May 17, 2004

Sri Lanka Dairy Industry Can Help Boost Rural Economy

Steps will be taken to boost local production as well as encourage dairy farming and livestock breeding in Sri Lanka. Efforts should be also taken to bring down the cost of production and not to be totally dependent on imports of what could be produced locally, said the Minister of Agriculture, Irrigation and Livestock, Anura Kumara Dissanayake.

According to him, when any item is not produced locally, they are compelled to depend on imports for it. A number of small industries have been closed, and there had even been a rampant filling of paddy fields which are detrimental to the interests of the nation. These moves will result in unemployment and shortage of the respective products.

President of the Sri Lanka Veterinary Association, Dr. (Mrs) H. M. S. B. Herath said with regards to the dairy industry, it is reported that the domestic production of daily milk is 20 percent of the total requirement of the country. As veterinary professionals they are totally disappointed with this situation.

The major constraints leading to this crisis are the high cost of cattle feed, low price for milk and poor marketing systems. Lack of labour or the high cost of labour also contributes to the high cost of production, which in turn adversely affects the profit margins of the dairy farmer.

She said that they might have to exploit opportunities for livestock development and poverty alleviation through the promotion of safe and efficient production, procession and marketing of livestock products.

It is vital to enhance skills and capacity building in the smallholders and make them feel that they are part and parcel of the small-scale processing systems.

She further said the dairy sector has a tremendous potential to increase its contribution to economic growth, particularly to the development of the rural economy. It is therefore necessary to encourage private sector participation to invest in the livestock industry at regional level.

The poultry industry has made significant progress in recent years due to the active participation of the private sector. The livestock industry's contribution to the country's economy mainly depends on large-scale and modern chicken processing factories and advanced breeding farms.