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DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Public Disclosure Authorized Not For Public Use Repon No. PA-J.34a Public Disclosure Authorized AGRICULTURAL SECTOR SURVEY THE REPUBLIC OF SRI LANKA (in four volumes) VO]l.ITMF TV (Annexes 4 - 7) Public Disclosure Authorized February 8, 1973 Public Disclosure Authorized ASITA PROJEIC TSflnAnmtrr ITlijS report was prepared for official use only by the Bank Group. It may not be published. quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracyK or completeness of the report. ^%c!c A flV.T CURRENCY EQJIVALENTS Par-Rate:. US$1.00 - Rs 5.95 Rs 1.00 - US$ 0.17 FEEC Rate: US$1.00 - Rs 9.23 Rs 1.00 - USSO.10 WEIGHT AND MEASURES (3ritish system) 1 long ton - 2240 lbs - 1.016 metric tons 1 hundredweight (cwt)- 112 lbs - 50.8 kg 1 bushel (bu) - 45 lbs (of paddy) 1 pint - 0.57 liters 1 acre a 0.405 hectares ABBREVIATIONS NPE - Ministry of Planning and Employment MAL Ministrv of Apriculture and Lands, tEIp n Ministry of Plantation Industries MIPH a Ministrv of Irrication. Power and Hirht.iays MFIT m Ministry of Forcign and Internal Trade C!d - Cnopenrative ho].esale EFtahlishment GPS = Guaranteed Price Scheme FE~~~^' Forr-i-r. E-channe Enti tlement Cravifir.a-e THE REPUBLIC OF SRI LANKA AGRICaLTURAL SECTOR SURVEY ANNEX 4 LIVESTOCK AND SERICULTURE THE RE;PUBLIC OF SRI LANKA AGRICULTURAL SECTOR SURVEY VOL-UamE IV T A B L E O F C O N T E N T S AN-Nu 4: Livestock and Sericulture A. Livestock B. Sericulture ANNEX 5: The Fishery Sector ANNEX 6: Government Policies ANNEX 7: Statistical Appendix THE REPUBLIC OF SRI LANKA AGRICULTURAL SECTOR SURVEY ANNEX 4 LIVESTOCK AND SERICULTURE TABLE OF CONTENTS Pgge No. A. LIVESTOCK Livestock- ........ Background ........ , . ........ * 1 Producticin Areas - . ..... 5 Production Systems . .... ....... 9 ProceRssing, Marketing and Prces ........ 15 Feed Concentrate Supplies .. .... 18 Tnatfitut.inal Suppo:t .... 4-6................. 23 Constraints to Development ...... ................. 26 Gorverrent Programs .. .................. Strategy for Development ....................... 30 . nrosests...................... 33 App-endix- 1. E9st6l-mat:es of Production and Consumption of Livestock Products Appendix 2. Calculations of Poultry Production SERP,B i CICU LTU% Cors; Ba.kgroun1 ...........*.... ......... 11...*.......* Present Sitwation. ........ .0s-.* .@...... 1 Developmenmt Proposals ..... ......... ... ....... .4... ..* 3 C^rnclusions ............. ........ 0...... 0.... O................ S Appendix 1. Comparative Silk Production Efficiency ANNEX 4 Pg,e. 1 THE REPUBLIC OF SRI LANKA A L% flT OtQTr%-LV L% t rbtfo LIVESTOCK AND SERICULTURE A. Livestock Background 1. Livestock is a minor sector in Sri Lanka's economy accounting for only albout 7% of the gross value of agricultural production. Total livestock output increased a little over 4% annually during the 1960's according to ofllcial statiStiCs, DUE this growth was concentrated in the early 1960's, and livestock output has not kept pace with population growth since 1965. Livestock products account ror only about 6X of all food protein consumed in Sri Lanka, less than half as much as fish. 2. Sri Lanka has potential for greatly expanding livestock production, even to the extent of eventually becoming a meat exporter. Milk and beeE output can be greatly increased by establishing improved pastures on much of the three million acres of native pastures and parklands used only foir extensive grazing. Local livestock could be upgraded to utilize improved pastur,es but stock imports also would be needed to utilize increasing feed supplies. Opportunities for rapid growth are best in the poultry and pi, industries where improvements in production efficiency could be achieved by better use of rice bran and other by-product feedstuffs. Increased outpult of maize, sorghum, manioc and soyabeans would reduce dependence on feed imports. 3. Statistical information about the livestock industry is conflicting and needs to be improved. Official livestock statistics based on annual returns filed by village headmen indicate that numbers of all classes of livestock increased from 1960 to 1965, except sheep, and have declined suib- stantially since 1965, except poultry (Table 1). Slaughter of all classes of livestock have increased in recent years. Cattle and buffalo slaughter reached a peak in 1969, sheep and goats in 1968 and poultry and pigs in 1967 and then decreased in 1970. Milk production appears to have followed a similar trend (Annex 7, Table 3.21). .%Th,I,W A. Page 2 Table 1: LIVESTOCK POPULATION BY CLASS OF STOCK 1960 1965 1970 ----- Thousand of Head---- Cattle 1,552 1,904 1,593 Bffaloes 813 1,051 736 Goats 491 600 556 Sheep 52 35 27 Pigs 76 117 108 Poult ,3 ,409 6;090 6,856 Source: Village Headmenus Returns as reported by Dept. of Census and Statistics in Statistical Annex, Table 3.20. 4. Consumpt.on and Dezand Estimates. Data on production are derived from consumption daita. It is assumed that production and consumption are identical except for known quantities of imported dairy products and very small meat imports (Table 2). Milk consumption estimates shown here for 1970 are based on consumption levels reported in the 1963 consumer survey. Consumption maintained at 1963 per capita levels gives an estimated total of 456 million pints in 1970 consisting of 275 million pints produced locally and 182 million pints imported in milk powder and milk foods (Table 3). ANNEX 4 Page 3 Table 2: CONSTJMPTION AND DEMAND ESTIMATES FOR LIVESTOCK PRODUCTS Consumptian Survey/ Mid-Term Plan- Demand Projections- 1953 1963 1970 1970 1976 1i5) 1976 1980 --------- Totals------ Milk pints million 270.9 386.2 n.a. 457.0 517.0 533.0 708.0 856.0 Beef lbs million J 52.9 60.1 62.3 71.0 67.4 81.8 92.9 Mutton lbs million )57.1 13.0 10.5 14.7 16.2 16.5 20.1 22.9 Pig meat lbs rLllUnn ! 5.9 6.0 7.3 17.0 7.5 9.1 10.3 Poultry meat lhb million) 5 3 5.1 8.8 14.8 7.0 R.6 g.8 Eggs million 131 194 269 278 342 272 376 465 ----------------…---Per Capita----------- Milk pini:s 25.60 36.50 n.a. 36.50 36.50 42.5 50.0 55.6 Beef lbs ) 5.00 4.80 5.00 5.00 5.38 5.77 6.04 Mutton lbs ) 5.40 1.23 0.84 1.23 1.23 1.32 1.42 1.49 -"Ze mp-ao ln c1A.rr. nA J.Qa A K 1 .10 An n.A n A 7 Poultry meat 1k.. A CA 0.41A A I Al. A A0 61 A0.4 Eggs 12.4 18.4 21.5 21.1 24.1 21.7 26.5 30.2 /1 Consumer finance and socio-economic surveys 1953, 1963 and 1970.. /2 Bases for mid-term plan extrapolated from 1963 consumer finance survey assumir.ng corIstarit per capLita counumption o.L milk, beef andu muttorU . /3 Mission demand projections based on actual GNP at 1959 factor c0st prices and population growth to 1970; 2.1% population growth and 2.3% per capita GNP growth thereafter; FAO income elasticities of demnand and 1963 price relationships. ANNEX 4 Page 4 'p..I ffl?OflflrT nfl n %irT Iv A~, .nr% ,T nnnhnn IN iTAJ1e 3: ~-NS' T 'JNOF L& B±NK riLLd'. PWOUCTS - 1970 M'.l'ion Pinlts - / '-E'/6 Raw Mi¶1k ~' ol Pasteurized/Sterilized Fluid Milk 31 Condensed Milk 4 Milk Powder (Whole, Skimmed and Baby Foods) 118 Milk Products (Produced from pasteurized milk) 3 Total Consumption 456 /1 Includes milk used for curd manufacture in villages. Source: Mission Estimates. 5. Retail milk prices in Colombo set by the National Milk Board have iLncreased U o ILy 10I%. S 4 n c e 1* IU964-lut in rurall. centres f1:.U4A -lkr41.e h ave increased by about 30%. Milk powder prices have increased over 30% and butter Jv0. WhL.L.Le priLces fUor condensed mrlk, also a prodLuct of. thi'e L'NatiLona±L Milk Board, have remained almost constant. 6. Increases in beef production from 1965 to 1969 resulted from an ala-riug reduct'LoL in the catt'le ,du buffalo population. ConsumptLon per capita for 1970 shows a small decline from the 1963 level. It appears probable that cattle numabers have been maintained during the last year and that the buffalo population continued to decline at about 1.5% annually (see Appendix 1). A decline ir, beef consumption took place despite rising incomes because of declining per capita supplies. Retail prices increased fromn Rs u.84 to Rs 1.14 between 1964 and 1968, then to Rs 1.65 per lb in 1970. Per capita consumption of mutton, pig meat, and poultry meat also have declined since 1963 and prices of these products have increased. However, egg consumption has increased enough to meet demand at prevailing prices (see Appendix 1) . 7. .l-;^.eestimated 8.5%; increase in meat production from 1963 to i970 did aot keep pace with increased demand resulting from population growth an. higher per capita incomes. Demand tor milk hafi*ncreased more than supply since !963 and will contiaue to do so in the years ahead unless pri^du=tion increases more rapidly than in the recent past. Egg production has gone up rapidly and will meet future demand requirements provided growth continues at the recent pace. Retail prices of beef and mutton are afficially corcrolied at Rs i.1O and Rs 2.25 per lb with bones, respectively. These prices are exceeded but controls exert some influence over the prices charged, especially for beef. Retail prices might rise 30% for beef and 10% for mutton if controls were removed.
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