Supporting Sri Lankan Farmers: The Chello Dairy Out-Grower Programme

At Chello Dairy, we believe that producing great dairy products goes hand in hand with uplifting local farming communities. Our Out-Grower Dairy Development Project embodies this belief. 
What is the project? Launched under the Smallholder Agribusiness Partnerships Programme (SAPP) in collaboration with Chello Dairy, the project supports 500 smallholder farmers across Sri Lanka with improved practices, training, infrastructure and guaranteed milk-purchase arrangements. 
Key pillars of impact:

• Productivity: Farmers receive training in high-yield fodder cultivation (e.g., sorghum), better water access for livestock, and improved dairy animal management—with the goal of boosting milk output by 30%. 

• Quality: Collection centres, chilling facilities and transport links ensure milk is quickly cooled and delivered, maintaining freshness and preventing spoilage.

• Profitability: Many farmers are projected to earn over LKR 25,000 per month within three years, while others will benefit with more modest, but meaningful, gains—helping reduce rural-urban migration and build local equity. 

• Scale & reach: The programme spans districts such as Hambantota, Badulla, Moneragala, Polonnaruwa and Rathnapura, allowing Chello Dairy’s network to source 4 million litres of milk annually from around 800 smallholders. 
  Why this matters to you as a consumer.
  When you buy Chello Dairy products:

• You’re supporting a value-chain that is fair, sustainable and locally rooted.

• You benefit from fresh, high-quality milk whose sourcing is monitored for both volume and animal welfare.
  Our promise. Our mission isn’t only to process milk—it’s to ensure the whole ecosystem thrives: farmer, supply-chain, product and consumer. Because strong communities produce better dairy. And better dairy means a healthier, happier you.