Outspan Nigeria Limited, a subsidiary of OFI (Olam Food Ingredients) has reaffirmed its commitment to the dairy sector through scaled investment in backward integration programs (BIP).
OFI signed a renewed Memorandum of Understanding (MoU) with the Kano Dairy and Livestock Husbandry Cooperative Union (KADALCU) recently in Kano.
In a statement, the renewed MoU is targeted at continuing the partnership to develop the local dairy sector. In addition, it is in support of the federal government’s food value chain and economic development agenda. Outspan Nigeria has been partnering with KADALCU since 2020 to execute its value chain development efforts.
Speaking on the significance of the renewed MoU, Praveen Paulsamy, Vice President of ofi Dairy in Nigeria, said, “We are glad to have come this far in our local dairy value chain development journey. The Kano Dairy Union have proven to be an invaluable partner in this journey. It is only fitting to extend our partnership actions to keep scaling the development of the sector in line with the Federal Government agriculture development and food security aspirations.”
He explained that the renewed MoU will help OFI channel sustained investment in the dairy sector and move to the next phase of its multi-year sectoral development plan, to address the challenges around improving milk production in the country.
Responding to Outspan’s actions, Alhaji Usman Abdullahi Usman, the Chairman of Kano Dairy, said, “Kano State can produce 30,000 liters of milk per day. But previously, the infrastructure and logistics necessary to collect and preserve the milk for proper off-taking by industrial users were not available. Outspan’s robust intervention in the dairy sector has been a timely recourse. By investing in well-equipped milk collection centers (MCC) closer to our members (the dairy farmers) in the different clusters, and providing transportation intervention and cooling systems to preserve and optimize the quality of the raw milk for industrial use, the business continues to help us raise our productivity level.”