Outspan reaffirms commitment to dairy sector, renews MoU with Kano firm
Outspan Nigeria Limited, a subsidiary of Olam Food Ingredients (ofi) has reaffirmed its commitment to the dairy sector through scaled investment in Backward Integration Programmes (BIP).
The firm signed a renewed Memorandum of Understanding (MoU) with the Kano Dairy and Livestock Husbandry Cooperative Union (KADALCU), recently, in Kano.
The renewed MoU is targeted at continuing the partnership to develop the local dairy sector. It is also 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.
Through the partnership, ofi has been able to establish four Milk Collection Centres (MCCs) close to the smallholder dairy farmers in Kano State. The centres are equipped with adequate cooling systems powered by off-grid equipment. It has also provided quality feed, carried out artificial insemination and vaccination exercises to improve the health of cows and their productivity level; trained the smallholder dairy farmers, and donated transportation and cooling systems to ensure the quality of the raw milk produced in the region is preserved and optimised for industrial use.
Speaking on the significance of the renewed MoU, Praveen Paulsamy, the 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 has 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 FG’s agriculture development and food security aspirations.”
He explained that the renewed MoU would help ofi channel sustained investment in the dairy sector and move to the next phase of its multi-year sectoral development plan, as well as address the challenges around improving milk production in the country.
The Chairman of Kano Dairy, Alhaji Usman Abdullahi Usman, said: “Kano State can produce 30,000 litres of milk per day, but before now, 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 Centres (MCC) closer to our members, the dairy farmers, in the different clusters, and providing transportation intervention and cooling systems to preserve and optimise the quality of the raw milk for industrial use, the business continues to help us raise our productivity level,” he said.