The dairy product manufacturers in Nigeria receive milk supply largely from northern Nigeria. Favorable weather condition in the region has resulted in high presence of milk producing cows which is the major factor contributing towards high milk production in Northern Nigeria. Consequently, good quality feed and hygiene cattle management practices have also emerged in the northern region, which helps to build stronger local milk supply to the dairy product manufacturers in region. Nigeria’s dairy product manufacturers usually produce ice cream, chocolate milk, yoghurt, and long life milk locally.
With government rehabilitation plan for Nigeria dairy market, several projects are drafted and sponsored by international bodies. Moreover the adaption of latest milking and storage techniques for raw milk will reduce the contamination and wastage of milk during the process and hence will drive the milk production in future.
Yoghurt consumption is traditionally high in Nigeria due to which its manufacturers in nation were motivated to continuously work on its taste and quality. This made its manufacturers capable to offer variety of yoghurt products such as soft drinkable yoghurt and spoon able yoghurt as a trendy refreshment dairy product in the nation for each and every individual as per the choice, leading to high demand for yoghurt.
Growing purchasing power parity and gross domestic product (GDP) of various African countries which majorly include Uganda, Sudan, and Kenya are the major factors which have driven the market for dairy products in Africa. However, declining annual per capita consumption of dairy products which majorly includes milk powder, butter, and cheese in other major economies of the continent including South Africa, Nigeria, Tanzania, Ethiopia, and Algeria is restraining the market.
Imported skimmed milk powder is the dominant input in the sub-sector of Nigeria dairy industry and forms major ingredient of shakes, biscuits and other FMCG products. Manufacturers reconstitute and sell powdered, evaporated and condensed form of milk powder in packaged metal cans and sachets of different weights.
Dairy products used in Nigeria post liberalization of dairy sector was limited essentially to raw milk and pasteurized milk, but with the liberalization in the industry and entry of new market players, consumers can now easily access to wide range of processed products, such as UHT milk, fermented milk (or traditional sour milk) and dairy products such as butter, cheese, yoghurt, milk powder, ice creams and so forth.
Market players in the Nigeria dairy industry are expected to introduce many innovative dairy products with variety of flavors or with low fat content to maintain their market share in the industry. This will lead to increase in the number of product offerings to domestic customers and will ultimately lead to grow the dairy product consumption.
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