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Scirj Volume II, Issue III, March 2014 Edition
ISSN: 2201-2796

DCD, a Potential Shield to Uplift Local Milk (Case Study based on Sri Lankan Milk Powder Industry, 2012/13)

B.K.H.D Anuranga

Abstract: Milk powder industry posted country imports of 84,000 MT of milk products in 2011 at a cost of Rs. 30 billion (Central Bank of Sri Lanka, 2012) which is a startling amount in comparison to other powdered milk importers in the world despite having lesser population and extent of land at the same time this was a burning issue to the Sri Lanka as this imports of dairy products from foreign countries had become a critical issue in terms of trade balance deficit reported in balance of payment in the country taking 1195.4 billion of rupees equaling to 9409 US million dollars and imports of dairy products alone accounting for 2.5% of Trade balance deficit (Central Bank of Sri Lanka, 2013). At the same time it was the government policy to be self -sufficient in milk by 2016 (Rajapaksha, 2005). After the media derogated the news about milk powder imported to Sri Lanka from foreign countries are contaminated with DCD and thereby revealing its potential hazardous implications, people became overwhelmed and concerned responding by protesting against milk powder importers and asked the government to address the issue. With the involvement by ITI, milk powder samples were tested and proved DCD to be positive. Backed by the findings the government of Sri Lanka asked both importers and local milk powder manufacturers to with draw products from the market. Further, government took several measures and confined dairy importers not to sell, advertise and exhibit dairy products thus government being able to save more money otherwise could have been incurred in importing milk powder and also to boost the local milk production by reducing imports of milk powder by 12.3% to $307.3 million in late 2012 thus creating a vacuum to be filled by which. It was observed that Highland, Palawatta, locally produces powdered milk, being demanded more whereas imported little or not (Anuranga, 2013). Finally, the government can encourage breast feeding and local dairy manufacturers by importing high

Reference this Paper: DCD, a Potential Shield to Uplift Local Milk (Case Study based on Sri Lankan Milk Powder Industry, 2012/13) by B.K.H.D Anuranga published at: "Scientific Research Journal (Scirj), Volume II, Issue III, March 2014 Edition, Page 20-25 ".

Search Terms: Dicyandiamide (DCD), Full Cream Milk Powder, Dairy products, Fonterra, Industrial Technology Institute (ITI), Multi-National Companies.

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