Fan Milk, Obasanjo Farms partner to expand dairy farming in Nigeria

Fan Milk Plc, a subsidiary of Danone, has announced a strategic partnership with Obasanjo Farms Nigeria Limited, to expand dairy farming and promote local sourcing in Nigeria.

The farm, situated in Iseyin, Oyo State, will produce 300 heifers within the first year of the project and it is expected to double the number by the end of December 2026 — while Fan Milk will import 100 pregnant heifers from Egypt.

Fan Milk will offtake the fresh milk produced according to the terms of the 5-year partnership agreement and will provide training and technical capacity building for the personnel.

According to Fan Milk, the collaboration will create employment opportunities, particularly in rural areas, as both companies are committed to engaging local communities to foster positive relationships, address social concerns, and promote responsible corporate citizenship.

Olusegun Obasanjo, former president and chairman of Obasanjo Farms, expressed excitement over the partnership.

“We are excited to partner with Fan Milk PLC to drive forward dairy farm expansion and local sourcing initiatives,” Obasanjo said.

“By investing in training and capacity-building programs for local farmers, we will empower communities, enhance productivity, and contribute to the development of Nigeria’s agricultural sector.”

Speaking on the partnership, Olusegun Ariyo, project lead for Obasanjo Farms, expressed satisfaction in teaming up with Fan Milk for this significant endeavour.

Ariyo said the collaboration will help realise the ambitions of Obasanjo Farms for the Nigerian dairy sector.

Herve Barrere, general manager of Danone Sub-Saharan Africa, underscored the significance of the partnership for the advancement of the agricultural sector.

“The partnership emphasises the importance of sourcing raw materials locally, empowering local farmers, improving their livelihoods, and contributing to the growth of the agricultural sector,” Barrere said.

On his part, Kayode Adebiyi, managing director of Fan Milk Plc, said the partnership is designed to leverage the strengths of both companies to enhance local dairy production, reduce import dependency, and foster sustainable agricultural practices.

Olakunle Olusanya, director, legal public affairs, and general secretary at Fan Milk, highlighted the company’s dedication to promoting sustainable dairy growth, enhancing local food security, and improving the business environment in Nigeria.

Fan Milk said the partnership marks a significant milestone in the company’s commitment to backward integration, following the successful launch of its model dairy farm in Odeda, Ogun state, and training for local dairy farmers in the Odeda Dairy Training Institute in 2022.

The company said it also aligns with some of the current government administration’s 8-point agenda, including ensuring food security, promoting economic growth, job creation, and ending poverty.