Abstract:
This research intends to measure the performance level of both dairy ventures funded by Sri Lanka Centre for Development Facilitation (SLCDF) and non-funded dairy ventures of
Hingurakgoda DS division. Objectives of the study was to explore the product, process,
marketing and management diversifications adopted by the dairy ventures and to measure the
level of diversification of both funded and non-funded dairy ventures, and to find out the
performance of dairy ventures and the impact of diversification on household wellbeing of dairy
farming households. Survey strategy was utilized as the principal data collection tool and both
qualitative and quantitative techniques were used. A sample of 100 dairy farmers were collected
from Hingurakgoda DS division including 50 SLCDF (NGO) funded farmers and 50 of non-funded
farmers using simple random sampling technique. According to the study four categories of
diversification; product, process, market and management were explored. Product
diversifications identified were mainly curd, pudding, yoghurt and milk toffee. Market
diversification available in the farmer base was identified as owning a milk collection center.
Record keeping was identified as common management diversification. Process diversification
included artificial insemination (80%) for cattle breeding, silage making (10%), owning a silage
cutter (8%) and grass cutters (5%) and preparing mixed rations (1%). Results revealed that the
level of diversification of the funded farmers (0.42 out of 1) was higher compared to non-funded
farmers (0.34 out of 1). Both male (0.72 out of 1) and female dairy farmers (0.71 out of 1) were
operating and performing equally. Venture performance was measured with dimensions
efficiency (Return on Investment, Benefit Cost Ratio, and profitability), responsiveness, quality,
flexibility, reliability, product availability. There was no significant difference between the
overall venture performance level of the funded farmers (0.71 out of 1) and non-funded farmers
(0.72 out of 1). But the ROI (Return on Investment) of funded farmers (158.65), product quality
and reliability were higher compared to non-funded farmers (111.39). The performance of dairy
ventures and diversification had an effect on household wellbeing of dairy farming households
in Hingurakgoda DS division. Accordingly, the highly performing ventures with high level of
diversification had improved savings, monthly income and bank loan repayment ability in their
families. It can be concluded that dairy venture performance has an impact on the household
wellbeing of the farmers and product diversification had also contributed to the household
wellbeing of the dairy farmers.
