News

Arla commits to Nigeria

3 Mar 2016

Arla has officially committed to investing in local dairy production in Nigeria and to sharing knowledge about agricultural practices and other aspects of dairy production that will improve local raw milk production and quality.

Arla has officially committed to investing in local dairy production in Nigeria and to sharing knowledge about agricultural practices and other aspects of dairy production that will improve local raw milk production and quality. The company said that the purpose is to contribute to a sustainable dairy sector development and growth in Nigeria.

The commitment was formally given as director of Arla’s regional office in Sub Saharan Africa Steen Hadsbjerg signed a Letter of Intent during a Danish business delegation to Nigeria. The letter was presented to the Nigerian Minister of Agriculture, who invited further dialogue with Arla.

“In order for Arla to have a long-term successful business in Nigeria, it’s important that we engage in the development of the local dairy sector,” said Hadsbjerg. “The Nigerian government looks very positively on the companies that commit to taking a local responsibility and help create a better balance between imported and locally produced dairy products in the market.”

Hajsbjerg is currently in detailed dialogue with a local Nigerian dairy company and expects to disclose further details shortly.

Arla said that the Letter of Intent is a natural next step in its engagement in The Milky Way to Development, an alliance led by CARE to develop a socially, environmentally and economically sustainable market for milk in West Africa.

In 2015, Arla says it made a comprehensive investigation into Nigeria to assess how its increasing business activities in the country impact the local dairy sector and if there are any negative effects on the human rights of the local dairy farmers. Arla concluded in its report that the dairy sector in Nigeria is suffering from a number of barriers and that Arla’s presence in the market will be linked to a continuous under-development of the Nigerian dairy sector if looked at in a broader perspective. In order to mitigate potential negative impact in the long run, Arla has decided to engage in the development of the local dairy value chain.

In Arla’s new Strategy 2020 the company expects to triple its revenue from consumer sales in Sub-Saharan Africa by 2020 (most of which is expected to come in Nigeria and West Africa). Arla's revenue in the region in 2015 was €75 million.