Arla Foods signs deal to develop Nigerian dairy sector

Posted: 27 February 2023 | | No comments yet

European dairy cooperative Arla Foods and the Nigerian government have signed a deal to continue efforts to develop Nigeria’s dairy sector.


Arla Foods has announced that together with the Nigerian government, a memorandum of understanding has been signed to continue efforts to develop the Nigerian dairy sector further.

According to Arla, the signing took place at its Innovation Centre in Aarhus, Denmark, whereby a delegation from The Federal Ministry of Agriculture and Rural Development (led by Dr Ernest A. Umakhihe) along with representatives from Arla Foods signed a new five year agreement that “builds on the foundation from previous years”.

Making changes, the new deal means that the parties have committed to “developing the local dairy sector” through promoting cooperative business structures among nomadic herders, offering training and knowledge sharing opportunities, continuing product development and focus on sustainability and the creation of employment and better livelihoods for local dairy farmers.

“The Nigerian dairy sector has great potential and the combination of an entrepreneurial Nigerian mindset, a growing economy and our dairy farming expertise makes this a fruitful partnership for everyone involved,” said Peder Pedersen, Senior Director and head of Arla Nigeria.

“Being able to support the current demand with our products while at the same time contributing to the development of the local sector in a sustainable way is both practical and meaningful, and I am very happy that we have signed a new agreement.”

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Meanwhile, Umakhihe highlighted that he thinks there is “power” in long lasting relationships such as that between Arla Foods and the Nigerian government. He also claimed that the partnership has created “great results for the sector”.

When asked about the importance of continuing the partnership, Umakhihe said: “The continuation is very much key because you are looking at the possibility of making the collaboration more robust.

“Being able to open up new opportunities and at the same time cover existing gaps in our sector, which we and Arla Foods have identified together.”

Umakhihe went on to explain that “signing a new five year agreement with Arla Foods bring a lot of opportunity for the Nigerian dairy industry as we continue to develop our sector exploring backwards integration and learning from one of the global leading players like Arla Foods”.

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