EU Dairy Firm, Arla Foods Targets N56.50bn From Nigerian Markets

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A diary firm, Arla Foods through its joint venture with Tolaram is set to flood the Nigerian markets with dairy products worth 240 million euros

The company, which belongs to 12,700 dairy farmers from Denmark, Sweden, the United Kingdom, Germany, Belgium, Luxembourg and the Netherlands, is also expecting 32 million euro from Senegal by 2020.

Arla Foods has established 50/50 joint ventures with Tolaram Group in Nigeria and a Senegalese firm, Attieh Group, to bring in liquid milk, Dano brand powdered milk, cheese and butter, while operations at Arla Senegal, in which it holds a 75 per cent interest are scheduled to begin before the end of the year.

The company presently boasts of 90 million euro sales in the sub-Saharan Africa, but hopes to hit 460 million by 2020 through the sale of its products.

It was learnt that the company is coming to West Africa to tackle the milk deficit in the sub-region and it will partner with companies in Nigeria and Senegal to boost its distribution backbone in West Africa.

It was learnt that Arla Dairy Products LFTZ Enterprise and Arla Senegal would respectively handle the packaging, marketing, sales and distribution of Arla dairy products in Nigeria and Senegal.

According to Head of Arla’s sub-Saharan Africa business, Steen Hadsbjerg, West Africa faces a milk deficit, which gives the company an opportunity to provide milk and other dairy products that meet the consumers’ needs.

“We are here to build a long-term business, and that requires strong local partners. We are, therefore, pleased to join with two experienced partners in Senegal and Nigeria.Nigeria is one of the biggest markets for dairy products in Africa. For Arla to succeed in Africa we must succeed in Nigeria,” he said.

Arla’s growth efforts in sub- Saharan Africa began in August 2013 when it established a joint venture with Ivorian distributor, Mata Holdings.Other dairy products are ice cream and novelties, yoghurt, cheese and gelato.

“The population is growing at a rate of two to three per cent per year, and people are young, ambitious and increasingly well educated. This makes Nigeria a perfect market for Arla’s Africa strategy and we expect the new joint venture to start up its sales in the market in September,” Hadsbjerg added

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