Fan Milk signs agreement with Ogun State to establish dairy farm to boost local production

Fan Milk Plc, a Danone Company, signed a partnership agreement with the Ogun State Government to establish its flagship dairy farm at the Odeda Farm Institute, in the Odeda Local Government Area.

The partnership, an alliance with the state, is to introduce global standards in dairy farming, empower local communities and reduce unemployment rates. It signifies Fan Milk’s commitment to enhance the impact of the Central Bank of Nigeria’s backward integration programme and reinforce the Federal Government’s initiative to achieve food self-sufficiency in the country. In addition to boosting local content within the sector, the project will serve as a model, best-in-class dairy farm operated by local dairy experts to support local suppliers, housing a milk collection centre, purchasing feed locally and collecting milk from other farmers.

The Ogun State Governor, His Excellency, Prince Dapo Abiodun MFR, expressing his satisfaction with the partnership, said, “We welcome such future-forward partnerships which align with our vision to create an enabling environment for Public Private Partnerships. As Nigeria’s Gateway State, Fan Milk’s partnership gives us the opportunity to contribute quickly and easily to job creation at scale. It is another symbol of our plans for 2021 and signifies our strong commitment to fostering relationships that grow the state’s revenue. The government and people of Ogun State look forward to the advancements collaboration like this will bring to local farmers and communities.”

The farm, which includes a Fan Milk Danone Dairy Training Institute, is being established to upskill existing and new local dairy farmers in the adoption of farming best practices.

The Chairman of Fan Milk, Olayinka Akinkugbe, in his statement, said, “For us, this partnership is bigger than the CBN backward integration program. It is about the 2,000 people or more who would be impacted through this initiative and the change we seek to bring to Nigeria’s food architecture. We are investing across the value chain and ensuring the support of the long-term ambitions of the state.

His Excellency, Jérôme Pasquier, the French Ambassador to Nigeria, commended the initiative as a strong representation of bilateral relations between the Nigerian and French governments, and expressed a desire for an increase in such partnerships that contribute to achieving the United Nations Sustainable Development Goals.

Reiterating the company’s commitment to expanding local contribution to dairy, Managing Director of Fan Milk, Ferdinard Muoko, stated, “Fan Milk Plc remains committed to protecting dairy’s important role in every Nigerian’s diet. That is why we have resolved to invest through the delivery of a series of coordinated education programmes and tools to support regenerative agriculture, the Danone Dairy Training Institute should reach over 500 farmers and dairy workers over a five year period.”

The dairy product manufacturer will receive technical support from its parent company, Danone, which, as part of its 2030 goals and in line with key priorities of the UN Sustainable Development Goals, is keen to impact local health and foster inclusive growth. Working to develop and promote regenerative models of agriculture that protect soils, empower farmers and promote animal welfare, this investment will be a continuation of Danone’s efforts to boost local milk production across its host communities in Africa, as is ongoing in Algeria, Morocco and Egypt and North-East Africa. Danone partners with farmers globally and is committed to working with stakeholders across the value chain to address the challenges associated with food security.

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About Fan Milk

Fan Milk Plc started operations in 1961 selling healthy and nutritious dairy products. Danone now owns the majority shareholding of Fan Milk Plc and since this investment from Danone there have been some phenomenal changes in the operations and business performance of Fan Milk. The business management has been re-ordered and synergised to include Danone’s Early Life Nutrition (ELN) business, responsible for the distribution of Danone’s infant milk formula in Nigeria.

Fan Milk Plc operates its head office and production facility in Ibadan, Oyo State, Nigeria. Fan Milk currently employs over 800 people, with a unique ecosystem that contributes to economic empowerment – currently engaging over 17,745 vendors and 1,200 agents to distribute its nutritious frozen dairy products to individuals and families across the country. Further to this, the introduction of Danone’s ELN products also broadens the scope of Fan Milk’s impact by supporting mothers in the absence of breast-feeding or as a supplement to breast-feeding.