Arla Dairy Development Newsletter

Dear Reader,

In this issue of our newsletter, we shed some light on our sustainability focus. This time, we have prepared articles regarding the importance of quality testing of the feed given to cattle by farmers, selecting the right quality bulls for future generations on the farm, and our utilization of manure as part of our sustainability journey. Additionally, you can read about our operations and engagement with employees in Arla Nigeria, and more.

Our primary focus in the North currently revolves around the Arla-Damau Open Day, scheduled for October 9, 2024. This event is the first of its kind, planned as a yearly occurrence, where we will open our farm doors to give guests a chance to witness our farming operations. The purpose of the Arla-Damau Open Day is to continue our journey as the leading dairy farming operation in Nigeria, showcasing advanced practices and our vision for the future of dairy.

Furthermore, on the same day, we will officially inaugurate our brand new Arla-Damau Dairy Plant. We are thrilled to commence local production in Damau, as it will be the first dairy plant in the area and will serve as the future hub of milk production in Nigeria. Our timing is well aligned, as the new Damau dairy farmers are set to move into the farming area within weeks. Consequently, we are prepared to begin producing dairy products using fresh Damau milk.

We are not just organizing the Arla-Damau Open Day alone; but have collaborated with numerous partners and companies that provide services to our farm and dairy plant operations. Over 20 different local and international companies will showcase their services to guests in one of our barns. You can find a list of these companies on the following page. We welcome all interested individuals, professionals, and farmers to join us on this day and experience the future of dairy in Nigeria firsthand.

On a different note, we would like to take the opportunity to extend our heartfelt thanks to the team from NAFDAC led by the Director-General Prof. Moji Adeyeye for their recent study visit to Arla's sites in Denmark this past August. The visit provided a valuable opportunity to share knowledge, foster collaboration, and further strengthen our partnership in ensuring the highest standards of food safety and quality. We look forward to continued collaboration as we work together to enhance the dairy industry in Nigeria.

Peder Pedersen MD, Arla Global Dairy Products Ltd.

Arla-Damau Exhibiting Partners

To be able to maintain efficient operations for both our farm and factory in Kaduna, we rely on strong partners that provide our operations with necessary products and services, so that we can keep up the good work we do. At the Arla-Damau Open Day, the following companies will all be present and will showcase their products and services to our attending guests. We are proud to have so many with us on the first of hopefully many yearly Arla-Damau Open days.

• Daystar Power Energy Solutions
• Freee Recycle Limited
• Global Electric, Inc.
• Mikano International Ltd.
• Labtrust International Ltd.
• Petrichor Industries Ltd.
• ADM
• Agcoms Iternational Trading Ltd.
• Date Homes Nig Ltd.
• DLF Seeds.
• Golden Fertilizer Company Ltd.
• Griffin & Stettler Ltd.
• Habitech Global
• Hybrid Feeds
• Jegomos Nigeria Ltd.
• Livestock Genetics Africa
• Pan Africa Development & Trade Group
• Rosette Construction
• Saro AgroSciences
• SeedCo Nigeria Limited
• Waynebush Integrated Concept

Sustainable Farming Practices: Manure Helps Our Soil

Every established dairy farm generates a significant amount of cattle manure and manure washwater as part of its daily operations. To protect the environment, it is necessary to collect and manage this waste. While this practice has been common in many countries for decades, it is relatively less prevalent in Nigeria. This is primarily because milk production was predominantly carried out by nomadic farmers until recently, when more established dairy farms started to emerge. Consequently, the collection and utilization of cow manure is now more feasible and common in Nigeria.

At the Arla farm, manure is removed from the floors at least twice a day, or more frequently if needed. It is then directed through a deep channel to a specialized manure pump, which combines faeces, urine, and excess water. After mixing, the pump transfers the mixture to a storage tank. From there, the manure is transported to the fields using one of the two manure spreaders at the Arla farm.

Why utilize manure as fertilizer?

Cattle manure is a valuable source of nutrients, containing significant amounts of nitrogen (N), phosphorus (P), and potassium (K) - all essential for robust plant growth. To a certain extent, manure can replace artificial fertilizers. Additionally, manure offers several other benefits. It contains both easily degradable and more resistant substrates, such as cellulose, hemicellulose, and lignin. These different substrates promote the growth of diverse microbial communities in the soil. It has long been recognized that utilizing manure as fertilizer brings various advantages beyond its nutritional content. The organic matter that is derived from solid animal waste helps reduce soil erosion and leaching, resulting in healthier and more fertile soil - the foundation for robust plant growth.

The manure at the Arla farm exists in both solid and liquid forms. The specialized spreader seen in the below image is designed for handling solid manure.

Premium Bulls Make Better Milking Cows

One bull can significantly impact a herd’s performance, as a single bull can sire tens of calves on the same farm within a year. Bulls for semen production are carefully selected from a large group of young bull calves using genomic and pedigree information. These bulls must excel in all important traits and come from different bloodlines to avoid inbreeding. Given the substantial impact one bull can have on a herd, compared to a cow that only has one calf per year, it is crucial to select the right bulls for each herd. At Arla, we choose bulls from VikingGenetics that experts have determined will add the most value to our operation based on the cows and heifers present on the farm.

Breeding Plan

To replicate this success on other farms, farmers need to establish a breeding plan that clearly states their vision for the future. This is vital because the genetic interval in cattle is five to six years, meaning genetic improvements in a herd occur slowly. Therefore, farmers must have long-term goals in mind when planning genetic improvements.

A good breeding program requires farmers to determine which traits they want to improve in their herd. These traits are often directly related to the farm’s profitability and are essential for the farming operation. Once these traits are identified, selecting the right bulls becomes easier, as each bull has an index on different traits that can be matched with the breeding plan, ensuring the right semen is chosen for the right cow.

Crop Testing for Healthier Feed

Many farmers grow crops for their cattle without taking samples of the future feed. It is crucial for the success of dairy farming operations to gather crop and silage samples, especially if the crop is stored as silage. The Arla farm in Damau specifically focuses on silage testing since all locally grown feed is sored in this form.

Sampling Procedure

1. Wait for five to six weeks after ensiling to take samples, ensiling to take samples, as the silage needs time to process.
2. Use a long core sampler to collect samples from three to five well-spaced points on different areas of the silage pit's surface. This will provide a profile of the layers within the pit. If there are multiple layers, such as first and second cuts, sample each layer separately.
3. Discard the top 100mm of each core sample before combining them into a composite sample. The final sample should weigh approximately 500g.
4. Alternatively, sample an open pit by taking 10 grab samples in a "W" pattern across the pit face. Ideally, sample behind the outer surface of the pit.
5. If the farm utilizes bales, use the core sampler to collect samples from three to four bales per cut, located at various positions within the storage stack. Seal the sample holes with tape to prevent spoilage.
6. As an alternative, when opening bales, take three to four random hand samples per cut.

Once the sample has been collected, place it in a plastic bag, remove excess air, seal it tightly, and promptly send it to the nearest reference laboratory.

Long-Distance Sampling

If the sample needs to be shipped over long distances such as international shipping, and it is expected to reach the laboratory several days after sampling, it is advisable to fully dry the sample before sending it from the farm. This is because the sample needs to be stabilized, and if the moisture content is too high, fermentation may occur, which would cause inaccurate laboratory results. This applies to both forage and feed samples:

1. Carefully weigh the sample and record the weight of the wet sample.
2. Place the sample in an oven set at 50-60°C and dry it until the moisture content reaches 5-8%. The low heat of the oven prevents heat damage to the sample.
3. After it is dried, calculate the percentage of the dry matter of the sample. This information should be sent along with the sample to the laboratory to ensure an accurate nutrition analysis.

It is important for farmers to consult with their agricultural advisors regarding the results of their silage or feed analysis. This will enable them to plan and formulate diets for their animals correctly.

Working with the Community: How We Empower Local Dairy Farmers

Bringing milk from farms to tables involves essential partnerships and community initiatives. Across Nigeria, efforts by pastoralist groups and dairy farmers have significantly bolstered agricultural productivity and local production. Central to this success are cooperatives, which play a crucial role in ensuring sustainable community development, fair wealth distribution, financial inclusion, and social mobility.

Through Arla Food’s Milky Way Partnership and the implementation of cooperative processes, the Luumo Kosam cooperative (located in Chukun, Kaduna) was birthed out of identified gender-specific gaps in the Nigerian agricultural and dairy communities, such as unemployment, financial inclusion as well as self sufficiency. With a focus on both capacity building and increased local production, Arla Foods and its partners, developed the Milky Way Partnership to foster job creation and women empowerment opportunities that drive sustainable growth amongstBringing milk from farms to tables involves essential partnerships and community initiatives. Across Nigeria, efforts by pastoralist groups and dairy farmers have significantly bolstered agricultural productivity and local production. Central to this success are cooperatives, which play a crucial role in ensuring sustainable community development, fair wealth distribution, financial inclusion, and social mobility.

Through Arla Food’s Milky Way Partnership and the implementation of cooperative processes, the Luumo Kosam cooperative (located in Chukun, Kaduna) was birthed out of identified gender-specific gaps in the Nigerian agricultural and dairy communities, such as unemployment, financial inclusion as well as self sufficiency. With a focus on both capacity building and increased local production, Arla Foods and its partners, developed the Milky Way Partnership to foster job creation and women empowerment opportunities that drive sustainable growth amongst farmers.

This cooperative aligns with the Sustainable Development Goal No. 5 which focuses on gender equality and empowerment of women. Research has shown that women are significant contributors to agriculture in sub-Saharan Africa, making up nearly half of the agricultural labour force, and contributing 60-70% of the labour needed for commercial outputs. This initiative has led to the democratic election of 31 women to formal positions within new cooperatives in the Damau Household Milk Farm Project, which aims to settle 1,000 nomadic farmers and establish well-serviced dairy communities.

Women in the Luumo Kosam cooperative have benefited from capacity-building sessions and workshops, improving milk quality and animal welfare, and enhancing their business skills. Over 5,000 women in traditional pastoralist communities have gained owner-ship and multiple income streams through dairy farming and new skills acquired. For these women, milk represents more than a commodity; it is a means of social mobility and improved household income, and has provided a way of supporting their children's education, nutrition, and health.

This cooperative underscores the importance of collaboration within the industry to achieve sustainable development goals and significant socio-economic impact. As Nigeria’s agricultural and dairy sector undergoes reforms to drive investment and increase production, grassroots initiatives like the Milky Way Partnership remain founda-tional for sustainable development.

An inclusive commercial dairy sector not only strengthens Nigeria's self-sufficiency but also empowers women and communities with essential opportunities for growth and prosperity.

In Other News

Arla West Africa LOTS (Strategy Planning for 2025)

From the 27th to 29th of August, the Leadership Team from Arla West Africa; Nigeria, Ghana and Senegal met up for a 3 day strategy session in Ghana to define our direction for 2025. Our goal remains to drive the growth and development of the dairy industry in our various markets and to foster collaboration with relevant stakeholders, while providing quality, nutritious and affordable products to our consumers.

CODARAN Courtesy Visit to Arla Foods

It was a pleasure to host the management team from CODARAN (Commercial Dairy Ranchers Association of Nigeria) in July at our Lagos, Marina office. We discussed possible synergies, as well as the importance of collaboration in this sector underlining the importance of experience and innovation sharing to drive the successful growth of the dairy industry in Nigeria.

Nordic Food Festival

The Nordic Food Festival took place in September in Abuja and provided an excellent platform for Nordic food brands to engage with potential food service clients, suppliers, and relevant stakeholders in the Nigerian food industry. This event created a valuable opportunity for parties to network and explore partnerships, while showcasing exquisite Nordic-inspired delicacies.

Arla Foods proudly highlighted the Dano and Arla brands, with a variety of offerings prepared using Dano Milk and Arla cheeses. A highlight of the evening was the use of Arla cream cheese as a key ingredient in the traditional Danish open sandwiches, which were met with great enthusiasm from attendees.