Wednesday 2 March 2016

Nestlé to expand Sri Lanka milk procurement network

ECONOMYNEXT – Nestlé’s Sri Lanka unit said the company plans to expand its milk procurement network in the north this year and develop the potential of the region, which accounts for 22 percent of the country’s cattle.

The Swiss food multinational said it paid 3.6 billion rupees in 2015 to almost 20,000 local farmers as payment for fresh milk to manufacture its products like Nespray, Milo and Milkmaid.

“The company hopes to not only increase the supply and quality of milk but also provide local farmers a livelihood that is sustainable,” a statement said.

The firm said it is Sri Lanka’s largest private sector collector of fresh milk and had opened a new milk chilling centre in the north-eastern town of Vaddakkachchi, which will help farmers keep their milk fresh at a temperature of 4 degrees Celsius.

“Previously, facilities for storing fresh milk in the area were inadequate; resulting in low quality and wastage,” the statement said.

It quoted Ariyputhiran Krishnaseelan, a dairy farmer from Vaddakkachchi, as saying the new facility will help revive the town’s dairy industry.

“This is the first milk chilling centre in our town. We usually have a lot of excess milk, even after using it in our own homes and selling it to neighbours and others in the community. This facility will now help us sell this milk and earn a larger income.”

Each Nestlé chilling centre is equipped with testing equipment and farmers are paid for the quality of milk they provide – the higher the quality, the higher the price they receive, Nestlé said.

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