Arla Foods' Strategy to Boost Nigeria's Dairy Industry

Arla Foods, aiming to tackle this gap, established a significant local presence in Nigeria through a $18 million factory set up in partnership with the Tolaram group. Peder Pedersen, Arla Foods Nigeria's managing director, highlights the company's efforts towards local production as it marks a decade in Nigeria.

In an interview Pedersen recounted Arla's growth journey, stating that the completion of their factory in the Lekki Free Zone marked a defining moment for the company. Despite challenges such as currency fluctuations, Pedersen maintains that the decision to invest heavily in local manufacturing and backward integration is key to meeting local demand.

Arla's initiatives include a pioneering dairy farm in Kaduna, which serves as a demonstration model for successful dairy farming in Nigeria, although much more is needed to significantly impact local milk supply. This approach hopes to inspire other investors and increase local milk production capacity.

Arla's collaboration with the Nigerian government has been positive, with shared goals of improving local agricultural practices and nutrition. Future visions include achieving a balance between imports and local milk sourcing, which is an aspiration that aligns with Arla's values and promises potential benefits for Nigeria's economy.