Smallholderfoundation

‘Nigeria can harvest 1bn litres of milk yearly’

The journey has been full of ups and downs but the interesting thing is that when we started in the early 90s, the enthusiasm was low but over time the interest has grown, especially around within late nineties & 2000 when a lot of peri urban dairy & commercial farms came onboard within the country. But the issue of cattle rustling and kidnapping has decimated most of these farms to an abysmally low level, especially in Northern Nigeria.

Furthermore, the backward integration policy by the previous government of President Buhari created a boost and encouraged multinational companies importing dairy products to established milk collection hub and dairy farms as seen in Frieslandcampina farm in Fashola; Promasidor dairy farm in Ekun, Ekiti State; Arla Farm in Damau, Kaduna State; Nestle demo dairy farm in Paikon kore, Gwagwalada; Danone farm in Odeda, Ogun State etc.

Also in the downstream sector – the processing segment – has continued to grow exponentially above other segments with more investments from both local & international companies coming onboard.

When you look at the local dairy industry in Nigeria, what do you think is the missing link and what needs to be done at this moment?

There are five to six missing links.

One, most of our local livestock are not dairy breeds but dual-purpose breeds with very low milk genetic potentials, hence the need to improve their dairy genetics via selection and upgrading.

Two, the midstream sector of the chain is very weak and uncoordinated with great potential to harvest more milk if well-coordinated.

Three, our cold chain management is very weak and needs more investments in both stationary and mobile due to poor energy infrastructure hence exploring alternative energy i.e. solar will help improve efficiency in our cold chain management.

Four, most of the milk producers are still operating in the informal markets hence the need to gradually link them up with the formal market as has already been done by Friesland campina, Nestle and Arla etc.

Five, endemic diseases and control due to lack of inadequate vaccinations and proper regulation of vet drugs. The newly created Ministry for Livestock should invest and create policies to expand and enhance efficiency of the National Veterinary Research Institute Vom by ensuring and making the vaccine production unit autonomous via PPP arrangement from the research unit.

Also, as is being done in the human pharmaceutical industries, encourage private sector investments locally in the production of vet drugs within the country to help control and also reduce imports.

Six, lack of a coordinating body for the livestock sub sector because in most climes where this sector has developed, there were deliberate efforts in creating a coordinating body. We are hoping there will be marked improvement with the creation of the Federal ministry for livestock development.

The issue of fodder has been a major problem in the sector. How can we as a nation address this issue within the shortest possible time?

Government should create an enabling platform by facilitating massive investments in commercial seeds and fodder production, notwithstanding conservation and marketing as hay, haylage and silage in bags, to ensure efficiency in livestock production and if possible for the first 1-2 years subsidize offtake to small holder farmers.

Secondly,  lack of year-round and consistent pasture/fodder, inclusive of water makes these animals moves in search of water/fodder, especially during the lean season hence there is the need to provide these to encourage sedentarization via desilting and excavation of existing dams, providing more solar boreholes with overhead tanks and drinking troughs in the grazing reserve.

Also, encourage establishment of large expanse of improve community pastures areas with high biomass/vegetative yield per hectare, secured with perimeter fencing to augment dry season fodder needs and reduce migration within the grazing reserves.

When you look at our milk outputs vis-a-viz our local demand, what do you think needs to be done?

First, let’s maximally aggregate and collect what we currently have which I think with the increase in livestock population and also investment in the cold chain, we can harvest 1 billion litres yearly from our livestock farmers, both small holders, peri urban and commercial.

Currently, our yearly requirement is 1.6 billion litres while our local production is estimated at 560 million litres.

Also, with improved efficiency in production via provision of all year-round fodder/ feeds, water, limited migration and good husbandry and herd health management, some of these animals can be milked twice daily to double their daily milk production within a short time since milking is often done only once daily within the small holder enclave.

What are the things you will advise someone with interest in setting up a dairy farmer to consider first?

He or she should first do feasibility studies on current trends in the dairy sector and come up with a business plan in the segment you’re interested in i.e. dairy farm, aggregation, processing or integrating all.

Secondly, try to understand the sectoral analysis of the dairy value chain, especially the core value chain, the supporting activities/functions of the dairy value chain and also take cognizance of the rules/government policy direction on the dairy sector.

Thirdly, invest in good land that has water bodies either surface or underground.

Fourth, establish improved pasture fields before onboarding animals, especially improved breeds.

Fifth, encourage borrowing from development finance banks with low interest rates and longer payment periods.

From experience, do you think the banks in Nigeria are willing to put their money on dairy investments?

Except for development finance banks, i.e., BOA, BOI, DBN, most banks in Nigeria are not willing to invest in dairy, especially the upstream segment, because of its longer incubation period but the new restructured NIRSAL (CBN) might open a new vista and give banks some comfort because of the credit risk guarantee (CRG) offered by NIRSAL.

With the new ministry in place, which areas should the country direct its energy to?

It should begin by strengthening and enforcing the existing policies on livestock, especially the ECOWAS protocol on transhumance of livestock and if there is a need to tweak it, the ministry has to push for it.

Two, strengthened and increased funding on research institutes affiliated to livestock production in the country.

Three, create an enabling framework for commercial feed and fodder production via introduction of hybrid models where ranching can be established in conjunction with improving infrastructures and re-grassing and control grazing in the grazing reserves.

Four, mitigation of farmers/herder’s conflict by creating robust security architecture to curtail cattle theft and kidnappings.

Five, breed selection and upgrading via artificial insemination and introduction of stud bulls and F1 bulls for pastoralists to enhance their genetics by 25 percent.

Six, in collaboration with state governments strengthen and re- introduction of routing annual vaccination programs via PPP against some endemic diseases limiting livestock productivity in Nigeria i.e. CBPP, PPR, FMD, LSD etc.

Seven, encourage and catalyze massive investment opportunities in the downstream sector of the livestock value chain so as to push and provide markets for the upstream and midstream investments in livestock being pushed by the new ministry.

What is your comment on the budgetary allocation (N10 billion) for the new ministry?

The budgetary provision for the offtake of this new ministry might not be sufficiency and even help drive further investments, both local and international, in this sub sector because government has to position itself to serve as catalyst to help drive the much needed investment in the sub sector but I can see that the political will and determination is there, especially from the president ably represented by our amiable Hon Minister. Hence, we all need to rally around and support him because of the ripple and multiplier effect this new ministry will have on both the economy and livelihoods of all stakeholders/actors involved in the livestock sector.