The U.S. Government and Hayleys bring prosperity to farmers in the East

The U.S. Agency for International Development (USAID) is partnering with Hayleys Agro Farms to raise the incomes of 1000 cucumber farmers in Ampara District and stimulate economic growth by exporting more pickles abroad.

USAID/Sri Lanka, the development agency of the U.S. Embassy, committed Rs 114 million ($1 million) to work with 4,000 farmers in Ampara, Batticaloa, and Monaragala districts. In July 2009, USAID partnered with Hayleys, a leading Sri Lankan agricultural company, to increase the quantity and improve the quality of cucumbers grown to produce gherkin pickles and seed production for paddy. This partnership will open up new markets for farmers in the East, increase their incomes and expand the economic base of their communities.

Rebecca Cohn, USAID Mission Director said, “Raising the incomes of farmers and creating new economic opportunities in the East is important to help conflict-affected communities rebuild and reintegrate into the national economy. USAID and Hayleys partnered on a small pilot project in 2008 that focused on increased production of cucumbers used for gherkin pickles, and because of its success, we have expanded it to 1000 farmers. The project has been recognized globally for the outstanding results achieved by participating farmers. We look forward to more great achievements from this continued partnership.”

Sunfrost Limited, a subsidiary of Hayleys, is building a plant in the East that will process fresh cucumbers into gherkin pickles. This will create 30 new jobs at the plant and increase the demand for cucumbers; by 2012, Sunfrost expects to be working with 2,500 farmers.

Sunfrost’s pickled gherkins are exported to international food companies such as McDonald’s and Burger King, as well as to retailers in 32 countries. With exports valued at Rs 900 million ($7.8 million) per year, the economic benefit to Sri Lanka of increased gherkin production is significant.

“Sri Lanka expects strong economic growth in the coming years, fuelled by peace in the North and East and increased agricultural production,” said Mr. Rizvi Zaheed, Director of Hayleys PLC. “We want to play a catalytic role and be in the forefront of agricultural development taking place in the region. We expect the strengths of Hayleys, in partnership with USAID, to substantially improve the living standards of the farming community in the East.”

Another USAID partnership with the private sector is increasing dairy production in the East. Together, the two programs will work with 8,000 farmers, benefiting about 40,000 family members by increasing their incomes.

- Asian Tribune -