Sri Lanka's dairy business sees brighter prospects
Sri Lanka's dairy sector is improving with strong competition among processors expanding demand for milk and helping farmers, the US Agency for International Development (USAID) said.
USAID has boosted the sector by partnering with a private company to increase milk production, it said.
A USAID study showed that there is strong competition among dairy processing companies, which is helping to expand milk collection routes from rural areas. The agency added that the increased demand in certain regions is leading to greater development and investment opportunities for dairy farmers.
The study also helped identify the areas for dairy market improvements and the obstacles that need to be addressed.
Small farmers have traditionally cared for a few head of cattle without the benefit of special feed, veterinary care, or good breeding, the USAID said.
The local breed of dairy cow typically only yields between 1-2 litres of milk a day. "This could be substantially increased with a concerted effort from the public and private sector," it said.
The USAID said its study shows that there has been substantial progress in the dairy sector and small farmers in Sri Lanka's former north-eastern conflict zones are benefitting.
The government of Sri Lanka and private sector dairy processing companies are implementing a concept called 'Dairy Villages' - in which the government is helping farmers to improve the health and breeding of cows within their village area.
"Knowing there will soon be more milk available, the commercial milk processing industry is investing in the necessary equipment and structures to collect and market milk from those villages."
USAID said it is supporting these efforts by providing equipment and training to 'Dairy Villages' to help farmers collect and chill milk until it can be collected by an interested dairy processor.










