Burkina Faso Nationalizes Dairy Production Company

Burkina Faso has decided to nationalize the Dairy Production and Dairy Products Company (SOPROLAIT-SA).

Newstimehub

Newstimehub

21 Nov, 2024

Burkina Faso has decided to nationalize the Dairy Production and Dairy Products Company (SOPROLAIT-SA).

This move was announced on November 20, 2024, during a Cabinet meeting as part of President Ibrahim Traoré’s vision to reduce dependency on imports and strengthen food sovereignty.

Dependence on Milk Imports
According to a 2017 GIZ study, Burkina Faso imports about 70 million liters of milk annually to meet urban demand. Since its establishment in 2004, SOPROLAIT-SA has been unable to achieve efficient production despite receiving financial and logistical support from the state.

In 2009, the company received a subsidy of 126,974,116 CFA francs and owned four hectares of land, but failed to establish a functional production unit. This failure not only hindered the development of local dairy producers but also increased the reliance on milk imports.

Nationalization and Objectives
The government has taken over the management of SOPROLAIT-SA in order to prevent the company’s bankruptcy and ensure the efficient use of resources. This move aims to restructure the company’s operations and boost local milk production, transforming it into dairy products.

Food Sovereignty and Livestock Development
The nationalization is part of President Ibrahim Traoré’s strategic plan, dubbed the Agro-pastoral and Fisheries Offensive, which seeks to improve livestock production and ensure food sovereignty for Burkina Faso.

This decision is seen as a turning point in the country’s efforts to reduce import dependency and aims to establish a more sustainable dairy sector by supporting local producers.