Amul and Cargils joined hands with Milco to reshape S L dairy industry.
By: Staff Writer
Colombo (LNW): Sri Lanka ‘MILCO Company has entered into a partnership accord with Indian Diary giant Amul in a significant development that promises to reshape Sri Lanka’s dairy industry.
As India and Sri Lanka join hands to revolutionize the dairy sector, this partnership is set to create a win-win situation for both countries.
Sri Lanka’s dairy industry will receive a substantial boost, while Indian expertise will find a new avenue for expansion.
A Joint Declaration of Intent (JDI) was signed in July 2023 between the Department of Animal Husbandry and Dairying of the Ministry of Fisheries, Animal Husbandry and Dairying of the Republic of India, and the Ministry of Agriculture of the Democratic Socialist Republic of Sri Lanka.
This declaration marks the beginning of a robust partnership aimed at enhancing animal husbandry and dairying in Sri Lanka.
The JDI envisions the formation of a joint venture company with the participation of relevant entities from both India and Sri Lanka.
After months of negotiations and discussions, this partnership has taken a significant step forward with the execution of a shareholder agreement on October 11, 2023.
The shareholders’ agreement has been inked by prominent organizations from both nations, emphasizing their commitment to this transformative initiative.
The primary Indian partners in this endeavor are the National Dairy Development Board of India (NDDB) and the Gujarat Cooperative Milk Marketing Federation Ltd (GCMMF), popularly known as Amul. These organizations bring decades of expertise in dairy production and marketing.
The local partner, Cargills (Ceylon) PLC (CCP), is a respected entity in Sri Lanka with a rich history in various industries, including dairy. Under this agreement, Cargills (Ceylon) PLC will hold a substantial shareholding of 49%.
The genesis of this collaborative project can be traced to President Ranil Wickremesinghe’s official visit to India, which resulted in the allocation of funds for the modernization of Sri Lanka’s livestock sector.
The primary goal of this project is to substantially increase milk production by 53% within the first five years, ultimately achieving self-sufficiency in milk production within 15 years.
As a crucial aspect of this ambitious endeavor, around 200,000 local farmers in Sri Lanka will receive support, including access to high-quality medicines, animal nutrition, and technical guidance.
This support aims to empower the nation’s dairy farming community, enhancing their capabilities and productivity.
This groundbreaking initiative also encompasses the digitalization of Sri Lanka’s livestock sector, bringing modern technology into the farming process.
This includes investments in new technologies to improve the quality of milk-related by-products and ensure the availability of milk-related products at affordable prices for consumers.