Arla has made a commitment to invest in Nigeria's dairy production and share knowledge to boost quality of raw milk production.
Steen Hadsbjerg, director of Arla's regional office in Sub Saharan Africa, signed a letter of intent to assist the local dairy sector in Nigeria.
Hadsbjerg said: "In order for Arla to have a long-term successful business in Nigeria, it is important that we engage in the development of the local dairy sector.
"The Nigerian Government looks very positively on the companies that commit to taking a local responsibility and help create a better balance between imported and locally produced dairy products in the market."
The dairy company is currently in detailed talks with a local Nigerian dairy company and expects to disclose further details shortly.
Arla claimed the letter of intent is 'a natural next step' in its engagement in The Milky Way to Development, an alliance lead by CARE to develop a sustainable market for milk in West Africa.
According to Arla's new Strategy 2020, it intends to triple its revenue from consumer sales in Sub-Saharan Africa by 2020. Most of this revenue is expected to come from Nigeria and West Africa.
Last year, its revenue from the region was €75m.
In September, Arla announced a venture with Singapore-based Tolaram Group in Nigeria, reported Just-food.com. The venture, TG Arla Dairy Products LFTZ Entreprise, is marketing Arla's products in the African country.
