There is a raging debate here about developing the dairy industry and not surprisingly; this subject has entered the present political landscape. But there is no argument whatsoever that we have to look to India which created a milk revolution in the 1970s, for guidance and help to develop our own fresh milk industry.
But the problem in Sri Lanka is that our domestic dairy industry cannot simply produce enough milk to fulfil the entire country’s demand. This is why we have to spend millions of dollars to import milk powder from countries such as Australia and New Zealand. Unless and until we begin to produce a sufficiently large quantity of milk locally, this will have to be done.
But there is some relief on the horizon. India, the world’s largest milk producer, last week signed a memorandum of interest (MoI) with Sri Lanka for the supply of milk and milk products. The MoI was signed at the inauguration of the country’s first-ever India International Cooperatives Trade Fair.
“Three MoIs have been signed with the Sri Lanka Government which has shown an interest to buy milk from India. The quantity and price has not been quoted yet,” a senior official of the National Cooperative Development Corporation (NCDC) said.
The Tamil Nadu Milk Cooperative Federation that owns ‘Aavin’ brand, the Puduchery Milk Cooperative Federation that owns ‘PonLait’ brand and the fertiliser company Indian Potash Ltd have signed a separate pact with the Sri Lanka Government for the supply of milk, the official added. This should substantially reduce our milk powder import bill, which has soared in recent times due to currency fluctuations and increasing prices of milk powder in the world market.
India is the world’s largest milk-producing nation, with around 70 million producers. The country’s milk output is expected to reach 175 billion litres this year, nearly twice what the US, the second-biggest milk-producing nation, is expected to produce. There is a lesson here for Sri Lanka too. Our dairy experts should study the Indian model of dairy success and try to replicate it here. With most conditions being similar, this might not be a difficult task.
The first lesson is that the cooperatives should be co-opted into the milk production drive. In India, most of the major milk producers including Amul are products of the cooperative system. The milk purchasing companies should help form such ventures, which would benefit them as well. It is also vital to have cows that can withstand our climatic conditions. Hundreds of cows imported at great cost from more temperate countries have perished here, leaving a huge void in the dairy industry.
Milk has proven to be a vital component of a balanced diet, especially for growing bodies and minds of schoolchildren. This fact was highlighted in last week’s World Food Day celebrations, which focused on the need for a balanced diet that included milk. Cow’s milk has a range of nutrients that other foods often struggle to match. Having at least one glass of milk a day, preferably at breakfast, could provide energy for the day ahead.
While all parents probably know the importance of milk, not many can afford to give fresh milk to their children. A 400 gm packet of milk powder costs Rs.395, and fresh milk which is not available in all areas in sufficient quantities also costs at least Rs.200 per litre. Even the UHT milk packs cost the same. Thus an investment in dairy production is an urgent need. There is a need to convert the younger generation to consume liquid milk, which would only be possible if there is an increase in production. Even the import of milk from India should be considered as a stop-gap measure.
The biggest benefit could be a substantial long-term saving in foreign exchange used to import milk powder. We say ‘long term’ because these children brought up on liquid milk are unlikely to go back to powdered milk and would most probably continue the fresh milk habit into adulthood, thus giving a boost to local milk production. However, as things stand, it is not possible to stop milk powder imports overnight since the country is not self sufficient in fresh milk. The current production is around one third of the requirement and the balance is met with imported milk powder at an annual cost of nearly US$ 400 million.
Apart from the shortage of liquid milk, there is another factor. In order to comprehend why we ‘cannot do’ without milk powder, we have to turn back the clock by a few decades. Refrigerators were a novelty and a luxury at that time. The people simply had no way to store perishables, so they had to buy and consume everything ‘fresh’. The same applied to liquid milk. Where liquid milk was available, they had to consume it without delay. But the only way to have milk on demand for the vast majority who did not have a refrigerator, was by purchasing powdered milk.
There is no doubt that milk powder is highly convenient. It can be kept at room temperature, in an airtight container, for months. All one has to do is add tea/water and/or sugar to a few spoonfuls of milk powder. It was a godsend to mothers who wanted to give milk to their children. It was handy when visitors turned up. ‘Bed tea’ is just a matter of mixing the right ingredients. Decades later, we are still dependent on milk powder, although every household has a refrigerator.
If you visit a supermarket in a developed country, one thing is instantly noticeable. There is row upon row of fresh liquid milk but almost no milk powder for adults, full cream and non-fat. The only varieties of milk powder available are formula powders targeted at infants for instances where mothers cannot breastfeed.
The authorities must do more to expand the availability of liquid milk through Lak Sathosa, NLDB and Highland outlets. More groceries with refrigeration facilities should be identified for the sale of liquid milk, bearing in mind that imported milk powder is available at practically every grocery in the country. They should also take steps to popularize UHT milk and sterilized milk (Kal Kiri), which can be kept even without refrigeration for at least six months in bottled or Tetrapak form until they are opened.
We can achieve the same ‘milk revolution’ if we can iron out the output issue that affects the local dairy industry. Increasing production would also help to bring down the retail price of fresh milk without harming the dairy farmer - a 400 gm pack of milk powder holds the equivalent of more than three litres of liquid milk and even at Rs.395, is cheaper than the liquid version on a litre by litre basis. Consumers will indeed opt for local fresh milk (and other locally produced dairy items such as cheese and butter) if the prices are only marginally different. It is imperative to get this equation right to create a fresh milk revolution in this country.