Nestle Boosts Dairy Industry in Sri Lanka

SRI LANKA - Nestlé is strengthening the dairy industry in Asia with the opening of a new UHT milk factory in Sri Lanka.

4 April 2012

2 minute read

Asia

The factory builds on the company’s recent investments in dairy development in China and India.

It will produce ready-to-drink brands such as Milo and Nespray at Nestlé’s existing manufacturing site in the Sri Lankan province of Kurunegala.

“Our latest investment will have a ripple effect across the local community by helping our company make a positive impact on thousands of suppliers and farmers in the country,” said Alois Hofbauer, Managing Director for Nestlé Lanka.

“The new manufacturing capabilities also mean we can produce new products for our Sri Lankan consumers.

“Our dairy based beverages are Sri Lankan household favourites,” he added.

The CHF 5.8 million (US$6.3 million) factory is part of a CHF 77 million (US$84 million) total investment in Sri Lanka over the next few years.

Two other factories producing Maggi noodles and Nestlé brand malt beverages were opened on the site in the last 12 months.

The Honourable Basil Rajapaksa, Sri Lanka’s Minister of Economic Development, was joined by Nandu Nandkishore, Nestlé’s Zone Director for Asia, Oceania, Africa and the Middle East, at the milk factory opening event.

“The new factory is an example of Nestlé’s strong and continued commitment to the development of Sri Lanka,” Mr Nandkishore said.

“It shows our company sees real potential in the country,” he added.

Nestlé has supported the Sri Lankan dairy sector since the 1980s.

Today Nestlé Lanka’s has three UHT milk factories.

Nestlé is Sri Lanka’s single largest private sector collector of fresh milk, procuring fresh milk from over 15,000 local dairy farmers every day.

The new UHT milk factory is part of Nestlé’s dairy investment programme in Asia.

The company constructed a new dairy farming institute in Shuangcheng in Heilongjiang province, China, in January.

It aims to help dairy farm owners and workers from Shuangcheng and other Chinese regions improve their farm management skills and educate them about the latest agricultural technology.

Nestlé India has developed milk production in the region since it built its first factory in Moga in 1961. The company now has eight factories in the country.

Over the years, Nestlé has invested to develop the area around that first factory, setting up milk collection points and training farmers to improve productivity and quality.