Press briefing of Cabinet Decision taken on 2011-02-23

Purchasing of two Nos. Ultra Heat Temperature (UHT) treated Milk Processing Plant for Milco (Pvt) Ltd.

- Measures are being taken by the Government to increase local milk production and processing with the view to save valuable foreign exchange being spent to import milk powder and also to uplift the living standard of the dairy farmers in the country. There has been a significant increase in the production of milk in the recent years. The production in 2006 which was 192 million litres increased to 233 million litres in 2009. The milk collection too has increased to 125 million liters in 2009. The government has noticed that the main issue at present is the preservation of processed milk in polythene which lasts only for 3 days. On a proposal made by Hon. Arumugan Thondaman, Minister of Livestock and Rural Community Development, on the recommendation of the Cabinet Appointed Procurement Committee, Cabinet approval was granted for the purchase of two Ultra Heat Temperature (UHT) treated milk processing plants for Milco (Pvt.) Ltd. which is a Government concern to be installed at the Factories in Polonnaruwa and Colombo. This will enable Milco (Pvt.) Ltd. to produce UHT processed liquid milk in pouches (not in Tetra Packs) with long shelf life of 30 - 40 days to be marketed at an affordable price to the consumer in both urban and rural areas.