One of Europe's largest dairy co-operatives, Arla Foods claims that it's farmers are among the most climate efficient dairy in the world.
Arla says the investment is part of its long term commitment to public private partnership that support the development of the Nigerian dairy sector as part of the country's efforts to increase local food production.
Located in the Kaduna State, the 200-hectare farm, scheduled to open in 2022, will have housing for 400 dairy cows, modern milking parlours and technology, grass lands and living facilities for 25 employees.
Local farmers will be trained to improve milk yields and quality, animal welfare and farm profitability, contributing to the country's aims to develop local milk production.
In addition to providing training and support, the farm will also showcase modern commercial farming in Nigeria. Over time, the farm is expected to produce over 10 tonnes of milk per day which will be processed by Arla's dairy plant in Kaduna State, to supply locally produced dairy products to Nigerian consumers.
Nigeria is among the fastest growing nations in the world. Its population is set to reach close to 400 million people by 2050 and there is already growing consumer demand for affordable dairy nutrition in the country.
The Nigerian dairy sector is, however, currently only able to supply less than 10% of the country's demand for dairy products, a gap that is expected to grow in line with the growth of its population.
"There is a great need for nutritious food and dairy products to satisfy the growing demand from Nigeria's fast growing population. This requires a complementary approach where imported food is crucial to ensure food security while also supporting the government's long-term agricultural transformation plan to build a sustainable dairy sector in Nigeria. Our new dairy farm is our next step in our commitment to Nigeria," says executive Vice President and Head of Arla Foods International Simon Stevens.
Arla Foods chairman Jan Toft Nørgaard says he is very proud of collaborations to support the sustainable development of the Nigerian dairy sector.
"To collaborate with farmers in many parts of world, sharing knowledge and supporting local dairy industries is a key part of our cooperative mindset and our farm in Nigeria is the next important step.
"When it is built, we can support local dairy farmers to create better livelihoods and it is a key enabler to growing dairy and food production on a local scale."