Nigeria’s quest for self sufficiency falters as dairy sector struggles to stay afloat

By Onome Amuge

Despite being a top cattle producer in Africa, Nigeria still remains a high dairy importer, spending over N72 billion on milk importation in the first three quarters of 2022.

The previous government,led by Muhammadu Buhari, had disclosed its commitment to increase the 672 million litres of milk produced in the country annually which falls short of the 1.6 billion litres consumed, translating to about a 60 per cent deficit. The government also targeted 2023 as the year the importation of milk will end.

To implement this, the government through the Central Bank of Nigeria (CBN) restricted access to foreign exchange (forex) for importers of milk products in order to develop the sector.

Unfortunately, the policy failed to yield the desired result  as the price of the commodity rose significantly due to the move,while local production remained at a slow pace, forcing the government to alter its decision on a total restriction to milk importation.  A new policy was therefore introduced to allow six firms  FrieslandCampina WAMCO Nigeria, Chi Limited, TG Arla Dairy Products Limited, Promasidor Nigeria Limited, Nestle Nigeria Plc and Integrated Dairies Limited, to bring in the commodity through an official window.

The National Bureau of Statistics (NBS) in its foreign trade statistics,noted that Nigeria imported milk worth N27.664 in the first quarter of 2022,  followed by  N21.3 billion in the second quarter and N23.9 billion in the third quarter of the year.

The report which labelled the commodity as “milk preparations containing vegetable fats/oils,powdered/granular,packings greater than 25kg” disclosed that the bulk of imported milk was purchased from Ireland at N44.7 billion, followed by Malaysia at N15.8 billion, and Germany at N5.6 billion.

Asoko Insight, an African market intelligence and corporate data provider noted that local milk processing in Nigeria is done on a very small scale in which milk gotten from the cattle is used in the production of the local milk known as ‘nunu’ and local cheese popularly known as ‘wara’ by the local indigenes.

“However, to produce milk on a commercial scale, a large percentage of milk inputs used by commercial processors is imported due to the limited portion  obtained from  the pastoralists,” it said.

In an assessment of Nigeria’s low dairy production, a cattle inventory report by the United Nations Food and Agricultural Organisation (UNFAO), noted that of the country’s total herd,11.5 per cent is used for dairy, while 88.5 percent is consumed as meat.

The report further stressed that unlike other countries that practice ranching where cattle herds are raised on large tracts of land, most Nigerian cattle rearers practice the traditional nomadic system where cattle are moved across different areas in search of pasture. This, it explained, doesn’t project Nigerian cattle breeding in a positive light as studies show that  milk output of nomadic cattle is usually lower than that of cattle managed in specially built units where feeding is controlled.

Further analysis showed that Nigeria’s dairy processors import milk powder and reconstitute it into liquid milk and other dairy products such as yoghurt, ice cream and confectioneries. The imported dairy products are imported from New Zealand, Australia, South America, the EU, India, Ukraine, Poland, and other smaller suppliers. Multinational firms such as Frieslandfoods (Netherlands), Glanbia (Ireland), have either partnered or acquired some indigenous dairy firms for reconstituting and packaging imported milk powder further stifling the indigenous production companies from making an impactful headway in the dairy industry.

Irrespective of the challenges affecting the Nigerian dairy sector, stakeholders in the sector aver that actualising self-reliance is a possibility that can be achieved not just through the CBN’s forex restriction policy but through the enforcement of programmes targeted at reinforcing local production.

Adesina Aderibigbe, a professor of Comparative Animal Nutrition, Obafemi Awolowo University, posited that diversifying cattle rearing systems in the country whereby cattle breeds with high milk-yielding capacities are raised in a confined area with a sustainable supply of food, water and medical supply is one of the most important steps towards actualising improved  local dairy production.

Aderibigbe further noted that the development of the dairy sector is not just about the government initiating programmes and policies that would in a matter of months, get abandoned without yielding the expected results.

“In these circumstances, a robust analysis of dairy production systems and value chains, an understanding of modern trends, an assessment of returns to different investments are essential to formulate and prioritise policy actions,” he said.

He also commented that considering Nigeria’s development status, ranching is the best dairy production option that is sustainable, 21st century-compliant and best-contextualised practice.

A research journal article titled, ‘’Major Issues in Nigeria Dairy Value Chain Development’’, authored by a group of researchers from the National Agricultural Extension and Research Liaison Services, Ahmadu Bello University, also proffered some recommendations capable of bolstering the Nigerian milk and dairy production sector.

The study stressed on the need for urgent government intervention in the dairy industry to ensure proper post-harvest handling and marketing. It further stated that increasing the national dairy production with value added processing would contribute significantly to reducing the rising costs of dairy imports, which would in turn provide income sources to domestic dairy farmers and all those involved in the dairy value chain.

The study also indicated distributed database technology as having a significant impact on rural dairy data management in the upcoming years because distributed database systems have many potential advantages over centralized systems, especially for geographically distributed projects. It also suggested that the Nigerian Livestock Development Programme (NLDP) and other indigenous stakeholders work closely with the Dairy Records Management System (DRMS) to develop modalities for setting up dairy data service centres in Nigeria.

Stakeholders in Nigeria’s dairy production sector also called for the implementation of relevant strategies to help develop the quality and quantity of local dairy products for Nigerian consumers.

Dianabasi Akpainyang, executive director of Commercial Dairy Ranchers Association of Nigeria (CODARAN), in a statement to mark the 2023 World Milk Day, noted  Nigeria largely depended on imported milk, as the nation imported about 70 per cent of its milk needs.

Akpainyang stressed that the domestic production sector was still facing a myriad of challenges, with the most crippling challenges found in the midstream sub-sector of the dairy value chain.

The CODARAN executive director decried the low investment in the sector which he noted had affected milk collection, aggregation, storage and transportation.

He identified lack of organised milk collection schemes, high cost of milk collection and cold chain facilities, poor transportation infrastructure, unstable or non-existent electricity supply, pervasive insecurity and low access to finance as some of the challenges that affect smooth operations in the midstream aspect of the dairy sector.

In a similar vein, the Miyetti Allah Cattle Breeders Association of Nigeria (MACBAN)  called for increased investments to drive the growth of the Nigerian dairy industry.

Speaking during the commemoration of the world milk Day recently in Abuja, Baba – Othman Ngelzarma, national president of MACBAN, decried the lack of processors and off-takers in major parts of the country where milk is produced.

According to Ngelzarma, government’s effective intervention in the development of the dairy business concept would checkmate animals being roamed into farmlands and also curb incessant fights between farmers and cattle herders.

On his part, Ernest Umakhihe, the permanent secretary of the Ministry of Agriculture and rural development stated that the ministry has embarked on capacity building and empowerment programmes for dairy farmers on hygienic milk production and processing.

Umakhihe highlighted other programmes of the ministry  to include: construction and equipping of milk collection centres in areas with comparative advantage for dairy, feed-milling facilities for production of ruminant feeds, pasture collection centres, animal handling centres among others.

The permanent secretary reiterated the ministry’s commitment to continue to provide an enabling environment for increased milk production, processing, distribution and consumption to improve the nutritional status of Nigerians, create jobs along the dairy value chain and reduce national expenditure on the importation of milk and milk products.

He also promised collaboration with relevant MDAs, institutions and associations in addressing local production challenges through milk and dairy development.