“Dairy Enhancement in Eastern Province of Sri-Lanka”, presented by U.L. Jaufer, Land O’ Lakes, Sri Lanka at the ReSAKSS-Asia Conference, Nov 14-16, 2011, in Kathmandu, Nepal.

1. Knowledge, Tools and Lessons for Informing
the Design and Implementation of Food
Security Strategies in Asia
November 14 – 16, 2011
Kathmandu, Nepal
IFPRI IIDS

2. DAIRY ENHANCEMENT IN
EASTERN PROVINCE (DEEP)
PRESENTED BY U.L. JAUFER,
COUNTRY MANAGER/COP –DEEP PROJECT
USAID/LAND O’LAKES INTERNATIONAL DEVELOPMENT

3. CONNECTING MICRO LEVEL DAIRY
FARMERS WITH NATIONAL LEVEL
DAIRY VALUE CHAIN
EXPERIENCE FROM PUBLIC PRIVATE
PARTNERSHIP ALLIANCE

4.  Funded by USAID under
the Public and Private
Alliance (PPA)
 Total est. budget US
$3.75 million
 Leverage Private Sector
Partner funding (CIC
Agribusinesses) is US
$5.7 million
 Implementing Partner
Land O’Lakes
Partners

5.  Post war scenario: soon after
the 30 year ethnic war
 Limited data about war-
affected east
 Majority of eastern province
farmers displaced multiple
times, low morale
 Absence of competitive milk
collection companies
 Milco was the sole milk
collector
Project Design: Context

6. -Understanding Donor Policy
-LOL’S Relationship with USAID:
 Built on Trust, Accountability and Transparency
-PPA Objectives: To improve social and economic
conditions in a developing country to find sustainable
solutions to serious development issues that require
collaboration with private sector
 Durable/Sustainable Solutions
 Partnership/Alliance Building
Implementation

7.  To connect the Eastern Province dairy
farmers to the national value chain and
increase the dairy-related income of 4,000
dairy farmers
Component One
Increase the
Quantity
and Quality of Raw
Milk through
Targeted
Training and TA
Component Two
Establish Milk
Collection
Centers (MCC) and
Forge Linkages
with Milk
Producer Groups
(MPGs)
Component Three
Establish Modern
Dairy Processing
Facility in a PEER
Target Province
Overall Objective

8. Component 1
Establish 40 MPGs
Provide training and technical assistance
Strengthening MPG access to locally available
inputs and services
Component 3
 Establish a Modern
Dairy Processing
Plant in the target
province
Component 2
 Building and equipping 4 Milk Collection Centers (MCC)
 Hiring and training MCC staff members
 Negotiation of supply contracts with CIC
MCC CIC
MPG

9.  Mobilization and awareness
raising
 Capacity building of farmers
through training/technical
assistance
 Institution
building/strengthening
 Partnership building
 Leveraging Land O’Lakes
and VEGA Expertise
Strategy

10. Project Locations

11.  Farmers had low morale, poor self-esteem and
poor organization post-conflict
 Subsistence and traditional dairy farming
 Lack of technical know-how
 Less access to inputs and services
 Low Farm Gate Price – middlemen advance
payment system, poor quality of milk, milk
collection & marketing network
Working with Small Farmers:
Constraints

12. 4,125 dairy farmers reached through grants,
training, AI & pasture development
Established/revived 56 Milk Producer Groups
(MPGs)
Added 3,279 cows to the cattle population:
 cow purchased – 2,151
 AI – 1,128
Four Milk Chilling Centers are collecting
around 180,000 liters of milk per month and
earn around LKR 9 Million.
Results

13.  Created 70 permanent/casual employment
opportunities
 CIC has established a Mini Milk Processing
Plant with a capacity to produce 30,000
containers of yogurt per day.
Results,
continued

14. BLS Price of Milk has increased from LKR29/L
to LKR39/L due to DEEP intervention in 2009
and 2010
Ensured the new price increase of LKR 50/- by
GoSL with support from CIC
Positive changes in attitudes and behavior
within the farming communities
Increased milk quantity and quality
70% price increase and increased farmer
income
Impact

15.  Increased female participation 50:50
 Inclusive Development: Respect for women,
ethnic harmony: Sinhalese, Tamils and
Muslims
 Demonstration effect on non-beneficiary
farmers: production in Batticaloa increased
100% in 2011, compared to 2010
 Eastern Province ranked as the second
largest milk supplier to the national value
chain

Impact,
continued

16.  Social Mobilization based
on participatory approach
 Interactive training
 Institution building
 Establishing linkages
 Collaboration between
partners
 Network building
Tools

17.  Farmer attitudes could be changed by training
and working with them in the field.
 Network building & expansion of vet services
are useful tools in increasing the milk
production and collection
 Presence of competitors results in more
benefits for farmers.
 Grass root level institution building is a
strong tool in attracting small and large
quantities of milk
Lessons Learned

18.  Linkages between farmers and input service
providers is a strong tool in introducing
latest and appropriate technologies
 When farmers show improvement, service
providers are voluntarily attracted to them
 It is possible for large private sector
companies to work with small scale farmers
through local level farmers organizations
Lessons Learned, continued

19.  Presence of competitors results in more
benefits to farmers
 Traditional farm management practices
could be changed through training and
exposure visits
 Inclusive Development helps to increase
female participation and harmony among
different ethnic groups
 Small financial support will attract more
investment from farmers
Lessons Learned, Continued

20. THANK YOU!!