The Federal Government has been urged to take initiatives to drive a National Dairy Plan that would enable local producers to meet the growing demand for milk in the country. This call was made by Mr Dayo Mejabi Ekundayo, a consultant to the German International Co-operation (GIZ) Sustainable Cocoa Business programme, in an interview with The Nation.
Growing Demand for Dairy Products
According to Ekundayo, who is also the Managing Director of Agricultural Business Concepts Limited, the consumption of dairy products has been growing exponentially. He said the industry needs to be positioned to provide livelihood to Nigerians and ensure the supply of quality milk and milk products. Consumers are demanding quality food products such as milk and other dairy products, he noted.
Ekundayo pointed out that local operators are yet to build value into the supply chain to increase milk consumers' confidence in the industry and reduce milk processors' current reliance on imported raw materials. He emphasized that local operators need to invest in the development of value-added products.
Opportunities for Value Addition and Export
He said companies have started to tap into the demand for commodity dairy products, adding that there is scope for adding value and developing brands. At this stage, however, he said the local industry is not capable of hunting for potential markets to export dairy products. He urged local operators to encourage dairy sector entrepreneurs to explore markets for dairy products.
Ekundayo stressed the need for luring foreign investors with technical expertise and funds to invest in the dairy sector. He also said that the export of milk by-products could be enhanced, either in fresh or powdered form. He urged the government to provide support and incentives to foreign and local investors to invest in animal husbandry farms.
Need for Large Processing Plants
Ekundayo said there was a need to establish large milk processing plants to enhance the production of processed milk, as much of the traded milk is marketed unprocessed. This would help in meeting the growing demand and improving the quality of dairy products.
Managing Director of Demacco Farms Limited, Mr Don Onyia, also weighed in, saying the local dairy industry needs to be repositioned to show that it can produce its products in a sustainable way. He said the industry needs to work together to address barriers and opportunities to foster innovation and increase sales. According to him, the industry has to demonstrate commitment to efficiency and responsibility both on the farm and throughout the value chain.
The call for a National Dairy Plan comes as Nigeria continues to rely heavily on imported milk and dairy products, despite having the potential for local production. Implementing such a plan could help reduce imports, create jobs, and improve the livelihoods of many Nigerians involved in the dairy value chain.
