Friday, September 17, 2010

LOCAL MILK PRODUCTION IN NIGERIA; THE OPPORTUNITIES.

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LOCAL MILK PRODUCTION IN NIGERIA; THE OPPORTUNITIES.

Nigeria, with a population of over 140 million people is grossly underprovided with essential food components like protein which is important for the realization and development of human potentials both mentally and physically. Data from the FOS, CBN, and FAO indicates that from cattle, less than 2kg of beef is available to an average Nigerian per year and just mere 4kg of eggs per annum is available to each Nigerian. In fact, milk production has been nose diving or at best has remained constant since 1994.

This scenario is compounded more so because the volume of egg supply is very low, being 10.56g per person per day as compared with the usual recommendation that an egg should be consumed by an adult per day.

To ameliorate this problem of low-level of protein intake, there is the need for concerted effort, among the various stakeholders to bring about the massive production of protein based food items especially through massive investment in the livestock and it consequence increase local production of milk.

Until the late 1970’s when hydrocarbon was discovered in commercial quantity in Oloibiri ,present day Bayelsa state , Agriculture remained the mainstay of the economy contributing over 90% of the Gross Domestic Product (GDP) of the country as against the less than 40% it now contributes with crop accounting for 80%,livestock 13%,forestry 3% and fisheries 4%. Despite the prominent role of the Petroleum sector, Agriculture still employs about 70% of the entire population both formal and informal.

Though Nigeria is the largest producer of cow milk in West Africa and the third in Africa, the country is a net importer of the product and in order to increase the percentage of the livestock sector and local milk production in Nigeria, massive investment is required in the dairy industry to meet up with the 1.45 billion litres estimated national milk requirement.

The Nigerian dairy industry represents an important component of the agribusiness sector of the economy with great economic, nutritional, and social implications. Dairy products provide the most important amino acid required for body building as well as tissues repairs in human beings. Animal protein equally supplies its own level of energy required for daily activities. It is also essential for the synthesis of certain hormones, enzymes and body products in both man and animals.

Nigerians have been observed to consume more of plant protein, which has been found to be of lower quality than animal protein. Small scale dairy milk processing plants can take up the challenges of improving the consumption of animal protein by the teeming population as well as supply those nutrients instead of going for the large scale dairy milk processing plant which require capital outlay. The use of exotic breed with high milk production and having resistance for tse-tse fly dominate in the rainforest region of Nigeria, we also boost production of the commodity.

Presently, the local production of milk is less than 1% of the total annual demand that has been estimated at 1.45 billion litres, making the total milk consumption in Nigeria less than 10 litres per head whereas the global average is about 40 litres per head. In other parts of Africa, it is 28 litres per head.

It has been estimated that about 500,000 cows and between 300,000 to 400,000 hectares of land is required to meet the national demand of the country.

The recent attempted ban on imported powdered milk in order to encourage local production in Nigeria ,should be seen as a wake-up call for savvy investors to take advantage for small scale milk production in the country and tap into the largely import dependant diary industry in Nigeria.

A number of incentives have been put together to encourage investment in agriculture. These include;

o Finance Credit
o Tax Holdings
o Reduced Customs Charges on Imported Inputs
o Technical Support through Research Institutions
o Export Financing and Guarantee
o Agricultural Insurance Scheme
o Extension Services


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LOCAL MILK PRODUCTION IN NIGERIA; THE OPPORTUNITIES.

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