Myanmar participants

13-24 September 2010

 

AGRICULTURE SECTOR VALUE CHAIN ANALYSIS AND PROMOTION IN

MYANMAR

Introduction

No.Name of

agency/organizationNo. of

participants

1. Ministry of Agriculture and Irrigation (MoAI)

7

2. Ministry of Co-operatives (MoCo-Op)

3

List of Participants

Contents• General Information of the Country

• Government and Non-government organizations’ interventions related to agriculture value chain

• Best practices concerning value chain promotion implementation

• Problems, opportunities and challenges in those interventions in Myanmar

• Regional statistics from Myanmar

• Neighbor to China, India, Laos, Bangladesh, Thailand.

• 9°.58’ to 28°31’ Latitude

• 92°.9’ to 101°.10’ Longitude

• Area : 676,577 km2

• Extended about 2361 km from north to south

• 1078 km from east to west

General Information of the Country

General Information of the Country (contd.)

NeighborsBorder

(km)Populatio

n (mil)*Border

Trading Posts

Bangladesh 272 154 2

India 1453 1148 2

China 2227 1330 3

Laos 235 7 -

Thailand 2099 65 4

*Encarta 2009

General Information of the Country (contd.)

• Agrarian Economy, 34% of GDP, 13.3% of Export

• 61.2% of labor force being engaged in agricultural sector

• Previously a Socialist Economy (1962- 1988), initiated market-oriented one since 1988• Land and water resources, favorable agro-

ecology conditions• Strategic location to become a food basket

within the region

General Information of the Country (contd.)

Regional Economic Integration of Myanmar

MYANMAR

ThailandLaos

Cambodia

Vietnam

MalaysiaSingapore

Indonesia

Brunei

Philippines

BangladeshIndia

Sri Lanka

BhutanNepal

China

Korea

Japan

ACMECS

ASEAN+3

GMS

BIMSTEC

Government and Non-government Organizations’ interventions related to agriculture value chain

•The import substitution policy consisted of subsidized fertilizer and credit, marketing arrangements and the banning of competitive imports.

•After 1988, with the introduction of market-oriented economic policies, various control measures of the preceding period were abandoned.

•participation of the private sector is allowed to procure and distribute agrochemicals, quality seeds, farm machinery and other inputs.

Government and Non-government Organizations’ interventions related to agriculture value chain (contd.)

•Before 1988, major crops were set and procured by the government at a fixed priced. The Government undertook all imports and exports.

•A new rice trade policy was announced in April 2003 and rice trade was liberalized

•Encouraging the participation of private sector in the commercial production of seasonal and perennial crops

• The development of transportation infrastructure and marketing center

• Rural development and income generation projects supported by FAO. CIRDAP, MAFF (Japan), JICA, OPEC Fund and NGOs such as FOCIV, World vision, world concern, OXFAM, CARE Myanmar

Government and Non-government Organizations’ interventions related to agriculture value chain (contd.)

Best practices concerning value chain promotion

Contract Farming

Grower

CPGroup

ThanTaeCrushing

and Drying House(15%

moisture)

AyetharyarSeed

Packaging House(11%

moisture)

CPCompany

(Marketing)

AungKyaPhuu

Company

Domestic Market(80%)

Foreign Market(20%)

(Private) (Private)

per Kg basis

per Kg basis

Supply chain pattern of contract farming with CP Company and corn growers

The factor contributed to its success

• capacity building

• profit share between the chain actors

• prevented mischief

• sufficient facilitation– market based research– modern technology– expertise– capital

Problems, oppurtunities and challenges

• Market share

• Substitutes

• Profitability of chain actors

• Technical and operational efficiency

• Investment

Problems

Analysis on Revenue-Profit Sharing among the actors of Rice Export Supply Chain (25% Broken)

S r.No. C hain’s Ac tors

R evenue S haring P rofit S haring

Amount (K yats ) % Amount (K yats ) %

1 E xport T ax (10% ) 37,500 10.0 37,500 23.9

2 L ogistic &T ransport

20,000 5.3 4,000 2.6

3 E xporter 50,625 13.5 37,500 23.9

4 Miller 12,500 3.3 6,250 4.0

5 Middlemen 41,800 11.2 41,800 26.7

6 F armer 212,575 56.7 29,629 18.9

C hain T otal 375,000 100 156,679 100

S r.No. C hain’s Ac tors

R evenue S haring P rofit S haring

Amount (K yats ) % Amount (K yats ) %

1 E xport T ax (10% ) 37,500 10.0 37,500 23.9

2 L ogistic &T ransport

20,000 5.3 4,000 2.6

3 E xporter 50,625 13.5 37,500 23.9

4 Miller 12,500 3.3 6,250 4.0

5 Middlemen 41,800 11.2 41,800 26.7

6 F armer 212,575 56.7 29,629 18.9

C hain T otal 375,000 100 156,679 100

source: MIS, DAP, MOAI, 2009

Problems, oppurtunities and challenges (contd)

Opportunities

• Integrated approach

• Implications of globalization

• Emerging of sub regional group such as ACMECS, GMS, BIMSTEC

Problems, oppurtunities and challenges (contd)

challenges

• Price fluctuation

• Political effects

• Legislative effects

• IT developments

• Market demand

• Unstable exchange rate

Regional statistics from Myanmar

Paddy area planted and production

0100020003000400050006000700080009000

1999

-00

2000

-01

2001

-02

2002

-03

2003

-04

2004

-05

2005

-06

2006

-07

2007

-08

2008

-09

Year

So

wn

are

a('0

00h

a)

05000100001500020000250003000035000

Pro

du

ctio

n

('000

MT

)

Sown area

Production

Source: Department of Agricultural Planning, 2009

Maize area planted and production

050

100150200250300350400

Year

So

wn

are

a (

'000h

a)

0

200

400

600

800

1000

1200

1400

Pro

du

cti

on

('0

00M

T)

Sown area

Production

Source: Department of Agricultural Planning, 2009

Pulses area planted and production

0

500

10001500

2000

2500

30003500

4000

4500

Year

so

wn

are

a('000h

a)

0

1000

2000

3000

4000

5000

6000

Pro

du

cti

on

('000M

T)

Sown area

Production

Source: Department of Agricultural Planning, 2009

Export of major agricultural commodities

Source: Ministry of Commerce, 2009