Cultivating growth: Australia works with the agriculture sector to increase food availability in Sri Lanka

by
Market DevelopmentFacility (MDF)
on
January 25, 2023

In 2022 Sri Lanka experienced a nearly 50 per cent drop in food production. The country is now beginning its gradual rebuild and recuperation process. However it is still not out of the woods– the World Food Programme (WFP) has warned  the food crisis in Sri Lanka is likely to worsen amid poor agricultural production, price spikes and a prolonged economic crisis, with an estimated 6.3 million people likely to experience moderate to acute food insecurity.  

Australia’s Market Development Facility (MDF) works with businesses and other organisations to strengthen Sri Lanka’s agriculture and fisheries sectors. As it became clear a food crisis in the country was emerging, the program pivoted to respond, capitalising on its established business networks and links within the agriculture market. To mitigate the high food prices caused by a lack fertilizer in the country, MDF collaborated with agri-food processors and providers to increase supply of critical agricultural inputs. This also ensured that agri-businesses were able to sustain business engagement with farmers during the most challenging of times –strengthening the valuable links that sustain markets.

A package deal: inputs and information

Supporting small holder farmers to continue production of food was key. MDF initiated work with Keells- a well-known leading retail chain in the country but also one that sources vegetables and fruits from a widespread network of farmers. Keells, with MDF’s support, took the initiative to supply farmers with a bundle of agricultural inputs at a subsidized price that would allow them to cultivate their fields, sell the produce and continue to earn but also keep the excess for their own consumption. Keells also deployed their field-extension staff to provide information and advice to the farmers on the optimum usage of the inputs. While this package deal will contribute to the continuous supply of fruits and vegetables in the domestic market, it also ensures that valuable agricultural supply chains and business relationships are maintained between agri-businesses and their farmer networks.

Going organic

Despite its many benefits, organic produce had a mixed history inSri Lanka for many years – until the ban on chemical fertiliser in 2021. With farmers having to readjust their cultivation practices, organic fertiliser became a topic of interest almost overnight.However, most farmers knew very little on how to effectively use organic fertiliser in a way that would maximise their yields. This presented an opportunity for Australia, through MDF, to support organic fertiliser supplier Sassrika Lanka to improve its capacity to train farmers and government extension officers on quality organic agriculture practices. MDF also supported Sassrika Lanka to expand and strengthen its distribution network so that more farmers could access quality organic fertiliser to grow rice and other essential vegetables. As a result of MDF’s advisory support, the business has been able to increase its production tenfold, supplying much-needed fertiliser to farmers and sharing information on going organic in the right way.

As these partnerships continue to grow, working with the private sector will contribute to ensuring that sustainable practices are met and inculcated in agriculture. Australia’s commitment to supporting the sector also showcases its commitment to positively impacting the wellbeing of the Sri Lankan people and a recognition of the resilience of Sri Lankans as they rebuild from, and overcome, these challenges.