All Island Dairy Association commits support to boost local production
Daily FT: The fifth Annual General Meeting (AGM) of the All Island Dairy Association (AIDA) was recently held at The Ceylon Chamber of Commerce in Colombo, with Agriculture Minister K.D. Lalkantha as Chief Guest.
Speaking at the AGM, AIDA President Asoka Bandara thanked the Government for removing the Value Added Tax (VAT) imposed on fresh milk from the last Budget.
He explained the role of the AIDA, which represents the country’s leading dairy collectors and product processors, producers such as large- and medium-scale farms, service providers of the value chain, as well as milk importers.
He stressed that the Association as the main focal point is fully committed towards the country’s dairy development process and is a willing partner to support the Government in achieving these objectives in collaboration with public sector institutions and Governmental authorities.
AIDA stakeholders collect over 65% of the local milk produced predominantly by the rural dairy farming community, which produces the bulk of Sri Lankan fresh milk. Furthermore, some members have also invested and managed large- and medium-scale dairy farms and also represented by members involved in the importation of dairy equipment, powders, and other relevant inputs.
Bandara highlighted the current challenges for the dairy industry, including high taxation for investments in large farms, the need to upgrade small farmers to commercially viable mid-sized farms, to ensure availability of high-quality fodder and concentrates for cattle feeding, an integrated approach for artificial insemination of cattle, and to improve the progeny of Sri Lanka’s low-yielding cattle.
Minister Lalkantha added that the vision and objective of the Government and his Ministry are in congruence with the views expressed by the AIDA President.
Looking forward to the support extended in developing the industry through robust private-public partnerships, he also explained that making available State land for cultivation of fodder/maize could be carefully considered in an objective manner to alleviate the shortage of feed and feed ingredients.
OSL take:
Sri Lanka is focused on becoming self-sufficient in local dairy production resulting in the expansion of business/investment opportunities in Sri Lanka’s dairy industry. The business potential in the local dairy industry is evident by the ongoing expansion of operations of local businesses already in the dairy business as well as the interest shown by foreign businesses/investors to explore the opportunities in Sri Lanka’s dairy industry. The growing local demand has also pushed dairy producers to become innovative in value addition and diversification of existing dairy and dairy-based products. Sri Lanka’s strong trade ties with many foreign countries and the incentives offered by the Sri Lankan government for businesses in the dairy industry, all serve to attract the attention of foreign businesses/investors to explore business/investment opportunities in the local dairy industry as well as related sectors. Given the strength and profits shown by local dairy businesses, foreign businesses/investors could look at expanding into Sri Lanka’s dairy industry by forming partnerships or joint ventures with local businesses, which could also enable such ventures to explore markets beyond the local market.
| Article Code : | VBS/AT/20251015/Z_3 |