Danish company, Arla, invests in Nigerian dairies

At a time when investment portfolios are pulling out of Nigeria, Arla Foods, makers of Dano Milk and Lupark Butter, is settling in, and investing in local dairy production.

This was disclosed during the visit of a Danish business delegation to Nigeria facilitated by the Danish ministry of foreign affairs.

Arla released a statement on Monday to express its “official commitment” to investing in local dairy production in Nigeria and sharing knowledge about agricultural practices and other aspects of dairy production that will improve the local raw milk production and quality in Nigeria.

At the signing of a Memorandum of Understanding, Steen Hadsbjerg, head of Arla’s regional office in sub-Sahara Africa, revealed that the target is to contribute to a sustainable dairy sector development and growth in Nigeria.

“In order for Arla to have a long-term successful business in Nigeria, it is important that we engage in the development of the local dairy sector,” he said.

“The Nigerian government looks very positive on the companies that commit to taking a local responsibility and help create a better balance between imported and locally produced dairy products in the market.”

He further disclosed that Arla had begun talks with specific local farmer groups to commence partnerships in which it could invest and contribute with know-how and insights to help improve local dairy production.

“Nigeria is one of the biggest markets for dairy products in Africa. For Arla to succeed in Africa, we must succeed in Nigeria, he continued.

“The population is growing at a rate of two to three percent per year, and people are young, ambitious and increasingly well-educated.”

The MOU is a natural consequence of Arla’s engagement in ‘The Milky Way to Development’, an alliance led by CARE to develop a socially, environmentally and economically sustainable market for milk in West Africa.

Nigeria is one of the six markets in which Arla plans to concentrate under a programme dubbed, ‘Strategy 2020’ announced by the company in December 2015.

This move by Arla is in fulfillment of the promise of Peder Tuborgh, its chief executive officer, that it would be stepping up its investments in Nigeria.