# Smallholder Agribusiness Partnerships

Increased Income through Better Management Practices & Market Linkages for Smallholder Dairy Farmers

Total Project Cost

RS. 270,623,750.00

Locations of the Project

Dambulla, Nikawaratiya, Galaha, Norwood, Kirindiwela, Wadduwa, Pallepola, Madawachchiya

Number of Beneficiaries


Background of the Proposed Project

The proposed business model is to double the current milk yield with existing herd by the 3rd year of the intervention with the existing herd and to keep this production throughout the year by improving the lactation period from 200 days to 300 days by ensuring year-round feed, maintaining proper herd composition, calf management, quality milk production and run the milkproduction as a business and main income source.

Main approaches of the model are;
• Promote silage making as supplementary feed for later pregnant and early lactating cows to increase the daily milk production.
• Ensure 24 hours continuous supply of drinking water.
• Separate the newly born calves after 6-12 hours from the mother cow and feeding separately. (calf management for better offspring)
• Maintain the herd to get a calf every year (herd management)
• Keeping the herd 70% cows in milk for better productivity
• Maintain herd improvement/proper breeding plans
• Introduce proper waste management model. (encourage compost making as addition income source)
• Mechanization of the dairy farm providing milking machines and grass choppers
• If the farmers are not having the land, introduce special ration to the herd with locally available resources (If feeding straw, encourage them to use treated straw mix with Azolla and Gliricidea and feed the cows)

Specific Objectives

• To double the existing daily milk production by third year of the intervention through productivity enhancing measures during the partnership period.
• To enhance the quality of milk through better herd management practices and clean milk production at farm level.
• To enable farmers to obtain credit facilities with subsidized interest rate under easy payment schemes and to make them bankable.
• To enhance the women and unemployed youth participation for the dairy related activities.
• To promote youth entrepreneurship initiative under the partnership with development of service providers such as fodder & silage suppliers, milk collectors to support beneficiaries.
• To educate beneficiaries on impact of climate change and resilience with adaptation of mitigation measures.
• To educate beneficiaries on basic financial literacy and household budget management.

Expected Outputs of the Intervention

• Obtain 40,000 L/Day from the selected 500 beneficiaries after the third year of the intervention.
• Minimum of 44,000 LKR per month net income for selected beneficiaries by 3rd year of the intervention.
• Train and facilitate 10 youths as AI technicians within first year of intervention.
• Develop 50 commercial fodder growers (Youths) within first year of intervention.
• Develop 60 medium scale dairy farms (Youths) through mechanization within first year of intervention.

Investment Plan

Category 1

Category 2

Social Impact

• Positive impact on foreign reserves of the country.
• Increased living standard of the farmer.
• Social enterprise in operation for betterment of the village society.