Nov 29, 2017

MILCO to be restructured soon

Sri Lanka state owned diary firm, MILCO. Milk Industries of Lanka Co. Limited is to be restructured to make it a viable entity. A ministerial committee headed by Minister Dr. Sarath Amunugama has been appointed to find way forward to restructuring of MILCO.

A pricing mechanism will also be formulated by considering handling and packing charges,distribution cost etc with breakdown from Fonterra Brands Lanka Limited, Lanka Milk Foods and Nestle Lanka.

The Ministerial Committee has also decided to obtain financial statements from MILCO for a period of three years.

Dairy farmers’ said that the company is delaying payments for milk supplied by them to MILCO and they are facing difficulties due to the low buying price of milk and the high costs involved in milk production.

MILCO has made profits of 274 million rupees in 2016, after it barely made a profit of 4 million rupees in 2015, following an increase in farm gate milk prices.

It has increased revenues to 8,964 million rupees in 2016 from 8,403 million rupees in 2015, helped by a price increase, a finance ministry report said.