Division of Dairy Development and Milk Procurement

The main objectives of the Dairy Development and Milk Procurement (DD & MP) division is to collect and procure sufficient quantity of milk for the requirement of four milk processing factories of MILCO to produce milk products as pre-prepared production plan, as well as to develop the local dairy farmer in the aim of converting traditional farming into commercial entrepreneurship. MILCO does not have any dairy farm or milking animal of their own but the entire requirement of milk is collecting from local dairy farmers. Milk collection network is operating all over the island and the majority of farmers are organized into village level Farmer Managed Societies (FMSs) and used to collect milk providing direct marketing facilities for dairy farmers. Around 20,000 farmers are connected to MILCO in different forum such as FMS, Mega farmers, Direct suppliers, farms and Bulk suppliers etc. There are around 1400 FMSs are operating island wide. 301 numbers of raw milk collection routes are operating to collect milk from FMSs and mega farmers to Milk Chilling Centers (MCCs). There are 95 numbers of MCCs operating to collect and chill milk obtaining from above source of suppliers. Milk is used to chill up to 40C at MCCs in order to avoid milk spoilage / wastage as well as quality deteriorate and used to transfer to milk factories by using insulated milk tankers.

DD & MP division is conducting various activities for dairy development as well as developing the farmers into the level of industrial entrepreneurs such as farmer training, farm demonstration instrumental and machinery grants with the help of government and non-government agencies liaising with relative organizations and banks and supply of required inputs and services etc.

MILCO has already set up a fund called “MILCO Farmer Social Security Fund (MFSSF)”, to provide benefits for dairy farmers for 27 occasional requirements of day today life including pension scheme for elderly farmers. Fund has established by contributing same portion of contribution per liter of milk by farmers as well as MILCO.

Administration and operations of DD & MP division is operating under the guidance and supervision of the Manager Dairy Development and Milk Procurement, and field activities are conducting with 9 provincial areas headed by Provincial Managers and subordinate staff. Altogether, there are 101 numbers of field officers who are qualified in the field of agriculture or animal husbandry are deployed to conduct and maintain above activities. MILCO is used to collect around 150,000 liters of milk per day.