Sri Lanka dairy business prospects seen improving

Chandi Dharmaratne

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. 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.

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

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.”

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