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Stakeholders Seek Alliance With Dairy Farmers to Boost Output

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Dairy Products
  • Stakeholders Seek Alliance With Dairy Farmers to Boost Output

With the nation yet to meet a supply gap of 600,000 metric tonnes out of the 1.3 million tonnes demanded in the dairy industry, stakeholders have sought improved alliance with farmers to aid productivity.

According to the stakeholders, such efforts will increase capacity to meet local dairy demand, considering the problems facing the dairy sector in West Africa and challenges in developing a sustainable business model for the industry in the sub-region.

Indeed, European and West African dairy farmers had a two-day multi-stakeholder roundtable conference to discuss new business models with the aim of creating employment and profit for the local dairy farmers in West Africa in Abuja, recently.

The Minister of Agriculture and Rural Development, Audu Ogbeh, represented by, Director, Animal Production and Husbandry Services, Federal Ministry of Agriculture and Rural Development, Dr. Egejuru Eze, while speaking on the theme ‘Milky way to development’ noted that the roundtable is happening at a time the vision of the government of Nigeria is taking a holistic approach to develop the livestock industry especially the dairy sector.

The Minister said “it is heartwarming to note the increased interest and flow of foreign direct investment into the livestock industry from different parts of the world, particularly in dairy productions. Efforts of this nature will increase capacity to meet local dairy demand. Presently the annual national dairy output and demand are estimated at 700,000mt and 1,300,000mt respectively, giving a supply gap of about 600,000mt”.

Speaking at the conference, the Vice Chairman, Arla Foods and co-host of the conference, Jan Toft Noergaard, said, “we believe there are more feats to be achieved, with an alliance like this, I am sure things will happen faster. This conference is set to discuss and offer solution to challenges facing the dairy sector in West Africa and development of the dairy sector to improve the livelihood of farmers” he said.

The Program Coordinator, Care Denmark, Rolf Hernoe explained that the ‘Milky Way to Development’ is an alliance of stakeholders in the dairy industry, including dairy farmers and companies in the West African region, “so far we have one European industrial producer and we are hoping to expand. We see this as the beginning of something bigger, we are currently discussing with ECOWAS to take a more active role in the alliance” he said.

Speaking on the benefits of the alliance to local dairy farmers, Rolf Hernoe said the alliance focuses on avoiding the negative impact of imports of powdered milk into the region and greater focus on involving local farmers in the value chain so that milk will be more available and safer and be processed into higher value products so that everyone will benefit. The alliance will facilitate technology transfer and investment which will definitely be of benefit to local farmers.”

Danish Ambassador to Nigeria, Torben Getterman who is representing the Development Agency of the Danish Government, said “the Danish Government is supporting the idea of the ‘Milky Way’ alliance because of it firm believe in the principle and overarching idea of the alliance. The ‘Milky Way’ alliance is a good example of how cooperation between governments, sectorial organisations, private companies, research institutes and NGOs can result in projects that carry with them benefits on so many levels” he said.

Commissioner, Department of Agriculture, Environment and Water Resources, Economic Community of West African States, Tchambokou Ayassor during his speech said the need for partnership of this nature in West Africa sub-region cannot be overemphasize, saying “a gathering like this is very important for the economic development of agriculture in the sub-region as it will give opportunities for technology transfer, development of cross boarder professional association and formulation of policy framework that will foster a faster development of the dairy sector and agriculture business in West Africa”.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Crude Oil

Brent Crude Rises to $69 on IEA Report

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Oil prices rose after the release of the International Energy Agency’s (IEA)  closely-watched Oil Market Report, with WTI Crude trading at above $66 a barrel and Brent Crude surpassing the $69 per barrel mark.

Prices jumped even though the agency revised down its full-year 2021 oil demand growth forecast by 270,000 barrels per day (bpd) from last month’s assessment, expecting now demand to rise by 5.4 million bpd. The downward revision was due to weaker consumption in Europe and North America in the first quarter and expectations of 630,000 bpd lower demand in the second quarter due to India’s COVID crisis.

The excess oil inventories of the past year have been all but depleted, and a strong demand rebound in the second half this year could lead to even steeper stock draws, the IEA said yesterday, keeping an upbeat forecast of global oil demand despite the weaker-than-expected first half of 2021.

However, the upbeat outlook for the second half of the year remains unchanged, as vaccination campaigns expand and the pandemic largely comes under control, the IEA said.

Moreover, the global oil glut that was hanging over the market for more than a year is now gone, the agency said.

“After nearly a year of robust supply restraint from OPEC+, bloated world oil inventories that built up during last year’s COVID-19 demand shock have returned to more normal levels,” the IEA said in its report.

In March, industry stocks in the developed economies fell by 25 million barrels to 2.951 billion barrels, reducing the overhang versus the five-year average to only 1.7 million barrels, and stocks continued to fall in April.

“Draws had been almost inevitable as easing mobility restrictions in the United States and Europe, robust industrial activity and coronavirus vaccinations set the stage for a steady rebound in fuel demand while OPEC+ pumped far below the call on its crude,” the IEA said.

The market looks oversupplied in May, but stock draws are set to resume as early as June and accelerate later this year. Under the current OPEC+ policy, oil supply will not catch up fast enough, with a jump in demand expected in the second half, according to the IEA. As vaccination rates rise and mobility restrictions ease, global oil demand is set to soar from 93.1 million bpd in the first quarter of 2021 to 99.6 million bpd by the end of the year.

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Crude Oil

OPEC Expects Increase In Global Oil Demand Raises Members’ Forecast on Crude Supply

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The Organisation of Petroleum Exporting Countries (OPEC) yesterday lifted its forecast on its members’ crude this year by over 200,000 bpd and now expects demand for its own crude to average 27.65mn bpd in 2021.

This is almost 5.2mn bpd higher than last year and around 2.7mn b/d higher than an earlier estimate of the group’s April production.

According to the highlights of the organisation’s latest Monthly Oil Market Report (MOMR), OPEC crude is projected to rise from 26.48 million bpd in the second quarter to 28.7 million bpd in the third and 29.54 million bpd in the fourth quarter of the year.

The report also indicated a fall in Nigeria’s crude production from 1.477 bpd in February to 1.473, a difference of just about 4,000 bpd before rising again in April to 1.548 million bpd, to add 75,000 bpd last month.

OPEC stated that its upward revision of members’ crude was underpinned by a downgrade in the group’s forecast for non-OPEC supply, which it now expects to grow by 700,000 bpd to 63.6mn b/d against last month’s report’s projection of a 930,000 bpd rise to 63.83mn bpd.

The oil cartel projected that US crude output would drop by 280,000 bpd this year, compared with its previous forecast for a 70,000 bpd decline.

On the demand side, OPEC kept its overall forecast unchanged from last month’s MOMR, stressing that it expects global oil demand to grow by 5.95 million bpd to 96.46 million bpd this year, partly reversing last year’s 9.48mn bpd drop.

Spot crude prices fell in April for the first time in six months, with North Sea Dated and WTI easing month-on-month by 1.7 percent and 1 percent, respectively.

On the global economic projections, the cartel said stimulus measures in the US and accelerating recovery in Asian economies might continue supporting the global economic growth forecast for 2021, now revised up by 0.1 percent to reach 5.5 percent year-on-year.

This comes after a 3.5 percent year-on-year contraction estimated for the global economy in 2020.

However, global economic growth for 2021 remains clouded by uncertainties including, but not limited to the spread of COVID-19 variants and the speed of the global vaccine rollout, OPEC stated.

“World oil demand is assumed to have dropped by 9.5 mb/d in 2020, unchanged from last month’s assessment, now estimated to have reached 90.5 mb/d for the year. For 2021, world oil demand is expected to increase by 6.0 mb/d, unchanged from last month’s estimate, to average 96.5 mb/d,” it said.

The report listed the main drivers for supply growth in 2021 to be Canada, Brazil, China, and Norway, while US liquid supply is expected to decline by 0.1 mb/d year-on-year.

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Crude Oil

Oil Rises Over Concerns of Fuel Shortages

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oil - Investors King

Oil prices rose on Tuesday, as lingering fears of gasoline shortages due to the outage at the largest U.S. fuel pipeline system after a cyber attack brought futures back from an early drop of more than 1%.

Brent crude futures rose 35 cents, or 0.5%, to $68.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures rose 49 cents, or 0.8%, to $65.41.

Benchmark gasoline futures prices rose 1 cent to $2.14 a gallon.

On Monday, Colonial Pipeline, which transports more than 2.5 million barrels per day (bpd) of gasoline, diesel and jet fuel, said it was working to restore much of its operations by the end of the week.

Right now there’s a generalized anxiety premium being built into prices because of Colonial and it’s keeping a floor under the market,” said John Kilduff, partner at Again Capital LLC in New York.

Fuel supply disruption has driven gasoline prices at the pump to multi-year highs and demand has spiked in some areas served by the pipeline as motorists fill their tanks.

Traders booked at least four tankers to store refined oil products off the U.S. Gulf Coast refining hub after a cyber attack that knocked out the pipeline, shipping data showed on Tuesday.

North Carolina, the U.S. Environmental Protection Agency and Department of Transportation issued waivers allowing fuel distributors and truck drivers to take steps to try to prevent gasoline shortages.

OPEC on Tuesday raised its forecast for demand for its crude by 200,000 bpd and stuck to its prediction of a strong recovery in global oil demand this year as growth in China and the United States counters the coronavirus crisis in India.

Meanwhile, the rapid spread of infections in India has increased calls to lock down the world’s second-most populous country and the third-largest oil importer and consumer.

India’s top state oil refiners have already started reducing runs and crude imports as the new coronavirus cuts fuel consumption, company officials told Reuters on Tuesday.

On the bullish side for crude, analysts are expecting data to show U.S. inventories fell by about 2.3 million barrels in the week to May 7 after a drop of 8 million barrels the previous week, a Reuters poll showed.

Gasoline stocks are expected to have fallen by about 400,000 barrels, analysts estimated ahead of reports from the American Petroleum Institute on Tuesday and the U.S. Energy Information Administration on Wednesday.

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