Arla Foods has made a pledge to invest in local dairy production in Nigeria and “sharing knowledge” as it looks to enhance local raw material production and drive up sales in one of the biggest dairy producing countries in Africa.
Europe’s largest dairy said it has made the commitment to contribute to a sustainable dairy sector development and growth in Nigeria.
The deal- ‘letter of intent’- was signed by Arla’s director of regional office in Sub Saharan Africa Steen Hadsbjerg during a Danish business delegation visit to Nigeria.
The letter was presented to the Nigerian minister of agriculture.
Hadsbjerg said: “In order for Arla to have a long-term successful business in Nigeria, it’s 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 produces dairy products in the market.”
Arla said that Hadsbjerg is currently in dialogue with a local Nigerian dairy company and expects to disclose further details of the tie-up soon.
Arla, whose brands include Lurpak and Cravendale, is looking to triple its revenues from consumer sales in Sub-Saharan Africa by 2020.
Its revenues in the region in 2015 reached €75 million. ($82 million).
In September Arla announced a venture called TG Arla Dairy Products LFTZ Enterprise- a tie-up with Singapore-based Tolaram Group- in which it would distribute and market Arla products in Nigeria.
