Dairy Sector review

1. LIVESTOCK
PRODUCTION IN
SRI LANKA
WAY FORWARD
Sunil Gamage
Former Deputy Director
– Veterinary Research
Livestock Specialist –
JICA
I wonder which way is forward?

2. Food Expenditure
• Annual Food bill – US $ 5 billion
• Our farmers produce – US $ 4
billion worth food
• Import US $ 1 billion worth food
• Substantial proportion - Milk &
milk product imports

3. GROWTH – Livestock Sector
Growth from 1970 to 2013
Product Broiler Egg Milk Pork Beef Mutton
Total growth 640% 469% 130% 48% -22% -48%
Annual growth 14.6% 10.7% 3.0% 1.1% -0.5% -1.1%
Food
restriction
None None None YES YES None
REF: DAPH, FAO and DCS

4. Annual compound growth (%) in value of
output at constant prices, 1981–2010.
Country Crops Livestock Agriculture
Bangladesh 2.5 3.4 2.6
India 2.5 4.0 2.9
Nepal 3.7 2.4 3.3
Pakistan 2.9 4.9 3.8
Sri Lanka 0.5 1.6 0.7
South Asia 2.5 4.1 3.0
Developing 3.0 4.7 3.5
Developed 0.4 0.1 0.2
World 2.5 4.1 3.0
Source: FAOSTAT (2012).

5. THEME:
LIVESTOCK AS A CATALYST
TO INCREASE GROWTH IN
CROP FOOD PRODUCTION

6. WAY FORWARD
1. MIXED FARMING – (Crop-Livestock)
2. DRY ZONE – Over 60% of Livestock products
3. MILK – All Ruminants - Supply - Demand
4. YOUTH - Employment Generating businesses
5. TECHNOLOGY – Pellet, Hydroponic fodder, Silage
6. WOMEN (RURAL)–37.7% economically unemployed
7. EXTENSION - Accountable

7. FAO Statement on MIXED FARMING
• Livestock are important to the livelihoods of rural
women, men and children.
• They play a number of different roles, from
I. income generation,
II. Utilize idling labor,
III. Utilize underutilized crop-residue,
IV. Utilize marginal land,
V. Enhancing resilience to drought
VI. the provision of inputs into a mixed farming
systems (crop-Livestock) to providing a buffer
against environmental and economic shocks.
http://www.fao.org/docrep/012/i0680e/i0680e03.pdf

8. Question ?
• Mixed farms (Crop-Livestock) system
in Sri Lanka
–In 1960s - 60% of all agricultural
land holdings
–In 2013 – 20% of all agricultural
land holdings

9. Commercial Poultry Production System
Organization Customer of
Poultry Producer
Purchase
Price
Services
Government No No No
Processors Yes Yes Yes
Milk Production System
Organization Customer of
Milk Producer
Purchase
Price
Services
Government No Yes Yes
Processors Yes No No

10. (Ibrahim et al 1999)
0
50
100
150
200
250
300
350
400
450
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Rainfall
(mm)
Mahaillupppalama(2000-2008)
Aralaganwila (1992 - 2001)
Weerawila (1990 - 1996)
Yala
Maha
Mah
a
Dry
period
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
13%
14%
15%
120
130
140
150
160
170
180
190
Wk
1
Wk
5
Wk
9
Wk
13
Wk
17
Wk
21
Wk
25
Wk
29
Wk
33
Wk
37
Wk
41
Wk
45
Wk
49
mm
/
60
cm
Eastern Province Percent Monthly
Milk Collection
Soil Moisture in Root area in Dry Zone

11. 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
12%
120
130
140
150
160
170
180
190
Wk
1
Wk
3
Wk
5
Wk
7
Wk
9
Wk
11
Wk
13
Wk
15
Wk
17
Wk
19
Wk
21
Wk
23
Wk
25
Wk
27
Wk
29
Wk
31
Wk
33
Wk
35
Wk
37
Wk
39
Wk
41
Wk
43
Wk
45
Wk
47
Wk
49
Wk
51
mm
/
60
cm
North Central Province Percent Monthly
Milk Collection
Soil Moisture in Root area in Dry Zone
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
11%
120
130
140
150
160
170
180
190
Wk
1
Wk
3
Wk
5
Wk
7
Wk
9
Wk
11
Wk
13
Wk
15
Wk
17
Wk
19
Wk
21
Wk
23
Wk
25
Wk
27
Wk
29
Wk
31
Wk
33
Wk
35
Wk
37
Wk
39
Wk
41
Wk
43
Wk
45
Wk
47
Wk
49
Wk
51
mm
/
60
cm
Uva Province Percent Monthly Milk
Collection
Soil Moisture in Root area in Dry Zone

12. 0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
0
50
100
150
200
250
300
350
400
450
500
550
600
Wk 1Wk 3Wk 5Wk 7Wk 9 Wk
11
Wk
13
Wk
15
Wk
17
Wk
19
Wk
21
Wk
23
Wk
25
Wk
27
Wk
29
Wk
31
Wk
33
Wk
35
Wk
37
Wk
39
Wk
41
Wk
43
Wk
45
Wk
47
Wk
49
Wk
51
mm
/
60
cm
Wet Zone % Monthly Milk Collection Rain fall in Wet Zone

13. Estimated Milk Production loss due to
seasonal variation
Province Milk loss Liters/ year Loss %
Central 3,240,782 8.9%
Eastern 13,704,604 37.5%
North Central 6,388,100 17.5%
North Western 4,453,724 12.2%
Sabaragamuwa 482,890 1.3%
Southern 1,354,125 3.7%
Uva 6,896,051 18.9%
National Loss 36,520,279 12.2%

14. Reasons for Underperformance 1
• Milk collection and production – lower in Dry
Zone (DZ) cropping season, This is not so in Wet
Zone
• Underperformance in the cropping period results
in a loss of 36.5 million liters (12.2%) of milk.
– Reproductive and physiological losses not included

15. Reasons for Underperformance 2
• DRY SEASON
– Livestock are relocated during the cropping season in
marginal lands with no water and is in mostly inaccessible
locations
• WET SEASON
– In the cropping season, there is too much grass and farmers
lose in two ways.
• The grass become overgrown and poorer in nutritional quality, and
• They do not benefit from the re-growth than would have happened
if it had been cut in regular intervals.

16. Reasons for Underperformance 3
• Crop farmers (Male dominated) give lower priority
to livestock during cropping season.
• Relocated to marginal areas, which are overgrazed
and neglected
–crop cultivation limits the farmer’s time for
tending livestock and
–prevent crop damage by livestock

17. Month Oct N
ov
Dec Jan Fe
b
Mar Apr May June Jul Aug Sep
Land Maha - 100% cultivable land Yala - 55% cultivable land
Cultivation Rice planting and growing Rice harvest Rice planting and growing Rice
harvest
Cattle
movement
Restricted
grazing in
Village
Migration to inaccessible / marginal lands Village
Restricted grazing in uncultivated dry
crop land
Grazing area
Restricted
grazing
crop land
Stubble consumption in overgrazed
pasture land
Grazing in uncultivated
moist crop land
Grazing in
uncultivated dry crop
land and water
shortage
Restricted
grazing crop
land
Residue
usage
Crop
residue
wasted
Grass and fodder residue
wasted in crop
cultivation area
Crop residue
wasted
Crop residue
available for
consumption
Depleted amounts
of crop residue
available for
consumption
Crop residue
wasted
Standard
week
40-43 44
-
47
48-52 1-4 5-
8
9-12 13-17 18-19 21 22-25 26-
30
31-34 35-39

18. • Milk collection is disrupted as these areas fall
beyond the normal milk collecting routes
• Rice and crop cultivation are the main farming
activities of almost all farmers rearing livestock
• Non-availability of adequate feed continuously /
throughout the year for livestock
• Processing crop-residue
Reasons for Underperformance 4

19. Annual Availability of Rice and Other Field Crop Residue
Rice
straw
DZ paddy
cultivation
(ha)
DM per
ha
(m tons)
Crop residue
for soil
improvement
(%)
Available
for animal
feed
(m tons)
Total
availability
(m tons)
Maha 650,000 8.75 50% 4.38 2,843,750
Yala 325,000 8.75 35% 3.06 995,313
3,839,063
OFC residue – Maize, cowpea, black gram, sweet
potato and manioc 2,000,000
5,839,063
Availability Million M tons 5.839
Ref: JICA 2012

20. Demand for crop reside by milking cows in
the Dry zone
Type Number Total Animal
Units
Annual DM need for
body maintenance
(M.tons)
Cattle 928,070 832,278 1,831,012
Buffalo 218959 260,024 572,052
Goat 224,452 22,024 48,453
1,114,326 2,751,517
Demand Million metric tons 2.752
Ref: JICA 2012

21. Land use – Dry Zone dry matter availability
Category Area
Sq.Km
Hectares Dry Matter
(M tons)
Possible
usage %
Availability
DM (M tons)
1 Paddy 6,529 652,900 5,712,875 50% 3,839,063
2 Un-irrigated
highland
3,250 325,000 325,000 40% 130,000
3 Villus 500 50,000 200,000 30% 60,000
4 Herbage from
grazing land
1200 120,000 120,000 80% 96,000
5 Grassland 274 27,400 27,400 60% 16,440
6 Forest 14,507 1,450,700 5,802,800 0% -
7 Sand 210 21,000 - 0% -
8 Scrub 8,866 886,600 1,329,900 20% 265,980
Total 45,361 4,536,100 13,517,975 4,407,483
JICA 2012

22. Under-Financed Extension Service
Past Current
Ministry
Director
D D 1 to 6
D D 1 to 12
Director
General
Director
1 to N
D D 1-Z
Director
General
Director
1 to N
D D 1– Z
Director
General
Director
1 to N
D D 1 - Z
CROP-LIVESTOCK
FARMER
Field Level Extension workers , ,
Extension worker

23. Ruminant Population growth
1970
Number
2013
Number
Total
Growth
Annual
Growth
Buffalo 735,708 380,760 -48.2% -1.12%
Cattle 1,593,306 1,169,040 -26.6% -0.62%
Goat 556,362 331,150 -40.5% -0.94%
Ruminants
2,885,376 1,880,950 -34.8% -0.81%

24. Reasons cited by experts in the livestock
sector for this underperformance
–National policies (Public–Private Partnership)
–Lack of new technology
–Lack of genetically superior animals
–Small farm size
–Youth not interested
–But none talks about 37.7% rural women

25. Government policy on milk sector
• Milk Prices- GAME CHANGER FOR PRODUCERS
• To introduce the milk production trait into the local
cattle population,
• Improve animal health service provision,
• Research expenditure – Dwindling
• Loans,
• Dissemination of information and
• Encourage improvement of the milk market
channels

26. OUTLOOK
Subsidy-free agriculture

27. Crop Sector
Savings Deposit

28. Milk production
Fixed Deposit
Dairy Herd

29. Family Poultry
Petty Cash

30. Family Poultry
Petty Cash

31. Goat Sector
Current Account

32. Dry zone farmers’
ability to produce
milk with fewer
inputs
Supplies 64 % of milk
and 60% of ruminant
meat – National
production

33. 74.0% - Cattle,
66.6% - Goat, and
78.7% - Buffalo
Gross underperformance in
milk and meat production

34. Dry zone produces all this milk and meat
by consuming
Poor quality grass,
Browsing vegetation, and
Nonfood biomass – crop residue.
Increases efficiency
of land & water
Cattle 42% crossbred,
Buffalo 88% crossbred
Mercedes Benz running on
Kerosene oil.

35. Current
Yala
Yala
Fodder cultivation (ex. maize)
Grazing in harvested
paddy field.
Water
The concept of Livestock development plan in Dairy sector.
Unused biomass.
Feed processing
(Fodder, by-products)
Maha
Increase
milk
production
Improved breed
Animal shed
Increase
milk
production
Conservation feed
(Hey, Silage…)
Milking and
feeding in
shed
Low quality
animal feed
Decrease milk production
Grazing in jungle.
Low quality and limited access of forage.
Low milk
production
Maha

36. Pellets - WF 6

37. • This form will increase the shelf life of crop
residue and increase the nutritive levels
• Livestock will receive sufficient amount of feed
throughout the year
• Smallholder farm having less than 3 cows in a
two hectare land can keep 20 to 50 cows
• Land fragmentation will have no effect on the
dairy sector as it is with the poultry sector

38. HYDROPONIC FODDER PRODUCTION- WAY
FORWARD 7 – Business for Youth

39. Cottage industry
– women

40. Can keep more than
50 – 100 backyard
poultry that will give
a substantial income
to the homestead

41. CAN PROVIDE STALL FED SUFFICIENT FEED DURING
THE CULTIVATION TIME – Business for youth

42. Can compensate for the loss
of grazing and pasture land
and arrest the negative
growth and increase supply of
mutton and milk reduce the
dependency on broiler meat

43. This could support the disposal of
vegetable and fruit refuse (500
m.tons) from the Dedicated
Economic Center – Dambulla, and
utilize this refuse too for a
productive activity.

44. This introduction will have the
similar impact of developing
formulated rations for poultry in
the early 1960’s with the
establishment of the Oils and Fat
Corporation at Jaela, Seeduwa.

45. EXTENSION – A PARADIGM SHIFT
:WAY FORWARD 8

46. INDUSTRY ITEM SUB-ITEM MAIN RESPONSIBILITY Accountability
Industrial
Poultry
sector
OLIGOPOLY
Health
Bio-security Vertical Integration Enterprise DAPH
Health Monitoring DAPH
Vertical Integration
Enterprise
Manage
ment
Layers Vertical Integration Enterprise DAPH
Broilers Vertical Integration Enterprise DAPH
Plant Management Vertical Integration Enterprise
Planning
Layers Vertical Integration Enterprise DAPH
Broilers Vertical Integration Enterprise DAPH
Plant Management Vertical Integration Enterprise DAPH
Litter
Manage
ment
odour management Vertical Integration Enterprise
Relevant
authorities
Litter removal Vertical Integration Enterprise Relavant authorities
Inputs
Feed, drugs other Vertical Integration Enterprise Relavant authorities
Equipment Vertical Integration Enterprise Relavant authorities
Pollution
Water Vertical Integration Enterprise Relavant authorities
Soil Vertical Integration Enterprise Relavant authorities
Data
Input - Production Vertical Integration Enterprise DAPH
General Vertical Integration Enterprise DC&S
Marketing
Planning Vertical Integration Enterprise GOSL
Retail Retail outlets Other authorities

47. INDUSTRY ITEM SUB-ITEM
MAIN
RESPONSIBILITY Accountability
Family
Poultry
Sector
FOOD
SECURITY
Health
Bio-security Farmer DAPH
Health Monitoring DAPH Farmer
Sustainance
Stocks DAPH Societies
Extension DAPH Farmer Societies
Conservation
Indegenous bird DAPH Farmer Societies
Indigenous
Knowledge DAPH Farmer Societies
Data
System DAPH DC&S
Conservation DAPH VRI
Marketing
Planning Provincial DAPH DAPH
Retail Farmer societies Retailers

48. INDUSTRY ITEM SUB-ITEM MAIN RESPONSIBILITY Accountability
Ruminant
Milk
Production
Producti
on
Manage
ment
Replacement Clients DAPH
Housing Clients DAPH
Herd Management Clients DAPH
Monitoring DAPH
Training Clients DAPH
Milk
Collection Clients DAPH
Cold chain Clients DAPH
Proceesing Clients Chamber of commerce
By
Products
Meat Meat Processors - Client DAPH - etc
Skins Leather industry Other authorities
Effluent system Clients Farmer
Inputs
Feed, drugs other Clients DAPH
Equipment Clients DAPH
Data
System DAPH DC&S
Conservation DAPH VRI
Planning Sytem
Government - DAPH-
MILCO
Clients - Chamber of
Commerce
Management Clients DAPH

49. INDUSTRY ITEM SUB-ITEM MAIN RESPONSIBILITY Accountability
Ruminant
Meat
Production
Collection Clients Collectors
DAPH - Other
authorities
Collectors DAPH Other authorities
Slaughter and
processing
Dedicated
slaughter
plant Clients Other authorities

50. INDUSTRY ITEM SUB-ITEM
MAIN
RESPONSIBILITY
Accountability
SWINE
SECTOR
Production
Management
Replacement Clients DAPH
Housing Clients DAPH
Herd
Management Clients DAPH
Monitoring DAPH
Training Clients DAPH
Collection Clients Collectors
DAPH - Other
authorities
Collectors DAPH Other authorities
Slaughter and
processing
Dedicated
slaughter plant Clients Other authorities

51. Thank you for your
attention