Factors affecting sustainable dairy production: A case study from Uva Province of Sri Lanka

Abstract

Dairy farming has been playing a key role by improving household incomes and food security for rural communities in Sri Lanka. Nevertheless, it has failed to meet the expected self-sufficiency. In 2015, Sri Lanka imported 51percent of the national milk requirement spending US$ 251 million from its debt-ridden economy. This paper aims to analyse socio-economic characteristics of dairy farmers and factors affecting dairy production efficiency in the Uva Province of Sri Lanka, a highly potential area comprising all the dairy value chain actors. Surveyed was conducted to farmers, key informants from input suppliers, collectors, transporters, processors, sellers and support service providers. Result revealed that intensive farmer’s milk yields per cow was only 7.97 L/day, which was 35% and 60% higher than the yields of semi-intensive and extensive farmers respectively. The highest profit of Rs. 53.30 per litre was earned by extensive farmers, whereas it was Rs. 47.63 for semi-intensive and Rs. 44.76 for intensive farmers respectively if family labour cost was not taken into the account. The Technical Efficiency Analysis revealed that 37.1% and 20% milk production of intensive farmers and semi-intensive is being loss due to inefficiency and could be increased without any additional inputs. The main factors affecting efficiency in milk production included farmers’ socio-economic characteristics and farm characteristics. Based on the results it can be concluded that sustainability dairy production depends on farmer training, collectivizing farmers into farmer societies, culling unproductive male animals, increasing the availability and access to AI/other breading programs and low-cost quality concentrate feed and other supplements, and, thus appropriate measures should be taken to provide these conditions if Sri Lanka aims to achieve self-sufficiency in milk production.