Key announces backing for dairy projects in Sri Lanka

Prime Minister John Key is boosting Fonterra's [NZX: FCG] presence in Sri Lanka with two development projects aimed at supporting local dairy farmers and boosting New Zealand’s role in the island's dairy industry.

The agreement was reached at a meeting between Mr Key, Sri Lanka President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and other Cabinet ministers in Colombo.

Mr Key is leading a business delegation to Sri Lanka and is also chairing a meeting of the International Democrat Union, a global grouping of right-wing political parties.

The delegation comprises Fonterra chairman John Wilson, Wellington lobbyist Charles Finny, Tait Communication managing director Garry Diack,  PowerShield chief executive Len Thomas, Patton Refrigeration managing director Sameer Handa, Anthony Wenceslaus (NZ-Sri Lanka Business Association) and Sir Don McKinnon,

“The Sri Lankan Government is making real progress as it undertakes a significant programme of post-war reconciliation and economic reform, and the opportunities for us to work more closely together are immense,” Mr Key says.

“New Zealand can play a role in the country’s development through sharing our expertise and technology in areas such as dairy.

“Sri Lanka also offers significant opportunities for New Zealand businesses in areas such as tourism, education, IT, infrastructure development and aviation, as well as to serve as a platform for expansion into the wider South Asia region.”

Mr Key says the dairy cooperation projects, worth around $5.9 million (563 million rupees), are part of New Zealand’s commitment to Sri Lanka and will see local dairy farmers benefit from the expertise of New Zealand’s world-class farming industry.

The two dairy development projects which New Zealand will support are:

• The Dairy Training Excellence Initiative, which will see smallholder Sri Lankan dairy farmers receive training on reproduction, farm economics, nutrition and safe milk handling. Around 20 master trainers and 180 extension staff will be trained by New Zealand experts to work with farmers on 3000 Sri Lankan farms.

• An extension to the Wanni Dairy Regeneration Activity, which helps post-conflict communities in northern Sri Lanka to generate a sustainable agricultural income. This project is expected to benefit 7500 smallholder dairy households and 10,000 rural youth in the next five years. Funding comes from the New Zealand Aid Programme in partnership with TEAR Fund NZ, QPod Systems, Patton and the World Concern Development Organisation.

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