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Fan Milk and Obasanjo Farms announce strategic partnership to boost dairy production

From Left to Right: Mr. Vikram Agarwal, Global Chief Operations Officer Danone; Chief Olusegun Obasanjo, GCFR, Former President of the Federal Republic of Nigeria and Chairman of Obasanjo Farms Limited; Mr. Kayode Adebiyi, Managing Director of Fan Milk PLC; and Olakunle Olusanya, Director, Legal and Public Affairs, and General Secretary Fan Milk PLC, at the signing ceremony between Fan Milk- Danone and Obasanjo Farms.

 

Fan Milk Plc has disclosed that it has entered into a strategic partnership with Obasanjo Farms Nigeria Limited to boost dairy production in the country.

In a statement, the firm said the partnership was aimed at advancing dairy farming expansion and promoting local sourcing in Nigeria.

According to Fan Milk, the farm, situated in Iseyin, Oyo State, is expected to produce 300 heifers within the first year of the project and double that figure by 2026.

It disclosed that it would be importing 100 pregnant heifers from Egypt.

“Fan Milk Plc would off-take the fresh milk produced according to the terms of the 5-year partnership agreement and would also provide training and technical capacity building for the personnel.

“The collaboration is expected to lead to the creation of employment opportunities, particularly in rural areas,” the release stated.

From Left to Right:  Mr Arjun Bhowmik- Vice President Operations, AMEA, Danone; Mr Kayode Adebiyi, Managing Director of Fan Milk PLC; Mr Vikram Agarwal, Global Chief Operations Officer, Danone; Chief Olusegun Obasanjo, GCFR, Former President of the Federal Republic of Nigeria and Chairman of Obasanjo Farms Limited; Mr Olayinka Akinkugbe, Chairman Board of Directors, Fan Milk Nigeria; and Mr Herve Barrere General Manager, Danone Sub-Saharan Africa; Olakunle Olusanya, Director, Legal and Public Affairs, and General Secretary Fan Milk PLC, at the signing ceremony between Fan Milk- Danone and Obasanjo Farms.

The Director-General and Chief Executive Officer, National Biotechnology Development Agency, Prof Abdullahi Mustapha, disclosed last year that the country was spending $1.5bn on the importation of dairy products annually.

Both companies said they were committed to engaging with local communities to foster positive relationships, address social concerns, and promote responsible corporate citizenship.

The Chairman of Obasanjo Farms Limited, Olusegun Obasanjo, said the partnership would drive forward dairy farm expansion and local sourcing initiatives.

He said, “By investing in training and capacity-building programmes for local farmers, we will empower communities, enhance productivity, and contribute to the development of Nigeria’s agricultural sector.”

On his part, the General Manager of Danone Sub-Saharan Africa, Herve Barrere, expressed optimism that the partnership would improve sourcing raw materials locally, empowering local farmers, improving their livelihoods, and contributing to the growth of the agricultural sector.

Signing the MoU: Chief Olusegun Obasanjo Chairman of Obasanjo Farms Limited and Mr Vikram Agarwal, Global Chief Operations Officer Danone.

According to the statement, the partnership marks a significant milestone in Fan Milk’s commitment to backward integration, following the successful launch of its model dairy farm in Odeda, Ogun State and training for local dairy farmers in the Odeda Dairy Training Institute in 2022.

The Project Lead for Obasanjo Farms Nigeria Limited, Olusegun Ariyo, noted that both companies were taking steps towards a more efficient and economically sustainable environment for dairy farming in the country.

The Managing Director of Fan Milk PLC, Kayode Adebiyi, asserted, “The strategic partnership between Fan Milk PLC and Obasanjo Farms Nigeria Limited is designed to leverage the strengths of both companies to enhance local dairy production, reduce import dependency, and foster sustainable agricultural practices.”

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