In a significant development in Sri Lanka’s dairy industry, a Joint Declaration of Intent (JDI) was signed in July 2023 between the Department of Animal Husbandry and Dairying of the Ministry of Fisheries, Animal Husbandry and Dairying of the Republic of India and the Ministry of Agriculture of the Democratic Socialist Republic of Sri Lanka.
The shareholders’ agreement was inked by prominent organisations from both nations. The primary Indian partners in this endeavour are the National Dairy Development Board of India (NDDB) and the Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), popularly known as Amul. These organisations bring decades of expertise in dairy production and marketing. The Sri Lankan partner in this agreement is the Cargills (Ceylon) PLC (CCP) and under this agreement, CCP will hold a substantial shareholding of 49%.
The JDI envisions the formation of a joint venture company with the participation of relevant entities from both India and Sri Lanka. After months of negotiations and discussions, this partnership has taken a significant step forward with the execution of a shareholder agreement on 11 October 2023.
The genesis of this collaborative project can be traced to President Ranil Wickremesinghe’s official visit to India, which resulted in the allocation of funds for the modernisation of Sri Lanka’s livestock sector.
The primary goal of this project is to substantially increase milk production by 53% within the first five years, ultimately achieving self-sufficiency in milk production within 15 years.
Through this venture, around 200,000 local farmers in Sri Lanka will receive support, including access to high-quality medicines, animal nutrition, and technical guidance. This support aims to empower the nation’s dairy farming community, enhancing their capabilities and productivity.
This initiative also encompasses the digitalisation of Sri Lanka’s livestock sector, bringing modern technology into the farming process. This includes investments in new technologies to improve the quality of milk-related by-products and ensure the availability of milk-related products at affordable prices for consumers.