Lanka Milk Foods
said it was investing $7 million more in its Ambewela dairy farm to increase
production for the Sri Lankan market. The firm said the Investment Board had
approved its intention to create a subsidiary company to set up Ambewela's
dairy farm for the local market in a stock exchange filing.
The BOI has
grant approval to raise the project's planned investment to US$ 7 million (3.03
million rupees) out of US$ 10 million, it said.
Sri Lanka is a
net dairy importer. In 2018, the nation imported $349 million in milk and milk
products. In 2018, the United States exported just $8 million in dairy products
to Sri Lanka. (Source: Export Development Board)
OSL Take: The
decision by Lanka Milk Foods to set up a new $7 million venture to meet the
demand for fresh dairy products indicates the growth in the local market.
Foreign dairy companies could look at opportunities to set up experiments
through partnerships with local companies to address the growing demand for
fresh dairy products.
Sri Lankan
authorities have paid much attention to the development of the country’s dairy
industry, thereby expanding the business/investment opportunities in the
industry. Many large scale local companies have also diversified into the dairy
industry due to the untapped business potential in the industry.
The increased
productivity and the strengthening of the manufacturing line would result in a
constant supply of dairy milk. Given Sri Lanka’s need to develop the country’s
dairy industry and become self-sustained in fresh dairy, foreign businessescould explore the business opportunities in Sri Lanka’s dairy sector as it is a
continually growing sector.
VBS/AT/20191119/Z_TB1
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