Nigeria's Dairy Industry: Current Landscape and Future Prospects
Nigeria, a leading economy in Africa, is making strategic efforts to enhance its dairy industry. The country is currently producing around 600,000 metric tons of milk annually. Despite having about 20 million dairy cattle, the sector is dominated by smallholder farmers who mainly use traditional farming methods. This presents a significant opportunity for growth in productivity through the adoption of modern farming techniques and technology.
Milk Processing and Cheese Production
The milk processing capacity in Nigeria stands at approximately 390,000 metric tons per year. While cheese production remains limited and artisanal, there is potential for growth by strengthening local processing capabilities.
Milk Powder and Whey Production
Nigeria's production of milk powder and whey is currently negligible, with the majority of demand being met through imports. However, efforts are being made to establish local production facilities to reduce dependency on imports and aim for self-sufficiency.
Key Players in the Dairy Industry
Significant players in Nigeria's dairy market include FrieslandCampina WAMCO, Chi Limited, L&Z Integrated Farms, and Fan Milk PLC. These companies are crucial in enhancing domestic milk processing capabilities and often support local dairy farmers through backward integration programs.
Dairy Farms: Pioneers of Modern Practices
Notable farms like Shonga Farms, Nagari Integrated Dairy Farm, and Arla Dairy Farm are leading the way in sustainable dairy farming through advanced techniques and modern practices.
Import and Export Dynamics
Despite its limited local production capacity, Nigeria imports around $1.5 billion worth of dairy products annually, including milk powder, cheese, butter, and other processed goods. The country is not a major exporter of dairy products due to these constraints.
Significant Market Developments
Several initiatives are underway to revitalize Nigeria's dairy industry. Nigeria has partnered with Indonesia to improve dairy production in Kebbi State using advanced livestock programs. Nestlé Nigeria, in collaboration with the federal government, launched a demonstration dairy farm in Abuja and continues to upskill youth through its Technical Training Program in Agbara.
FrieslandCampina WAMCO introduced the affordable Peak Mini Milk to boost local milk consumption. Meanwhile, Danone is enhancing its commitment to Nigeria, aiming to expand its operations despite recent global market withdrawals. Furthermore, Nestlé's partnership with the Federal Ministry of Livestock Development has resulted in increased revenues 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 overcoming key production challenges and enhancing the dairy value chain. UAC of Nigeria's acquisition of Chivita Hollandia from Coca-Cola marks a significant move in its growth agenda. Additionally, Nigeria's participation in the WorldFood Istanbul exhibition highlights its growing presence in the global dairy market.
In response to rising inflation and increasing demand for affordable dairy options, FrieslandCampina WAMCO Nigeria PLC recently launched Peak Dairy Creamer in January 2025.
Modified: 2025/09/21