Fan Milk PLC, a subsidiary of Danone Company, has signed a partnership agreement with Obasanjo Farms Nigeria Limited, to supply raw milk for its operations.
Chief Olusegun Obasanjo, the Chairman of Obasanjo Farms Limited, signed on behalf of the Farms, while Mr Vikram Agarwal, Global Chief Operations Officer Danone, signed for Fan Milk PLC.
In the memorandum of Understanding, Fan Milk will import 100 pregnant heifers from Egypt, while Obasanjo Farms Nigeria Limited will provide 300 heifers within the first year of the project and it is expected that the farm will double by the end of December 2026.
Also, Fan Milk Plc will off-take the fresh milk produced according to the terms of the 5-year partnership agreement and will provide training and technical capacity building for the personnel.
Chief Olusegun Obasanjo, said: “We are excited to partner with Fan Milk PLC to drive forward dairy farm expansion and local sourcing initiatives. By investing in training and capacity-building programmes for local farmers, we will empower communities, enhance productivity, and contribute to the development of Nigeria’s agricultural sector,” he said. .
On his part, Mr Herve Barrere, the General Manager of Danone Sub-Saharan Africa, said that the partnership marks a significant milestone in Fan Milk PLC’s commitment to backward integration, following the successful launch of its model dairy farm in Odeda Ogun State and training for local dairy farmers in the Odeda Dairy Training Institute.
Olusegun Ariyo, the Project Lead for Obasanjo Farms Nigeria Limited stated : “We are very pleased to be partnering with Fan Milk PLC (A Danone Company) on this remarkable journey. This is no doubt important towards achieving the ambitions we have for the Nigerian dairy industry, and both Companies are taking steps towards a more efficient and economically sustainable environment for dairy farming in Nigeria.
.Mr Kayode Adebiyi, Managing Director of Fan Milk PLC, said that the strategic partnership between Fan Milk PLC and Obasanjo Farms Nigeria Limited is designed to leverage the strengths of both companies to enhance local dairy production, reduce import dependency, and foster sustainable agricultural practices.
Olakunle Olusanya, Director, Legal Public Affairs, and General Secretary, stated that this partnership was strategic for the Company and a testament to Fan Milk Plc’s commitment to fostering sustainable dairy development, increasing local food security and improving the business ecosystem in Nigeria.