by Ibrahim Apekhade and Charles Okonji




Worried over the recent inclusion of milk and other dairy products on the forex prohibition list of the Central Bank of Nigeria (CBN), stakeholders in the sector have cried out that over 50,000 direct and indirect jobs could be at risk.

The Food and Agricultural Organisation (FAO), says an estimated 2.5 million rural households, especially across the north eke out their livelihood vending local milk.

Besides, pastoral farmers account for an estimated 95% of the total dairy output, but only a small percentage of these small farm producers’ milk (around 15%) is collected by formal processors, limiting the amount of milk available for processing.

This, in turn, results in high powder imports.

With about 20,000 dairy product manufacturers across the country with an estimated 60, 000 staff population, there are fears in some quarters that the new policy regime will be counterproductive.

Firing the first salvo in an interview with our correspondent at the weekend one of the major players in sector asked not to be named because of the sensitivity nature of the issue, said the development could spike off smuggling.

Raising some posers, he queried, “How on earth can the CBN governor think that cows can be raised overnight to provide the kind of milk that the Nigerian dairy sector require? So, these are the threats about our sector right now?”

The source, who said his firm, had in the past nine years got involved in the local sourcing of milk, noted that it has paid off.

Specifically, he said, “We started with five communities in Isehin land in Oyo State to about 90 communities between Oyo and Osun States in a nine years period. We have moved from just few milk farmers to about 1000 female farmers and also over 1000 male farmers who are involved in dairy farming and they are all succeeding. We have moved from one milk collection point to having five milk collection centres between these 90 communities.

“Now the quantities of milk we get from these 90 communities have moved from about 5000 litres of milk to over 43,000 litres of milk daily. This as it is today does not account for up to 25 percent of the raw milk that we use daily as many products as we have in the market. This means that we have a shortfall of about 75 percent.

“So, if it is taking us 10 years to get to where we are, which about 20 percent of what we need, you can tell that anything less than 10 years is totally unreasonable for the federal government to clamp down on the sector. This will lead smaller players in the sector that do not have the kind of capacity we have to shut down, which will further lead to massive loss of jobs. All the value chain would be affected.”

Echoing similar sentiments, the Director General, Lagos Chambers of Commerce and Industry (LCCI), Muda Yusuf, while noting that the commitment of the CBN to the backward integration agenda of the Federal Government is laudable, however said, “it is important that in seeking to achieve this objective, as such care should be taken to avoid undue disruptions and dislocations in the investment environment.”

Among other things, the LCCI boss said, “There will be loss of revenue to the government as smugglers naturally move to fill the supply gaps in the market. There is a major risk of closure/drastic scaling down of operations of existing investments in the dairy industry. There will be a major negative effect on the meeting of the nutritional requirements of citizens, especially children and the low-income earners. There will be a high risk of loss of jobs in the dairy sector because of the adverse impact of the policy on existing investments in the dairy industry.”

While advising the government on the way forward, he said, “Sufficient timeline be given for a sustainable transition from the current state of affairs to the desired level of backward integration. There should be robust incentive for investors that will like to key into the supply chain in the dairy industry in line with the backward integration aspiration. There should be generous support from government to facilitate the importation of the right kind of cattle breed suitable for milk production. On account of the foregoing, the CBN is advised to put on hold its proposal to exclude the dairy industry investors from the foreign exchange market on hold in order to avoid likely disruption and dislocations in the dairy industry.”

https://thenationonlineng.net/forex-restriction-threatens-over-50000-jobs-in-dairy-sector/



Lalasticlala

ehenn...




FTC...I dedicate this to my loving adanna....Love U so much Girl

The restriction is punishment for rejecting RUGA.
Animal farm where cows enjoy better and more privileges and rights than humans.

Okay

Great

'Firing the first salvo in an interview with our correspondent at the weekend one of the major players in sector asked not to be named because of the sensitivity nature of the issue, said the development could spike off smuggling.'

- Of course na that company wey CBN finger pass
- Make we get Peak Fulani Evaporated Milk (PFEM) as sku.
- Or Peak Cattle Low Sugar Milk ( PCLSM) as sku.

Which job is threatened? Use local raw materials for production.

In fact CBN should just ban powder milk. Make we start afresh.

Buhari

MooreJozo:
ehenn...




FTC...I dedicate this to my loving adanna....Love U so much Girl

Sorry to ask o..can this FTC thing be cashed at the bank?I'm serious.Do people get paid for being first to comment?

Many of them import junk in the name of Powder milk.

I read somewhere that dangote is entering the dairy business.If that's true,then it all makes sense now.


Nigerians will keep being force fed s**t until they decide what to do with these people.

They are always in a hurry to implement wrong policies. Before coming up with a policy, first of all carry all stakeholders along, do a lot of research based on public opinions and lastly implement in stages. Diary is a very sensitive industry, especially for children.

By the time Buhari is finished with Nigeria, we will have sense by force. He's used every available tool of state to manipulate policy in favour of cows.

Look at the Central Bank of Nigeria talking about milk.

They should go ahead and punish us because we rejected RUGA

So what's next? Check my signature for blogging tips , web design & development tutorials, internet tips, and computer tips.

Nigeria can afford to ban anything because they produce nothing. There's nothing we have that other countries will ban.

Bad temporal development, good permanent development if managed well.

gaetano:
By the time Buhari is finished with Nigeria, we will have sense by force. He's used every available tool of state to manipulate policy in favour of cows.

Look at the Central Bank of Nigeria talking about milk

If you understand that the policy is to favour cows, go and own some cows. Yours will not be exempted from the favour.
Even in my last and future life I know there won't be a country like Nigeria that likes to promote other people's economy.

It's pure blackmail.
All the milk wasting away in the rural areas where local milk producers have been ignored by these milk producers in preference for foreign imports.
If these companies would invest in production and boost local processing lot more people will benefit because those rural farmer will improve their production and employ more in addition to the employees in companies.
The usual cry of "job loss threats" due to no access to forex is pure blackmail.

These people call themselves local producers of milk but they want another ten years to forex, ba.

You would think they would be jumping up to fill the void. No, they want personal enrichment in foreign cash so that they can import what?

Raw materials for milk or increase cows, goats, farms and workers.

Nigerian businesses only want access to forex instead of increasing production for export to bring in forex into the country.

feldido:
They are always in a hurry to implement wrong policies. Before coming up with a policy, first of all carry all stakeholders along, do a lot of research based on public opinions and lastly implement in stages. Diary is a very sensitive industry, especially for children.

There are enough raw dairy produce wasting away in rural communities that have been in for centuries but these companies don't want to harness the local content and build on it.
These mostly multi national companies prefer to boost the daily industry in the countries of origins and exploit our market only.

even though this is supposed to be a good idea, Nigeria is not set for it now. minus the job losses being sang here, what about the skyrocketing of the price and how will the poor get it.

honestly I beg the govt to give an ultimatum (about a year or two) on the importation of dairy products so that arrangements can be made between farmers and companies to effectively meet up with the ban thereby avoiding shortages in supply and massive job loss

Ffk has said it all . Buhari God' s punishment awaits u. See how Trump is striving hard to make sure all sectors of the economy in usa stands

I love this ban!! It will tell hard on us for the moment but will chart a way forward to building the nation's economy.

gaetano:
By the time Buhari is finished with Nigeria, we will have sense by force. He's used every available tool of state to manipulate policy in favour of cows.

Look at the Central Bank of Nigeria talking about milk.

They should go ahead and punish us because we rejected RUGA

Quit hating Buhari over everything. The policy was initiated by your own Brother. Abi the CBN Governor don turn Fulani man again?

Chanel your anger to your incompetent Brother.

DeRay98:


There are enough raw dairy produce wasting away in rural communities that have been in for centuries but these companies don't want to harness the local content and build on it.
These mostly multi national companies prefer to boost the daily industry in the countries of origins and exploit our market only.

But then Timelines or roadmaps should be given for total implementation... A total ban can cause lot of Hardships.

DeRay98:


There are enough raw dairy produce wasting away in rural communities that have been in for centuries but these companies don't want to harness the local content and build on it.
These mostly multi national companies prefer to boost the daily industry in the countries of origins and exploit our market only.

You are right, my major issue with this govt is that it believes too much in force, no strategic and communication skills. They have noble ideas but lack how to sell it to all.
My boss asked me recently that why can't Buhari embark on a constitutional amendment if it's going to bring peace, I just smiled, I said irrespective of how noble such is, people won't accept it because there won't be adequate selling point.
If he should step down today, don't be surprised that people go still complain that he has an ulterior motive for stepping down.

watching and looking
let's see how it goes.
I feel go start cow and milk business

Emefiele is just being the typical Igbo man who doesn't care how many millions of Nigerian children end up having malnutrition & stunted growth, when their parents cannot afford to give them milk anymore.

You see him bowing and scraping to all these stüpid Hausa-Fulani politicians who treat the children of their own lower classes worse than animals, and you know he lacks the courage to advise them on how to build up the dairy industry properly, or resign. The man has not one shred of honour or personal dignity.

Oh

feldido:
They are always in a hurry to implement wrong policies. Before coming up with a policy, first of all carry all stakeholders along, do a lot of research based on public opinions and lastly implement in stages. Diary is a very sensitive industry, especially for children.

You're right about going out in steps...
Of recent government gave Wempco a waiver to bring in cold roll steel with the long run to build local capacity... They abused it and turned it to a monopoly that profit them


https://www.nairaland.com/5167625/19-firms-shut-250000-jobs

chuka5000:
even though this is supposed to be a good idea, Nigeria is not set for it now. minus the job losses being sang here, what about the skyrocketing of the price and how will the poor get it.

honestly I beg the govt to give an ultimatum (about a year or two) on the importation of dairy products so that arrangements can be made between farmers and companies to effectively meet up with the ban thereby avoiding shortages in supply and massive job loss

Nigerians don't respect deadlines. Believe they'll still not do anything after the set date. Some times the hard tough path is the way to go.

Dangote dangote dangote still dey find money.

DeRay98:


There are enough raw dairy produce wasting away in rural communities that have been in for centuries but these companies don't want to harness the local content and build on it.
These mostly multi national companies prefer to boost the daily industry in the countries of origins and exploit our market only.

You want companies to collect milk from underfed cows right? Cused cows that Fulani people fvck up and down. You think these Fulani Pepe can produce milk that one company can use daily? Impossible!

My job is directly being threatened by this policy. I'm truly sad.