Figure 1 Annual Milk Collection in different provinces for the year 2009 Fig.2 Trends in milk production, collection & dairy imports

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1 1. Introduction Domestic Dairy industry has capacity and capability of producing substantial amount of quality milk and milk products to the prevailing market at affordable prices while keeping reasonable profit margins to all stakeholders in the production marketing chain without damaging to the environment. Hence it plays an important role in building strong national economy by assisting to ensure food security, food safety and self sufficiency, provide income generating opportunities, alleviate poverty, mitigate regional disparity in income distribution, solve other critical economic issues such as under nutrition, inequity, scarcity of foreign exchange, gender discrimination, environmental pollution etc. It has special capabilities to develop rural economy by using locally available otherwise under utilized natural grasses, crop residues, agro industrial byproducts and wastes and knowledge and skills of rural community. However local production, especially milk and milk products is sufficient only to meet 33% percent of the requirement at current consumption rate. The balance amount is supplied by the import parity which cost around Rs 27 billions annually. This situation has geared up the local livestock sector to strengthen its capacity to meet self reliance of milk and milk products. The Livestock statistics 09 indicates 1.13 million cattle 0.37 million buffaloes and in respect of milk and meat the contribution for national requirement is estimated at 33% milk, 35 % meat. Per capita consumption of milk and milk products in Sri Lanka is low compared to other South Asian countries and at present per capita consumption of milk is 3.6kg /year. The cattle and buffaloes are reared in five major agro climatic zones; UP Country, Mid Country, The Coconut Triangles, Low Country Wet Zone, and the Dry Zone. The dry zone has both rain fed and irrigated farming systems which account approximately percent of the cattle and buffalo population. In Mid and Up Country Cattle population it is estimated that nearly 60 percent of the cattle population is dairy cows. In the coconut triangle and wet zone the proportion of dairy cows is around 40 percent whereas in the dry zone it is around 35 percent. At present dairy industry in Sri Lanka primarily depends on natural pasture and fodder found on road side, ravines, tank banks and uncultivated public and private lands. Very few grow pasture and fodder for the purpose of feeding their animals. The total land area utilized for livestock production in combination with crops is estimated to be about 670,000 ha with an estimated,000 ha under improved pastures. (Rajasuriya,1996). These five agro climatic zones collectively and significantly contribute for the national milk production. The national cattle and buffalo population have been decreasing but the overall milk production and collection figures show an increase from year onwards from 192 million liters to 233 million liters (in year 09 and 249 million estimated in?. From onwards national milk production has grown by nearly 21 % based on official data (Department of Census and Statistics). This growth in milk production may be as a consequence of continuous effort made by the sector to develop its productivity. This increase may be accelerated by the rapid growth in road infrastructure development which strengthens the collection network. On the other hand neither

2 accounted nor collected of milk production for 3 decades due to prolonged war has been added to the national statistics. Simultaneously 08 and 09 world milk prices and a result of these trends import value of milk powder and other milk products continue to be remained stable. However imports of milk, mainly milk powder, continue to be significant feature of the Sri Lankan economy, if there is sufficient effort is not geared for the development of the sector. Figure 1 Annual Milk Collection in different provinces for the year 09 Fig.2 Trends in milk production, collection & dairy imports 1

3 This industry faces a new production challenge to compensate the escalating milk powder prices in the world market. According to the recommended daily dietary allowances of milk by the health authorities and estimated mid year human population annual requirements of milk for years and are shown in Table 1. Table 1 Recommended Annual Requirements of Milk & Milk Products Estimated Human Population (millions) Recommended Dietary Allowance (ml/.person/day) 0 0 Requirement of Milk (Mn. liters) Assisting to achieve prosperity and food security by producing and marketing seven hundred and thirty two (732) million liters of milk annually by 16 self sufficient in local milk production. 2. Objective Increase present milk production (240 million) from 300% by the end of year. 3. Strategic Approach 3.1 Policy Support Accept development of domestic dairy industry by the relevant authorities as a national responsibility. Establish correct stakeholder mind setting and take necessary steps to attend conceptual consensus. Ensure correct political leadership and create conducive policy environment. Recognize the smallholder dairy farmers as the most important stakeholder in the domestic dairy industry while accepting the important role of medium scale investors. Develop necessary legal documents to safeguard long term interest of the dairy industry by ensuring strict reservation of state livestock farms for cattle breeding purposes. Change land use policies in favour of dairy development (for pasture cultivation etc) Strengthen private sector participation in artificial insemination, follow up and natural breeding programs at field level 2

4 Make necessary arrangements to use land available in the plantation sector, coconut triangle and Upcountry estates and Mahaweli areas for breeding of cattle, buffaloes and pasture cultivation. Discourage of keeping large extensively managed herds in the Dry zone damaging crops and roaming without control while encouraging out grower systems with low income groups. Promote raising of heifer calves as a commercial activity and introduce contract growing programs for salvation of upgraded heifer calves and prematurely culling dairy animals 3.2 Social Strategy Establish self managed farmer societies and dairy villages to empower farmers socially, economically and otherwise and encourage collective efforts take collective decisions regarding activities related to milk production, collection, processing, distribution, storage and marketing, upliftment of their living standards. Improve standards of dairy farms to enhance social recognition. 3.3 Industrial Development Strategies Develop production system based, reasonable daily income ensured, and sustainable dairy farms for smallholders. Encourage medium and large scale investors to be actively involved with the dairy industry and maintain diversified ownership of the industry. Promote semi - mechanized, intensive commercial scale dairy farming. Develop farmer manage societies in such a way to be autonomous and self dependant on most of their requirements. Encourage extensive large herd owners to select elite cows and practice intensive out grower systems with semi intensive large herds under control with better animal husbandry practices. 3.4 Marketing Strategies Create fresh milk drinking culture and facilitate and promote consumption of domestically produced milk & milk products. Launch a psychological warfare against aggressive marketing campaigns of milk importers. Control misuse of media for communication of misleading and/or unethical messages related to imported milk powder. 3

5 Eliminate inefficiencies in the production marketing chain with sufficient quality assurance arrangements and food safety measures. Introduce forward contract systems and out grower systems for production, collection, sales of milk and milk products. Limit local milk powder production to balance function of domestic production and focus remainder on a range of high profit margin fresh milk products. Strengthening of informal milk market, market research and update market information systems and establishment of veterinary public health service. 3.5 Production Drive strategy Introduction of technological interventions to increase production, productivity, profitability and sustainability of the dairy production systems. Ensure maintenance of good dairy management practices in dairy farms and other related places of the production marketing chain. Ensure maintenance of maintainable herds with out-grower systems. Ensure evening milking where it is not practicing evening milking. Ensure disposal system of unproductive, unbreedable animals coupled with selection and upgrading program of elite cows of large herds Strategies For Development of Animal Feed Resources Increasing sustainable use of under utilized animal feed resources to produce feed ingredients for low cost quality cattle feeds. Encourage regional investors for small-scale animal feed milling. Implement a natural Guinea A grass utilization program. Encourage the use of crop residues, agro industrial by products and wastes, and household wastes for cattle feeding. Promote commercial scale fodder, legumes usage & conservation. Change land use policies in favor of dairy development Establishment of pasture, fodder and legumes at commercial level conservation Introduce pasture seed and Hybrid varieties Introduce feed rations (TMR) to utilize agricultural by products Promote maize cultivation, utilization program and conservation program as silage. 4

6 3.5.2 Animal Breeding Strategies Implement selection and breeds development program for different dairy production systems. (selection culling and upgrading) Establish nucleus farms for Jearsy, Frecian, Sahival, Murrah Nili Ravi and native breeds under the National Livestock Development Board. Establish private cattle breeder farms with the assistance of National Livestock Development Board. Import necessary semen, animals and embryos for breeding programs and facilitate the same for private sector. Conduct natural breeding programs where Artificial Insemination (AI) is not practicable. Introduce salvage programs for upgraded heifer calves and early culling dairy cows Establish embryo transfer facility. Strengthen AI follow up and record keeping activities and conduct field camps for AI, AI follow up and infertility control. Strengthen private sector participation in artificial insemination, follow up and natural breeding programs at field level Introduce out-grower system with extensive large herd owners Recruit Livestock development instructors / AI Technician per 1 dairy farm family clusters. Recruit Veterinary surgeon and establish livestock service unit ( Veterinary Centres) per every 300 dairy farm family clusters to monitor feeding, breeding, management and health activities and supply necessary extension and training services Disease Control Strategies Conduct specific disease control programs against Mastitis, HS.FMD & Brucellosis. Strengthen disease surveillance systems. Strengthen diagnostic facilities in veterinary offices and animal quarantine offices and maintenance of mobile veterinary service. Establish District level veterinary investigation centers and district veterinary hospitals. Encourage private veterinary hospitals, private veterinary companies (mobile services) and private investigation centers wherever appropriate Establish Veterinary units (veterinary surgeon, two livestock development instructors, care taker, driver and a labourer per unit) per every 300 dairy farm family clusters 5

7 Promote Health care services through pharmaceutical companies and encourage local manufacture of pharmaceuticals (Western & Ayurvedic) &mineral supplements 3.6 Research Strategy Establish user driven mechanisms for planning and implementation of research and development programs and strengthen regional research network and adoptive on farm research programs. Establish necessary linkages with relevant national, regional and global institutions. 3.7 Manpower Development Strategies Standardize training programs conducted by various training institutes. Strengthen facilities at training centers for conducting training programs for the dairy industry. Establish necessary linkages with relevant national, regional and global dairy training institutions to train both farmers and service providers. Establish dairy technology institute come to the level of self managed after 4 years, conducting one day, weekly, short term and long term training offering diplomas and post graduate certificates. 3.8 Strategies For Development of Other Services Introduce special credit programs and reorganize cattle insurance and dairy farmer pension schemes. 3.9 Institutional Development Strategies Comprehensively overhaul organizational set up as customer focused, outward looking, vertically and horizontally integrated institutions practicing principles of good governance. Establish 660 Livestock service (veterinary) units, with necessary facilities per each 300 dairy farm families (cluster) Establish three (3) regional AI centres with necessary facilities including field AI equipment Establish strong regulatory framework. Form separate task forces for farmer empowerment, marketing, breeding, disease control, animal feed resources development, research and man power development. Establish dairy technology institute come to the level of self managed after 4 years, conducting one day, weekly, short term and long term training offering diplomas and post graduate certificates. Develop necessary infrastructure for prompt delivery of inputs& services and information exchange. 6

8 4. Development Programs Following programs have been developed for implementation in the dairy sector during the period of to Production System Based Smallholder Dairy Farms Development Program Smallholder dairy farmers are the only group of people who have safeguard the domestic dairy industry under enormous amount of hardships and difficulties in the past. However, they have to be adequately rewarded financially, socially or any other meaningful way. Ensuring of a minimum amount of daily income enough to cover monthly family expenses is one way of consoling these farmers and is the biggest way of producing milk for the country. This program have been developed to work with 1, 000 farmers having 690,000 breedable cows to produce 530 million liters of milk annually while ensuring production levels for each farmer as shown in Table 2. Table 2 Smallholder Dairy Farm Program Production Level of the Farm (liters/day) No. of Farms No. of Breedable Cows /Farm Total Breedable Cows Daily Milk Production (liters) Annual Milk Production (mn liters) Five (5) 40, WZ 80,000 0,000 73,000 5 DZ & IMZ 0,000 0, Ten(),000 3 WZ 45, 000 1, ,000 DZ & IMZ 0,000 0, Twenty(),000 7 WZ 140, , ,000 DZ &IMZ 75,000 0, Forty(40) 5,000 WZ,000 0, ,000 DZ & IMZ 0,000 0, Total 1, ,000 14, Farmers of this program will be recruited to farmer managed societies and some of their villages will be developed as dairy villages Medium Scale Dairy Development Program Absence of reasonable number of medium scale investors is an inherent weaknesses of the dairy industry in this country. Hence this program is introduced to construct the correct structure for the dairy industry. Assistance will be given to thousand (00) investors to establish vertically integrated partially mechanized medium scale dairy farms having a minimum initial stock of twenty () upgraded breeding animals in WZ and (30 40) elite native breeding animals or upgraded animals in DZ and IMZ. They are strongly encouraged to go for processing activities and find their own market for 7

9 direct sales of their branded farm products at urban, peri-urban and rural markets. These farms will also be developed as private cattle breeder farms. There will be thirty thousand (30,000) initial stock in these farms to contribute twenty five and half (25.5) million liters of milk annually to national grid. These farms will be supported by special farm planning with out grower system, fodder development, commercial level hay production, cattle breeding, disease control and other required technical support programs. A National level farmer forum will be established for these investors. Production Level No. of No. of Breedable Total Daily Milk Annual Milk of the Farm Farms Cows /Farm Breedable Production Production (liters/day) Cows (liters) (Mn liters) Seventy 0 -WZ 4,000 14, DZ & IMZ 28,000 56,000.4 Two, ,000 30, Total ,000 0, At the end of year onward there will be 2600 upgraded heifers, and there will be 0,000 replacement stock to the national herd keeping the total herd constant. The replacement stock will give additional one liter of milk than their mothers. There fore, finally Million litters of milk will be added to national grid. There will be 100 out grower farmers as beginners keeping two native cows giving at least 2 litters of milk contributing.95 million litters of milk annually to the national grid. (0000 * 1*365 from replacing stock and 0 * 5, additional stock which will be added Million litters to national grid). Disease control will be implemented in these farms against Mastitis, HS, FMD, BQ, and Brucellosis depending on the necessacity. Socio economic and production system based user driven adoptive research programs will be conducted in these farms on priority basis Feed Resources Development Program A program has to be developed to establish six (06) million Napier pits, cultivate three thousand (3 000) acres of improved fodder varieties, management of four thousand (4,000) acres of Natural Guinea A, plant and/or maintain nineteen (19) million multi purpose fodder trees, maintain three thousand (3,000) acres of natural grasslands and make use of ninety thousand (90,000) metric tons of crop residues annually to feed animals in these farms. Facilitate private sector to establish 12 medium scale animal feed mills, 03 factories for production of mineral blocks and 03 for oil extractions to reduce COP substantially 8

10 Two thousand (2,000) production system based demonstration farms will be established under this program for field training purposes. Facilitate private sector to establish Small scale animal feed mills, urea molasses production factories and oil extraction mills will be established to produce necessary feed ingredients mainly from agro industrial by products and wastes for this program and to other dairy development programs in the country. 4.3 Marketing Program Consumption Promotion Program of Domestically Produced Milk and Milk Products Special multi media campaign will be launched to create fresh milk drinking culture, promote domestically produced milk and milk products and change distorted and misdirected food habits. Special promotional program will be conducted to develop milk-drinking habits among school children. Promotion of milk based value added products under the guidance of Milco (Pvt) Company Limited. Strengthening milk processing capacities of Milco (Pvt) Company Limited and other large and small scale milk processing institutions. Expansion of sales outlets and household milk delivery systems under the guidance of Milco (Pvt) Company Limited. Veterinary Public Health service will be established to ensure food safety and assure quality milk and milk products in the market Improving Efficiencies in Milk Marketing Chain Introduce individual milk testing and payment system at collecting points Introduction of transparent milk collection and marketing system at all level. Limiting field level milk collection to registered farmer organizations. Improvement of infrastructure facilities at milk collecting points and milk chilling centers. 4.4 Cattle Breeding Program National Livestock Development Board (NLDB) will be entrusted to maintain nucleus herds of Jersy, Frecian, Sahival and Murrah animals to provide replacements stocks of one thousand (1 000) private breeder farms establishing in the country. Hence NLDB will maintain breeding stock in their nucleus farms in this regard. Regional Artificial Insemination centres will be established in Southern, Northern and Eastern Provinces with necessary facilities and improve field AI facillities in order to enhance the AI services with the ambition of performing, four hundred thousand (400,000) artificial inseminations, 9

11 follow up work of % of those inseminations, inspection of hundred and fifty thousand (1,000) animals for infertility. Salvaging of two hundred thousand (0,000) up graded heifer calves born annually under cattle breeding program. Bull calf rearing centre will be rehabilitated to issue 0 hybrid bull calves suitable for breeding. 4.5 Veterinary Services Improvement Program Diagnostic facilities in veterinary offices and animal quarantine offices will be improved and action will be taken to expand mobile veterinary services program. Provincial level veterinary investigation centers and district veterinary hospitals will be established depending on the necessacity. Establish 660 livestock service unit (veterinary units) as one per 300 farm family cluster. Establish regional AI centres with necessary facilities Veterinary Public Health service will be established to ensure food safety and assure quality milk and milk products in the market. 4.6 Research Program User driven adoptive research program will be conducted both for technical and non-technical research needs of the dairy industry in Sri Lanka. Establish user driven mechanisms for planning and implementation of research and development programs while strengthening regional research network and adoptive on farm research programs. Establish necessary linkages with relevant national, regional and global institutions and facilities at research centers will be strengthened to undertake required research programs. 4.7 Man Power Development Program All relevant training institutions in Sri Lanka will be networked and upgraded with this institution to implement standard training programs. Special attention will be given to establish farmer managed demonstration farms and conduct selfemployment training programs. Establish dairy technology institute come to the level of self managed after 4 years, conducting one day, weekly, short term and long term training offering diplomas and post graduate certificates. Train both service providers and farmers on identified training needs

12 4.8 Institutional Development Program Actions will be taken to strengthen and network planning, monitoring, evaluation and information dissemination of the stakeholder institutions at national and regional levels. Special unit will be established at the Ministry to monitor the program. Low interest credit facilities and farmer friendly animal insurance scheme and farmer pension scheme will be introduced for these farmers Other services Low interest credit facilities, duty concessions to import necessary machineries, equipment, utensils, breeding materials and inputs, tax holidays, incentives to use local feed resources and special insurance coverage will be given to these farms in this regard. 4.. Monitoring, & Evaluation Program specific evaluation studies will be conducted for all important programs. Actions will be taken to reorganize monitoring, evaluation and feedback utilization systems in stakeholder institutions. 5. Targets of Development Programs Objective Supply additional four hundred and eighty (480) million liters of domestically produced milk annually by. Objectively Verifiable Indicators Milk collection by formal and utilization by informal market. Means of Verification Milk collection data of milk processors in the formal milk market. Field survey data of informal milk market. Data on milk imports. Assumption Dairy development continued as priority Liquid money will be allocated for total program Market information of milk market 5.1. Production System Based Smallholder Dairy Farms Development Program Small scale dairy farm development programm Expected Output Verifiable Means of Indicator Verification 00 small scale farms No of farms improved with good animal improved reports husbandry practices and establish 000 FMSs with district, Provincial, National level umbrella organization Assumption Necessary facilities and resources both human and physical will be supplied Responsibility Central & Provincial Dept of AP&H, MILCO 11

13 Medium scale dairy farm development program with out grower system Expected Output 00 Medium scale breeder farms with 100 out grower farms improved. (select elite cows of large herds to keep under good management and others for out growers Verifiable Indicator No of farms improved Means of Verification reports Assumption Necessary facilities and resources both human and physical will be supplied Responsibility C & P D AP&H, MILCO Samurdi Authority Private sector 5.2. Animal feed resources development program Expected Output Improved fodder verities are cultivated. (4,000 acres, produce1,000 MTs of improved fodder annually on fresh matter basis). Available natural grass and Guinea A, utilizing and managing system is introduced. (3000 and 4,000 acres to produce 400 and 0,000 MTs fodder annually on fresh matter basis. Planting new fodder trees and already available fodder trees utilizing system is introduced. (140,000 MTs on fresh matter basis). Crop residue utilization program is introduced. ( MTs of crop residues annually). Nine (09) small-scale animal feed mills, three small scale urea molasses bricks factories and forage pelleting mills are established. Verifiable Indicator No. of acres developed. No. of acres developed. No of farmers utilized, Amount fed to animals No. of trees planted. No of farmers used and no of animals fed No of farms utilized No of anilmals fed No of mills Means of Verification reports reports reports reports reports Responsibility Central & Provincial Dept of AP&H, MILCO Private sector C & Pl DAP&H, MILCO Private sector Central & Provincial Dept of AP&H, MILCO C & P DAP&H, MILCO Samurdi Authority Private sector NLDB C, P DAP&H, MILCO Private sector 12

14 5.3. Milk Marketing Program Expected Output Verifiable Indicator Means of Verification Establish fresh milk marketing system No of litters Sales reports to promote liquid milk consumption by sold.formal and. (2 Million lit annually) informal Regional Ultra Heat Treated (UHT) milk factories are established. (at least to process 000 liters of milk a day. Twenty () district level mini dairies are established. (process 000 liters of milk daily. 0 Urban and semi urban milk sales outlets and 00 mobile household milkman are established One thousand (00) cottage level milk processors are developed. (process,000 liters of milk daily. Milk powder factory is revitalized and expanded. (0000 litters /day) Milk collection and chilling system expanded and improved. (three thousand 3,000 collecting points and 1 chilling centres). Conduction of multi media campaign to promote consumption of domestically produced milk and milk products. No of sales points No of factories in function. No of factories in function. No of sales outlets in function. No of cottage level milk processors. No.of improved collecting points and chilling centres reports of Milco (pvt) Ltd. reports of Milco reports reports reports reports of Milco (pvt) Ltd. Responsibility NLDB C & P DAP&H, MILCO Private investors MLRCD, MILCO Private sector MLRCD, MILCO Private sector NLDB C&P DAP&H, MILCO Private investors NLDB C & P DAP&H, MILCO MILCO MILCO No.of campaigns reports MILCO 5.4. Breeding program (upgrading and genetic improvement program) Artificial insemination and follow up system improved. (400,000) AIs % follow up to produce hundred thousand (0,000) upgraded female calves annually. National Livestock Development Board improved. (maintain 4,000 temporate cows, 4000 European crosses, 1,000 Sahival, 4,000 Murrah separately as four nucleus herds Importation of five thousand (5 000) suitable animals for breeding purposes in nucleus and private breeder farms. Heifer calf rearing and salvation program implemented. (protect 0,000 upgraded heifer calves) Embryo transfer unit under the Department of Animal Production & Health is established. No of regional AI centers, No of Veterinary units No technician recruited, No. of AI & PD done No. of AI calves born. No. of animals issued. Herd size. No. of animals imported. No. of heifer calves salvaged. Establishment of the functioning unit. reports DAPH reports NLDB. of of reports of NLDB,DAPH. reports of C& P DAPH. and Milco reports of DAPH MLRCD Central, Provincial Dept of AP&H, Private companies NLDB Central DAP&H, NLDB Central DAP&H, Central, Provincial Dept of AP&H, MILCO Central, Dept of AP&H, 13

15 5.5. Health management and disease control program Expected Output Verifiable Indicator Means of Verification Disease surveillance system is Functioning system improved and established. PDAPH. ( e-disease reporting system) Island wide mastitis control program conducted. (300, 000 cows annually). Foot and Mouth Diseases eradication program launched. ( to eradicate FMD by ). Hemorrhagic Septicemia (HS) eradication program launched. ( to eradicate by ).. Vaccination two hundred thousand (0 000) animals annually against Black Quarter (BQ). Eradication of Brucellossis Disease. Conduction of de-worming and tick control program for one hundred thousand (0 000) calves annually. No. of animals treated. No.of animal vaccinated. Disease incidence reported Animals vaccinated. Disease incidence reported. No. of animals vaccinated. Disease incidence reported. No. of animals treated. Disease incidence reported. No. of animals treated. PDAPH. C&P DAPH. C&P DAPH. Field surveys data. C&P DAPH. Field surveys data. C&P DAPH. Field surveys data. C&P DAPH. Field surveys data. Responsibility Central, Dept of AP&H, Central, Provincial Dept of AP&H, Central, Provincial Dept of AP&H, Central, Provincial Dept of AP&H C &P D AP&H C &P D AP&H C &P D AP&H 5.6. Veterinary Services Improvement Program Expected Output Establishment of district level veterinary hospitals and veterinary investigation centers. (25 in numbers) 660 Veterinary (Livestock) service units established one unit for every 300 dairy farm cluster. (One VS, two LDIs, labourer, care taker and a driver) Disease diagnostic facilities in all Govt veterinary offices are improved. Mobile facilities are provided for all field officers. (00 Motor cycles, 300 vehicles) Infrastructure facilities are supplied for veterinary service units. (300 unit buildings and office furniture) Verifiable Indicator No. of functional units established. No. of functional units established. No. of functional units equipped. No of vehicles and motor bikes supplied No of unit constructed and equipped Means of Verification reports of C&P DAPH. reports of C&P DAPH. reports of C&P DAPH. reports of C&P DAPH. reports of C&P DAPH. Responsibility C &P D AP&H C &P D AP&H C &P D AP&H C &P D AP&H C &P D AP&H 14

16 5.7. Research Program Expected Output Verifiable Indicator Means of Verification Conduction of fifty () user driven No. of research programs research and development programs completed. reports of (as a solutions for identified problems / C&P DAPH. on farm research) Responsibility,Central, Provincial Dept of AP&H 5.8. Man Power Development Program Expected Output Establish the National Dairy Technology Training Institute. (self financed by 4 th year, one day, one week, short & long term trainings offering diplomas and post graduate certificates) Establish five thousand (5 000) field level demonstration farms. Strengthening of training facilities at national and regional training centers for standardized dairy training programs. Conduction of stakeholder standardized training programs annually for one hundred thousand (0 000) man-days. Development of a handbook and a comprehensive training package for commercial scale dairy farming. Verifiable Indicator Establishment of the functional institute. No. of farms established. No. of centers strengthened. No. of man days trained. Production of the hand book. Means of Verification Milco (pvt) Ltd. and C&P DAPH C&P DAPH and MILCO C&P DAPH and MILCO NLDB. C&P DAPH and MILCO NLDB. DAPH Responsibility Central, Provincial Dept of AP&H, MILCO C &P DAP&H MILCO Central, Provincial Dept of AP&H, MILCO NLDB. Central, Provincial Dept of AP&H, MILCO NLDB. Central, Dept of AP&H, MILCO/ NLDB Institutional Development Program. Expected Output Establishment of 300 dairy farm based and dairy villages based veterinary (livestock) services centers. Reorganization of national and regional databases and networking information exchanging systems. Strengthening of planning, monitoring& evaluation units both at national and regional level. Verifiable Indicator No. of centers established. No of data base units developed No. of data base units developed. Means of Verification C & P DAPH. C & P DAPH. NLDB and Milco C & P DAPH. NLDB and Milco Responsibility Central, Provincial Dept of AP&H, Central, Dept of AP&H, MILCO/ NLDB Central, Dept of AP&H, MILCO/ NLDB

17 6. Investment Program (Rs Million) Summary of the investment program of the above proposals is shown in Table 4 Table 4 - Summary of the Investment Program (Rs Million) No Program Total 1 Small scale dairy farm development programm Medium scale dairy farm development program with out grower system 2 Animal Feed Resources Development Program Milk marketing program Animal breeding Program Health management and Disease Control Program 6 Veterinary Services Improvement Program Research Program Man Power Development Program Institutional Development Grand Total

18 7. Details of the Major Components of the Total Investment Program Details of the major components of the total investment program are given below in million rupees. No Program/Project Total 1 Dairy farm development / Farmer empowerment program Improve 1,000 small scale dairy farms. Improve 11,000 medium scale dairy farms. Establish,000 out-grower farms (low income families / samurdi recipients) Formation of,000 farmer managed societies and dairy villages. Sub total Animal feed resources development program Cultivate improved fodder verities in 4,000 acres. (produce annual 1,000 MTs on fresh matter basis). Introduce utilization program for available natural grass 3000 and Guinea A, 4,000 acres. (produce 400 and 0,000 MTs fodder annually on fresh matter basis). Introduce utilization program for available fodder trees and plant new varieties Introduce Crop residue utilization program(90,000 MTs annually on fresh matter basis). Establish small scale feed mills 09 Establish urea molasses bricks factories Milk Marketing Program Establish regional UHT processing units 3. Establish mini dairies at Provincial FMS level 09. Employ 00 mobile household milkman. Establish sales outlets Sub total Develop cottage level processors Revitalize milk powder factories technology and 0000 litters). Improve 3000 collecting points (new Establish new 60 & improve 80 chilling centres Conduct mass media campaign for promotion of liquid milk consumption Sub total

19 No Program Total 4 Breeding program (upgrading and genetic improvement program) Improve artificial insemination and follow up system. ( annual 400,000 AIs, % follow up & 0,000 upgraded female calves. a. Establish regional AI centres 03 1 b. Provide field equipments 85 c. Train private and Govt technecians d. Establish 2 bull calf rearing centres 0 e. Conduct infertility control program Implement heifer calf rearing and salvation program. (0,000 upgraded heifer calves protected) Establish embryo transfer unit under the Department of Animal Production & Health Sub total 00 5 Health management and disease control program Disease surveillance system is improved and established. ( e-disease reporting system) Implement island wide mastitis control program (300, 000 cows annually) Launch Foot and Mouth Diseases eradication program. Launch Hemorrhagic Septicemia (HS) eradication program. Vaccination all susceptible animals annually against Black Quarter (BQ). Implement vast de-worming and tick control program. Launch Brucellossis eradication program Sub total

20 No Program Total 6 Veterinary Services Improvement Program Establish district level veterinary hospitals and veterinary investigation centers. Establish 660 Veterinary (Livestock) service units, one unit for 300 dairy farm cluster. (recruit contract basis) Improve Disease diagnostic facilities in all Govt veterinary offices. Provide mobile facilities are provided for all field officers a. 00 Motor cycles 1 1 b. 300 Vehicles Provide infrastructure facilities for veterinary service units Sub total 52 7 Research Program Conduction of user driven research and development programs. Sub total Man Power Development Program Establish the National Dairy Technology Training Institute. Establish 5 00 field level demonstration farms. Strengthening of training facilities at national and regional training centers for dairy training programs. Conduct training programs annually for stakeholder 0,000 man days Sub total 7 9 Institutional Development, Monitoring, Evaluation & Feedback Utilization Program 9.1 Establish veterinary (livestock) services units based on 300 dairy farms. 9.2 Strengthening of planning, monitoring& evaluation units both at national and regional level. 9.3 Reorganization of national and regional databases and networking information exchanging systems. Sub Total

21 8. Challenges facing the Livestock Sector Development High cost of Cattle feed, 60 percent of the local coconut meal production is exported while local farmers are facing higher price. Non availability of quality pasture / fodder and shortage of improved grass (pasture seed and lands for grass cultivation. No efficient breeding services. AI coverage is limited due to limited funds and lack of sufficient human resources. (LDI, PAIT etc.) Illegal slaughter of dairy animals Higher number of annual slaughter which nearly similar to number of AI born calves and hence the cattle population growth rate is negative. No ambulatory system of services at district level. (Treatment / Training etc.) Less attention for calf care program. No special dairy development program for upcountry tea plantation Unsatisfactory evening milk collection system in rural areas No efficient extension service for the development of livestock production Less attention is paid for livestock development by the provincial councils in their agenda while priority is given for other infrastructure development Poor breeding efficiency of cows especially due to longer calving intervals and age at 1 st calving Even though the large proportion of the herd is upgraded with exotic blood the potential yield is not achieved due to poor management and nutrition levels. Not enough incentive and attention for integration of dairy farming with crop cultivation.