Performance Report – 2010 - Ministry of Finance and Planning

In 2010, institutions under the livestocksector continued to conduct programmes inline with the government policy toimprove the domestic livestock sector.During the year, total milk production inthe country increased by 6 percent to 247.5million litres from the level of 233.3million litres in 2009. This includes 191.9million litres of cow milk and 55.6 millionlitres of buffalo milk. In 2010, 30 percentof national requirement was met by thelocal production. Average farm gate priceof milk had been around Rs.33.20 perlitres during the year 2010 showing 10percent increase compared with the pricein 2009.Various state supported dairy developmentprogrammes implemented in the countrywould have contributed to this growth inthe dairy industry.Poultry meat production has increased by5 percent from the level of 99,280 metrictons in 2009 to 104,160 metric tons in2010 mainly due to the importation ofbroiler parent stock and prevailing goodhealth conditions in poultry farms. The eggproduction in 2010 showed a slightdecrease of 0.2 percent, from the level of1,142 million in 2009.In 2010, import of milk and milk productsat 76,010 metric tons indicated an increaseof 16 percent mainly due to increase inboth consumer demand and internationalmarket prices. Against this background,the domestic milk production should beincreased by giving strong support to thedairy farmers. Therefore, the governmenthas increased the producer price of milk toRs. 50 per litre in March 2011. In additionto that, the programmes includingexpansion of dairy villages and milkcollection network, establishment ofproper cold chains for milk marketing,increase in artificial insemination,importation of high yielding cattle breeds,facilitation of commercial farming,improvement of healthcare anddevelopment of dairy feed sources were150implemented with the support of theprivate sector to increase performance ofthe dairy sector.Farm gate price of live broiler and tableeggs recorded high prices towards latterpart of the year and, were in short supplyduring the festive season of December2010. The cost of production of chickenmeat and eggs has increased due to thehigh feed prices, as maize prices rose dueto the shortage of supply in 2009 Yalaseason. Therefore, in line with the currentprogrammes being implemented topromote poultry sector, the encouragementof capital intensive breeder farms,hatcheries, feed mills and processing unitsare done to double the domesticproduction of poultry. Further, Pure-lineand grand-parent breeder operationsshould be supported and encouraged so asto increase the self-reliance of day oldparents required for the poultry industry.With a view to enhancing the livestocksector, research and development in thearea should be improved through theprivate sector and universities in the areasof production of high yielding breeds,fodder, grasses, processing and valueaddition, by providing research grants,venture capital and incentives to usemodern technologies. Based on theresearch findings, the government will setand enforce quality standards for dairyplants and livestock products, particularlywith regards to hygiene and safe productsin order to create a quality culture.The following tasks were undertaken bythe Livestock Division at NPD; Prepared and published “Self Reliancein Livestock Industry” in chapter 2: AProsperous Country: A Land of Plentyof the document “Mahinda ChinthanaVision for the Future, TheDevelopment Policy FrameworkGovernment of Sri Lanka”.