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Milk import expenditure drops in 2020

11 Feb 2021

By Niyushi Dananjani   Responding to a question raised by MP Buddhika Pathirana during a parliamentary session yesterday (10), Premier Mahinda Rajapaksa, who is also the Minister of Finance, stated that milk imports reduced last year compared to the previous year. According to the statistics submitted by premier Rajapaksa, the amount spent on milk powder imported in 2019 was $ 0.7 million (Rs. 128 million), while in 2020, the amount spent on milk powder imports was $ 0.63 million (Rs. 117 million).  The quantity of milk powder imported in 2019 was 93 million kg, compared to 96 million kg in 2020. The quantity of milk powder imports in 2018 was 98 million kg, marking a drop of 5 million kg between 2018 and 2019, and a further 2 million kg drop between 2019 and 2020. "40% of liquid milk is produced locally, annually, and the remaining quantity of milk powder is imported. There are over 300,000 registered dairy farmers, Melko, Nestlé, and Cargills, which collect milk. Also there are other small and medium milk processors from which we collect large quantities of liquid milk. Mainly, Melko (Pvt.) Ltd., Pelwatte Dairy and Nestlé Lanka are engaged in milk powder production in our country," he added. Rajapaksa further noted that liquid milk and milk powder are imported mainly from New Zealand and Australia, as well as from various other countries such as Denmark, the Netherlands, and India. As the current milk production is sufficient only to cater to 35% of local demand, there is a plan underway to increase production by another 35% this year. Accordingly, the plan is to import and increase the number of milch cows in Sri Lanka, and also to increase the average milk production of a cow by increasing their feed.  A proposal submitted by the relevant State Ministry was already approved on 30 November 2020, to implement the “Saubhagya” Dairy Development programme and the “Dairy Development Centre’s” project for this purpose. Improving farm animal breeding, nutrition, health conditions, and creating eco-friendly farms through animal waste management are planned under the “Saubhagya” Dairy Development Programme. Meanwhile, the “Dairy Development Centres” project is also in the works, which aims to develop the milk value chain process by upgrading artificial insemination centres, providing necessary inputs, and networking veterinary offices.  


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