The Urgent Need To Develop The Diary Industry -By Abachi Ungbo

The pandemic has to all intents and purposes reinforced the necessity for a paradigm shift in our approaches in developing the domestic capacity of every sector in view of the precarious state of oil as the predominant source of foreign exchange. In good measure, it has become even more urgent with the burgeoning population which is estimated to be growing at 3% per year. And, at this rate, it is expected that the population would grow to about 400 million in 2050. Indubitably, Agriculture remains the key in coping with the exponential population trajectory. However, the verdict on the performance of the sector is in the least dismal with the phenomenal import bill lending sufficient credence.

It is well known that the diary industry represents a significant aspect of Agribusiness but has remained a perennial underperformer. It holds enormous nutritional and economic consequence. According to the Federal Ministry of Agriculture, the National daily output per annum is 600,000MT while the National output demand is put at 1.3MMT annually. As a consequence, bridging the huge deficit comes at a huge cost of about 1.3 billion Dollars. Therefore, the humongous import bill and the need to incentivize local production precipitated a policy by the Central Bank of Nigeria (CBN) on foreign exchange restriction.

Nigeria has the capacity to dominate the diary industry in the entire region with well laid out plans and coherent policies that will boost investment in the entire value chain through a collaborative process. F.A.O (2018) reported that Nigeria has a cattle population of over 20 million and the preponderance of these cows are managed by the pastoralists which are mainly local breed from where about 95% of the domestic milk production is sourced under a practice that impact on their weight and milk capacity. These indigenous cows are reported to produce an average of 1.2 to 2 litres of milk/cow per day.

The challenge of the industry can easily be located in the poor productive capability which is characterized by a potpourri of factors. Over and beyond foreign exchange restriction is the necessity to develop other policies and plans that will stimulate investment through a comprehensive National dairy plan that will promote the scaling up of production. Having cows with high genetic merit should occupy the attention of planners through National Artificial Insemination programme that will enhance and supplant the low milk yielding cows. Though, misgivings on the reliability of the practice still subsist due to high expectation which have always ended in an anticlimax. However, a kaleidoscope of Artificial insemination experts and consultants and well versed Veterinary doctors will be needed to ensure a productive programme. The private and Government participation at both National and Sub-National level is unerringly integral. Happily, a Private Public Partnership (PPP) is evolving with the collaboration between Kaduna state and Arla Foods as a good case in point. Also, the Ekiti state Government and Promasidor agreement offers reassuring hope of a changing fortune for the industry. So, more partnerships of this sort will be required with other non-state actors in introducing a thriving business twist that will lead to a phenomenal domino effect on the economy.

The presence of private cattle ranches and their overall significance cannot be denied. And, extraneous intervention is much needed to provide cushion to such operators in relation to the huge financial investment needed to sustain the venture.

The cattle business owners and the scattered herders that dominate the diary landscape should be organised into cooperative for ease of reach by Government and development agencies for technical assistance, extension, provision of facilities and infrastructures. At least through cooperatives, milk aggregation will be facilitated and evacuated through collection centres. Equally, poverty alleviation schemes or empowerment schemes should be made to incorporate training on the viability of keeping cows and the distribution of productive milking cows as a source of livelihood.

The management system needs to be improved basically through a transition from the predominant nomadic to a semi or intensive practices. The systems ensures proper care and management of the cows under conditions that are guaranteed to influence the productivity of the cows because the long distance covered in quest of grasses and water; and the exposure to extreme weather elements with the concomitant effect on weight and milk let down would have been obviated. This also means that access to quality grasses by the cows through a conscious plan for exotic fodder development and expansion programme will have to be evolved; and the securing of infrastructures like roads, water, power and security as well as proper housing design.
The entire logic is for increase yield through improved breeds, building of needed structures and market leading to growth in domestic capacity.

Without doubt, building our productive capacity is a means to cutting the over dependence on import and a means of ensuring affordability that will promote individual consumption, which is very low. According to a PwC report, it is 10 litres per person in Nigeria compared to 28 litres per person in Africa and 40 litres per person globally. Political will is therefore pivotal to realising a business oriented industry through policy and programme implementation. The National Livestock Transformation Programme(NLTP) which provide a framework and strategic direction to the transformation of the of the livestock sector and with a ranching model designed as an integrated business and host of other attempts by government and non state actors needs to be vigorously pursue and sustained.

ABACHI UNGBO
3, MAKADAS STREET, NISSI VILLAGE
KADUNA