TheCable

Vice-President Yemi Osinbajo says the Value4Dairy consortium, a group of five global players in the dairy industry, will increase domestic milk production capacity.

The consortium is made up of FrieslandCampina WAMCO, URUS, Barenbrug and Agrifirm.

In 2020,  the Central Bank of Nigeria (CBN) added milk and dairy products to the list of items not eligible for forex — as part of efforts to increase local production.

The CBN, however, exempted companies that have commenced investments in local milk production as part of the bank’s backward integration plan.

Speaking at the launch of the consortium on April 20, Osinbajo commended the commitment of the companies to improving local production of milk and other dairy products.

Osinbajo, who was represented at the event by Niyi Adebayo, minister of trade, industry and investment, said: “With FrieslandCampina WAMCO as the processor to deliver the end chain; this partnership will drive increased domestic consumption of processed milk and milk products and the expected industry growth.”

Also speaking at the launch, Sabo Nanono, minister of agriculture, expressed optimism that the consortium will drive inclusive engagement and positively influence the development of various national livestock initiatives at various levels of government.

He said the consortium brings to the dairy sector specialised milk collection and processing (FrieslandCampina WAMCO), better breeding (URUS), proper roughage production (Barenbrug) and fitting animal feed (Agrifirm).

In his remark, Ben Langat, the managing director, FrieslandCampina WAMCO Nigeria PLC, explained: “Over the past months, we have discussed with these partners on ways to accelerate the progress of the Nigerian dairy sector. Our goal is to invest in local business models to enable the dairy sector become self-sufficient and profitable throughout the entire chain.”

“Only a sector with a healthy return on investment can be self-sufficient and will survive in the long term. We are proud to state that these three professional companies with proven track records believe in developing the Nigerian dairy sector with FrieslandCampina WAMCO.

“They are top of the global expertise in the dairy sector with proven performance and excellent reputation as well as maintain world leading market positions.”

He noted that the four companies are already working on steps that will increase local milk production and processing; which will include combined infrastructures for the distribution of milk and semen.

They will also train farmers to succeed more with better cow semen, grass seeds and feed supplements.

According to him, the business model along the entire dairy chain is expected to become more efficient and attractive to further investments; with the ultimate ambition of promoting a thriving and self-sustaining dairy sector.