Pelwatte, the nation’s leading dairy producer is an active participant of the Smallholder Agribusiness Partnership Program (SAPP) which is a small scale agribusiness partnership program implemented with the Ministry of Agriculture, Democratic Socialist Republic of Sri Lanka. Through this project, the company hopes to improve the livelihoods of dairy farmers registered under the Pelwatte Dairy Company in all parts of the country and to increase the production of liquid milk on their farms.

 A large number of objectives have been identified so far under this project, one of which is to double the daily milk production, to provide loans to farmers at a lower interest rate and through a convenient repayment scheme and to link them to the banking process. Which is expected to be directed for production activities.

 During the third year of the project, about 45,000 liters of milk per day will be produced through selected owners and the owners' monthly net income which is Rs. 35,000 is also expected to increase. In addition, ten selected youths will be trained on specifics of the dairy production process.

 The officer in charge of the project further stated that the program intends to provide assistance to 1000 dairy farmers selected from eight districts of the country. Accordingly, these farmers will be selected from Anuradhapura, Nuwara Eliya, Kurunegala, Monaragala, Polonnaruwa, Badulla, Ampara and Puttalam districts.

The Administrative Manager at Pelwatte and Coordinator of this program, Mr. Deepthi Gallage says “We are working to uplift the economic and social status of about one thousand (1000) dairy farmers. The MOD and the Veterinary Offices of the island have been very supportive in further strengthening the project and conducting vocational training. Under this SAPP program, the company selects government and non-government banks on the island and strives to achieve its objectives.  Banks HNB, SDB, DFCC, BOC are already contributing to finance this program through the SAPP project.”

 The technical knowledge and training programs required for this project are being implemented in collaboration with the "Market Oriented Dairy Institute" by the US Department of Agriculture (USDA) and the International Executive Corporation (IESC). Through this project, work will be done to provide the required agricultural equipment to the farmers. Farmers will be provided with grass choppers, milk coolers, milking machines and milk collection tanks to run their businesses properly. In addition, the SAPP project sponsors adaptation and repair of farmers' cattle sheds, as well as azolla cultivation and grass cultivation.

 The support received from Mr. Akmal Wickramanayake, Managing Director of Pelwatte Company on the implementation of this project is heavily commended. Mr. Wickremanayake said that “At present young dairy farmers are more inclined to leave the dairy business due to lack of proper encouragement and motivation”.

At present, about 40% of the island's total demand is produced in the island and the company hopes to grow Sri Lankan dairy products by making this project a success. The Pelwatte Company through the SAPP initiative is actively encouraging and motivating farmers to play a significant role in the dairy industry.

Susantha Malwatta, Deputy General Manager of the company, added “the company will continue to provide loans and related grants to farmers involved in the project in the North, East and Central Provinces within the next month”. He also mentioned “The project has the potential to increase daily liquid milk production in the future.”

Through the SAPP project the International Fund and the Agrarian Development Institute will provide financial assistance for this project based on the concepts of producer, public, private and partnership under the 4P concept in eight districts of the country. Pelwatte is doing its part to uplift the in the dairy industry and play a vital role in retaining foreign exchange inflows within the country. This was evident through Pelwatte’s sponsorship of a project in February last year for 30 selected farmers in the Kekirawa area at a cost of Rs.5,400,000 / - provided through SDB Bank.