Milk production in Nigeria projected to grow 18% to 579,200 tonnes by 2015/16, according to new report; cocoa production projected to grow 43% to 343,000 tonnes

Nevin Barich

DUBLIN , December 16, 2011 (press release) – Research and Markets (http://www.researchandmarkets.com/research/9dc177/nigeria_agribusine) has announced the addition of the "Nigeria Agribusiness Report Q1 2012" report to their offering.

Growth in the consumption of sugar, wheat, cocoa, meat and dairy products will benefit from rising living standards and an expanding population. Despite having high growth potential, Nigeria's agricultural industries suffer from insufficient investment. As part of an effort to improve food security and diversify the economy, the Nigerian government has committed itself to further agricultural development. However, given that agriculture accounts for around 44% of Nigeria's GDP and approximately 88% of its non-oil earnings, actual investment levels can be considered low. One of the biggest factors which have limited private-sector investment levels is Nigeria's challenging business environment.

Key Forecasts

* Cocoa production growth to 2015/16: 43% to 343,000 tonnes. Production growth will reflect increased plantings as farmers move to capitalise on the higher price of cocoa beans. Although long-term growth will benefit from government and private-sector investment, we identify several major downside risks to our production forecast.
* Milk production growth to 2015/16: 18% to 579,200 tonnes. Despite benefiting from new forms of investment, the dairy industry will be unable to satisfy domestic demand for milk.
* Rice consumption growth to 2016: 15% to 5.74mn tonnes. Despite steady output growth, total demand for rice is expected to remain well in excess of Nigeria's productive capacity; this will necessitate a continued reliance on imported grain. We are doubtful that the government will deliver on its recently announced plan to ban rice imports from 2014.
* Real GDP growth 2012: 7.6% (down from 7.8% in 2011)
* Unemployment rate 2012: 17.9% (up from 17.1% in 2011)
* Inflation (annual average, % chg y-o-y) 2012: 10.2% (down from 11.1% in 2011)

Companies Mentioned:

* Nestl Nigeria Going Strong

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