The role of multinational corporations in local dairy value chain development: case of Friesland Campina WAMCO (FCW) in Nigeria

Ekumankama, Ogbuagu; Ezeoha, Abel Ebeh; Uche, Chibuike

doi:10.22434/ifamr2018.0108

Cited by 9 publications

(6 citation statements)

References 33 publications

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“…The demand for dairy products continues to increase with increasing population and urbanisation, and the importation is used to bridge the demand gap despite the high cattle population. However, dairy importation comes at a cost as Nigeria expends about $480.3 million per annum on dairy importation from countries such as Australia, New Zealand, the European Union, India and the United States of America (Ekumankama et al, 2020). Policymakers seek ways to reduce the foreign exchange expense on milk importation, increase global milk output, and reduce global poverty and inequality through public-private partnerships with SSA governments Source: authors [6] (Köster and de Wolff, 2012).…”

Section: Nigeria and The Global Dairy Sectormentioning

confidence: 99%

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Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria

Amolegbe

Adewumi

2022

AOL

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Rural development interventions funded by private agribusiness firms may positively or negatively affect rural farmers' welfare. A positive effect is that such interventions may provide farmers with market access. The negative effect could be that such firms may be solely motivated by profit and may exploit the farmers. In this paper, we explore the role of FrieslandCampina Dairy Development Programme, a multinational firm with headquarters in Europe, in improving the welfare of rural dairy farmers in Nigeria. We use a two-wave panel survey of 122 programme participants and 95 non-participants. We focus on two outcome measures – annual dairy income and daily milk yield - and use a pooled ordinary least squares method to understand the programme effect. We also explore the mechanism of effect by assessing the programme effects on farmers' sustainable dairy management practices using a negative binomial regression method. Our results suggest that the programme has positive welfare effects on farmers. We attribute these effects to farmers' access to reliable markets offered by the programme and the informal business arrangement between the farmers and the agribusiness firm. Potential policy implications include that governments should encourage other private agribusiness firms to set up similar development programmes.

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Section: Nigeria and The Global Dairy Sectormentioning

confidence: 99%

“…As of 2016, there were four MCCs and one milk bulking centre (MBC). The MBC is in Iseyin, and the four functional MCCs are in Fashola, Alaga, Maya and Iseyin towns in Oyo State (Ekumankama et al, 2020).…”

Section: Purchasing Arrangements and Price Determinationmentioning

confidence: 99%

Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria

Amolegbe

Adewumi

2022

AOL

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“…Panyshev and O. Katlishin specified in their paper the problem of assessing the influence of a certain state program on dairy industry development [8]. The approach-es to evaluation of government influence on the dairy industry are studied in papers by Russian [12; 15; 16] and foreign authors [17][18][19]. The search for and substantiation of the optimal way of government regulation of producers and consumers of dairy products are described in the paper by E. Twine [20].…”

Section: Rate Of Change Of Milk Productionmentioning

confidence: 99%

Impact of Digitalisation on Corporate Finance in the Agricultural Sector

Chernyakov¹,

Usacheva²,

Chernyakova³

2021

КФ

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The purpose of our paper is to examine the interrelation between digitalisation indicators of dairy industry government regulation and economic efficiency, using large corporations of Novosibirsk Region as an example. We propose to identify an integrated system approach to evaluating the influence of state programs related to digitalisation of the dairy industry on industry performance. A system-wide transition to digital technology in the infrastructure of dairy industry regulation is nearly totally absent from academic research. The existing literature considers the influence of state programs and policies on the industry and proposes various performance indicators. However, it is uncertain how industry digitalisation may affect these performance indicators. To address this gap in the literature, we propose a hypothesis of dependency between digitalisation indicators and performance indicators of dairy corporations. The basis of the methodology is the calculation of a digitalisation index used to assess the efficiency of government support of the industry corporations. In order to substantiate the hypothesis, we apply a correlation and regression analysis and established interrelations between the offered criteria (digitalisation index and share) and operating performance of dairy industry economic entities. Our results indicate general consistent patterns and interrelations between digitalisation of state regulatory programs and the performance of dairy industry corporations. Our statistical analysis reveals digital technology as a tool of government has a significant impact on business performance. The offered digitalisation criteria and patterns of performance efficiency are indicative of the possibility to manage the digitalisation process based upon preset parameters of business performance. Our research will be of interest to specialists developing state programs and policies applying digital technology, directors of dairy companies, and scientists who conduct research in related fields, who may use our approach for evaluating and forecasting performance in the dairy industry, accounting for the impact of government regulation.

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“…Cow's milk is the most commonly used dairy in yogurt production and the global consumption of dairy products is high especially in developing countries including Nigeria.Nigeria as a major consumer of dairy products produces little or no type of dairy milk locally. As reported by Adekoya (2016) and Ekumankama (2020), about 98% of all the milk and dairy products consumed in Nigeria are imported (especially the cow's milk powder) and consequently, the cost of production of cow's milk yoghurt is high. However, the substitution of cheaper and plantbased milk may reduce the importation of dairy milk as raw material for the production of yogurt (Jimoh 2020).…”

Section: Introductionmentioning

confidence: 98%

Effects of the substitution of cow’s milk with soymilk on the micronutrients, microbial, and sensory qualities of yoghurt

Otolowo

Omosebi²,

Araoye³

et al. 2022

Food Prod Process and Nutr

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The consumption of imported dairy products is high especially in developing countries including Nigeria where little or no milk is produced locally which makes the products expensive, out of reach to common consumers and also inconvenient for lactose intolerance and vegans. Soymilk, as plant-based milk was substituted for cow’s milk in parts and in whole for the production of yoghurt and the effect of substitution was evaluated on the minerals, vitamins, microbial, and sensory properties of the products using the established methods. Significant differences (p < 0.05) exits among the yoghurt samples in the micronutrient contents. The soymilk substitution produced yoghurts with trace/macro mineral contents’ range of 0.14–28.50 mg/100 g and vitamin contents (ranged 0.02–0.43 mg/100 g) that were of comparable range of values with the yoghurt made with 100% cow’s milk (0.21–29.60 mg/100 g minerals and 0.05–0.58 mg/100 g vitamins). Generally, no significant difference (p < 0.05) was observed in most of the sensory attributes evaluated (range 8.00–8.01) in the entire samples (except in the 100% soymilk yoghurt). The microbial analysis proved the safety of the entire products for consumption. These showed the positive effect of substituting soymilk for cow’s milk at all the levels used, thus, the lactose intolerance and vegans can find alternative to dairy yoghurt in the 100% soymilk substitution and enjoy the functional health benefits of yoghurt. Also, the total dependence on importation of dairy milk and cost of production of composited milk yoghurt could be reduced to improve the nation’s economy and make the product economically accessible to common man. Graphical abstract

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The role of multinational corporations in local dairy value chain development: case of Friesland Campina WAMCO (FCW) in Nigeria

Cited by 9 publications

References 33 publications

Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria

Agribusiness Firms and Rural Dairy Development. A Case of FrieslandCampina Dairy Development Programme in Nigeria

Impact of Digitalisation on Corporate Finance in the Agricultural Sector

Effects of the substitution of cow’s milk with soymilk on the micronutrients, microbial, and sensory qualities of yoghurt

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