More milk, more income for small dairy producers in Eastern and North Central Provinces

Farmers in eastern Sri Lanka recently received milk storage cans and collection trucks that will help them improve their participation in the dairy value chain.

The US Agency for International Development (USAID), the development arm of the US Government, delivered the trucks to two farmer-owned milk collection centers in Batticaloa District and provided the storage cans to two milk producer groups in the Batticaloa and Polonnaruwa Districts.

According to USAID Project Management Specialist Priyanka Dissanayake, these investments are part of USAID’s Dairy Enhancement in the Eastern Province (DEEP) Project, a partnership with the US-based Land O’Lakes and Sri Lankan CIC Agri Businesses.

“By connecting farmers to value chains, DEEP works to increase dairy production and improve farmers’ incomes in the east,” she explained.

Many farmers have received grants to directly improve dairy production, typically by buying a cow, constructing cattle sheds, or developing their water supply and pasture land. “Before the project started, farmers were getting an average Rs. 29 per litre of milk. With this project, farmers are now earning Rs. 49 per litre,” noted Dissanayake.

USAID Mission Director James Bednar said: “A vibrant domestic dairy sector is important for Sri Lanka’s long term prosperity.  This project can help improve the milk supply, and it will put more money in the pockets of smallholder farmers.”

According to USAID, DEEP helps farmers strengthen their position in the market by mobilising them to organise into milk producer groups. It provides training and equipment so they can produce more milk and sell it at a better price. To date, 42 producer groups have been created. The project is also standing up four milk collection centres, which will be owned by the milk producer groups and will link producers to regular buyers of raw milk.

As part of DEEP’s small grants programme, Dissanayake also handed over a check for Rs. 960,000 to the farmers. Since 2009, the project has distributed small grants averaging Rs. 20,000 to over 2,100 dairy farmers.

The American people, through the US Agency for International Development, have provided development and humanitarian assistance in developing countries worldwide for nearly 50 years. Since 1956, USAID/Sri Lanka has invested nearly $ 2 billion to benefit all the people of Sri Lanka.