Milco launches new products after import tax on dairy items
Just days after the imposition of import taxes on cheese, curd and increasing special commodity levy on yoghurt, butter, and margarine in the 2014 budget, Sri Lanka’s state-owned dairy Milco (Pvt) Ltd has launched four new dairy products.
They are processed cheese, spiced processed cheese, cheese spread and cooking milk while a 150 ML sachet of plain milk which could be kept for 36 days without refrigeration was also introduced to promote local dairy. Milco Chairman Sunil Wicremasinghe told the Business Times that this was the first time that new varieties of dairy products have been developed and produced by the company in its 55-year history. These products were developed after comprehensive testing by the company’s R&D division, he revealed.
The new products were launched at a ceremony held at Temple trees in Colombo recently. Mr. Wickremasinghe said that local dairy production should be increased to assist the government’s drive to promote import substitution curbing imports of food items. “Some time ago we were producing only 225,000 litres of fresh milk a day but today production has gone up to 510,000 litres a day and is still growing,” he said.
The bid to increase production comes at a time when the Finance Ministry has issued a directive to curb milk powder imports and encourage local producers to expand their production facilities as the government spends a colossal US $400 million a year on milk powder imports. Meanwhile the Livestock and Rural Community Development Ministry will team up with foreign investors to import 2500 more milch cows to the country to be given to local farms.