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Arla Foods sign $100 million deal with Kaduna state to source milk locally

Micheal Ani
2 Min Read
Arla Foods
Arla Foods, the world’s largest producer of organic dairy products, has signed a Memorandum of Understanding (MoU) with Kaduna State government to source milk locally.

The deal would enable the Denmark-based dairy firm, change livestock production into a business through the use of modern tools, Nasir El-Rufai, Governor of Kaduna state said on his official Twitter account.

“Today, we signed an MoU with Arla for a project that uses modern tools to change livestock production from a culture into a business, sedentary the nomads and promote jobs, economic development and security,” Elrufai said on his official Twitter account. Sources close to the Kaduna state government disclosed that the deal is worth about $100 million and would enable the firm source milk locally from a Rural Grazing Area (RUGA) settlement in the state.

The source noted that with the proposed restriction by the Federal government on forex, the firm is being compelled to get their milk here just like they do in their Indian plant.

The deal was led by Steen Hadsberg, Vice President, Sub-Sahara Africa Region and Managing Director, Arla Global Dairy Products Africa, and witnessed the presence of the Ambassador to Denmark, Jesper Kamp.

“I thank Jesper Kamp, the Ambassador of Denmark, for his support for our efforts to use a business model to promote jobs and development in our agriculture sector. We are delighted by his presence at the MoU signing,” El-Rufai said.

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