News Milk
FrieslandCampina builds dairy factory for Nigeria
FrieslandCampina has developed a mobile yogurt factory for use in Nigeria. This enables the dairy company to bring fresh dairy products to African consumers in challenging circumstances.
The new factory, which was presented in Drachten, should help to further strengthen FrieslandCampina's position in the Nigerian market. This must be done through a stronger presence throughout the country and a broadening of the product range.
Dutch sales remain the main part
By helping the Nigerian dairy farming sector to develop further with these types of installations, FrieslandCampina also supports its own dairy sales from the Netherlands. He will remain responsible for the bulk of dairy sales in Nigeria, says CEO Hein Schumacher.
The capacity of the factory is quite small by Dutch standards: 5.000 kilos of milk per day can be processed into drinking yoghurt in small packaging. The yogurt rolls off the production line in small plastic bags, is available in three flavors and can be stored for several months.
The factory is built into five sea containers and is completely geared to African conditions. Once in Nigeria, the first factory is moved to central Nigeria to start operating there. The milk comes from large groups of small farmers. If the first factory runs well, more factories will gradually be added. In principle, the yogurt factory can also be set up in all kinds of other countries.
Large population growth expected
Jeroen Elfers, responsible for FrieslandCampina's dairy development programmes, does not see any threat from these factories to FrieslandCampina's existing sales any more than Schumacher does. On the contrary: "The population growth in Nigeria is expected to go from 2050 million to 200 million by 400. We can never keep up with these factories." However, the factories and local dairy farming provide a livelihood for many people in rural Nigeria, plus goodwill from the government.
Bringing back earnings is a challenge
Transferring the earnings in Nigeria to the Netherlands remains a challenge for FrieslandCampina. Earlier this year, Schumacher reported that there are still tens of millions in earnings in Nigeria that cannot leave the country. Financial CEO Hans Janssen acknowledges that there are limitations, but believes that there are nevertheless opportunities to get the money earned to the Netherlands.
Klaas van der Horst
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