Members projects

Increasing productivity of farmers by developing commercial farmers

Company : Nestle
In Sri Lankan perspective, the dairy sector is traditionally based on small holders keeping 2-5 cows in most of the agroecological regions - except the dry zone. Keeping and managing a herd with more than 5 cows is considered as a challenge and farmers are reluctant to have bigger herds.
The modest profit margin and lack of mechanization in the dairy sector has been often cited as the constraining factor for its expansion.

To cross this barrier, Nestlé is providing technical training and inputs to farmers to rear more than 5 cows and slowly move
to more than 20 cows. As part of its creating shared value initiatives, Nestle develops 50 such farmers every year. This hlps farmers have a better cash flow, and Nestle be less dependent on imports of milk derivates.

As a result, the Nestlé Kurunegala Factory has been able to procure more than 45 mio tons of fresh milk in 2010. This is 35% of the national production. Farmers benefiting from the
scheme are able to improve their living standards and to
finance higher education to their children. Nestlé Lanka has been awarded the Swarna Lanka 2010 Award for immense
contribution toward developing the local dairy industry.

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