CHI Limited has said it is boosting backward integration by promoting local diary capacity and advancing a pilot grazing reserve for pastoralists.
The Central Bank of Nigeria (CBN), in July 2019, unveiled the backward integration policy to encourage local production of select items including dairy products, to save depleting national reserves, and create employment.
CHI said it partnered with the Niger State government and CBN to invest in massive infrastructural development, upgrade of the existing and construction of new facilities at the Bobi Grazing Reserve, a pilot grazing reserve in Maringa LGA of the state.
With over 4,000 hectares, CHI said it was partnering with pastoralists to provide 2,000 hectares for settlement and grazing for their cows. Subsistence farmers got 1,200 hectares for grain production and another 300 hectares for growing the best breed of pasture like Napier grass, an essential fodder that improves milk yield in cows.
Another 800 hectares is for development of support facilities, specifically a milk collection and processing centre, the firm said in a statement.
It has also rehabilitated the 15km road leading to the grazing reserve to improve access and reconstruction of its dam to ensure collection of adequate water for grazing the cattle, irrigation for farming, and other purposes on site.
The company’s Managing Director, Mr. Deepanjan Roy, thanked CBN for the laudable initiative and the Niger State government for its support.
“We would work towards ensuring that this pilot scheme achieves its medium and long-term objectives of job creation, strengthening the supply chain of the dairy category, providing good raw materials to support our local company, and providing Nigerian consumers with more access to nourishing healthy dairy products.”
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