Sri Lanka’s expenditure on dairy and dairy products imports rose by 18 percent from a year earlier to Rs. 44 billion during 2014, according to a new report by the Ceylon Chamber of Commerce.
Imported volumes, however, had risen by only 3 percent to 71 million kilograms, and the increase in import values was due to the higher import prices of dairy and dairy products.
The pickup in volumes in 2014 was on the back of a sharp decline in 2013, following issues regarding chemical contamination. Meanwhile, export volumes of dairy and dairy products from Sri Lanka in 2014 fell to 595,000kgs from the six-year high of 661,000kgs, seen in 2013.
The last year’s production was impacted by drought conditions and the spread of foot and mouth disease. The value of exports have declined by 8 percent in 2014, but remained above the average over the previous 7 years.
The largest market for Sri Lankan dairy and dairy products exports in 2014 was the Maldives, accounting for 80 percent. The report titled ‘Sri Lanka’s Dairy Sector – A Statistical Analysis’ prepared by the Economic Intelligence Unit (EIU) of the CCC is the first such report on the country’s dairy industry, and provides an in-depth statistical look across the product portfolio of the sector (Milk and cream, Milk powder, buttermilk, curdled milk, yoghurt, whey, butter and cheese).
The report comprises an overview on the international dairy sector, a detailed analysis of exports and imports of dairy products over the period 2007-2014, broken down by product categories and HS codes.
The report also provides a look at the numerous changes in government policies and other measures related to the sector between 2010 and 2014, including highlighting that the duty rate for importation of milk powder changed 5 times during 2014.