Ben Langat ensures that FrieslandCampina improves dairy nutrition through sustainable practices and agriculture in Nigeria

Dairy is a fast-moving consumer goods (FMCG) industry that engages in the production of milk and milk-related products as part of its business. The market has grown; for example, Nigeria produced 524,733 tons of milk in 2020, up from 220,000 tons in 1971. It is growing on average annually at a rate of 1.94%.

Milk is one of the most important sources of dietary nutrients for Nigerians, and as the most populous potential dairy industry in Africa, the country imports at least 60% of the dairy products it consumes, the remaining country with about 200 million people, Nigeria. represents a larger market for dairy products. Despite the 40% produced locally.

The industry’s value chain includes cattle farming, which produces more than 90% of the country’s total annual dairy production. These cattle are raised in low-input, low-output pastoral systems and traded in informal value chains. Of the 5 million Nigerian cattle used for this purpose, there are exotic and improved dairy cattle bred specifically for milk and other uses, and these are the Holstein Friesian, Brown Swiss and Jersey breeds.

One of the players in dairy feed production in Nigeria is Royal FrieslandCampina NV, a Dutch multinational dairy cooperative headquartered in Amersfoort, the Netherlands. It was founded in 1871 with currently approximately 23,783 employees worldwide, and with a presence in 36 countries and with products sold in over 100 countries under various brands including Nigeria. In Nigeria, the company is known for its Peak milk brand.

The company has seen many mergers and acquisitions. The most recent dates back to 2007, when Campina and Friesland Foods merged to form the company that bears its current name. Campina and Friesland Foods said they were studying the possibility of merging on December 19, 2007. Subject to the sale of certain cheese and dairy beverage divisions, the EU approved the merger of the two cooperatives.

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Its other subsidiaries are:

  • Alaska Milk Corporation (Philippines)
  • FrieslandCampina Engro Pakistan (Pakistan)
  • Dutch Lady Milk Industries Berhad (Malaysia)

Milk, baby and infant food, milk drinks, yoghurts, desserts, cheese, butter, cream, milk powder and dairy ingredients are some of the products offered by FrieslandCampina. Its main brands are frisian flag or Frisian Flag on its Indonesian market, Chocomel, Fristi, Friso, Dutch Lady, Milner, Campina, Landliebe, Optimel, mona and “Mix’it”.

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About FrieslandCampina WAMCO Nigeria Plc

FrieslandCampina WAMCO Nigeria Plc is a subsidiary of the Dutch company Royal FrieslandCampina and was incorporated in Nigeria under the Companies and Related Matters Acts (Cap. C20) of the Federation of Nigeria 2004, as a public limited company . Its manufacturing site is located at Ogba Industrial Estate, Ikeja, Lagos, and has been supplying dairy products to Nigeria for over 60 years under the Peak, Three Crowns, Coast, NUNU and Olympia milk brands.

Through the construction of a dairy farm in Vom, Plateau State, the company developed its first backward integration strategy in the early 1980s. Since then, it has incorporated all the lessons learned and developed in the more sustainable dairy development model, which was introduced in 2010.

Working with pastoralists, small dairy farmers and commercial farms is part of dairy development activities, which are supported by a number of partners including IFDC-2SCALE, Bles Dairies, Wageningen University, the Federal Ministry of Health Agriculture and Rural Development (FMARD), and the Central Bank of Nigeria. The goal of the program is to make dairy farming more impactful for the next generation of farmers, making the industry more sustainable.

FrieslandCampina WAMCO dairy development currently operates in Oyo, Osun, Ogun, Kwara and Niger states with products such as Coast, Nunu, Peak, Coast and Olympic milk.

STAKEHOLDERS

Hein Schumacher is the current CEO, who became FrieslandCampina’s CFO on January 1, 2015. Previously, he held financial and general management positions at Heinz in the Netherlands, the United States of America, the United Kingdom UK and China. . He succeeded Roelof Joosten, who had been CEO from 2004 until June 1, 2015.

  • Ben LangatManaging Director, Sub-Saharan Africa Cluster

Ben Langat, Managing Director in Nigeria, in charge of Sub-Saharan Africa and reports to Roel van Neerbos, COO Consumer Products Europe, Middle East and Africa. His appointment became official on March 13, 2017. Langat oversaw significant business transformation, path-to-market strategy, volume growth and market share expansion while serving as Director General of Nigerian Bottling Company Limited, Coca-Cola and Hellenic Bottling Company from June 2015 to June 2016. He worked for Unilever in Kenya, Malawi and Ghana during his more than 24 years in the industry.

Ben Langat is an accountant by profession, with a degree in commerce from the University of Nairobi, Kenya, and an alumnus of Harvard Business School, Boston, having completed the Advanced Management Programme. He has followed several professional training courses, including the Excel Leadership Program at IMD, Lausanne.

Board members in Nigeria include:

  • Jacobs Moyo Ajekigbe, President
  • Benard Cheruiyot Langat, Managing Director
  • Roel Van Neerbos, non-executive director
  • Oyinkan Ade-Ajayi, non-executive director
  • Isaac Adefemi Agoye, non-executive director
  • Mustafa Bello, FNSE Independent non-executive director
  • Peter Eshikena, Non-Executive Director
  • Oreoluwa Famurewa, Executive Director
  • Marc Galjaar, Executive Director
  • Robert Steetskamp, ​​non-executive director

Ben Langat’s achievements at FrieslandCampina WAMCO Nigeria Plc

According to Ben Langat,I knew I wanted to make the world a better place, through nutrition, sustainable practices and agriculture…the real barometer of success is adoption of his nutrition program. If every Nigerian has a share of dairy nutrition in what they consume daily, then as an organization we will have achieved success.”

Under his leadership;

  • Company reported 35% revenue growth for fiscal year ended December 31, 2021
  • As a result, revenue increased from N199.5 billion in 2020 to N268.4 billion in 2021
  • Operating profit increased by 13% from N19.4 billion in 2020 to N22 billion in 2021
  • Commercial strategies have been strengthened and investments have been intensified in brands and physical availability optimized
  • The Route-to-market (RTM) distribution strategy was expanded, which maintained its leadership position and generated significant revenue growth.
  • Likewise, sustainable dairy development has received a boost through important initiatives, including collaboration within the Value4Dairy consortium. The Dairy Development Program (DDP) involves 3,500 dairy farmers in Oyo State, of which 950 are women.
  • Investments have been made in a new mobile yogurt factory to scale up fresh milk processing with expansion into new states in Nigeria.
  • Backward integration has been strengthened and product diversification strategies have been implemented
  • Since his appointment in 2017, the local contribution to one of his main products, Peak evaporated milk, increased from 2% to 10%.

Regulators

The Commercial Dairy Ranchers Association of Nigeria (CODARAN) and the National Agency for Food Drug and Administration Control (NAFDAC), among others, regulate the business. CODARAN is the national umbrella organization and collective voice of Aboriginal commercial dairy farmers, ranchers, and small, medium and large dairy producers. NAFDAC, on the other hand, is responsible for overseeing all milk and milk products manufactured, imported, exported, advertised, sold, distributed or used in Nigeria.

Performance

The company reported revenue growth of 35% for the financial year ended December 31, 2021, across all of its segments, which are individuals, catering professionals and industrial customers.

Being a publicly traded company, the board has proposed a total dividend of N5.83 per share, comprising an interim dividend of N1.10 per share which was paid in 2021, and a final cash dividend of N4.23 per share which was approved by the general meeting of shareholders, as well as one free share to be allocated to existing shareholders on a one-for-one basis.

The company’s headquarters reported revenue of 11.14 million euros and profit of 172 million euros in 2021 in its annual financial report. (Its 2022 annual report has yet to be released). In its operations in Nigeria, revenue was N82.3 billion and pre-tax profit was N4.9 billion as of March 31, 2022.

Consumer perception

The company’s dairy development program in Oyo was allegedly involved in child labor in 2019. This was due to the alleged human rights violation regarding the employment of children on its farms without pay in its Nigerian supply chain. Either way, the company is seen as a pioneer and established company producing a domestic milk brand, consumed by many Nigerians.

Competition

Cowbell milk from Promasidor, which introduced powdered milk in smaller pouches in 1993, was the first to challenge Peak’s dominance. This has enabled ordinary Nigerians to have access to branded milk. Peak Milk had no choice but to follow his lead.

Other major competitors for the average Nigerian consumer include PZ’s Nunu and Blue Boat marketed by Ranona, Jago, owned by Sosaco Nigeria, Coast, Miksi and Loya.

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