Tuesday
August, 16

Ban On Forex For Milk  Importation  Good For Cattle Investors

The greatest economy in Africa is seeing dairy businesses invest in cattle farms, some of which have unusual cows, as a result of Nigeria’s ban on purchasing dollars to import milk.

The Central Bank of Nigeria limits dollars and forbids importers of 45 goods, including milk, from obtaining foreign currency on the closely regulated approved market.

Nigeria has multiple exchange rates, one of which is official and is 45% less expensive than the other. Even manufacturers have reported no dollar sales to them this year.

Bloomberg claims that the cost of conducting business in Nigeria has increased due to the difficulty in obtaining money.

Arla Foods, with headquarters in Denmark, and Danone, with headquarters in France, are investing in cattle farms to support their businesses, even though the Manufacturers Association of Nigeria, which has more than 3,000 members, identified access to dollars as the biggest obstacle to production in the West African nation.

READ MORE: Young Filmmakers Face Difficulty Getting Contents On Spotlight Platforms

According to Jimmy Johnmark, general manager of the company, Arla is spending $10 million on a cattle farm in Kaduna State, Nigeria.

According to Johnmark, the business will be able to buy foreign currency to import 400 cows in August and 1,150 over the following five years.

As part of a state-built grazing area, it also intends to work with the Kaduna government to purchase milk from 1,000 pastoralists.

Over 90% of the home milk supply in Nigeria is produced by roving herders.

The government is promoting ranching as a way to lessen farmer-herder conflicts, which have grown to be one of the major sources of insecurity in Africa’s most populous country and are the cause of the continent’s fifth-largest cattle herd.

According to the central bank, local milk production is estimated to be 500,000 tonnes, while demand is expected to be 2.2 million tonnes by 2020. Multinational corporations are primarily in charge of processing because they import almost all of their milk inputs due to the subpar yields from locally bred cows.

According to Johnmark, the producer of Dano Milk intends to produce 46,000 liters of milk per day from its farm in five years, which will lower its milk imports by 20%.

According to Ferdinand Mouko, managing director for Danone Nigeria, Danone is investing in a cattle farm in southwest Nigeria’s Ogun State as well as teaming up with private investors like Obasanjo Farms, owned by Nigeria’s former president Olusegun Obasanjo, to meet a 2028 local input target of 65 percent.

According to him, Danone offers technical support as well as a guarantee to purchase the milk, whereas private investors provide the cows and farm facilities.

In contrast to the daily average of 1.5 liters a day for local breeds, Danone wants to increase its stock to 500 cows over five years with the capability to generate 15 liters per cattle per day.

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Uchara Faith
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The greatest economy in Africa is seeing dairy businesses invest in cattle farms, some of which have unusual cows, as a result of Nigeria’s ban on purchasing dollars to import milk.

The Central Bank of Nigeria limits dollars and forbids importers of 45 goods, including milk, from obtaining foreign currency on the closely regulated approved market.

Nigeria has multiple exchange rates, one of which is official and is 45% less expensive than the other. Even manufacturers have reported no dollar sales to them this year.

Bloomberg claims that the cost of conducting business in Nigeria has increased due to the difficulty in obtaining money.

Arla Foods, with headquarters in Denmark, and Danone, with headquarters in France, are investing in cattle farms to support their businesses, even though the Manufacturers Association of Nigeria, which has more than 3,000 members, identified access to dollars as the biggest obstacle to production in the West African nation.

READ MORE: Young Filmmakers Face Difficulty Getting Contents On Spotlight Platforms

According to Jimmy Johnmark, general manager of the company, Arla is spending $10 million on a cattle farm in Kaduna State, Nigeria.

According to Johnmark, the business will be able to buy foreign currency to import 400 cows in August and 1,150 over the following five years.

As part of a state-built grazing area, it also intends to work with the Kaduna government to purchase milk from 1,000 pastoralists.

Over 90% of the home milk supply in Nigeria is produced by roving herders.

The government is promoting ranching as a way to lessen farmer-herder conflicts, which have grown to be one of the major sources of insecurity in Africa’s most populous country and are the cause of the continent’s fifth-largest cattle herd.

According to the central bank, local milk production is estimated to be 500,000 tonnes, while demand is expected to be 2.2 million tonnes by 2020. Multinational corporations are primarily in charge of processing because they import almost all of their milk inputs due to the subpar yields from locally bred cows.

According to Johnmark, the producer of Dano Milk intends to produce 46,000 liters of milk per day from its farm in five years, which will lower its milk imports by 20%.

According to Ferdinand Mouko, managing director for Danone Nigeria, Danone is investing in a cattle farm in southwest Nigeria’s Ogun State as well as teaming up with private investors like Obasanjo Farms, owned by Nigeria’s former president Olusegun Obasanjo, to meet a 2028 local input target of 65 percent.

According to him, Danone offers technical support as well as a guarantee to purchase the milk, whereas private investors provide the cows and farm facilities.

In contrast to the daily average of 1.5 liters a day for local breeds, Danone wants to increase its stock to 500 cows over five years with the capability to generate 15 liters per cattle per day.

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