Cargills’ engagement with dairy farming, rural agriculture has transformed farmers
The President with Ports and Shipping Minister Arjuna Ranatunga and Cargill’s Deputy Chairman Ranjit Page.
Private sector engagement in Sri Lanka’s agriculture and dairy farming is revolutionising the lifestyle of the farmers.
At the opening of the Kotmale Integrated Dairy plant at Banduragoda, Gampaha by President Maithripala Sirisena this week, M.A. Kirthirathne, a dairy farmer from Balagallayaya, Kanaththe-wewe, confirming the advanced changes in the farmers’ lives said while they now receive a fairly good income, the dairy farming community hitherto confined to older people is now attracting young educated people to this lucrative business.
He said that this new trend is changing their lifestyle and even they have been made proud that there is a better recognition by the society now, than earlier.
It was a 17- acre milk and milk product processing facility at Banduragoda, abandoned for several years which was transformed by Cargills (Ceylon) Ltd and converted into an ultra-modern milk and milk processing factory producing Kotmale products.
The Rs. 5 billion investment has enhanced the transformed milk processing facility which is dealing with 15,000 dairy farmers and collecting around 125,000 litres of milk per day or 42 million litres per year, saving the country around US $ 20 million annually, as this quality would otherwise have to be imported.
Also present at the opening of the ultra-modern facility were Minister of Rural Economic Affairs P. Harrison, Minister of Ports and Shipping Arjuna Ranatunga, Cargills Chairman Louis Page and Deputy Chairman, Cargills Ranjith Page.
Haridas Fernando, Deputy General Manager, Agri-business, Cargills, said that 15 years ago Cargills became one of the pioneers in revolutionizing agriculture and farming to establish a consistent and common pricing structure for agricultural produce by eliminating the middle-man and now the consumer and the producer have benefitted.
The dairy plant
Most of all, he said that their scheme ensured a fair price for the farmers while the consumer too is able to purchase the produce at a fair price. He said that when the farmers become rich, they also receive a better recognition in society. He said that earlier, when these farmers came to the town they were not properly accepted but Cargills has been able to elevate their social outlook and simultaneously improve their incomes.
Being a social responsible company has become the corporate policy of Cargills through this process.
Additionally, Cargills is involved in many community service projects. From every kilo of vegetable purchased and every milk litre purchased, the company has saved 50 cents and transferred it to a fund. In 2016 this savings fund was Rs. 26.1 million and out of this fund 65 per cent has been provided for the farmer’ children’s education through scholarships, and through the benefits of this scheme several university graduates, engineers and doctors have been produced.
The fund named Saru Bima was created in 2008 and at this week’s function 225 farmer children received scholarships from President Sirisena. This included 92 university, pirivena and vocational training scholarships, 83 A/L scholarships and 40 Year 5 scholarships.
The fund also made possible 49 community development projects across all its dairy and vegetable sourcing communities which included provision of drinking water, water purification projects, school development, library development as well as establish certified English and IT centres.