Nigeria’s milk market will survive forex ban, says Orimolade
A diary industry expert, Femi Orimolade, has taken an analytical assessment of Nigeria’s dairy consumer market and submitted that the milk sector would survive despite the recent Federal Government’s forex ban on importation of milk products into the country.
According to Orimolade, ex- Country Manager, NZMP Fonterra Limited, a frontline milk manufacturing firm, although the forex ban was likely to spark off initial adjustments in the milk market, especially with regards to pricing and re-packaging of milk products, the industry would experience adverse effects of the ban in the short term but would overcome it and bounce back in the long run.
Speaking on MARKETING EDGE on TV, a weekly programme on TV Continental, the renowned industrialist and marketing industry specialist said his assumption was based on the fact that the Nigerian market was predominantly a young and dynamic one and, to that extent, remains a consumption-based economy.
He added, however, that advertising and marketing activities would experience downward trend owing to the ban adding that the marketing activities in the sector would gradually pick up in the long run when the market would have stabilised from the initial shocks.
“The Nigerian market is a very young and dynamic one. Young in the sense that it has a very young population and according to available data, it’s about 90million average, which means it’s an economy that is going to be consuming and will to continue to grow.
“Of course, you can’t also take away the fact that Nigeria is going to be impacted by whatever happens globally, and being who we are, we suck away things that happen globally in Africa. Nigeria is actually one of the countries that adapts to things that happen globally to a large extent,” he said.
He continued: “So, the market is still vibrant because it’s driven by the young population coupled with the fact that it’s also being impacted by what happens globally.
“Competition is strong and milk itself is a commodity. So, to a large extent, what consumers are buying is perception. But with the new government policy you will now find that there are opportunistic brands on the fringes that take advantage of global prices.”
He noted further that despite the general negative trends in the polity, the Nigerian economy was largely vibrant and there are strong hopes that the economy would emerge out of the woods and become a force to reckon with not only in the African continent but across the world generally.
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