Milk production to meet 60% domestic demand

By Gamini WARUSHAMANA

The National Livestock Development Board (NLDB) will increase dairy production by 10 percent of the domestic demand by 2013, said the deputy Chairman Laksman Hulugalle. NLDB was a loss-making state-owned institution in 2005.

From 2006 the NLDB was directed to achieve national goals in the dairy production sector in the Mahinda Chintana and there is a steady progress thereafter, Hulugalle told the Sunday Observer.

In 2006, the NLDB recorded Rs.23 million loss and started making profits from 2007. In 2008 and 2009 the venture earned profits but progress was slow. From 2010 there has been a rapid growth in revenue and profits and in 2011, NLDB reported over Rs. 200 million profit.

Hulugalle said that the Chairman Lt. Col. R. M. B. Ellegala and the new management of NLDB has taken the right decisions on the instructions of the Minister of Livestock and Rural Community Development Arumugan Thondaman to achieve national goals entrusted to the NLDB. After careful evaluation of all the assets in the NLDB we invested heavily to develop 31 animal farms belong to the NLDB. Already 17 of them are earning profits and the others have shown financial progress or reduced losses. We will make all the farms profitable within a short period.

Sri Lanka produces 247 million litres of milk annually, only 33 percent of the local demand. We spend over Rs.20 billion for dairy products import. Government has planned to increase milk production to 60 percent of the country's demand by 2013 and NLDB provides assistance to the farmers to increase productivity and achieve the national goal, Hulugalle said.

The core business and responsibility of the NLDB is producing quality breeding material, livestock and agricultural products. It rears breeder herds of cattle, buffaloe, goats, pigs, rabbits, quails and sheep as well as broiler and layer poultry. The NLDB caters to individual farmers and livestock producer societies, NGOs, Divi Neguma and Samurdhi beneficiaries and self employees. Elite herds of Jersey, Friesian, Shiwal, Khillari, Murrah and Nilli-Ravi are maintained in their original state at selected farms to preserve the gene pool and improve the quality of animals and increase productivity in the dairy sector. Another 2500 high yield dairy cattle will be imported this year.

The NLDB has also introduced high quality pasture to increase productivity of the dairy sector. Last year NLDB imported six tons of pasture seeds and cultivated over 2500 acres. In the poultry sector, the NLDB supplies 16 percent of the chicks and is a profitable sector. It has planned to increase its market share in chickens to 24 percent this year.

The NLDB aggressively entered into the consumer market with new value added dairy products and captured a significant share in the market. Our sales are growing and we have started four sales centres, two at the NLDB head office, one in Melsiripura and one in Nikaveratiya. A new cafe will be opened in Melsiripura targeting local and foreign tourists which will serve organic food produced in NLDB farms.

NLDB produces and markets cheese, curd, quail eggs, coconut oil, Yoghurt, “Delite Milk”, goat milk, treacle and milk toffees under the NLDB brand.

The 2011 Committee On Public Enterprises (COPE) report, it had commended the new management of the NLDB for maintaining high standards in governance and transparency although there had been lapses in the past.