Govt. faces $810m penalty if dairy cow import agreement cancelled

Tuesday, 19 March 2019 01:51 - - {{hitsCtrl.values.hits}}

Despite high public spending, actual growth of dairy industry minimal

By Ashwin Hemmathagama – Our Lobby Correspondent

Early termination of the agreement to import cattle from Australia will result in the Government having to pay a penalty of $810 million, Agriculture, Rural Economic Affairs, Livestock Development, Irrigation and Fisheries & Aquatic Resources Development Minister P. Harrison informed Parliament yesterday.

According to the Minister, the particular agreement, which was inked during the Rajapaksa Government, has only led them to import cows providing less milk and unsuitable for local weather conditions.

“In 2014, the agreement was signed by former Minister Basil Rajapaksa to import 20,000 cows. He has failed at least to do a pilot project before entering into imports. These imported cows were distributed among the State and the private sector. There are complaints that these animals consume a lot of feed,” Minister Harrison revealed.

During 2015, the Government has spent Rs. 992 million to import 2,480 cows, and Rs. 2,317 million in 2017 to get down 5,000 cows from Australia, as per this agreement.

Confirming the failed project, Opposition lawmaker Dayasiri Jayasekara said: “These cows produce less milk. Already over 400 have died. The farmers are now in great difficulty. It is recommended to take action against those who are responsible for such blunders,” he said.

The Government policy actions to distribute high-yielding cows and increase the guaranteed price of milk to farmers has only resulted in total national milk production growing by a moderate 3.2% to 396.2 million litres in 2017, compared to 2016.