Pelwatte examines local dairy self-sufficiency post COVID-19
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Packing milk at the factory
Local dairy producer, Pelwatte, is pledging to ensure continued exploration towards the establishment of self-sufficiency in the local dairy industry, after COVID-19 is overcome.
At a meeting conducted with the senior members of the Government, when asked on the threshold of self-sufficiency post COVID-19, in all agricultural and food products in Sri Lanka, Pelwatte had expressed its commitment and practical possibility towards supplying continuous dairy products during the COVID-19 situation and post COVID-19, the company said in a media release.
Following the continued curfew and other contingency measures since March 20 it was declared by the Government that they would enforce a continued limitation on the import of non-essential items and certain types of food commodities.
As such, it was essential that the local food and dairy processors contributed their proposals, suggestions and issues that would support the Government to conduct a detailed study on mechanisms to ensure self-sufficiency in all agricultural and food products while overcoming the strains of the short time allowed, to meet the challenge.
Heeding the government’s request, Pelwatte has brought up crucial information in terms of uplifting the local dairy farmers which would pave the path towards the self-sufficiency of the dairy industry in Sri Lanka.
“At present, we are ensuring our farmers are benefitted with the best possible price for their raw milk/ farm gate prices. However the company and the local dairy industry at large are not in a position to provide more support to the farmers in terms of upgrading the farming enterprises through micro financing. This is an area we would require the Government’s support, as that would be a giant leap in establishing long term self-sufficiency in the dairy industry. Such an initiative would entail improvement of the feed/diet of cattle by high yield grass, fodder, silage and concentrated feed, as well as enabling farmers to get more heifers that would help increase the size of their herd, possibly from climatised, native or regional breeds,” noted Akmal Wickramanayake, Managing Director, Pelwatte Dairy Industries.
“Local dairy processors have shown time and time again that their product quality is far superior and definitely fresher than imported products. We at Pelwatte guarantee the time taken from farm gate to retail outlet shelves is less than 72 hours, which cannot be claimed by imported brands. During the COVID-19 crisis, citizens themselves became more convinced that they will use local brands. But challenges lie for local brands to be able to fill the shelves with enough stocks regularly to ensure that all citizens have access to fresh local dairy products, and the key to this lies in the success of our supply chain and steady sustainable growth of the smallholder dairy farmers,” he said.
The Government has announced a price increase of Full Cream Milk Powder, with the new MRP set at Rs.945 per kg and Rs. 380 per 400g as of April 28, as a first step in the direction to self-sufficiency. “This was based on the appeal made by the local milk powder manufacturers that at the pre-existing set Full Cream Milk Powder MRP they were barely breaking even. This put the local dairy processors in a quandary, in terms of supply chain improvements, i.e extension of farmer network. Accordingly, it was requested from the Government to increase the MRP that allows the processors to generate the profits that could be reinvested in the Smallholder Farmer Extension Network,” the release said.