure to produce milk in quantities that will feed a teeing young population that crave for milk consumption.
Regrettably, mothers and children from the ages of 6 months -7 years old will be at the receiving end with this new policy. Of course adults can go for milk but they can take tea without it. On the other hand, children will find it practically difficult to cope without milk.
Eronmosele Aziba, Consumer analyst, Tellimer Group, said, “In my own opinion, mothers will be most affected because they don’t have choice but to adjust their budget to accommodate the increase in milk price. There is no other alternative to milk.”
“They have to give their babies and kids milk because it is essential for them. You don’t expect mother who after stop giving breast milk for after six months to give them solid food. They need something that they can easily take in,” Aziba further said in a telephone interview.
Milk contains lots of nutrients like calcium for strong bones and teeth, protein, for growth and energy, vitamin A, for eyesight and immune function, vitamin B12, for production of healthy cells, Iodine, to regulate the metabolism, magnesium, for muscle function and phosphorus, for energy release.
Sola Ogunleye, an accountant and a mother of three kids ranging ages 1-5 said, “I will just have to cut down on my expenses because my kids still need it because it is essential for them. They use it for their breakfast to eat cornflakes, Golden Morn, Cornflakes, Oat and tea. It makes them brighter and their brain more enlighten in the morning.”
In most milk adverts or all, mothers and children are usually targeted by baby milk formula companies to drive sales and exposure.
And mothers are increasingly aware of the health benefits of consuming milk products which account for essential micro nutrients needed for child development.
“If the prices increase i will buy it for my two baby girls. It is a good source of protein and calcium. So they must have it. It must be in their daily diet,” Funmi Akinola, a businesswoman said.
Ayorinde Akinloye, a consumer analyst at CSL Stockbrokers said that it is a necessity for kids as it is a vital part of babies, toddlers and growing children’s diet, thus mothers have to keep buying even at higher prices.
According to a report by Chapel Hill Denham, leading independent investment banking, securities trading and investment management firm, malnutrition challenge for children under the age of five is one of the major implication of the proposal FX ban to milk imports.
From the United Nations Children Fund (UNICEF), Nigeria has the second highest burden of stunted (malnourished) children in the world, with a national prevalence rate of 32 percent among children under five.
This essentially means that, 32 of 100 children under the age of five in Nigeria suffer from severe acute malnutrition (SAM).
And higher milk prices may compound the malnutrition challenges in Nigeria with an estimated extreme poverty rate of 44 percent, according to the world poverty clock
According to Euromonitor International, an independent global market research company that provides strategy research services for the consumer markets, Nigeria’s dairy consumption is expected to grow drastically owing to its large younger population who are craving for more nutritious food products.
“With strong population growth, particularly among children and young people, drinking milk products in Nigeria is expected to grow well over the forecast period,” the report said.
“A growing population is increasingly demanding greater nutrition through milk and powder milk offers convenience as well as affordability,” the report states.
Currently, Nigeria dairy industry is mainly dominated by imported milk with local manufacturers accounting for about 10 percent.
Nigeria imports over 95 percent of finished and raw milk. The country spends an average of $481 million (N173bn) on milk importation yearly, accounting for six percent of total food import in 2016, according to the country’s livestock policy document.
Nigeria’s national dairy output per annum is 700, 000 metric tons while the national demand is put at 1.3 million metric ton annually, leaving a gap of 600,000MT, according to the Federal Ministry of Agriculture
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