In a new public-private partnership, Kaduna State Government and farmer-owned Arla Foods are committing to further development of long-term sustainable dairy industry and local dairy sector in Nigeria by helping 1,000 small scale farmers create better livelihoods.\u00a0\u00a0\u00a0 Already active in existing development projects within the dairy industry, Kaduna State, Arla and the Federal Government are now engaging further by signing a new Memorandum of Understanding. While the State and the Government will offer 1,000 nomadic dairy farmers permanent farmlands with access to water, Arla will be the commercial partner that will purchase, collect, process and bring the local milk to market. Nigeria\u2019s population \u2013 set to reach close to 400 million people by 2050 \u2013 is among the fastest-growing of any nation in the world, and already there is growing consumer demand for affordable nutrition in the country. The new public-private partnership entered is the first of its size in Nigeria and is an important step in developing the local dairy sector. Kaduna State Governor Nasir El-Rufai welcomes the project with Arla as a different and sustainable vision for the development of the livestock industry in Nigeria: \u201cWe are very pleased to collaborate with Arla Foods to grow and further improve our nation\u2019s dairy industry. With our different competencies, together we can empower local farmers and promote market-driven sustainable dairy development in Nigeria\u201d. Public and private\u00a0investments\u00a0pave the way Kaduna State and the Federal Government are committed to improving the structural conditions for the nomadic farmers. Instead of continuously moving in search of grazing areas and water, the land will be set up for the farmers to permanently base themselves and have opportunities to expand their farms. Securing the infrastructure such as roads, power and water, which are necessary to process and bring the milk to market, is also part of the public commitment. The project will primarily be funded by loans provided by the Central Bank of Nigeria and guaranteed by the local state.\u00a0\u00a0As a commercial partner, Arla will invest in establishing milk collection centres. These will be pivotal to Arla\u2019s role as a processor of the milk produced by the farmers. Scaling up a successful approach This new public-private partnership builds on the success of a collaboration initiated in 2016 with Kaduna State, the federal Government, Arla and a number of NGOs including Care, the Danish Agricultural and Food Council, the local dairy cooperative MILCOPAL and the Nigerian pastoralist organisation Court. That collaboration works on a five-year project called the Milky Way Partnership to develop a socially, environmentally and economically sustainable dairy value chain. The partnership and project have demonstrated a viable scalable business model that has created both an increase in income and job opportunities for local farmers and employees in the\u00a0dairy\u00a0sector. At the Amana Dairy Cooperative\u00a0in the outskirts of Kaduna, the farmers\u00a0see the benefits of being part of\u00a0the\u00a0Milky Way\u00a0Partnership.\u00a0They\u00a0now have\u00a0steady\u00a0access to water and a milking parlour has been installed to ensure\u00a0that the milk is cooled down immediately after milking to\u00a0preserve\u00a0quality. \u201cPreviously, the cows were drinking from the ponds. Now, they have fresh water and are well-fed. You can tell from their skin that they look healthy. We are very happy, and we are already starting to see the results as the milk quantity has almost doubled,\u201d says Alhaji Sani Aliyu, one of the dairy farmers at Amana Dairy Cooperative. \u201cDeveloping Nigeria\u2019s agriculture sector will be an important pillar for the country\u2019s growth and the private-public partnership is a strong model to drive this. The ongoing collaboration between Arla and Kaduna State Government is a great example of the positive impact EU companies can bring when they engage with local producers and contribute to the federal and state government goal of creating 100 million new jobs of the next 10 years. This project has great potential to develop the local dairy sector and make a real difference in many farmers\u2019 businesses and lives\u201d says Jesper Kamp, Danish Ambassador to Nigeria. Being built to last The\u00a0Nigerian\u00a0dairy industry is\u00a0currently able to supply less than 10 per cent\u00a0of the country\u2019s current demand for dairy\u00a0products, a gap that is increasing exponentially as the population grows over the next decades. Most Nigerian dairy farmers are small scale\u00a0and\u00a0most\u00a0milk\u00a0collection consists of milking the cows by hand into\u00a0small open bowls or buckets.\u00a0If the milk is not consumed in the farmer\u2019s own household, it\u00a0usually doesn\u2019t travel farther than to the nearest\u00a0town market. Preventing\u00a0the milk from spoiling in the heat is a big challenge. Arla\u00a0will contribute with\u00a0experience from its pan-European supply chain and its cooperative farmer culture to deliver commercial success with the farmers in Nigeria. \u201cBringing local milk into our product portfolio is part of the way we believe that our business will be long-term successful in Nigeria.\u00a0We\u00a0will only succeed in growing local farmers\u2019 incomes, building Nigeria\u2019s dairy sector and achieving\u00a0Arla\u2019s\u00a0ambitions in West Africa if the project and its activities are commercially viable. This is a great example of business and development going hand in hand to ensure long-term sustainable solutions that are built to last,\u201d\u00a0says Steen Hadsbjerg, Vice President Sub-Saharan Africa Region for Arla Foods. Facts about the project \tTotal investment:\u00a0The project will\u00a0primarily\u00a0be funded\u00a0by loans\u00a0that are\u00a0provided by the\u00a0Central Bank of Nigeria\u00a0and guaranteed\u00a0by the local state. Arla will invest in milk collection centres. \tNumber of farmers:\u00a01,000 \tPartners in the new public-private partnership: Arla Foods, Kaduna State and the Nigerian Government. \tPartners in Milky Way Partnership Nigeria: Kaduna State and the Nigerian Government, Arla Foods, NGO Care, the Danish Agricultural and Food Council, the Nigerian cooperative MILCOPAL and the Nigerian pastoralist organisation Court. \tThe Milky Way Partnership Nigeria is supported by Danida and the Danish Ministry of Foreign Affairs.