Wanni Dairy Regeneration Initiative

> PARTNERSHIPS AND FUNDS CASE STUDY

What are we doing and why?The Wanni Dairy Regeneration Initiative is an example of how non-government and private sector organisations can partner effectively for development purposes.

The Initiative supports post-conflict communities in northern

Sri Lanka to re-establish and improve the small-scale dairy

livelihoods they have had for generations. Generating sustainable

agricultural income is reliant on numerous factors, from producing

quality products to accessing reliable markets. Recognising the

opportunity to assist communities in this area, the Initiative

combines local knowledge with New Zealand expertise. It aims to

generate sustainable incomes for at least 1,500 farmers through

supporting and developing their dairying activities.

The Initiative is focused upon each link in the milk cold chain.

At one end, it targets milk processing infrastructure and livestock

health, for improved raw milk quality. It also improves farmers’

knowledge and skills for their trade. The middle links require getting

products to markets, through milk collection points and chilling

centres, and management of operations by Dairy Farmer Societies. At

the other end, this activity builds relationships with national bodies

such as MILCO, Sri Lanka’s state owned dairy enterprise, to negotiate

sustainable access to markets. This will ensure that farmers can

understand and participate in the sale of their products for profitable

return. The Initiative recognises that the chain leading back to

farmers is only as strong as its weakest link.

TEAR Fund NZ

World Concern Development Organisation

Patton Ltd

QPod Systems Ltd

Quick facts

VALUE

New Zealand Aid Programme contribution: $1,858,355Partner contribution: $300,000

SECTOR

Investing in Economic Development: Agriculture

LOCATION

Kilinochchi and Mullaitivu districts, Sri Lanka

DURATION

2012–2015 (3 years)

PARTNERS INVOLVED

Farmer cooperative secretary measuring milk at cooperative milk collection point.Photo: Ray Keane, Patton Ltd

Discussing fodder production with beneficiary farmers.Photo: World Concern Sri Lanka

New Zealand Aid Programme

Wanni Dairy Regeneration Initiative

> PARTNERSHIPS AND FUNDS CASE STUDY

FURTHER INFORMATIONNew Zealand organisations interested in working with the NZ Aid Programme through the NZ Partnerships for International Development Fund (Partnerships Fund) can find relevant information, including the Guidelines for the Fund on www.aid.govt.nz.

Effective partneringTEAR Fund NZ brings over 30 years of expertise to the Initiative. It

works in community development, agriculture, microenterprise, child

sponsorship and disaster relief projects throughout the developing

world. World Concern Development Organisation is very active in Sri

Lanka. Among other work, it provides long term support to small

farmers in dairy, through skills and systems development and

community infrastructure.

Private sector partners include New Zealand dairy companies Patton

Ltd and QPOD. Patton Ltd manufactures chilling equipment and is

actively advising on the technologies used for this Initiative, such as

milk chilling centres. QPOD are solution providers in cold chain

storage, and are playing a vital role in analysing Sri Lanka’s milk chain

system, to assist with getting farmers the most reliable and

transparent system possible.

Other essential relationships being built upon include local and

national government, and the state owned company MILCO. MILCO is

a key link in the chain as it can provide Wanni farmers with access to

their supply chains. MILCO is concerned with self-sufficient dairy

production and the welfare of rural dairy farmers.

The New Zealand Aid Programme is a partner in this Initiative and

provides funding through its contestable funds programme. The

Initiative aligns with the aid programme’s strategic focus on

sustainable economic development in developing countries.

MFAT15 P&F Wanni Case Study

With so many links in the milk chain, working together is the key to success. TEAR Fund NZ

What have we achieved so far?Some of the achievements from this

activity include:

26 DAIRY FARMER SOCIETIES

comprising over 1500 farmers are in operation. The members of these Societies are highly motivated and show considerable trust in the project.

60% INCREASE

in the number of women participating in Dairy Farmer Societies.

FARMERS ARE NEGOTIATING a raw milk supply contract with government and dairy companies to ensure they get a fair deal.

1500 LITRES PER DAY

are currently being supplied by farmers to milk chilling centres (MCCs). The construction of larger MCCs along with improved farmer skills has enabled milk production in some areas to increase by over 100%.

Milk being poured into the chilling vat at a milk chilling centre. Photo: Ray Keane, Patton Ltd

Raw milk being tested and ready for collection. Photo: Ray Keane, Patton Ltd