In July 2019, the Central Bank of Nigeria rolled out a new policy to encourage backward integration for the local production of select items including dairy products to save depleting national reserves, revive local production capacity and create employment.
The new policy offers challenges and opportunities for major manufacturers of milk and dairy products in Nigeria. Despite the challenges of dairy backward integration policy like the incessant herders/farmers clashes, the opportunities in the value chain are numerous.
One company that has keyed into the initiative is dairy giant, CHI Limited. In partnership with the Niger State Government and Central Bank, CHI Limited is investing in massive infrastructural development, upgrade of the existing and construction of new facilities at the Bobi Grazing Reserve, a pilot grazing reserve in Maringa Local Government, Niger State, North-Central Nigeria.
With the acquisition of over 4,000 hectares in the reserve, the company is partnering with existing pastoralists to provide 2,000 hectares to allow for settlement and grazing for their cows.
It has made available 1,200 hectares to subsistence farmers for grain produc tion and another 300 hectares for growing some of the best breed of pasture – Napier grass, an essential fodder known to improve milk yield in cows.
Speaking on the recent developments, Managing Director of CHI Limited, Mr. Deepanjan Roy, thanked the Central Bank for the laudable initiative and the Niger State government for their support and co-operation thus far.