Business

Lanka Milk Foods to invest Rs 2 B on 2,000 cows

Lanka Milk Foods (CWE) PLC, which owns popular dairy brands Lakspray, Ambewela and Daily, plans to invest Rs. 2 billion to rear 2,000 cows through a new subsidiary.

The subsidiary, named United Dairies Lanka (Pvt) Ltd, was incorporated on 23rd July for this purpose, the company announced in a Colombo Stock Exchange filing today (Tuesday).

There will be “4 new cow barns and 1 ultra-modern milking parlour” established at Ambewala in Nuwara Eliya with this investment, which is aimed at increasing the quantity of good quality milk to be utilized in the production of fresh milk and milk allied products of the company.

The company made no mention of whether the cows would be imported or bought locally. It said that it will focus on developing marketing strategies to “meet the ever increasing demand for its milk allied products”.

Local dairy supply stood at 327 million litres in 2017, yet still meets only 40% of Sri Lanka’s growing demand, revealing a productivity and supply gap, the All Island Dairy Association (AIDA) said in June.

The Government, in an effort to boost local milk production, has imported 3,000 high yielding milch cows from Australia. It has said it hopes to achieve self-sufficiency in dairy products by 2020 and save Rs. 40 billion it spends annually on importing powdered milk.

Lanka Milk Foods (CWE) PLC is owned by business tycoon Harry Jayawardena.