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Sri Lanka dairy business prospects seen improving

Apr 23, 2010 (LBO) - 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 said.
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USAID has boosted the sector by partnering with a private company to increase milk production, it said in a statement.

A USAID study showed that there is strong competition among dairy processing companies, which is helping to expand milk collection routes from rural areas.

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"This is good news: the increased demand in certain regions is leading to greater development and investment opportunities for dairy farmers," it said.

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The study also helped identify the areas for dairy market improvements and the obstacles that need to be addressed.

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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.

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"This could be substantially increased with a concerted effort from the public and private sector."

The USAID said its study shows that there has been substantial progress in the dairy sector and

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