1 July 2024 12:35 am Views - 112
Marking a milestone initiative to strengthen Sri Lanka’s dairy industry, DFCC Bank announced the allocation of Rs. 500 million to finance smallholder dairy farmers, in line with its commitment to supporting sustainable development.
This dedicated initiative by DFCC Bank is the brainchild of the bank’s MSME (Micro, Small, and Medium Enterprises) Unit and is built upon the successful experience of lending to the beneficiary farmers of the USDA-backed Market-Oriented Dairy (MOD) Programme.
The credit line aims to provide crucial support to the sector under concessionary interest rates, fostering growth at the grassroots level, particularly amongst smallholder dairies, which form a significant part of Sri Lanka’s dairy industry.
DFCC Bank Vice President MSME Chandana Wanigasena made the announcement during the closeout event of the Market-Oriented Dairy (MOD) programme. The “Sri Lanka Dairy—The Art of the Possible” event took place at the Galle Face Hotel on May 17, 2024. It celebrated the MOD programme’s achievements supporting Sri Lanka’s dairy smallholders.
“By supporting the proposed DFCC-MOD Dairy Farmer Loyalty Programme and the MOD’s proven model of creating a pool of dairy entrepreneurs producing 100 litres daily, we are taking concrete steps to enhance smallholder dairy farmers’ financial sustainability and growth prospects,” Chandana said.
DFCC Bank’s MSME Unit has financed over 2,500 dairy farmers through a value chain financing model supporting MOD’s efforts to transform dairy farmers into entrepreneurs. This model has significantly contributed to the industry’s growth, exemplifying an effective and scalable approach to agricultural financing.