…Gears Effort towards Backward Integration
Promasidor Nigeria Limited has signed a partnership agreement with Ekiti State Government to drive its backward integration initiative aimed at creating local source of raw materials for its dairy products through the state owned Ikun Dairy Farm.
The pact was sealed on behalf of the partners by the Ekiti State Governor, Dr. John Kayode Fayemi and the Managing Director of Promasidor Nigeria Limited, Anders Einarsson in Abuja, on Tuesday, July 23, 2019.
This project will enable Promasidor utilise the potentials of Ikun Dairy Farm in the making of milk and other products of nutritional value which helps to enhance human growth.
Commenting on the agreement, Fayemi stated that Ekiti State was delighted to collaborate with a major player in the fast-moving consumer goods sector that is deeply committed to the well-being of consumers through its array of quality products.
The Governor affirmed that the partnership would enhance the backward integration initiative of Promasidor, in compliance with Federal Government’s directives that companies should seek local source of raw materials for their products, thus ensuring local content development.
Fayemi disclosed that Ikun Dairy Farm, established in 1980 with hundreds of fattened cows, could serve as a source of milk supply to produce evaporated milk and other nutritional products, create more employment opportunities and increased nutritional products.
In his remark, the Managing Director of Promasidor Nigeria Limited, Anders Einarsson, who was highly elated with the progress made on backward integration, said Ikun Dairy Farm would in no small measure provide opportunities to enhance local milk production, an exciting opportunity for the company.
He affirmed that as the maker of quality products such as Cowbell Milk, Loya Milk, Cowbell Chocolate, Miksi, Top Tea, Onga food seasoning, Sunvita Cereals, and others, local source of milk collection is paramount to ease less dependence on foreign raw materials.
The Promasidor boss corroborated Fayemi’s view that the partnership would also lead to further employment and other viable source of livelihood for people in the state.
He explained that Promasidor’s backward integration initiative would give the company an edge over others in the dairy market with the potentials of the farm.
Ikun Dairy Farm spans across 1,000 hectares of land area. Located in Ikun-Ekiti, in Moba Local Government Area, the farm was established in the early 1980s as an integrated agro-allied farm to boost the economy of the State.