Nigeria Lags Behind in Global Milk Production, Spends Over $1.5bn On Milk Import Annually
Nigeria’s daily milk production average of 0.5 to 1.5 litres by pastoralists and eight litres by managed pastures has been described as a far cry from the global average of 6.6 litres for pastoralists and 30 litres for managed pastures.
Executive Director of Commercial Dairy Ranchers Association of Nigeria (CODARAN), Dianabasi Akpainyang who quoted these figures from a recent report released by PriceWaterhouseCoopers (PwC), said that is why Nigeria imports milk worth over $1.5 billion annually according to figures from the Central Bank of Nigeria (CBN).
Akpainyang in a statement to Herald this year’s World Milk Day, explained that Nigeria largely depends on imported milk, as the nation imports about 70 percent of its milk needs.
He identified some of the crippling challenges militating against the growth of the dairy sector in Nigeria.
According to him, “The most crippling challenges in the dairy sector are found in the midstream sub-sector of the dairy value chain.
“This, in practical terms, refers to all the activities that take place after the milk is extracted from the cow to when it gets to a processing facility or the open market.
“These activities include milk collection, aggregation, storage, and transportation. The level of public and private investment in this important part of the dairy value chain is abysmally low.
“Lack of organized milk collection schemes, high cost of milk collection and cold chain facilities, poor transportation infrastructure, unstable or non-existent electricity supply, pervasive insecurity, and low access to finance are some of the challenges that affect smooth operations in the midstream aspect of the dairy sector.
“The processing and marketing aspect (downstream) of the dairy value chain also faces the threats of low investments, poor access to finance and a weak regulatory environment.”
Commenting on World Milk Day 2023, slated for the first of June, he explained that the celebrations would be used to raise awareness of the nutritional value of milk and to celebrate the contributions of the dairy sector to sustainability, economic development, livelihoods, and nutrition.
Explaining further on the activities lined up for the event, he said: “On May 31, 2023, the Federal Ministry of Agriculture and Rural Development and the other stakeholders will have a full-day event with school children in Abuja to create awareness on the nutritional value of milk.
“Lectures on the need to consume milk and the nutritional value that the product offers will be delivered by nutrition experts to the children.
“On June 1, when the world will unite in celebrating the value of milk, stakeholders led by the Commercial Dairy Ranchers Association of Nigeria (CODARAN) will converge to make recommendations on how to address one overbearing challenge of Nigeria’s dairy industry – access to finance.
“Under the theme: “Pathways to Financing Nigeria’s Milk Revolution,” experts, dairy industry practitioners and policymakers will recommend practical funding options that would work for Nigeria in the quest to achieve self-sufficiency in milk production.
“The challenge of low access to patient capital to cater for the long-term nature of dairy investments stalls investment activities within the entire dairy value chain.
“From lack of long-term funds for startups of new dairy businesses and for existing businesses to expand production activities, to lack of capital for commercial fodder production, breed improvement, animal health management, purchase and maintenance of farm equipment, storage and cold chain facilities, there remains a yawning gap within the sector which only strategic financing can fill.
“The World Milk Day Conference will offer the platform to recommend and adopt these strategic financing models for Nigeria.”
This year’s World Milk Day Celebrations in Nigeria is jointly organised by the Federal Ministry of Agriculture and Rural Development (FMARD), the Commercial Dairy Ranchers Association of Nigeria (CODARAN), the Abuja Chamber of Commerce and Industry (ACCI), Sahel Consulting Agriculture and Nutrition Limited and Agriculture Correspondents Association of Nigeria (ACAN).