Overview of Nigeria's Dairy Market

Nigeria, as one of Africa's largest economies, is actively working to reduce its $1.5 billion annual dependency on imported dairy products. The Nigerian government and private sectors are collaborating to build a more self-sufficient dairy industry, with significant investments in local production and processing infrastructure.

Volume of Milk Production and Dairy Cattle

Nigeria produces approximately 600,000 metric tons of milk annually, despite facing challenges such as infrastructure and technological limitations. The country boasts around 20 million dairy cattle, which are predominantly managed by smallholder farmers using traditional practices. This presents an opportunity 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. Cheese production remains limited due to the focus on artisanal cheeses produced in minimal volumes. The potential for growth in this area lies in the enhancement of local processing capabilities to cater to domestic demand.

Milk Powder and Whey Production

Production of milk powder and whey is almost negligible in Nigeria, with most requirements being met through imports. However, plans are underway to establish local production facilities, aiming to achieve self-sufficiency in the near future. This step is critical to reducing reliance on imported products.

Key Dairy Enterprises

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

Dairy Farms

Notable dairy farms across Nigeria, such as Shonga Farms, Nagari Integrated Dairy Farm, and Arla Dairy Farm, play a significant role in enhancing milk yields through advanced farming techniques and modern practices. These farms set benchmarks for sustainable dairy farming in the region.

Export and Import Data

Nigeria is not a major exporter of dairy products, primarily due to its limited local production capacity. Conversely, the country imports approximately $1.5 billion worth of dairy products annually, with a focus on milk powder, cheese, butter, and other processed goods.

Significant Dairy Market Events

Several initiatives are revitalizing Nigeria's dairy industry, highlighting the partnership between the government and multinational companies to boost local dairy production through backward integration. Notable among these is Nigeria's collaboration with Indonesia to enhance dairy production in Kebbi State through advanced livestock programs.

Nestlé Nigeria, in collaboration with the federal government, has launched a demonstration dairy farm in Abuja to boost local milk production. Additionally, Nestlé continues to upskill Nigerian youth through its Technical Training Program in Agbara, in partnership with the Swiss Confederation.

Addressing the challenges of anthrax outbreaks and cattle malnutrition, efforts are increasing to prevent these issues from affecting milk and meat production goals. Recently, the government announced plans to develop the Obudu Cattle Ranch into a significant livestock and dairy production center.

An exemplary market event is FrieslandCampina WAMCO's recent launch of the affordable Peak Mini Milk, aimed at increasing milk consumption among the local populace.

Modified: 2025/05/09

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