Dairy presents potential to improve nutrition levels of Sri Lankans and strengthen national economy

A panel of public and private sector leaders came together in Colombo recently, agreeing that through education, innovation and collaboration the local dairy industry can become a greater contributor to the Sri Lankan economy and better support the health and well-being of the nation. 

The discussion, ‘Dairy: Flourishing farmers to nourishing Sri Lankans’, covered key topics such as the main trends that are driving the consumption of dairy, current barriers to meeting the local industry’s potential and how the government, industry and private sector can work together to overcome these barriers. 

The panel discussion was held at the Bandaranaike Memorial International Conference Hall (BMICH) and featured Dr. Harsha De Silva – Deputy Minister of Foreign Affairs, Dr. A.T. Ariyaratne – Founder and President of the Sarvodaya Shramadana Movement, Professor H.W. Cyril – Chairman of the National Livestock Development Board, Dr. Amarasiri Chandrasoma – former Director of Animal Health for the Department of Animal Production and Health of the Ministry of Livestock, Sharang Pant – Managing Director of Nielsen Sri Lanka, and Sunil Sethi – Managing Director of Fonterra Brands Sri Lanka and the Indian Subcontinent. 

With the demand for dairy in Sri Lanka increasing by 13% each year, but current local supply only meeting 30% of total demand, the panellists agreed there is a unique opportunity for Sri Lanka’s economy.

Deputy Minister of Foreign Affairs Dr. Harsha De Silva said the local dairy industry has huge potential to drive the economy.  

“The agricultural sector employs 30% of the Sri Lankan workforce, but contributes just 9% of the national GDP. This tells us that the productivity of this sector has an immense potential to grow, and as I’ve seen from my recent visit to New Zealand, agriculture and in particular dairy has the potential to be a strong pillar of our economy.

“Developing the local dairy industry can play a role in closing the local supply and demand gap, and uplift the livelihoods of small to medium farming entrepreneurs,” said Dr. De Silva.

Nielsen Sri Lanka Managing Director Sharang Pant highlighted recent data that shows that people around the world are increasingly focused on healthier lifestyles, resulting in a rise in demand for healthy options such as dairy. 

“While research shows that dairy features in the diets of most Sri Lankan households and year-on-year consumption continues to grow by 13%, individual consumption still remains low. Sri Lankans only consume half a glass of milk or its dairy equivalent each day. This is well below the recommended intake of up to two glasses of milk specified by the Ministry of Health. In addition, Sri Lanka faces micronutrient deficiencies in Iron, Vitamin A and D, and Folic Acid – all potential areas where dairy can help,” said Pant.

These consumption trends and requirements paint an even stronger picture for the growth potential for the local dairy industry. However, there are roadblocks that the industry must overcome if it is going to truly capture this potential. 

National Livestock Development Board (NLDB) Chairman Professor H.W. Cyril and Dr. Amarasiri Chandrasoma, former Director of Animal Health for the Department of Animal Production and Health (DAPH) of the Ministry of Livestock, noted common challenges including lack of farm business knowledge, the rising costs of farming inputs and the limited availability of both land and high-quality cattle. 

These are the challenges affecting Sri Lanka’s 300,000 small-scale dairy farmers, which together currently produce around 80% of local milk supply. On average, these farms have only three to five cows, and are run as family businesses with limited resources and inadequate farm management knowledge.  

The industry experts agreed that a collaborative approach to drive commercially sustainable farming businesses is needed to help them better respond to the current challenges and lift both the quality and amount of milk they produce.  

Drawing from his experience in working with rural communities in Sri Lanka, Dr. A.T. Ariyaratne, Founder and President of the Sarvodaya Shramadana Movement, highlighted the positive impact a thriving local dairy industry can have on rural communities throughout the country. 

“Every rural community must have access to clean water, sanitation and education, and I firmly believe that a prosperous dairy industry will play a vital role in helping to improve people’s lives.

Sunil Sethi, Managing Director of Fonterra Brands Sri Lanka, said private sector players recognise their role in supporting these communities to help the dairy industry achieve its full potential. 

“At Fonterra Brands Sri Lanka, our purpose is to make Sri Lanka a healthier and happier nation. We do this by delivering high quality dairy products to meet the nutritional needs of Sri Lankans, and supporting the growth of our local dairy farmers and their communities.

“We’re now three years into our ten year commitment to invest Rs. 10 billion into dairy communities. A key aspect of our development programme has been working with partners and small holder dairy farmers to develop local knowledge and farm management techniques, providing farmers with solutions that suit Sri Lanka’s unique agricultural requirements and create more sustainable, productive farms.  

“We believe the future looks bright for the Sri Lankan dairy industry, and we look forward to our continued collaboration with the government and industry groups to build a sustainable dairy industry,” he said.

– Pix by Shehan Gunasekara