CHI Supports CBN’s Backward Integration Programme

CHI Limited has announced that in partnership with the Niger State Government and the Central Bank of Nigeria (CBN), it is investing in massive infrastructural development, upgrade of the existing and construction of new facilities at the Bobi Grazing Reserve, a pilot grazing reserve in Maringa Local Government in Niger State.

A statement disclosed this, adding that with the acquisition of over 4,000 hectares in the reserve, the company would be partnering with existing pastoralists to provide 2,000 hectares to allow for settlement and grazing for their cows.

“It has made available 1,200 hectares to subsistence farmers for grain production and another 300 hectares for growing some of the best breed of pasture – Napier grass, an essential fodder known to improve milk yield in cows.

“The final stretch of 800 hectares has been set aside for development of support facilities, specifically a milk collection and processing center where all the milk produced from the cows will be collected and processed in a hygienic manner.

“CHI Limited has also invested in the rehabilitation of the 15 kilometres 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 statement added.

Speaking on the recent developments, Managing Director of CHI Limited, Mr. Deepanjan Roy, thanked the central bank for the initiative and the Niger State Government for their support and co-operation thus far.

“We are proud of our strategic partnerships and investments in the backward integration project of the Central Bank of Nigeria. With the support of the Niger State Government, 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 in which we play, provide good raw materials to support our local company, provide Nigerian consumers with more access to nourishing, healthy dairy products, and be the model for successful dairy backward integration”, he said.

In July 2019, the central bank of Nigeria rolled out a new policy to encourage backward integration for the local production of select items including dairy products to save depleting national reserves, revive local production capacity and create employment. The new policy offers opportunities for major manufacturers of milk and dairy products in Nigeria.

Despite the challenges of dairy backward integration policy like the incessant herders/farmers clashes, the opportunities in the value chain are numerous. CHI Limited decided to key into the initiative.