Dairy: Arla Invests 10 Million Euros in Damau Farm

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From,:Femi Oyelola in Kaduna

Governor Uba Sani has pledged that his administration will enhance the livestock industry, address infrastructure deficits, facilitate market access, and attract investment to the sector.

The Governor announced that Arla Foods has invested 10 million Euros to establish a state-of-the-art dairy facility at Damau Household Milk Farm, located in the Kubau Local Government Area, in 2023.

Speaking at the Arla-Dano Open Day on Wednesday, represented by the Secretary to the Kaduna State Government, Dr. AbdulKadir Muazu Meyere, he stated that Arla aims for a milk output target of 4-5 million kg annually at full capacity.

According to the Governor, there has been a notable increase in local milk production along with the creation of both direct and indirect jobs at Arla Farms since his administration took office.

Governor Uba Sani highlighted that his government has implemented a robust institutional framework to ensure sustainability, expansion, and investment in the agricultural sector.

“In the livestock subsector, Kaduna State has the Kaduna State Livestock Regulatory Authority (KADLRA), the Kaduna State Livestock Transformation Company, and the Kaduna Ranch Development Company, all designed to work in synergy,” he added.

The Governor expressed his enthusiasm for unveiling the Nigeria Dairy Center of Excellence, the Sedentarization and Climate Change Resilience in Nigeria (SCREEN) Project, and the commissioning of a yogurt factory.

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He mentioned that these initiatives will support his administration’s efforts to empower smallholder farmers by equipping them with modern techniques and technologies to improve both milk yield and quality, as well as supporting local milk sourcing, which translates into more income for farmers, more jobs for youth, and more nutritious products for the community.

“We hope that the multistakeholder collaboration that has given rise to the Damau Milk Farm Project will not only help revitalize the project but also stimulate sustainable economic growth in Nigeria’s dairy value chain, with Kaduna State leading the way,” he said.

At the event, the Minister of Livestock Development, Alhaji Idi Mukhtar Maiha, emphasized that Arla Farms is a result of the Federal Government’s policy on local content development and backward integration.

Representing President Bola Tinubu, the Minister commended the federal and Kaduna state government officials, as well as Arla, for this mutually beneficial initiative.

He lamented that Nigeria currently produces only about 0.7 million liters of milk annually, which falls significantly short of meeting the population’s nutritional needs.

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“Our average per capita consumption is 8.7 million liters of milk per year, which is not only well below the global average but alarmingly lower than the World Health Organization’s recommended intake of 210 liters per person annually,” he stated.

“At the farm level, the productivity gap is equally concerning; the average milk yield of our indigenous cows ranges from 0.5 to 1.5 liters per day, compared to the global average of 6.6 liters.

“Furthermore, the country spends over $1.5 billion annually importing milk and dairy products, despite having millions of cattle and capable producers. This paradox must be addressed,” he assured.

According to Alhaji Idi Mukhtar, the Ministry of Livestock Development was established to unlock the potential of Nigeria’s livestock value chains, reduce dependency on imports, mitigate farmer-herder conflicts, and ensure nutrition and prosperity for citizens.

“Today, that vision is coming to fruition through investments such as Arla Farm, along with collaborations and reforms that are already yielding results,” he remarked.

The Minister noted that “the Damau area is becoming Nigeria’s dairy hub, thanks to key dairy interventions, including Arla Farm, the Damau Household Milk Farm, and various Dairy Development projects.”

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He explained that the Damau Household Milk Farm, initiated by the Kaduna State Government, is being implemented in collaboration with investors and development partners.

The collaboration involves the settlement of 1,000 households and the provision of essential production items, including improved cows, pasture, veterinary services, and other social amenities.

“Arla serves as the off-taker of milk from the cows. To ensure success, the Danish Government is sponsoring two dairy development projects aimed at building the capacity of local producers and improving their livelihoods.

“One project, the Partnership for Green and Productive Dairy in Nigeria, focuses on promoting climate-resilient dairy production among the beneficiaries of the Damau Household Milk Farm.

“The second project, titled Sedentarization and Climate Change Resilience in Nigeria, aims to study and document the lessons learned from the Damau Household Milk Farm,” he concluded.

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