Marginalized Farmers in Jaffna, Sri Lanka, Increase Their Dairy Income by 50 Percent

March 2009

With funding provided by the Humpty Dumpty Institute under their USDA Food for Progress Program, the Land O’Lakes dairy development program in Sri Lanka, has rejuvenated the Jaffna dairy industry, enabling thousands of marginalized farmers to increase their dairy income by 50 percent.

After 18 months of operations, Land O’Lakes Livelihood Creation and Nutrition Enhancement through Dairy Development program has witnessed a 50 percent increase in Jaffna dairy farmers’ incomes. Two key factors contributed to their increased income. First, the program advocated for an increase of 8 rupees per liter in the fixed farm-gate price for raw milk, which is a 25 percent increase in milk value for the farmers. Second, the program’s beneficiary farmers now produce an average of eight liters of milk per cow per day for sale, up three to four liters per day, yielding an increase in farm-gate sales revenue of nearly 200 rupees per day, or 20 percent. Further evidence of the revitalization of the dairy industry can be witnessed in the milk collection volume increases experienced by the Jaffna District Development Cooperative, YARLCO. When Land O’Lakes began working with YARLCO, they were collecting 68,000 liters per month from an average of 550 suppliers using an informal collection system. It is now collecting nearly 90,000 liters per month (greater than 30 percent increase) from 734 suppliers (greater than 30 percent increase) using a more formal collection system.

To achieve theses impacts, the program, through its trained and experienced staff, has to date provided approximately 1,400 days of animal husbandry and dairy production farmer cluster group training to 1,432 beneficiary farmers and visited beneficiaries’ farms more than 8,000 times, providing on-site and personal advice. Furthermore, all beneficiary farmers received a five-liter milking bucket, while the more commercial-minded farmers also received milk cans and grass cuttings. The milk cans increased their capacity to transport and market their milk. The grass cuttings enable them to grow local nutritional feed materials, reducing their input costs. The program also encouraged and strengthened linkages between dairy farmers to other health, feed, and financial input providers such as the Department of Animal Production and Health Veterinarians, local banking institutions and feed suppliers. To date, 44 farmers have secured micro loans from the Bank of Ceylon, and most farmers now interact regularly with the local government veterinarian.

Through the program’s transfer of knowledge and supply of simple dairy farming equipment, farmers have modified their dairy cattle’s feeding, health, reproductive and milking practices, resulting in a 20 percent increase in milk production.

Although the impacts and statistics demonstrate the success of Land O’Lakes program, it is best expressed by the beneficiaries themselves. Below are short stories from Land O’Lakes extension field agents about how the program has influenced beneficiary farmers and changed their dairy farming practices.

Individual Success Stories

Mr. Sellaiah Nagarasa is an integrated farmer living in Thammanai village in Alaveddy west. He has six members in his family and is a beneficiary of the
Land O’Lakes program. He was selling approximately three to five liters of raw milk per day to the local cooperative, YARLCO, before participating in all the program trainings. He said that only after the training did he come to know that he could breed his cow two to three months after calving. In the past, the calving interval had been long and his income was low. Now, he breeds his cows earlier and is more motivated towards dairy farming. Today he is selling about 15 to 20 liters of milk per day.

Mr. Joyse Payas, his wife and five children live in Pandatheruppu Village in Sandilipay Division. He has a relatively large dairy farm, with seven cows, five heifers and four calves. He produces 25 liters of milk per day at present, with 2 liters used for home consumption and 23 liters sold to a nearby YARLCO branch. In the past, he rarely bathed his animals. This has changed now that he understands that improved breeds often feel heat stress and should be bathed to cool their body temperature. He claims doing this has increased milk production by one liter per cow per day.

Mr. Nadarajah Pakirathan, his wife and four children live in Annaicoddai Village in Sandilipay Division. He has three cows and two heifers. He produces seven liters of milk per day at present. Whereas earlier he was more dependent on concentrate feed bought at high retail prices, he now grows grass fodder, a practice that has reduced his purchase of concentrate feed by 50 percent. He is pleased because his milk production volume has not gone down, which results in higher profits due to lower input costs.

The Land O’Lakes dairy project has been working in the Kokilakandy, Thachchanthoppu and Navatkuli area for last six months. Whereas earlier there was no milk collection center or sale center, through the extension agent’s coordination, there is now a new milk collecting point in Thanchchanthopu, which collects 40 liters daily of fresh milk from program farmer beneficiaries. In turn, this milk is marketed in the Jaffna area through runners, resulting in four new employment opportunities.

For a file with all of these stories and more, click here.