Fonterra Brands Lanka launches interest-free loan scheme

Fonterra Brands Lanka launched an interest-free loan scheme that will assist dairy farmers to modernise their farming operations, boost milk production, and assist in the long-term development of the Sri Lanka dairy industry.

Fonterra Brands Lanka Managing Director Achyut Reddy said more than Rs. 7 million will be available for loans, assisting up to 3,000 dairy farmers in the Dickoya and Wariyapola regions.

“We understand that dairy farmers in these regions face a number of challenges boosting milk production and maintaining the quality of dairy cows due to issues with feed and farming methods.

“The loan scheme will allow them to adopt modern farming technologies that are more effective and efficient than traditional methods, as well as assist them to invest in nutritious and high-quality feed that will boost the quality and quantity of their yields.”

“The initiative is a further step towards the goal of modernising the Sri Lanka dairy industry, which will have long-term economic benefits for the country’s rural regions and the overall economy,” Reddy said.

The loan scheme will be supported by an education programme that will ensure dairy farmers purchase the best feed for their cows, and assist in optimising the food sources available to them.

Reddy said in addition to being able to buy formulated feed, minerals and vitamins for cows, the loans could also be used to purchase high-quality dairy cows and cover any emergency costs required to maintain the health of their herds.

“High-quality, locally-produced milk will be the foundation on which the Sri Lanka dairy industry grows and expands. The loan scheme Fonterra Brands Lanka is implementing will assist that development and in bringing the industry up to globally recognised standards,” he said.

The loan facility will not be restricted solely to on-farm investment, and could be used in special situations to cover family emergencies or festive occasions. “We realise that farmers occasionally have personal situations where financial support is required, and we believe extending the loan offer to cover these issues will assist in addressing any personal concerns or worries,’ Reddy said.

The loan will be revolving fund that operates by providing long-term credit at zero interest, which is distributed monthly and offset through loan repayments.