FrieslandCampina WAMCO’s Dairy Development Program

This case emerged from our explorative research on inclusive business models. We have not applied the 5-steps plan on this case, but it serves as an example since the framework could be applied here.

FrieslandCampina WAMCO (hereafter called WAMCO) is a joint venture between FrieslandCampina and local partners established in 1954 in Nigeria, with the purpose to provide better nutrition for the Nigerian population. To this end, the company produces, packages, markets and distributes a large variety of dairy products. Currently, WAMCO mostly uses imported milk powder to produce milk products, but it increasingly relies on milk that is locally sourced from Fulani herdsmen and settled smallholder farmers. To stimulate local sourcing the Dairy Development Programme (DDP) has been set up including two partnerships, one with 2SCALE[1] and the other is a multi-partner project funded by FDOV[2]. The DDP aims to create a win-win situation for WAMCO and the local milk producers: farmers are supported in producing and selling their milk, while WAMCO is ensured of local supply. The core of DDP  includes training local farmers to ensure high quality milk, connecting them to service providers, and help them to increase the productivity of their farms. Then, the milk is collected at WAMCO’s own collection facilities. Next, WAMCO transports the milk straight from the collection facilities to the factory in Lagos, whereafter a market and sales team ensures that the products end up at the end customer.

In order to make the DDP successful, it is dependent on resources and activities from various stakeholders. In random order: first, the Farmer2Farmer Programme, whereby Dutch FrieslandCampina member farmers travel to Nigeria to train the local milk producers. Second, the Nigerian government is an important partner considering their responsibility to improve infrastructure to ease milk transportation, establish and enforce regulation, and secure safety. Third, the Dutch government supports with financial resources, via 2SCALE and FDOV, to provide training and workshops, facilitate women economic development, and create technology and market linkages. Fourth, local service providers are responsible for supply of farm inputs and technical support in AI, the feed concentrates, and machinery. Fifth, local business service providers, via 2SCALE, support the DDP in creating cooperatives and supporting farmers. Finally, foreign and local research and education institutes support the DDP with knowledge.

Together with these partners, the DDP aim to achieve the following impact goals. First, improve farmers’ standard of living by improving farm productivity and milk quality, guaranteed markets. Second, increase employment by empowering women and youths both on-farm and off-farm. Third, create a sustainable, safe dairy farming supply chain that provides safe, high quality and locally sourced milk. And fourth, reach the poorest consumers, so that everybody is able to consume nutritious products. The Nigerian Dairy sector is currently facing issues with milk quality, infrastructure, feed for cows, and a lack of standard regulation of the market. DDP aims to address these challenges and therefore increase the amount of local significantly in the coming 10 years to achieve these goals.

More information about FrieslandCampina’s WAMCO can be found here.  

[1] The 2SCALE program is co-funded by the private sector and by the Dutch Ministry of Foreign Affairs. It is awarded to a consortium led by the International Fertilizer Development Center (IFDC). www.2scale.org 

[2] Development of Sustainable Dairy Sector in Nigeria” is a project of FrieslandCampina Nederland B.V., FrieslandCampina WAMCO Nigeria Plc., IFDC, Stichting Wageningen Research (Wageningen Livestock Research), and the Ministry of Foreign Affairs of the Netherlands, within the Facility for Sustainable Entrepreneurship and Food Security (FDOV).