USAID research identifies opportunities in dairy sector
The United States Agency for International Development (USAID)
conducted a study of Sri Lanka’s dairy sector to help small farmers
improve their businesses. The study results show that there is strong
competition among dairy processing companies, which is helping to expand
milk collection routes from rural areas.
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 new head of cattle
without the benefit of special feed, veterinary care, or good breeding.
The local breed of dairy cows only yields between 1-2 liters of milk
per day. This could be substantially increased with a concerted effort
from the public and private sector.
The study shows that there has been substantial progress in the dairy
sector and small farmers in Sri Lanka’s former conflict zones are
benefitting. Improved policies have helped to encourage dairy sector
development through greater market access for small farmers.
The Government and private sector dairy processing companies are
implementing a concept called “Dairy Villages”. The Government is
assisting 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 equipment and
structures to collect and market milk from those villages.
USAID 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.
At the same time USAID encourages and supports Dairy Processors to
invest in new collection routes that would reach more dairy farmers.
USAID has boosted the sector by partnering with a private company to
increase milk production. |