Nigeria Must Overhaul Dairy Farming to Cut $1.5bn Milk Import Bill – Arla Foods MD Peder Pedersen

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Nigeria needs a comprehensive transformation of its dairy farming sector if it is to reduce the country’s dependence on imported milk, says Peder Pedersen, Managing Director of Arla Foods Nigeria.

With the nation spending over US$1.5 billion annually on dairy imports more than half of its milk consumption there is a mounting call for urgent reforms. Domestic production currently covers only a small fraction of demand, hindered by low-yield cattle breeds, inadequate feeding practices, limited pasture resources, and underdeveloped cold chain infrastructure.

Arla Foods is leading by example. At its Damau Dairy Farm in Kaduna State, the company has introduced 216 Danish heifers, upgraded forage systems, implemented strict biosecurity measures, and established local processing capabilities. These steps are intended to raise productivity and cut costs.

The Nigerian government has also launched several strategic initiatives under its National Dairy Policy (2023-2028) and the National Livestock Growth Acceleration Strategy (NL-GAS). These include importing improved breeds, registering new pasture species, and building out cold storage and milk collection networks.

Peder Pedersen emphasized that transforming the sector will require sustained public-private partnerships, investment in infrastructure, and training for farmers efforts he says are essential if Nigeria is to gradually replace its reliance on costly milk imports.

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