The $100 million Fund for Agricultural Finance in Nigeria (FAFIN) which is managed by Sahel Capital, has made its first investment, taking a 25% stake in L & Z Integrated Farms Ltd., one of the fastest growing dairy producers and processors in the country. Kano-based L & Z Integrated Farms has a dairy operation that produces fresh milk, ice cream, and yogurt, and a poultry operation that produces eggs and poultry meat under the L & Z brand name. The company’s location allows for it to source 60% of its milk from northern Nigeria, and it has become a key player in the country’s yogurt and fresh milk industries. L & Z states that it intends to use the funds to expand its production and processing capabilities, and build additional milk collection centers. Nigeria’s dairy sector is still underdeveloped, causing the country to rely heavily on imports of dairy products and the reconstitution of imported milk powder into liquid milk. The investment in L & Z is an important step toward the development of local, commercial scale milk production.
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