Nestlé Lanka to invest Rs 250m
Nestle Lanka PLC will invest Rs. 250 million on the expansion of the
Ultra Heat Treated milk line within the next two months, said Nestle
Lanka PLC Managing Director Alois Hofbauer.
Nestlé employees at the state-of-the-
art noodle factory in Kurunegala. Pic: Kavindra Perera
Nestle Lanka committed Rs. 10b last year for a period of five years
to expand the dairy, food and beverage and culinary sectors in keeping
with the company’s mission to create shared value.
The company invested Rs. 800m on the noodle brand drier last year
under the first phase of the investment plan.
In another groundbreaking move the company committed Rs. 1.1b on the
state-of-the-art noodle plant at the Kurunegala factory recently.
Hofbauer said the new plant is the first investment for 2012 and
added that it will revolutionise the food and beverage sector in Sri
Lanka which is growing at a pace.
The Nestlé Lanka procures an average of 104 tonnes of milk daily from
around 15,000 local dairy farmers and has been supporting the Sri Lankan
dairy sector since 1982.
Rural milk collecting points and chilling centres were first
established close to the Kurunegala factory.
The number of collection points has doubled since 2009 to 1200.
A Company official said that even during the conflict, Nestlé
remained active in northern Sri Lanka , operating four chilling centres
at the edge of the government-controlled areas which are supplied by
collection points further north.
In 2010, Nestlé Sri Lanka was able to extend its milk collection to
resettlement areas, providing a stable market and much-needed income for
dairy farmers returning to the area.
Four new chilling centres have been set up in the war-ravaged north
of the country since June 2010, reflecting our on-going commitment to
developing the country’s dairy sector and accelerating economic
development and prosperity in rural communities.
Under traditional dairy farming practice in this region, cattle are
free to graze on what they can find naturally, but as many dairy farmers
had to leave their livestock behind when they fled, the area has a lot
of free-roaming cattle. Productivity is extremely low – an average of
1.5 litres of marketable milk per cow per day – so not surprisingly,
despite possessing an estimated 40 percent of the country’s cattle, the
north and east together produce only 22 percent of the nation’s milk.
In addition to milk collection and chilling facilities, Nestlé is
helping farmers to improve the quality of their herds through breeding
with stud bulls, artificial insemination and the cultivation of green