Nestlé with Commercial Bank to drive sustainable dairy farming

Nestlé Lanka and Commercial Bank of Ceylon partnered to launch an initiative to support dairy farmers with concessionary finance to expand their operations and increase milk yield, in line with the purpose of implementing regenerative agricultural practices to reduce greenhouse gas emissions in the dairy value chain.

To support the Sri Lankan dairy farmers facilitate the necessary conditions and equipment in their farms to increase yield per cow, Nestlé Lanka formed a partnership with Commercial Bank to put together a value chain financing programme aimed at providing farmers with tailor-made financial solutions at a nominal interest rate. As part of the financing programme, Commercial Bank will also cover community development initiatives such as improving financial literacy and technical awareness of dairy farmers to support in uplifting their livelihoods. Nestlé aims at reaching 300 farmers through the financing programme by year end, from which 25 farmers are selected to benefit from the rollout of the first phase.

“We are excited to work closely with Commercial Bank of Ceylon on this financing programme, to not only support in uplifting the livelihoods of our dairy farmers but also have a positive impact on the planet. Staying true to our purpose of ‘Unlocking the power of food to enhance quality of life for everyone, today and for generations to come’ we will work together with our partners and dairy farmers as we progress in our ambition of achieving net zero emissions by 2050,” said Nestlé Lanka Managing Director Bernie Stefan.

“We have set up special Agriculture and Microfinance Units (AMFU) to exclusively cater to this segment.

The bank is in the process of further expanding its AMFU operation to stimulate economic growth and to promote self-sufficiency in agri produce. A supply chain financing programme of this nature involving two highly reputed companies is the best response to the financial exploitation that is prevalent in underbanked and unbanked communities. It can enable these communities to access the formal financial system and be exposed to an environment that is catalytic in building their competitiveness,” said Commercial Bank of Ceylon Managing Director/ceo Sanath Manatunge.