Olam Group inaugurates two milk collection centres in Kano

Outspan Nigeria Limited, a subsidiary of Olam Group, has inaugurated two new milk collection centres (MCCs) and upgraded a bulking centre in Kano.

The centres were inaugurated in partnership with the Kano dairy co-operative union on August 7, 2021.

Olam said this is in line with its agriculture backward integration project (BIP) initiative to boost milk production in Nigeria.

As part of efforts to increase local production of milk, its derivatives and dairy products, the Central Bank of Nigeria had limited the number of companies involved in its importation to six.

In 2020, Outspan Nigeria signed a memorandum of understanding (MoU) with the Kano dairy and cooperative union for milk collection.

Olam said part of the agreement aims to develop and execute a BIP that seeks to enhance and support the dairy value chain in line with the federal government’s plan for self-sufficiency in the dairy industry.

“Olam plans to set up the infrastructure to enable and assist farmers of the Kano dairy union to collect, store and transport raw milk in a safe and hygienic environment,” it said.

In a recent statement by the agri-business conglomerate, it said: “Each milk collection center is equipped with state of the art equipment that ensures the integrity of the raw milk produce.

“Outspan also provides transport equipment including motorbikes and specially equipped tricycles that can effectively transport the raw milk.

“Outspan’s off-take agreement with Kano Dairy ensures liquidity for the farmers and a fair price for their produce”.

At the inauguration, Nasiru Yusuf Gawuna, deputy governor of Kano state, commended Outspan’s support for the dairy sector and asked stakeholders in the dairy value chain to cooperate and utilise all available opportunities to ensure economic growth in the state and Nigeria at large.

Praveen Paulsamy, Outspan Nigeria general manager, outlined a four-pronged action plan of the firm which includes establishment of MCC’s, pasture development, productivity improvement initiatives and a capacity building programme targeted at developing local talent.

In July, Olam reported that Outspan’s milk collection and aggregation pilot model in Kano is currently impacting the livelihoods of over 12,000 dairy farmers.

Kano state government had announced plans to establish 200 milk collection centres to supply and add at least 50,000 litres of milk daily to Nigeria’s dairy requirement.