# Smallholder Agribusiness Partnerships

Livelihood Development of Smallholder Dairy Farmers

Total Project Cost

RS. 324,971,800.00

Locations of the Project

Rasnayakapura, Kubukgate, Maho, Polpithigama, Moragollagama, Ganewatta

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 milk production as a business and main income source.

Main approaches of the model are;
• Ensuring year round feeding by 1 Ac cultivation of CO3 and maintain 100 number of bushes of 40 paddocks demarcating with gliricidea as a protein source.
• Promote minimum 0.5 AC sorghum or maize cultivation
• Ensure irrigation facilities for fodder cultivation
• Introduce and maintain azolla ponds (3’ width x 10’ length x 1’ depth). Azolla is a protein source and can be fed per cow per day up to 4 Kg and reduce concentrate feed up to 50%.
• 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
• Encourage irrigation facilities for CO3 / sorghum/ maize cultivation.
• Convert their cow sheds to lose barn model with local materials to make sure the animal welfare contributes to increment of daily milk production

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.
• To promote the evening milk, planned to establish the cool chain development at appropriate places (6 – 8 places).

Investment Plan

Category 1 (200 farmers)

Category 2 (200 farmers)

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.