MYANMARTHE RICE VALUE

CHAIN CHALLENGE

Randy BarkerMay 31, 2013

HYPOTHESES

The greatest potential for increasing rice production in Asia lies with Myanmar but even with appropriate investments and policies it will take a decade or more to realize that potential.

In managing the water in the Ayeyarwady Delta, there is much that Myanmar can learn from the experience of Vietnam in the Mekong and Bangladesh.

FOOD VALUE CHAIN

Food value chains comprise all activities required to bring farm products to consumers including agricultural production, processing, storage, marketing (including exports), distribution, and consumption.

• Gomez et al., 2011

Definition: Part 1

FOOD VALUE CHAIN

Which consumer behaviors, public policies, and decisions by private firms and civil society organizations are likely to promote the emergence of poverty-reducing environmental sustainability.

• Gomez et al., 2011

Definition: Part 2

Value chain links

PRODUCTION

POST HARVEST

MARKETS

POLICY

Conceptual model explaining the yield gap between experiment station and actual farm yields (Herdt et al., 1978)

Economically non-recoverable gap

Economically recoverable gap

Yield gap

Experiment station yield

Potential farm yield

Actual farm yield

Economical farm yield

Attributable to environmental differences

“what”

“why”

PRODUCTION

Constraints:Water managementLand tenureGovernment disincentives – nitrogen/rice price ratioCredit

IRRI activities:CURE (David Johnson) research in lower DeltaIRC (Grant Singleton)

Missing scientists: Production economist, Hydrologist

Trend in Output of Paddy in Vietnam

0

5000

10000

15000

20000

25000

30000

35000

1975 1980 1985 1990 1995 2000

Years

Thou

sand

tons

Dec

ree

No.

100

Dec

ree

No.

10

Land

Law

Doi

Moi

Libe

raliz

ation

of

mar

kets

Wat

er L

aw

Mekong Delta

THE DIKE SYSTEM

The dike system in the deep water of the Mekong Delta has been highly successful. Production increased from one crop of 2 tons per year to 2 crops of 4 tons each, one before and one after the flood.

Four provinces in the Mekong Delta account for essentially all of Vietnam’s exports.

POST-HARVEST AND MILLING

ConstraintsDue to inadequate drying, storage, and milling equipment Myanmar exports low quality 25% broken rice to Africa and China.

IRRI activitiesMartin Gummert’s promoting the use of drying equipment.

BREEDING FOR THE MARKET

Which market? Super market? (Paw San)

Domestic market? Mahsuri?Export market?

SUPERMARKET

Paw Sam super premiumSagajng regionPrice: $1.00 per kg

Paw Sam premiumAyeyarwady regionPrice: $0.67 per kg

Breeder objectiveShort season, high yielding paw sam

LOCAL MARKET

Mahsuri:

“In addition to high grain quality Mahsuri has the capacity to give yields slightly higher than traditional varieties with low level of fertilizer and at water depths up to 30 or more centimeters which inhibit the growth of the semi-dwarf varieties.” Barker and Herdt 1985

Breeding for abiotic stresses

Samba Mahsuri plus sub-1.

EXPORT MARKET

Of the following four countries below which has the highest yield per hectare, which the lowest and why?

PhilippinesIndonesia

ThailandVietnam

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

0

10000

20000

30000

40000

50000

60000

Indonesia

Philippines

Thailand

Viet Nam

Year

Hg/Ha

Rice yield per hectare

POLICY

Papers of David Daice, Harvard Kennedy Schooland “Proximity designs” Burmese NGO (see web)

Revitalizing agriculture in Myanmar – June 2010 Rejuvenating the sector in Myanmar- Sept 2010 Appraising post-sanction prospects for

Myanmar’s economy – Jan 2012 Rice policy in Myanmar. It is getting complicated.

April 2013.