Local Diary Producers in Nigeria Lose billions of Naira Yearly as Multinationals Prefer Imported Milkadmin 7th February 2019 0 COMMENTS
According to the Sahel Consulting report on the Nigerian Dairy sector, local diary production makes up only 3% of milk produced locally. This is due to the cost of local milk as compared to cheaper imports. In 2018, imported milk was about 15% cheaper than local milk. Although Nigeria has the 4th largest cattle production in Africa estimated at 20 million cattle, formal dairy processors which control over 97% of the market prefer using imported milk as raw materials rather than local raw milk. Local diary producers continue to miss out in opportunities as Nigeria imported about 82.8 billion worth of dairy products in 2017 alone. Most of Nigeria’s milk imports come from the Netherlands.
Some of the challenges faced by local producers include limited access to water, quality feeds and fodder, limited access to veterinary services, use of hand milking practices as opposed to modern methods, and unfavorable competition from cheaper milk imports.
The report recommends creating a conducive enabling environment, and incentivizing investments along the value chain to facilitate raw milk aggregation, collection and evacuation to improve local production. It also recommends organising farmers into cooperatives to facilitate aggregation and incentivizing them to settle on established grazing reserves or ranches in order to reduce migration, seasonal variability and farmer and herders crisis that continue to plague Nigeria.
Dairy is an important source of protein and several key macronutrients. It forms part of the diet for most people all over the world particularly children.