Trends and Developments in Sri Lanka s Livestock Industry

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1 Trends and Developments in Sri Lanka s Livestock Industry Vanitha Prasannath Eastern University, Vantharumoolai, Chenkalady, Sri Lanka vanithap@esn.ac.lk Abstract Agricultural sector contributes to Sri Lanka s Gross domestic Product by 10.8% whereas livestock sub-sector contributes 0.8% only. Livestock sector plays an important role in the rural economy in improving the standard of living. The objectives of this study are i) to understand the population pattern of different livestock, growth rate and livestock products over the years, ii) to identify the per capita availability of the different livestock over the years, iii) to find out the import and export of the different livestock products in terms of volume and value in different years, and iv) to refer the policy measures taken to upgrade the livestock sector in Sri Lanka. This study uses secondary level data of Sri Lanka which were gathered from the Department of Census and Statistics and Department of Animal Production and Health, Sri Lanka. Further, calculation and analysis have been done by the author to represent the appropriate percent contributions and growth rates. Trends and developments in the livestock industry from 2004 to 2013 are outlined. The results indicate that livestock population has changed drastically with reference to human population in Sri Lanka. There was a positive population change in human (4.15%) as well as livestock such as cattle (8.96%), buffalo (56.95%), swine (17.65%), and chicken (61.09%) and a negative change in goat/sheep (1.92%). There is a considerable increase in the demand for livestock products compared to other food products over the years. Per capita consumption of livestock products in Sri Lanka was very low compared to world average consumption. Sri Lanka is in a fair position in South Asia regarding the consumption of livestock products; where it consumes nearly same amount in meat and egg but half in milk of the South Asia s average consumption. Per capita availability of chicken, beef, swine, mutton and milk products were 7.09 kg/year, 1.8 kg/year, 032 kg/year, 0.11 kg/year and kg/year respectively in Imports of milk and milk products and exports of meat and meat products have been increased over the years. Therefore, the demand can be fulfilled by well planned programmes with appropriate policy decisions. Keywords: Livestock population, livestock products, Sri Lanka. Introduction Out of the total land area of 65,610 sq. km., around 2 million hectares or 30% is agricultural land. Almost 75% of the agricultural land is under smallholdings and the balance under estates. The number of estimated smallholdings is about 1.8 million and of this 90% are less than 2 ha in extent. About 70% smallholdings are solely devoted to crop production and the remaining has a mixture of crops and livestock and in few cases only livestock (Ministry of Social Services, Welfare and Livestock development, 2012). Available online: P a g e 46

2 The country is divided in to three main agro-ecological zones namely, low country, mid country and hill country, and the low and mid country regions based on the rainfall pattern and altitude, again being divided into a wet zone, an intermediate zone and a dry zone. The agricultural sector contributes around 10.8% of National Gross Domestic Production (GDP), whereas the livestock sub-sector contributes around 0.8% of national GDP (Central Bank of Sri Lanka, 2013). Both human and livestock population have been grown considerably in Sri Lanka over the past two decades. There are about million cattle, million buffalo, million poultry, 0.08 million pig and 0.41 million sheep in the country with negligible number of ducks other species. Livestock are spread throughout all regions of Sri Lanka with concentrations of certain farming systems in particular areas due to cultural, market and agroclimatic reasons. In Sri Lanka many farmers depend on animal husbandry for their livelihood, but not a large proportion. Therefore, many livestock products have to be imported. The main livestock products in Sri Lanka are milk, meat and eggs. Animal power which was formerly used in the cultivation of rice and vegetables has been replaced by modern technology. However animal husbandry plays an important role in the rural economy for improving the living conditions of farmers in the country. With this brief background the objectives of this study are i) to understand the population pattern of different livestock, growth rate and livestock products over the years, ii) to identify the per capita availability of the different livestock over the years, iii) to find out the import and export of the different livestock products in terms of volume and value in different years, and iv) to refer the policy measures taken to upgrade the livestock sector in Sri Lanka. Materials and Methods This study uses secondary level data of Sri Lanka. The data were gathered from the Department of Census and Statistics and Department of Animal Production and Health (DAPH), Sri Lanka. Further, calculation and analysis have been done by the author to represent the appropriate percent contributions and growth rates. Results and Discussion Population trends Human and livestock population have both grown-up considerably in Sri Lanka over the last ten years, although in different rates and percentages (Table 1). Table 1: Changes in human and livestock population in Sri Lanka Population (Millions) % Change Human Cattle Buffalo Goat/Sheep Swine Chicken Human population has been increased by 4.15% between 2004 and At the same time the changes in the population of different animal types varied significantly. Available online: P a g e 47

3 Cattle and swine populations have been increased by 9% and 18% respectively, much less than buffalo (57%) population during the period from 2004 to Tremendous increase has occurred in numbers of chicken which is 61%. Exceptionally goat/sheep population has been decreased by 2% over the last ten years. Human population growth is expected to continue for at least next two decades in Sri Lanka. The relationship between human and animal population growth is complex according to Templeton and Scherr (1997). The annual population growth rates of human and livestock in Sri Lanka are 0.8% (Central Bank of Sri Lanka, 2013) and 16.08% (Author s calculation) respectively. Recent year s productivity of the livestock has been increased with the new breeding techniques. Therefore, livestock numbers are not that much important but changes in the productivity of the livestock must also be taken into the account as well as the composition of the livestock population. The dairy sector has been identified as the priority sector for development among other livestock sub-sectors in the country. There had been much focus on dairy farming and production in 2011 due to several initiatives taken by the government in the recent past. The population growth pattern of cattle and buffalo has depicted as graph in the Figure 1 and Figure 2. Estimated cattle population pattern over the last decade shows a quadratic equation model which is a second degree of the polynomial equation model, whereas buffalo population pattern illustrates an exponential growth in the population. Domestic milk production was recorded as million liters in 2013 (DAPH, 2013). Figure 1: Cattle population in Sri Lanka ( ) Available online: P a g e 48

4 Figure 2: Buffalo population in Sri Lanka ( ) Infrastructure facilities for milk marketing such as milk collecting centers, chilling centers and milk sales outlets were further increased in Number of milk collecting centers in the year totaled up to 3,500. Demand for milk and milk products was on the increasing trend and there were positive trends of investments in commercial dairy farming. Figure 3: Goat/Sheep population in Sri Lanka ( ) Goat farming is concentrated mainly in the dry and intermediate zones of the country where about 75% of goat population is distributed. Goat and sheep population in 2013 was documented as 408,787 (DAPH, 2011). Extensive management system is practiced in the dry zone and semiintensive and intensive systems are practiced in coconut triangle, hill country and in urban areas of the country. Goat farming is mostly linked to socio cultural patterns and the availability of land and fodder. Saanan, Jamnapari, Kottukachchiya and Sri Lankan Boer are the commonly available goat breeds in Sri Lanka. Indigenous and cross breeds are also distributed all over the country. Two goat breeding farms located at Thelahera and Imbulandanda, operated under the DAPH, contributed in upgrading of goats Available online: P a g e 49

5 by distributing breedable animals. Northern Province had been one of the main regions in the country during the past, where goat production was done very successfully. As per goat population statistics in the last Agriculture census carried out in 2002, Jaffna district in the Northern Province accounted for 16.3% (65,519) of the total goat population in the country. However, due to war situation prevailed in the area, goat production as well as access to Colombo markets was badly affected. From 2004 to 2006 goat/sheep population has been gradually reduced and 2005 onwards it has gradually increased until 2013 (Figure 3). Again the goat/sheep population also expresses quadratic equation model which is a second degree of the polynomial equation model. Swine farming is mainly concentrated into four districts in Sri Lanka. These districts include Colombo, Gampaha, Kalutara and Puttlam. Apart from these traditionally identified areas, pig farming is also seen in other parts of the country as well in the Central part and the North Central part. Total pig population in Sri Lanka has been recorded as 80,471 in 2013 (DAPH, 2013). Swine farms could be categorized as small scale (60%), medium scale (25%) and large scale (15%). The swine population has been remained somewhat constant with frequent fluctuation as shown in the Figure 4 where it shows a quadratic equation model. Figure 4: Swine population in Sri Lanka ( ) Procurement of broiler parents was recorded as 1,185,350 during the year Out of which, nearly 55% were locally purchased and the balance 45% was imported. Procurement of broiler grandparents increased from 15,254 in 2010 to 25,790 in A total of million broiler chicks were produced during the year, which was an increase of 0.8% from the corresponding number of million in The chicken population pattern has shown an exponential regression function as depicted in the Figure 5 during the period from 2004 to Available online: P a g e 50

6 Figure 5: Chicken population in Sri Lanka ( ) Demand for livestock products and international trade The driving force behind the increasing demand for livestock products in Sri Lanka is a combination of population growth, increasing per capita income and urbanization. The population growth in Sri Lanka was estimated to be millions in 2013 and grew at the rate of 0.98% per annum in the period of At the same time the demand for livestock products have been increased over the years. Gandhi and Mani (1995) examined the differences in the behavior of livestock product demand during the period from to Their results revealed a substantial increase in consumer demand for livestock products both in rural and urban area. The rate of increase in the demand for such livestock products outpaced the demand for pulses, edible oil and vegetables. It can be viewed that the demand for livestock products has increased rapidly especially with increases in income when compared to other food products. The steady urbanization coupled with increased income has stimulated the demand for milk and milk products as well as other livestock products in Sri Lanka. Table 2: Per capita consumption of livestock products Country Meat (kg/person/year) Milk (kg/person/year) Egg (kg/person/year) Annual Growth % Annual Growth % Annual Growth % World Developed Countries Developing Countries South Asia Sri Lanka Source: Food and Agriculture Organization, 2009 Available online: P a g e 51

7 Per Capita Availability (kg/year) Journal for Studies in Management and Planning Average annual per capita consumption of the livestock products have been increased over the year all over the world in dissimilar manner. Developed countries consume more than doubled average world consumption. At the same time developing countries consume somewhat lower the average world consumption. The countries in the South Asian region consume very much lower the average world consumption which is six fold lower of meat and egg but half of milk. With reference to South Asia, Sri Lanka consumes nearly same amount in meat and egg but half in milk products. Overall Sri Lanka s per capita consumption of milk products have been reduced during 1995 to 2005 (Table 2). As shown in the Figure 6, per capita availability of red meat has increased in Sri Lanka in the past years, particularly in the last ten years. In 2004 the per capita availability of beef was 1.45 kg per year and it was slightly increased to 1.8 kg per year in At the same time per capita availability of pork was remained same as 0.32 kg per year in 2004 as well as in 2013 with mild fluctuation over the year. Per capita availability of mutton was very low compared to other types of meat. Due to health effect of mutton preference to this type meat is comparatively low. Per capita availability of chicken was 4 kg per annum and it increased gradually up to 7.09 kg per annum in the year In 2004 the per capita availability of milk products was kg per annum and it was gradually increased to kg per annum in There was a significant improvement in the consumption of milk and milk products in Sri Lanka over the last ten years (Figure 7) Beef Mutton Ckicken Pork Figure 6: Per capita availability of red meat in Sri Lanka per annum ( ) Available online: P a g e 52

8 Per Capita Availability (kg/yr) Figure 7: Per capita availability of milk and milk products in Sri Lanka per annum ( ) The demand for and the production of livestock products in Sri Lanka have been increased rapidly in recent years. Less than half of the requirement of milk and milk products as well as meat and meat products were locally produced and processed. Of this major portion has been mainly used to local consumption as well as small portion was exported. Imports of milk and milk products as well as meat and meat products outpaced the exports (Table 3). Table 3: Imports and Exports of major Livestock products in Sri Lanka ( ) Milk and Milk Products Meat and Meat Products Year Imports Exports Imports Exports Volume Value Volume Value Volume Value Volume Value (MT) (Rs. Mn) (MT) (Rs. Mn) (MT) (Rs. Mn) (MT) (Rs. Mn) , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , Source: DAPH, 2013 Imports of milk and milk products have been increased gradually from 2004 to 2011 and consequently it has reduced rapidly in the years 2012 and Simultaneously the exports of milk and milk products show fluctuation over the last ten years and it varies from MT to MT. Import of dairy products Available online: P a g e 53

9 amounted to 87, MT in 2011, an increase of 15.76% over the corresponding figure of 75,482.6 MT in 2010 (DAPH, 2013). Consequently import of milk and milk products were reduced by 4.07% and 17.14% respectively in the year 2012 and Out of total dairy products imported in to the country in 2013, full cream milk powder amounted to 58, MT which was a decrease of 16.64% when compared with 70, MT in the year Similarly, import of non-fat milk powder of 7, MT in 2013 showed a decrease of 18.9% from the 2012 import volume of 8, MT. Total import bill on dairy products reached Rs billion in Increase in import of dairy products could have been due to increased demand for milk and milk products following post-war situation and recent economic growth in the country. Simultaneously the decrease of imports from could have been due to increased in the cattle population as well as productivity. Meat and meat products imports have been reduced over the last ten years. However, there is a significant increase in the exports. Export of chicken meat and chicken meat products was recorded as 1,524.5 MT in the year 2013; an increase of MT from the previous year's volume of MT. Bulk of these chicken meat and chicken meat products were exported to Maldives, UAE, Azerbaijan, Armenia, Iraq, Angola, Oman, Kuwait, Doha Qatar, Ghana and India. Export of eggs of 3.44 million was reported in the year 2013 which was an increase by 60% from the corresponding figure of 2.15 million in A total of 0.11million and 0.05 million day-old commercial chicks were exported during year 2012 and Import of chicken meat and meat products was recorded as MT, a remarkable increase of 57.2% from the corresponding 2012 figure of MT. However, these quantities represented just 1.05% of the estimated domestic chicken meat production for the year. There are several policy decisions taken by the government in 2011 to facilitate further growth in the livestock sector as well as to address consumer needs in Sri Lanka. Some of those policy decisions taken by the government are as follows. Value Added Tax (VAT) on modern machinery and equipment required for livestock production would be exempted. Tax concessions would be provided to government and private entities to promote milk production. Steps would be taken to import 3,000 cows to be distributed among dairy farmers. High duty on imported milk powder would be maintained in order to enable dairy farmers to secure better price. Major constraints on the growth and development of Sri Lanka s livestock industries are scarcity of animal food and resources for continuous supplying of animal food, anti-cow slaughter legislation, poor dissemination of knowledge and low diffusion of cross breeding techniques. Therefore, well planned policy and programmes should be planned and implemented in order to increase the livestock population as well as livestock productivity. The study suggests for deregulation of policy to result to desired accelerated growth in the livestock industry. Conclusions Trends and developments in the livestock industry from 2004 to 2013 are concisely outlined. The results of the study revealed that livestock population has changed drastically with reference to human Available online: P a g e 54

10 population in Sri Lanka. There was a positive population change in human (4.15%) as well as livestock such as cattle (8.96%), buffalo (56.95%), swine (17.65%), and chicken (61.09%) and a negative change in goat/sheep (1.92%). The demand for livestock products have been increased considerably compared to other food products over the years. Per capita consumption of livestock products in Sri Lanka were very low compared to world average consumption. When considering the consumption of livestock products, Sri Lanka is in a fair position in South Asia; where it consumes nearly same amount in meat and egg but half in milk of the South Asia s average consumption. Per capita availability of chicken, beef, swine, mutton and milk products were 7.09 kg/year, 1.8 kg/year, 032 kg/year, 0.11 kg/year and kg/year respectively in Imports of milk and milk products and exports of meat and meat products have been increased over the years. Therefore, the demand can be fulfilled by well-planned programmes with appropriate policy decisions. References [1] Central Bank of Sri Lanka. (2013). Annual Report. Colombo, Sri Lanka. [2] Department of Animal Production and Health. ( ). Livestock Statistics. Colombo, Sri Lanka. [3] Food and Agriculture Organization. (2009). FAOSTAT statistical database. Rome. Available at [4] Gandhi, V. P. and Mani, G. (1995). Are Livestock Products Rising in Importance? A Study of the Growth and Behaviour of their Consumption in India. Indian Journal of Agricultural Economics, 50(3), [5] Ministry of Social Services, Welfare and Livestock development. (2012). Colombo, Sri Lanka. [6] Templeton, S. R. and Scherr, S. J. (1997). Population pressure and the micro-economy of land management in hills and mountains of developing countries. EPTD Discussion Paper No: 26, Environment and Production Technology Division, International Food Policy Research Institute. Available online: P a g e 55