Sri Lanka’s Melstacorp Plc to set up a dairy farm with 2,000 milch cows to meet growing demand for fresh dairy products
Sri Lanka’s Melstacorp Plc, which is the parent company of Lanka Milk Foods, has reportedly said it will invest Rs. 2 billion to set up a dairy farm with 2000 milch cows at Ambewele in Nuwara Eliya in order to meet a growing demand for fresh dairy products.
Lanka Milk Foods has informed in a statement filed with the country’s stock exchange that it has incorporated United Dairies Lanka, which will set up four new barns to house 2,000 milch cows and two modern milking parlours for an estimated investment of 2 billion rupees.
“The purpose of the new company is to increase the quantity of good quality milk to be utilized in the production of fresh dairy products of our company and focus on developing marketing strategies to meet the ever-increasing demand for these products,” Lanka Milk Foods has been quoted as saying in the local media.
The report stated that the new plant is likely to double the capacity of the group.
Lanka Milk Foods already has 2,100 heads of cattle of Ayrshire and Friesian breeds grazing in 1,500 acres of land in Ambewela, 6,000m above sea-level, reports note.
The milk yield is reportedly around 16,000 litres a day.
OSL take:
The decision by Melstacorp Plc to set up a new venture, United Dairies Lanka, to set up a new dairy unit with 2,000 milch cows to meet the demand of fresh dairy products indicates the growth in the local market. Foreign dairy companies could look at opportunities to set up ventures through partnerships with local companies to address the growing demand for fresh dairy products.
| Article Code : | VBS/AT/27082018/Z_7 |