NDDB and GCMMF are going to acquire a majority stake in a new joint venture company in Sri Lanka to help the Island nation boost milk production. The Joint Venture was signed during the visit of India’s External Affairs Minister to Sri Lanka.
It bears recalling that Sri Lanka’s dairy industry is in bad shape and the country would like to reorganize it without delay. NDDB and Amul will help it modernize its dairy plants and scale up the milk production.
The NDDB Chairman and GCMMF Managing Director could be seen in the picture. They were present on the occasion of the signing of the JV along with top leaders.
Tweeting about the JV, NDDB’s Chairman Meenesh Shah wrote on X “Truly a privilege with a greater sense of responsibility- a landmark agreement signed between shareholders committed to ensuring transformation of the Sri Lankan dairy sector with scientific measures & efficient operations.”
During his trip to Sri Lanka, Jaishankar had met the President and held extensive discussions on a host of issues. The meeting was focused on enhancing bilateral relations & three new bilateral agreements were signed to foster greater cooperation between the two countries.
Local media reports say that Sri Lanka’s President, Ranil Wickremesinghe mulls incorporation of dairy farms currently managed by MILCO, a government-owned organisation, along with its brand, Highland, into this new joint venture.
GCMMF’s Vice Chairman, Valamji Humbal, is quoted as saying NDDB and GCMMF will jointly hold a 51% stake in the new venture, reports Desi Gujarat.
It is being said that the JV will increase Sri Lanka’s national milk production by 53% in 5 years, and double milk production in 10 years. More than two lakh farmers will be empowered.
Both NDDB and GCMMF will try to improve productivity of the Sri Lankan dairy system, enabling the use of modern technology, equipment and best practices in dairy and associated sectors, achieving digitalization in the dairy sector, improving the productivity of fodder and pasture cultivation and the cattle feed industry, improving animal health through accessible veterinary care practices.
It bears recall that NDDB has once earlier also during the nineties tried to revive the dairy co-ops of Sri Lanka. NDDB had worked hard to improve dairy production in Sri Lanka from 1996-2000.
Sadly, the private players of the country had convinced Sri Lankans that fresh milk is bad for health while milk powder is good. This time the scenario has changed with the dairy revolution sweeping across the globe, yet the Indian players will need to be cautious of the greed and machinations of local players.