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Dairy factories: CBN brokers land deal for 3 firms

To support backward integration and promote local production of dairy products, the Central Bank of Nigeria (CBN) has brokered a deal that will see the Minister of FCT Mohammad Bello provide at least 2,500 hectares of land to three companies investing in local production of milk and other dairy products.

The three companies that have requested for land to established dairy processing plants in the FCT are WAMCO Friesland Campina, Nestle and Land Z.

The CBN Governor, Mr. Godwin Emefiele, who led the three companies on Monday when they paid a courtesy visit to the FCT Minister said the companies “have signified interest to establish milk processing factories in the FCT and the CBN is ready to work with them to actualize the deliverable of these projects. We therefore request you to please assist in the allocation of land in FCT expeditiously.”

Emefiele noted that “the establishment of these companies in the FCT will drive industrialization, stimulate local production of milk and hence development of the local dairy sector, boost employment generation, facilitate linkages along the dairy sector in Nigeria and ultimately cconserve enormous foreign exchange that would be required for importation.”

He also said this is a resolve by some milk producing companies to establish milk processing factories in the FCT as it offers a unique environment for industrialization and also easy access to raw materials from the entire North-Central zone of the country.

This effort is a part of CBN’s efforts to drive backward integration and cut down on milt and dairy products imports.

Recall the CBN in a circular issued by the Bank on Tuesday, February 11, 2020, listed FrieslandCampina WAMCO Nigeria; Chi Limited; TG Arla Dairy Products Limited; Promasidor Nigeria Limited; Nestle Nigeria PLC (MSK only) and Integrated Dairies Limited as those companies who can access forex for milk import and barred other companies from access forex officially to import milt in an attempt to cut down on the about $1,5bn annual milk import bill.

Commenting the FCT Minister, Mohammad Bello agreed to provide the land requested for the companies. “We can work with the 2,500 hectres you seek. We will advise the companies were the land is possible” he said.

He also said the Abuja masterplan already made provisions for grazing areas that could supply ram material to the plants.

“The Abuja master plan envisaged four grazing areas that will cater for the herders, and all the economic value chain that goes with it. FCT is in the central zone, it is a major north south route of cattle.

“It is also well endowed with good foliage and vegetation, nice weather and a lot of water bodies. That is why the master land has four grazing reserves. One in Bwari (9,000 hectres), one in Karshi (6,000 hectres), Gwagwalada (9,500 hectres) and Rubochi (8,985 hectares)” he said.

 

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