Investment Opportunities in the dairy and poultry industries

 

This week, President Gotabaya Rajapaksa instructed officials to introduce a short-term and long-term plan to meet the local demand for liquid milk in partnership with public and private companies and small-scale farmers. To achieve the set targets expeditiously, the President emphasised the need to enhance grass cultivation, dairy cow breeding, and research institute facilities.

President Rajapaksa made these remarks to discuss the future activities of the State Department of Livestock Farm Promotion and Dairy and Egg Based Industries. The Government aims to expand research activities into developing new dairy cattle breeds suitable for various geographical areas.

Highlighting the value of the Central Environmental Authority (CEA)'s participation in the resolution of animal husbandry issues, President Rajapaksa said these initiatives should not be a burden to farmers. Chairman Rajapaksa of the Presidential Task Force on Economic Recovery said that historically managed animal farms should not be closed down based on public concerns without conducting an inquiry.

Minister of Agriculture Mahindananda Aluthgamage said the state took steps to raise 15,000 milking cows, supported by 15 estate companies, to increase the production of milk. Private sector stakeholders said they expect foreign exchange earnings of $16 million in 2020 through the export of poultry, chicken, and related goods. The President's Secretary, Dr P. B. Jayasundera, Cabinet Secretaries, State Ministries and Heads of Line Institutes also attended the meeting, including a host of private sector investors.

Sri Lanka is looking to cut down on imports of milk powder and improve local milk production. The then Government set a goal in 2017 to achieve self-sufficiency in milk products by 2020 and save Rs—40 billion on importing powdered milk annually. Consequently, in 2017, the state imported 5,000 cows for approximately US$ 3,031 each, or a total of US$ 2,317 million.

In the country's dairy industry, Sri Lanka's aim of being self-sufficient in milk has opened up several business/investment opportunities. The Government of Sri Lanka has also agreed to give companies involved in the dairy industry incentives. There are also opportunities to set up companies/projects that are related to the sector, which is a growing industry, along with the growth of the country's dairy industry.

OSL Take: The authorities in Sri Lanka are committed to developing the dairy industry in the region. In Sri Lanka's dairy industry, this has contributed to the expansion of business/investment opportunities. For international companies engaged in the dairy industry, even importing dairy cows is a business opportunity.

 VBS/AT/19102020/Z_TB4