Supplies from Pelwatte Dairy steady despite impact of lean season in December

Friday, 14 January 2022 00:00 - - {{hitsCtrl.values.hits}}

Pelwatte Dairy Industries Ltd. (PDIL), the Sri Lankan dairy giant, has not slowed down its production or output but is effectively navigating Sri Lankan diary industry’s annual ‘lean season’ of December-April sequence.

Pelwatte Dairy Industries Deputy General Manager Susantha Malwatte said: “There is no truth in the social media reports which incorrectly hint at suspension of PDIL production or sudden shortages of Pelwatte products. Pelwatte factories are continuing their production runs as usual. There is only the predictable dip in the output levels due to the annual December-March industry output decline. This is the usual ‘seasonal lean period’ of dairy farmers’ output, experienced during the December-March period. This is not specific only to Pelwatte Dairy but regularly experienced by all Sri Lankan dairy producers and the industry supply chain. From May-June to October, more milk is supplied to the processing market, resulting in higher production of milk for that period while the December-March is the season of ‘lean period,’ which is what is taking place at present. Our high milking cycle in May-October dries up by December as the cows lay back for their next cycle of pregnancy and delivery. This pattern of lower dairy output does not stop PDIL from continuing its assistance to the farming community.”

In 2020/21, PDIL increased its farmer base by 16%, supporting over 10,000 dairy farmers and other associated families, thus making its own contribution to the national dairy supply chain. In fact, in the in pandemic hit 2020/21, PDIL’s farmer pay-outs increased by a huge 70%. The company’s resilience throughout uncertain times ensured its production process functioned well with no interruptions, even resulting in the doubling of its production output in certain categories and making 2020/21 a winning year for PDIL. In the year, PDIL’s gross profits almost doubled, growing by a strong 180% in comparison to 2019/20. In the same period, the profit before tax (PBT) increased by 148%.

“The good news is that despite the fact that we are now amid the ‘lean season,’ PDIL factories are continuing their production runs since we anticipated this situation and planned for it well in advance,” added Malwatte.