Our Work

Market-Oriented Dairy Project (MOD)

Approach

IESC used a market-driven approach with local actors across the milk value chain to facilitate investment, strengthen buyer-seller relationships, improve local extension services, and build local trade association capacity. The program empowered farmers, fostered entrepreneurship, and enabled public-private collaboration to deliver sustainable locally led solutions. A notable collaboration included facilitating the efforts of the Government of Sri Lanka to develop the national dairy development policy and strategy through public-private dialogue.

Through the program, IESC improved the availability of quality products and services—such as feed or artificial insemination—for dairy farmers. We introduced and trained in best practices for dairy farm management and improved quality standards and sanitary practices on the farm, at collection, and during transport. The program also connected buyers, sellers, suppliers, and service providers along the dairy value chain with up-to-date information and communication technology platforms, including a mobile app that quickly matches people with dairy goods and services in their area. IESC leveraged its database of highly skilled volunteer experts to provide targeted, demand-driven assistance to dairy entrepreneurs.

Summary

Dairy is a critical sub-sector in Sri Lanka due to rapidly growing consumer demand and its potential for rural development and inclusive economic growth. Sri Lanka is estimated to import more than $317 million per year in milk products while producing only $182 million per year, an opportunity for local producers and processors who can meet market demand. The effects of the recent economic crisis linger with continued hyperinflation and supply shortages, particularly of imported products, including fuel, feed, and fertilizers hindering the productivity of milk producers and processors.

The USDA Food for Progress-funded Market-Oriented Dairy Project catalyzed sustainable growth in Sri Lanka’s dairy sector and helped farmers and other related enterprises meet increased demand for fresh milk and dairy. Implemented by IESC, the program provided sustainable solutions such as regenerative, organic solutions for fodder production, affordable and effective feed rations with available inputs, and ICT solutions to improve extension delivery and facilitate trade despite transportation barriers.

Program details

Results

  • 41,763 program participants
  • 125,306 indirect beneficiaries
  • 30,239 subscribers to new mobile extension service
  • 96% of participants adopted at least one best practice, 80% adopted at least 10
  • 18,883 individuals improved farm management practices
  • 67% increase in milk production
  • $37.5 million in public and private investment leveraged
  • $66.8 million in sales by program participants
  • $5.5 million in loans provided thanks to program assistance
  • 6,330 individuals received financial services
  • All 17 major dairy processing companies and collectors in Sri Lanka as partners
  • 47 public-private partnerships formed
  • 94 dairy input retail operations established
  • 23,953 hectares of land under improved techniques or technologies

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