Biz-Bud

Island Dairies competing with multinationals

Ramani KANGARAARACHCHI

Patriotic entrepreneurs in the country like to produce something with available resources rather than importing and make profits.

Chairman Sri Lanka Island Dairies Pvt Ltd Liyanage Karunaratne is trying hard to make Sri Lanka self sufficient in milk products. The consumption of dairy products in the country has increased dramatically since the 1970s. Therefore, the dairy industry contributes considerably to Sri Lanka's economic development. The chairman's ambition is to give its fullest support to this industry as it is a source of employment opportunities to low income people.

The chairman stated, when interviewed by Daily News Business.

Q: How did you spend your early life?

A: "I am the eldest in a family of 11 children, in Galigamuwa in the Kegalle district. I had my early education in a village school and later came to Colombo for Pirivena education. My first job was at the Sri Lanka Milk Board. After marriage in 1975, I thought of having an additional income to strengthen my family income.

Q: How did you do that?

A: With my experience working at the Milk Board, I started manufacturing yoghurt at home as a self employment project, and collected milk from the village people. I also followed a course at Gannoruwa Livestock Research Centre where I gained a lot of experience. Helped me introduce new technology to my business and upgraded it. The business progressed slowly and steadily with the help of the Industrial Development Board. I was able to cover the Sabaragamuwa Province by providing quality milk products.

Q: What is the position of your business today?

A: The company is supported by latest technology from the Netherlands and Denmark, we are planning to export non fat and non sugar yoghurt to the Maldives initially and later to other neighbouring countries as well. Over 3,000 farmer families in the Kegalle district make their living by supplying fresh milk to my factory, and help to improve their living standards.

The company has a range of fifteen products which include flavoured and plain yoghurt, ice cream, curd and fresh milk distributed islandwide.

Plans are under way to introduce a few other new products in the near future. Over 10,000 litres of milk is collected daily from the farmers at present.

My company has given cold storage facilities to farmers in need and have a strong relationship with the farmers for over 25 years. I am hoping to increase this quantity of milk by motivating people in the area to engage in this industry as Sri Lanka has high potential for growth in this sector.

Q: What are your future plans?

A: My vision is to be the best supplier of milk products in the country by 2015, and this would help the government to save foreign exchange spent on importing milk powder.

I am on the lookout for a suitable land to start a large scale farm and a factory. I expect Government support to get high grade cows which will be a huge advantage. I have given more than 3000 direct and indirect employment opportunities to poor people in my village, some of them are graduates.

I want to create dairy production villages and create employment to people while giving a better price to farmers motivate Sri Lankan people to consume more healthy milk products.

Q: Are you involved in training-up coming dairy farmers?

A: Yes I have taken steps to develop the industry by facilitating the Advanced Level students in Kegalle district in taking Dairy Farm Management as a subject and obtain practical knowledge and training in my factory.

This will help these students to find employment easily in the future as there is a dearth of skilled people in this industry. A fully-fledged new factory at a cost of Rs 225 million was opened in Kegalle recently.

Q: What are your achievements in the industry and personal life?

A: I won the second place at the Livestock National Awards ceremony for the best milk processor and the first place at the Sabaragamuwa Province in 2007.

I was also awarded the first place for Sabaragamuwa Province at the Shilpa 2008, sponsored by the Industrial Development Board.

I have gained lots of knowledge and experience through educational tours abroad and I have been able to collect milk twice a day through the network collecting centres with cold stores facilities. Awarded with the Deshabandu award in 2011.

Q: What are the challenges you face?

A: The biggest challenge is the multinational companies that import milk foods to this country. We cannot spend huge amounts for advertising where consumers are attracted by them. Ours is a valuable local industry and the country should have a system to protect local industries.