Myanmar participants September 2010 AGRICULTURE SECTOR VALUE CHAIN ANALYSIS AND PROMOTION IN MYANMAR

Introduction No. Name of agency/organization No. 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 km 2 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.) Neighbors Border (km) Populatio n (mil)* Border Trading Posts Bangladesh India China Laos2357- Thailand * 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 ( ), 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 Thailand Laos Cambodia Vietnam Malaysia Singapore Indonesia Brunei Philippines Bangladesh India Sri Lanka Bhutan Nepal 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 Grow er CP Group ThanTae Crushing and Drying House (15% moisture) Ayetharyar Seed Packaging House (11% moisture) CP Company (Marketing) AungKya Phuu Company Domestic Market (80%) Foreign Market (20%) (Private) 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) 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

Source: Department of Agricultural Planning, 2009

Export of major agricultural commodities Source: Ministry of Commerce, 2009