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Sunday, 05 March 2006    
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Export oriented agro business makes headway

by Gamini Warushamana

The first fruit and vegetable processing factory set up under the new agriculture development program was opened yesterday in Sooriyawewa, Walawa left bank, by International Foodstuff (Pvt) Ltd.

The first harvest of fruit and vegetable from model farms and out growers was collected on Friday at the auspicious time. Around 20,000 farmers in Maurapura, Andarawewa, Sooriyawewa, Kiriibban Ara in Walawa left bank are engaged in this export oriented agriculture program.

Chairman of the company and President of the Fruit and Vegetable Exporters' Association, Sarath Silva said we stopped transporting agro products to Colombo for processing and started processing in rural areas and transported them directly to the Katunayake airport.

This export oriented entrepreneur development program was started by the Ministry of Agriculture and Mahaweli Development and the National Council for Economic Development (NCED) with the objective of promoting the country's agriculture from its present primitive stage to a high end.

The awareness program organised last week under the same program at the BMICH, attracted a large number of members of farmer societies, rural small entrepreneurs as well as large entrepreneurs already in the industry.

The workshop aimed at making entrepreneurs aware of the incentives offered by the government and to mobilise them to start commercial agro business targeting the export market. Under the program one hundred model farms will be launched during this year as the first step.

"The workshop was successful and we could bridge the gap between the farmer community and the corporate sector and soon after the program 42 farmers registered to supply agro products to export companies", Chief Operations Manager of the NCED Sharman Gunathilake told the Sunday Observer.

Sri Lanka has tremendous opportunities in exporting agro products to regional destinations and other regions. Despite large agricultural production in India, Sri Lanka can use the opportunities opened through free trade agreements with India and Pakistan. Sri Lankan products are better in quality. Another important regional market is the Maldives.

The Maldives market is dominated by India, South Africa and Australia. The tourism industry in the Maldives has matured to a significant level and there are even seven star hotels. The market for agro products has now matured to "farm to table" level and we have the opportunity to supply fresh agro products the industry needs, Gunathilake said.

Following the bird flu outbreak in India, the total Maldivian market for poultry products opened to Sri Lanka and the monthly egg exports to the Maldives has increased to one million from 250,000. Sri Lanka can capitalise on bird flu because the quality of our products meet the international standard and the risk of bird flu spreading in Sri Lanka is very remote.

The Maldives has banned all poultry products imported from India.

The agricultural sector is moving in the right direction and high end production such as organic farming has already been started. Silva said that International Foodstuff (Pvt) Ltd will be a one stop shop for farmers in the region that provides quality seeds and plant material, technology and equipment. New hybrid fruits and vegetables as well as traditional Sri Lankan fruits will be processed in the new factory.

Silva said that the company exports their products to Western Europe, eight countries in the Middle East, Maldives, India and China.


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