Danone’s Fan Milk establishes dairy farm in Nigeria to facilitate knowledge transfer, boost local milk production

NIGERIA – French multinational dairy company, Danone, has undertaken its first investment in dairy farming in Sub-Saharan Africa, through the establishment of a modern dairy farm in Ogun State, Nigeria.

The investment undertaken through its subsidiary Fan Milk, is aimed to boost local milk production in the West African country.

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This is in support of Central Bank of Nigeria’s backward integration policy aimed to boost local dairy production in the country in pursuit to enhance local supply and further discourage the country’s reliance on imported dairy products.

The maker of well-known frozen dairy and ice cream brands Super Yogo, Fan Vanille, Fan Ice and Go Slo, revealed that the newly completed establishment will feature a world-class dairy farm and training institute, bringing the expertise of the parent company, Danone, to the fore.

The company’s Managing Director, Mr Ferdinand Mouko stated that the investment falls in line with the organization’s business development strategy and is committed to advancing its business in a socially and economically beneficial manner.

 “Our objective is to ensure that we partner with local dairy farmers in the Odeda community in Ogun State to accelerate the development and expansion of the local dairy market while also creating the social and economic impact of improving the livelihood of the ecosystem within which we operate,” he said.

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Nigeria has a cattle population of 20 million that produces 600 million litres per year against a consumption capacity of 1.3 billion tonnes of milk annually.

Mr Olayinka Akinkugbe, the Chairman of the Board added that the intention to partner with Ogun State followed the company’s close observation of the laudable efforts the state government had put forth into supporting and partnering with local and foreign investors.

“The company will leverage the key learnings for piloting its project in Nigeria with Danone’s business expertise, which spans over 100 years being actively involved in the dairy value chain with great success,” he emphasised.

The investment by Danone in the local economy follows recent announcement by Arla Foods, one of the largest dairy cooperatives in Europe, inking a joint-venture partnership with diversified consumer goods company, Tolaram Group, for establishment of Danish-designed state-of-the-art commercial dairy farm in Kaduna State.

Construction of the dairy farm, which has since started, is expected to be completed by the end of the year.

The land mark initiative is part of the nation’s efforts of increasing milk production to 1.7 billion litres by 2024.

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Nigeria has a cattle population of 20 million that produces 600 million litres per year against a consumption capacity of 1.3 billion tonnes of milk annually.

This forces the West African country to spend US$1.5 billion every year in dairy products importation to meet rising demand for milk and milk products.

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