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April 17, 2024

Fan Milk PLC (a Danone company) and Obasanjo Farms Nigeria Limited announce strategic partnership to advance dairy farm expansion and local sourcing in Nigeria

Fan Milk PLC, a leading player in the dairy sector, is proud to announce a strategic partnership with respect to a farm operated by Obasanjo Farms Nigeria Limited, aimed at advancing dairy farming expansion and promoting local sourcing in Nigeria.

The farm is established on a 2500-hectare piece of land, situated in Iseyin, Oyo State. Fan Milk will import 100 pregnant heifers from Egypt, while Obasanjo Farms Nigeria Limited would provide 300 heifers within the first year of project and it is expected that the farm would double by end of December 2026.

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

The collaboration will lead to the creation of employment opportunities, particularly in rural areas. Both companies are committed to engaging with local communities to foster positive relationships, address social concerns, and promote responsible corporate citizenship.

Chief Olusegun Obasanjo, GCFR, Former President of the Federal Republic of Nigeria and Chairman of Obasanjo Farms Limited expressed: “We are excited to partner with Fan Milk PLC to drive forward dairy farm expansion and local sourcing initiatives. By investing in training and capacity-building programs for local farmers, we will empower communities, enhance productivity, and contribute to the development of Nigeria’s agricultural sector.”

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

Joint investments in research and development will introduce modern farming techniques, advanced technologies, and sustainable practices to optimize dairy production while minimizing environmental impact.

Mr. Herve Barrere, the General Manager of Danone Sub-Saharan Africa noted: “the partnership emphasizes the importance of sourcing raw materials locally, empowering local farmers, improving their livelihoods, and contributing to the growth of the agricultural sector”.

This partnership marks a significant milestone in Fan Milk PLC’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. It also aligns with some of the current government administration’s 8-point agenda, including ensuring food security, promoting economic growth and job creation, and ending poverty.

Speaking on the Partnership, Dr. Olusegun Ariyo, the Project Lead for Obasanjo Farms Nigeria Limited stated that “We are very pleased to be partnering with Fan Milk PLC (A Danone Company) on this remarkable journey. This is no doubt important towards achieving the ambitions we have for the Nigerian dairy industry, and both Companies are taking steps towards a more efficient and economically sustainable environment for dairy farming in Nigeria.

Mr. Kayode Adebiyi, Managing Director of Fan Milk PLC stated that “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”.

Olakunle Olusanya, Director, Legal Public Affairs, and General Secretary, stated that this partnership was strategic for the Company and a testament to Fan Milk PLC’s commitment to fostering sustainable dairy development, increasing local food security and improving the business ecosystem in Nigeria. He further stated this will boost the local sourcing strategy that addresses the imminent challenges with milk sourcing importation in Nigeria.

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