# Smallholder Agribusiness Partnerships

Chello Out-Grower Dairy Development Project

Total Project Cost

RS. 244.7 Mn

Locations of the Project

Rathnapura, Polonnaruwa

Number of Beneficiaries

500 Out Growers

Background of the Proposed Project

Chello Dairy Products (Pvt) Ltd, from1995 in Sri Lanka and the Dairy Industry, has been involved in the upliftment and development of the small scale farmers. The company has created a dairy farmer model to set up more collecting centers, improve quality and build a network with the farmer community. Chello Dairy Product (Pvt) Ltd sees several shortcomings in the small scale dairy farmer which needs to be improved in order for them to benefit from the changes taking place in the industry and improve their productivity and profitability.

Reputation

Chello Dairy Products (Pvt) Limited is a privately-owned company established in 1995 has planted its roots firmly in Sri Lankan dairy industry with a modern milk processing factory at Godakawela, Ratnapura possessing state of the art technology to process 25,000 liters a day. The Chello Dairy Products(Pvt) company currently produces more than 15 varieties of dairy products from 4 million litres of milk collected mainly from 800 smallholder dairy farmers scattered in Hambantota, Ratnapura, Badulla, Moneragala, Amapara & Polonnaruwa districts annually through its milk collection network comprise of 15 commission based milk collectors, 05 milk chilling centres and chilled milk transporting system. Company has ensured guaranteed farm gate price for milk. Supporting these farmers, there are about 370 passionate people in the company to make dairy products available to thousands of consumers in the country every day. Company caters to 20% of dairy products selling retail outlets of the country through its island wide marketing network having 52 distribution points and 77 vehicles. Company has already created a trusted brand and market for its products.

Project Goals

Meaningful increase of economic benefits from dairy farming on a sustainable manner

Project Objectives

Investment Plan

Social Impact

Residential stability of 500 farm families and providing them of most wanted local regional and national linkages in the dairy sector are very effective social impact of this project. Half of farmers will make over 25,000 SLR monthly net profit within first three years of this project and balance will enjoy over 10,000 SLR while they are in their own residential areas. This helps to control rural urban migration & improve regional equity on a sustainable manner. Working with all ethnic, religious & income level groups is another positive of this project. This will create considerable employment & business opportunities for other stakeholders of the dairy value chain in addition to farmers. The Chello Dairy Products(Pvt) company currently produces more than 15 varieties of dairy products from 4 million litres of milk collected mainly from 800 smallholder dairy farmers scattered in Hambantota, Ratnapura, Badulla, Moneragala, Amapara & Polonnaruwa districts annually through its milk collection network comprise of 15 commission based milk collectors, 05 milk chilling centres and chilled milk transporting system. Company has ensured guaranteed farm gate price for milk. Supporting these farmers, there are about 370 passionate people in the company to make dairy products available to thousands of consumers in the country every day. Company caters to 20% of dairy products selling retail outlets of the country through its island wide marketing network having 52 distribution points and 77 vehicles. Company has already created a trusted brand and market for its products.

Sustainability

The profitability and sustainability of the project lies to a great extent on the underlying support that will be given by Chello Dairy Products (Pvt) Ltd through their training calendar. The upliftment of the farmer, which in turn will benefit us, the milk producer and the Nation is our ultimate aim. Chello work at farmer level has been given in more detail in an earlier part of this document and highlights our dedication towards the Industry as a whole and our capability in successfully promoting and implementing a project of this nature.