Nigeria's Dairy Market Overview

Nigeria, one of Africa's largest economies, is taking significant steps to develop its dairy industry. The country aims to reduce its $1.5 billion annual dependency on imported dairy products through substantial investments in local production and processing infrastructure.

Milk Production and Dairy Cattle

Currently, Nigeria produces approximately 600,000 metric tons of milk annually. Despite challenges such as infrastructure and technological limitations, the country has around 20 million dairy cattle, predominantly managed by smallholder farmers using traditional practices. There is significant potential for increased productivity through improved farming techniques and technology adoption.

Milk Processing and Cheese Production

The milk processing sector in Nigeria is gradually developing, with an estimated processing volume of 390,000 metric tons per year. Although cheese production remains limited, focusing on artisanal cheeses produced in minimal volumes, there is significant potential for growth in this area through the enhancement of local processing capabilities.

Milk Powder and Whey Production

Currently, the production of milk powder and whey in Nigeria is almost negligible, with most requirements met through imports. However, plans are in place to establish local production facilities aiming for self-sufficiency, pivotal in reducing reliance on imports.

Key Dairy Enterprises

Prominent dairy companies in Nigeria include FrieslandCampina WAMCO, Chi Limited, L&Z Integrated Farms, and Fan Milk PLC. These enterprises play a crucial role in boosting domestic milk processing capabilities and are often engaged in backward integration programs to support local dairy farmers.

Dairy Farms

Notable dairy farms such as Shonga Farms, Nagari Integrated Dairy Farm, and Arla Dairy Farm are enhancing milk yields through advanced farming techniques and modern practices, setting benchmarks for sustainable dairy farming in the region.

Import and Export Data

Nigeria is not a major exporter of dairy products due to its limited local production capacity. In contrast, the country imports around $1.5 billion worth of dairy products annually, focusing on milk powder, cheese, butter, and other processed goods.

Significant Dairy Market Events

Several initiatives are revitalizing Nigeria's dairy industry by enhancing local production through partnerships with multinational companies. Notable collaborations include Nigeria's partnership with Indonesia to improve dairy production in Kebbi State using advanced livestock programs. Nestlé Nigeria, in collaboration with the federal government, has launched a demonstration dairy farm in Abuja to boost local milk production and continues to upskill Nigerian youth through its Technical Training Program in Agbara.

Efforts are also underway to address challenges such as anthrax outbreaks and cattle malnutrition, which could impact milk and meat production goals. The government plans to develop the Obudu Cattle Ranch into a significant livestock and dairy production center. A recent market event is FrieslandCampina WAMCO's launch of the affordable Peak Mini Milk, aimed at increasing milk consumption among the local populace. Additionally, French multinational Danone is increasing its commitment to Nigeria despite recent withdrawals by other global companies, aiming to deepen its operations and emphasizing market recovery potential amid recent exits by international giants.

Nestlé has partnered with Nigeria's Federal Ministry of Livestock Development to enhance the country's dairy sector. The initiative aims to improve the quality and volume of milk production in Nigeria, focusing on mid-level technical and vocational skills important for the dairy value chain. The results include improved milk quality and a substantial increase in monthly revenue for milk producers, from N70,000 in 2019 to N250,000 in 2024.

The European Union has pledged ongoing support to Nigerian dairy farmers, focusing on key production challenges and enhancing the dairy value chain in Nigeria, with particular emphasis on supporting local dairy farmers. Challenges include water shortages, expensive vaccines, and insufficient quality feed.

Modified: 2025/05/18


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