The Hon. Namal Karunaratne - Deputy Minister of Agriculture and Livestock

¶ 01 Hon. Deputy Chairperson of Committees, we accept that the motion presented by Hon. Chaminda Wijesiri is important, particularly with regard to the livestock sector. Our country’s daily milk production is around one million litres. Our target is to raise that to three million litres so that we can fully meet national demand. We have prepared a plan for the dairy sector. Accordingly, we will establish central centres to enhance the value of dairy producers’ outputs. One such centre will be set up in every veterinary range. We will commence this in 2025 from Anuradhapura. Through these centres, we will provide technical, primary, and non-financial support to dairy farmers, uplift the industry, and improve value addition.

¶ 02 We have planned to start 22,500 farms producing over 20 litres per day, 15,000 farms producing over 40 litres per day, and 1,200 farms exceeding 100 litres per day.

¶ 03 One key issue is that many farmers do not supply milk in the evening. Evening collection is essential to increase total production and, together with better post-harvest technology, reduce losses and improve outcomes. There are constraints such as cold-chain gaps and other barriers; we will systematically remove these.

¶ 04 A serious bottleneck is the shortage of good breeding stock. We must develop and upgrade breeding farms and provide quality dams to farmers. In the past, cattle were imported; large-scale fraud and theft occurred, and national wealth was misused. European breeds did not suit our conditions. With current technology, we intend to move beyond that model. We have already planned to import sexed semen to produce 15,000 high-quality improved animals, and we are proceeding with the necessary international collaboration and groundwork. With these measures, we have a clear goal for the dairy sector.

¶ 05 We spend significant foreign exchange importing dairy-related products because we produce only about 40 percent of our milk requirement. We must raise this towards 100 percent. We cannot get there overnight, but we are decisively moving in that direction, with plans underway and a formal launch scheduled for the 20th of this month.

¶ 06 Regarding poultry meat and eggs, we know per-capita egg consumption once rose above 130 but fell to 90 at one point, requiring imports. Currently, we consume about 6.5 million eggs daily, which is insufficient; to meet protein needs, consumption must rise.

¶ 07 We have identified recent problems in the industry. We have held discussions with large, medium, and small stakeholders and are putting in place a structured programme. We will provide small egg producers with concessional maize through direct State intervention. Previously, maize imported via the Food Commissioner’s Department benefitted intermediaries, with commissions taken and farmers paying high prices. We will break that mafia and deliver maize directly to smallholders at fair, reduced prices.

¶ 08 In this Yala season, we are promoting maize cultivation on previously fallow lands. We will determine a fair price based on production cost plus a reasonable margin, and the Government will purchase a quantity to protect farmers. Maize forms around 50 percent of raw material in animal feed, so both feed users and maize growers must be protected. Balancing both is hard, but necessary, and we have planned for it.

¶ 09 We also found chicks sold around Rs. 950 were affected by a mafia. We will break that too. We have selected several State farms to breed parent stock under Government and livestock-sector oversight and supply quality chicks to small farmers at very concessional prices. Foundational steps have begun to ensure fairness in feed, fairness in access to parent stock, and to take all possible measures to minimize production costs.

¶ 10 We are also focusing on goats, strengthening quality breeding in farms like Vavuniya and Bopaththalawa. The swine industry suffered a severe viral outbreak that also affected wild boar, devastating farmers. A Presidential Special Task Force Committee has been appointed, concessional loans and quality piglets are being provided, and we have commenced work to rebuild the sector.

¶ 11 I must also address corruption. There was a project to import 20,000 cattle through the Australian company Wellard Rural Exports Pty. Ltd. Five thousand animals were brought without proper quarantine; only after arrival in Sri Lanka were they quarantined, and Bovine Viral Diarrhea (BVD), a viral disease, was detected, with suspicion of Fasciola hepatica. Today, fewer than 400 survive; many animals died and farmers were ruined, their assets auctioned. Despite objections from the Auditor General’s Department and the Veterinary Research Institute, USD 11.9 million was advanced on 8 May 2018 from Rabobank Netherlands to the company, yet no further animals came. We are still paying interest on that advance. Investigations are underway, and we will take legal action while rebuilding the sector toward our goals.

¶ 12 Thank you.