Creating economic opportunities for local farmers

by
Lisa Ritchie
on
January 25, 2023
A new processing centre in Sri Lanka’s North Central Province, has opened up market opportunities for local farmers with the ability to value-add to locally grown produce.

The processing centre is located in Wilachchiya in Anuradhaura District and was established by Sri Lankan NGO, the SAFE Foundation, with the support of the Australian Direct Aid Program (DAP). DAP is a small grants program that works with local communities to reduce poverty and achieve sustainable development.

The SAFE Foundation identified that facilities to process fresh produce would create income generation opportunities for local farmers –specifically vulnerable households such as those headed by women or returned migrant workers who lost employment as a result of the COVID-19 pandemic.

Equipped with a dehydrator, grinder, vegetable cutter and sealer, the processing centre offers a range of benefits for farmers. For example, spices and cereals can be ground down and powdered. Vegetables can be dried more quickly, saving time. The faster drying process also reduces the potential for losses due to disease that can occur when produce is dried outside under the sun.

In addition to selling fresh produce, farmers can now package and sell additional products, such as dried and powdered chillies, dried fruits and ground spices and flours. This offers the potential to diversify their income through the sale of more products. As these products can be considered higher-value and are often be sold for more than fresh produce, it is also an opportunity to increase income. The ability to process fresh produce also allows for income across all seasons, improving financial security.

Currently 40 households are utilising the centre. There are plans to support transport for farmers located further away so that they can more easily access the facilities.

SAFE will work with local community members to ensure machinery will be operated safely and maintained. SAFE will help improve business skills, such as branding, marketing and book-keeping, and to establish the business systems and processes needed to manage the facility. Currently, processed products are packaged, branded and sold under the SAFE brand, SAFE Agro Products. Once commercial systems and skills are in place, a local business cooperative will be established to manage the centre.

“The grant provided through Australia’s Direct Aid Program has allowed us to get the centre underway, now we will work to ensure its commercial viability and work towards a point where we can hand the centre over to an established, commercially viable and locally-run cooperative,”
- SAFEExecutive Director, Harsha Jayarathna.

As farmer demand for the processing facility grows, it is anticipated that workers will be needed in the facility, creating valuable local employment opportunities.

With the centre officially opening on 15 December 2022, the community, local government officials and SAFE staff celebrated, but they all recognise the work that lies ahead to ensure the processing centre is utilised to generate the economic rewards and improved financial security it represents for local farming households.