FrieslandCampina says improved quality of raw milk from local suppliers in 2016

FrieslandCampina WAMCO says its focus in 2016 was to improve the quality of raw milk from local suppliers and it achieved this by putting in place an efficient quality improvement programme in place.

The dairy maker stated this at its 44th annual general meeting held in Lagos recently.

“In 2016, FrieslandCampina WAMCO made significant progress in the development of the dairy sector in Nigeria and in the process provided a source of sustained income to almost 2000 farmers (including 900 women),” said Jacobs Moyo Ajekigbe, chairman, board of directors, FrieslandCampina WAMCO.

“The programme involved extensive training of the Fulani milk producers at the herd levels on how to hygienically handle and deliver quality raw milk to the milk collection centres, with emphasis on thorough follow-up on the implementation of quality procedures,” Ajekigbe said.

The dairy maker’s turnover increased 2.5 percent to  N123.75 billion in 2016  from N120.72 billion in 2015. Profit Before Tax (PBT) rose 7.2 percent to N19.96 billion from N18.62 billion.

“Though 2016 was a challenging year due to the prevailing economic climate, which impacted on the cost of production, raw and packaging materials sourcing; the company recorded remarkable achievements in operational efficiencies, cost management and improved productivity across the supply chain systems with new investments in human capital development and facility improvements,” the chairman said.

The shareholders approved the board of directors’ proposal of a total dividend pay-out of 75 percent of the Company’s PAT for the year under review, which is equivalent to N10.65 per N0.50 share. An interim dividend of N2.95 per N0.50 share was paid in November 2016, and a final dividend of N7.70 per N0.50 share was approved.

The firm expects more pressure for Fast-Moving Consumer Goods (FMCG) firms in Nigeria in 2017.

ODINAKA ANUDU