Our Work

Approach

IESC uses 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 empowers farmers, fosters entrepreneurship, and enables public-private collaboration to deliver sustainable locally led
solutions. A notable collaboration includes facilitating the efforts of the Government of Sri Lanka to develop the national dairy development policy and strategy through public-private dialogue. The program improves the availability of quality products and services—such as feed or artificial insemination—for dairy farmers. We introduce and train on best practices in dairy farm management and improve quality standards and sanitary practices on the farm, at collection, and during transport. The program also connects 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 leverages 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 from 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 catalyzes sustainable growth in Sri Lanka’s dairy sector and helps farmers and other related enterprises meet increased demand for fresh milk and dairy. The program provides 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

Funder: USDA Food for Progress

Project duration: 2017 to 2024

Award: $27.6 million

Results

  • 5,418 individuals received financial services
  • 44 public-private partnerships formed
  • 89 dairy input retail operations established
  • 14,880 individuals improved farm management practices
  • 17,063 hectares under improved techniques or technologies
  • $25.8 million in public and private sector investment leveraged
  • $53.1 million in sales by program participants
  • $4.9 million in loans provided as a result of assistance
  • 77% increase in milk production
  • 62% of participants adopted at least 10 best practices
  • 100% of participants adopted at least one best practice
  • 21,685 subscribers to new mobile extension service
  • 17 major dairy processing companies and collectors in Sri Lanka as partners

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