Danone’s Nigerian operating unit Fan Milk initiates backward integration program to boost dairy industry

Image Courtesy: Fan Milk Facebook page

NIGERIA – Fan Milk Plc, Nigerian subsidiary of multinational food-products corporation Danone, has partnered with the government of Ogun state to undertake a backward integration project to enhance local dairy production.

The initiative is in line with the Central Bank of Nigeria (CBN) policy to discourage the importation of dairy products like milk, yogurt, cheese and other milk derivatives of which the country spends about US$1.5 billion annually.

Under the project Fan Milk intends to develop a world-class dairy farm and technical institute at the Odeda Farm Institute, bringing the expertise of its parent company to the fore.

Danone is a world class, leading food and beverage company with recognized expertise in fresh dairy products in over 120 markets worldwide, including in Africa I.e. Morocco, Algeria, South Africa and Egypt and also, through joint ventures with local partners, Kenya, Uganda & Tanzania (Brookside) and Tunisia (Stial/Delice Danone).

“Our objective is to ensure that we partner with local dairy farmers in communities within Ogun State to accelerate the development and expansion of the local dairy market.”

Mr Ferdinand Mouko – Fan Milk Managing Director

The technical institute developed will train local dairy farmers and improve their skills while the dairy farm will also incorporate pasture development.

Fan Milk is confident that the plan will create positive social impact as it leverages the government’s support and the relevant experience Danone has developed along its journey in Africa.

“Our objective is to ensure that we partner with local dairy farmers in communities within 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,” said Fan Milk Managing Director, Mr Ferdinand Mouko

Fan Milk Plc. is one of Nigeria’s leading fast-moving consumer goods companies manufacturing ice cream, frozen dairy and ambient drinks in Nigeria and West Africa for nearly 60 years.

It has offices and distribution channels across the length and breadth of Nigeria and in sister companies across West Africa, namely in Ghana, Togo, Benin, Ivory Coast, and Burkina Faso.

The initiative is in line with the Central Bank of Nigeria (CBN) policy to discourage the importation of dairy products like milk, yogurt, cheese and other milk derivatives of which the country spends about US$1.5 billion annually.

Other than Fan Milk, FrieslandCampina WAMCO, another leading dairy processor in the country is also undertaking a backward integration plan debut Dairy Development Programme (DDP).

Through DDP the company has made huge strides in the dairy industry, recording an increase in fresh milk collection from farmers to hit an all-time high record of 40,000 litres of milk per day.

Meanwhile consumer goods manufacturer, Promasidor Nigeria has also recently invested US$5m (N2bn) in Ekiti State, Nigeria aimed to reactivate the Moribund Ikun Dairy Farm.

To further support local milk production, CBN entered into a partnership last year with four companies i.e. Friesland Campina WAMCO, Neon Agro, Chi Limited to invest in Bobi Grazing Reserve in Niger State.

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