New rules introduced by the Central Bank of Nigeria have effectively blocked Irish dairy co-ops from exporting milk powder to the west African country.

Nigeria is an important country for Irish dairy co-ops, as it imports more than €220m worth of Irish milk powder every year.

Ireland exported over €110m of milk powder to Nigeria in 2019.

Nigeria, Africa’s largest economy, is by far the largest market for exports of Irish fat-filled milk powder. In 2019, Nigeria imported more than 100,000t, or €200m, worth of Irish-made fat-filled milk powder – more than double the size of Ireland’s second-largest market.

The west African country also imported more than 11,000t of Irish skimmed milk powder (SMP) last year, which was valued at over €23m.

The Central Bank of Nigeria recently announced restrictions on milk powder imports coming into the country by limiting the number of companies that could import milk or milk powder into Nigeria to just six.

These companies include Friesland Campina, Arla, Nestlé Nigeria, Promasidor Nigeria, Chi Ltd and Integrated Dairies Ltd.

Restrictions

The central bank’s restrictions will come as a blow to Irish dairy exporters, particularly Ornua, Aurivo and Glanbia, which all export fat-filled milk powder to Nigeria.

In 2015, Ornua opened a new packing facility in Nigeria that takes in bulk shipments of milk powder and packages it into sachets, pouches or tins to be sold under the Kerrygold brand.

Nigerian dairy farmers produce just 500m litres of milk every year in a country with a population of 180m people

Nigeria imports up to $1.5bn (€1.4bn) of milk powder every year. The Central Bank of Nigeria said the new restrictions on milk powder imports were designed to increase milk production in the country, where Nigerian dairy farmers produce just 500m litres of milk every year in a country with a population of 180m people.

However, a major concern for the Irish dairy industry will be if neighbouring countries to Nigeria in west Africa, such as Senegal, Mali or Ghana, decide to follow suit with similar restrictions.

Other countries in west Africa import an additional 100,000t of Irish-made fat-filled milk powder valued at about €170m.

In a statement, Bord Bia said it was closely monitoring the situation and liaising with Irish dairy exporters affected by this decision.