BY Oluseyi Awojulugbe
Outspan Nigeria Ltd, an Olam Group subsidiary, has signed a memorandum of understanding with the Kano dairy and cooperative union for milk collection.
According to a statement by the company, the Kano dairy consists of 74 cooperative societies with 12,000 members.
“As part of this MoU, Olam Dairy aims to develop and execute a backward integration plan 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 bringing to bear its experiences garnered from its forays in Russia and Uruguay.”
The MoU signing ceremony was moderated and witnessed by Adamu Abdu Faragai, permanent secretary of the Kano state ministry of agriculture who represented the Kano state deputy governor; and Mohammed Shehu, a director from the federal ministry of agriculture and rural development who represented Sabo Nanono, the minister.
Praveen Paulsamy, head of Olam Diary and Usman Abdullahi, chairman of Kano dairy cooperative union, perfected the signing.
The duo agreed to ensure that milk production in terms of regularity is enhanced and the pricing is fair, equitable and sustainable.
Olam Nigeria said Outspan Nigeria Ltd, its dairy arm, will help facilitate the setting up of educational initiatives under a dairy development programme (DDP) which will cover topics like lifecycle management, water management, feed management and artificial insemination.
“The programme will be run with the objective of ensuring long-term sustainable dairy development in the region, improving the livelihood of farmers, reducing dependence on imported raw material and increasing employment opportunities for Kano residents,” it said.
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