• Essential supplements like vitamins, minerals, and dairy feed show startling prices hikes
• Current dairy supply only meets approx. 30% of nation’s demand: Karunaratne
• No more dairy animal imports from Australia or New Zealand, breeding locally: Amaraweera  

Jayantha Samarasinghe, a dedicated dairy farmer in Ranna with a farm, finds himself in a predicament that resonates with dairy farmers across the nation. 

The dairy industry, a cornerstone of livelihoods and milk production for the country, is presently grappling with a range of formidable challenges, creating a concerning outlook for farmers like Samarasinghe.

Not long ago, Samarasinghe’s farm was flourishing, responding to the escalating demand for local dairy produce, even amid the pandemic. 

However, last year, an unrelenting wave of difficulties inundated the industry, leaving farmers to grapple with the preservation of their farms and their way of life. Transportation, a vital artery for the dairy farming industry, has emerged as a significant obstacle. Soaring fuel prices have rendered the transportation of milk a costly affair, substantially escalating production expenses. 

Essential supplements crucial for the health of dairy cows, such as vitamins, minerals, and dairy feed, have witnessed a startling surge in prices. The amplified transportation costs, coupled with the higher prices of these indispensable components, have propelled production expenditures to an astounding 300% higher compared to the previous year. 

Samarasinghe’s challenges mirror the sentiments shared by countless dairy farmers across the country, ranging from small-scale operators to larger farms. The escalating prices and transportation expenses present a formidable threat to the future of dairy farming in Sri Lanka.

Farmers remain resilient 

However, amidst these tribulations, farmers like Samarasinghe demonstrate remarkable resilience. Their unwavering determination to weather the storm and find sustainable solutions is a testament to their commitment to their trade. 

The rising prices have hit the dairy sector hard, making it difficult for farmers to keep their farms profitable. The cost of dairy feed, essential for the cows’ health, has notably increased. Coupled with higher prices for vitamins, minerals, and fuel, farmers are finding it challenging to sustain their operations without compromising the well-being of their animals. 

Artificial insemination, vital for maintaining and improving dairy herds, has also become more expensive. This has added financial pressure on farmers, restricting their ability to use this technique to enhance their herds. 

Farmers say that they are in urgent need of support from the Government and agricultural organisations to alleviate their financial strain. Immediate measures are necessary to stabilise the prices of essential commodities and ensure the sustainability of Sri Lanka’s dairy industry.

Despite these challenges, farmers remain hopeful of sustainable solutions that can secure the future of the dairy industry, meeting the nation’s milk demands and contributing to economic growth and prosperity.

In Sri Lanka, the dairy industry is an important sector, but it grapples with challenges, particularly impacting smallholder farmers. Statistics reveal that approximately 3.5 million people find their livelihoods in the livestock industry, with a significant portion engaged in dairy farming. Smallholders, often operating at near-subsistence levels, dominate local milk production, emphasising the sector’s critical role in the country’s economy. 

Dairy farming in Sri Lanka primarily consists of smallholders engaged in mixed crop-livestock operations. The livestock, mainly cows, rely on naturally occurring grasses found in common lands – like roadsides, fallow paddy fields, and tank beds – often sustained by rain-fed conditions.

Lack of mechanisms to uplift sector 

All Ceylon Farmers’ Federation (ACFF) President Namal Karunaratne, representing the dairy farmers, voiced concerns about the lack of a comprehensive Government mechanism to uplift the dairy industry, despite past aspirations to achieve self-sufficiency. 

He highlighted a significant demand for local dairy products, especially milk, indicating potential market growth. However, the current supply only meets approximately 30% of the nation’s demand, highlighting the industry’s need for expansion and development. 

Aside from the economic challenges associated with farming essentials, Karunaratne highlighted that the artificial insemination process had also been affected by rising import costs and fuel issues. This poses a significant risk to the industry’s future productivity, as farms may not achieve the expected number of calves from the cows. 

Current initiatives 

According to available data, a minimum daily production of 15 litres is necessary to attain a reasonable income from dairy farming at the smallholder level. For smallholders to achieve profitability, they require the equivalent of three upgraded dairy animals, an adequate cattle shed, and a fodder plot of more than 20 perches. 

The Central Bank of Sri Lanka (CBSL) reports that the Department of Animal Production and Health (DAPH) has implemented various programmes to develop the dairy sector based on the livestock sector master plan. These initiatives include a livestock breeding project aimed at upgrading the cattle population to enhance genetic potential and increase milk production, showcasing a commitment to advancing the dairy industry in the nation. 

Shifting towards self-sufficiency 

In a determined move to achieve self-sufficiency in milk production, Agriculture Minister Mahinda Amaraweera has firmly decided against importing dairy animals from Australia or New Zealand. Citing incompatibility with Sri Lanka’s climate as a major concern, the Minister is steering the nation towards relying on its own resources to meet the country’s milk needs. 

The decision is rooted in Minister Amaraweera’s reservations about the adaptability of Australian and New Zealand dairy animals to Sri Lanka’s diverse climate. He believes that focusing on nurturing local dairy breeds is essential in reaching the desired level of milk production within the country.

Reflecting on the matter, the Minister highlighted the past challenges faced by the Wellard project and stressed on the necessity for a different approach. He emphasised that if Sri Lanka were to import dairy animals, they would only come from India or Pakistan. 

However, with current exports from these countries halted, the Minister’s focus has shifted towards enhancing local productivity. 

Instead of relying on foreign sources, the Agriculture Minister is looking at the implementation of advanced technologies within the local dairy farming community. He strongly believes that harnessing the potential of innovative farming methods can significantly boost productivity and ultimately lead to self-sufficiency in milk production. 

Drawing inspiration from the success of the Ambewela Farm, a private venture previously under Government ownership and now operated by a leading private company, Amaraweera showcased the transformative potential of technology. He noted a remarkable threefold increase in production by adopting simple yet effective strategies, such as providing cows with high-quality grass, sufficient water, and freedom to graze. 

In light of this success, Amaraweera urged dairy farmers to embrace these high-tech agricultural methods, emphasising that similar approaches could be applied to local heifers. By doing so, he predicts a brighter future for Sri Lanka’s dairy industry, marked by increased productivity, sustainable practices, and the nation’s ability to meet its milk demands autonomously without depending on foreign sources.