No increase in Nestle milk powder prices for three months

Nestle' Lanka PLC will not increase its milk powder prices for three months according to an agreement reached with the Consumer Affairs Authority to keep milk food prices stable at a time when global food prices are on the rise.

Managing Director, Nestle' Lanka PLC, Stuart Young said Nestle is not interested in increasing prices but with the global food crisis worsening price stability is not practical.

"The global demand for food has increased and many countries are in the grip of a severe food shortage.

The world is heading towards inflation due to the food crisis.A coherent policy is essential to develop food resources in the country", Young said.

The era of cheap food is over and those who depend on imports will now have to spend enormously due to the shift from grain production to bio fuel in many countries. The adverse weather conditions and the consumption boom in India, China and Russia have added to the food crisis which is now posing a potential threat to poorer countries.

Argentina, Brazil and USA have converted grain crop lands to manufacture cheap ethanol which is becoming popular today.

He said Sri Lanka should be self-sufficient in food but due to the lack of a coherent policy it is not possible. Many organisations took steps to develop the livestock industry but due to the inconsistent policy the country has not achieved much progress.

The annual milk requirement in the country is around 900 million litres while production is 200 million litres. The country spends heavily to import milk food to meet the shortfall.

Sri Lankan milch cows do not yield well due to the climate and the poor feeding system. Cows have to look for food and as a result they lose a lot of energy. In New Zealand cows are fed and they have a better vield", he said.

Developing milk food in the country is not an easy task.

It needs to be done in collaboration with the private sector. Nestle has been supporting the government to increase milk production and contribute to the rural economy", Young said.

Nestle' launched a campaign to enable people to win a free supply of milk powder for six months as a tribute to mothers. Fifty families will be selected a week.

Assistant Vice President, Nestle' Lanka PLC, Asoka Bandara said the campaign was launched as a relief program due to the steep rise in milk food prices in the world market.

Nestle' has been supporting the livestock sector in the country and today it is the major milk collector in the country. By collecting 35 million litres from 12,000 farmers, the company contributed Rs. 800 million to the rural economy last year. The company has 15 chilling centres, 500 collecting points and over 550 direct suppliers.

LF