1. Investment Opportunities in Agriculture Sector of Myanmar
Aung Hlaing
Deputy Director-General
Department of Agricultural Planning
Ministry of Agriculture and Irrigation

2. Contents Country Profile
Current Status of Agri-Business and Investment in Myanmar
Opportunities for Investment in Agriculture Sector
Balance Sheet
Conclusion

3. Country Profile Neighbors Border (km) Population (mil)*
Border Trading Posts
Bangladesh
272
154 2
India
1,453
1,148
China
2,227
1,330 4
Laos
235 7 -
Thailand
2,099 65
Total
6,285
2,704 12
Nay Pyi Taw .
*Encarta 2009

4. Basic Country Data Land Area: 676,577 sq. km.
Population: million
Export: US$ billion*
Import: US$ billion*
Main Exports: Agriculture, livestock and forestry products, natural gas
Main Imports: Machinery, transportation & construction material, industrial raw materials, consumer goods *

5. Role of Agricultural Sector
36% of GDP (including crops (27%), livestock & fisheries (8%) and forestry (1%))
61% of Labor Force
28.1% of Export Earnings
(crops (16.6%), livestock & fisheries (4.9%) and forestry (6.8%))
Source: Ministry of Agriculture and Irrigation (MOAI) 2012

6. Land Utilization in Myanmar
Net Sown Land: 12.3 mil. ha. (18%)
Waste Land: mil. ha. (8%)
Forest Land mil. ha. (50%)
Other Land mil. ha. (24%)
Total mil. ha. (100%)
Source: MOAI

7. Land Utilization in Myanmar
Net Sown 12.3 mil ha (18%)
Net Sown 10.8 mil ha (16%)
Other Land 16.5 mil ha (24%)
Fallow
10.8
Waste Land
5.4 mil ha
(8%)
Forest Land 33.5 mil ha (50%)
Source: MOAI

8. Recommended Crops for the Regions
Sr.
States/Regions
Hectare (000)
Major Types of Activity 1
Kachin
1,456
Orchards, Seasonal, Plantation Crops, Fruits 2
Kayah 16
Seasonal, Plantation Crops 3
Kayin 45
Orchards, Plantation Crops 4
Chin
1,209
Orchards, Sericulture, Tea, Fruits 5
Sagaing
136
Orchards, Seasonal Crops 6
Tanintharyi
263
Orchards, Rubber, Oil Palm, Other Plantation 7
Bago 92
Orchards, Rubber, Seasonal, Plantation Crops 8
Magwe 60 9
Mandalay 32
Orchards, Seasonal Crops, Fruits 10
Mon
Rubber, Oil Palm, Orchards, Plantation, Fruits 11
Rakhine
107
Orchard, Rubber, Plantation Crops 12
Yangon
Rubber, Orchard, Seasonal Crops 13
Shan
1,943
Orchard, Tea, Coffee, Seasonal, Plantation Crop 14
Ayeyarwady 30
Orchard, Paddy, Seasonal Crops
Total
5,398
Source: MOAI

9. Current Status of Agri-business and Investment in Agriculture Sector

10. Agricultural Trade Policy
Domestic Agricultural Marketing
Released all government controls on all crops including quota purchase on rice, sugarcane, cotton and rubber
Farmers can trade their produce freely in domestic markets

11. Agricultural Trade Policy (contd.)
Export Marketing
Exports of rice is being allowed to private companies based on the assurance of surplus rice
Other crops (e.g. pulses, oilseeds such as sesame, groundnut etc. and industrial crops such as jute, kenaf, rubber etc. and fruits and vegetables) have no restriction to export
New commodities for value-added agricultural commodities are also being encouraged to export

12. Agricultural Exports (FY 2012)
Sr.
Item
Volume (metric ton)
Value (US$ Mil) 1
Rice and Rice Products
1,035,701 2
Pluses
901,758 3
Cereals
250,996
80.389 4
Oilseeds
108,556 5
Industrial Crops
51,530 6
Fruits and Vegetables
163,734
47.823 7
Culinary
26,345
20.846
Total
2,538,620 1,
Source: Ministry of Commerce, Myanmar

13. Legal Framework for Investment
Liberalized domestic and export markets in agriculture sector since 1988
Foreign Investment Law (2012)
State Economic Enterprises Law (1989)
Private Industrial Enterprise Law (1990)
Promotion of Cottage Industrial Law (1991)
Myanmar Citizens Investment Law (1994)
Burma (Myanmar) Company Act
Source: Myanmar Investment Commission

14. Types of Foreign Investment
100 percent foreign own
Joint venture with private sector
Joint venture with public sector
Source: Myanmar Investment Commission

15. Land Tenure System All the lands are owned by the State
Land Nationalization Act (1953)
Land Tenure Law and Rules (1963)
Farm Land Law (2012)
Vacant, Fallow and Virgin Land Management Law (2012)

16. Opportunities and Limitations

17. Rice Industry Supply Chain in Myanmar
Ministry of Agriculture & Irrigation, Ministry of Commerce, UMFCCI
(Legal and Regulatory Bodies)
Seed Industry
R&D + Extension + MIS
Export
Retail & Wholesale Outlets
Fertilizer & Pesticides
Producers
(Farmers)
Milling and Byproducts Industry
Supermarkets
Machinery Industry
Hotels & Restaurants
Irrigation Technology
Middlemen, Buffer
Institutional Buyers
Other Clusters
Food Industries
Transport & Logistics
Cooperative
Finance & Insurance
Quality Institutions
Consumer Society
Source: MIS, DAP, MOAI

18. Opportunities for Investment in Agricultural Supply Chain
Input Industries
Seed Industry
Agro-Chemical Industry
Fertilizer Industry
Pesticide Industry
Agricultural Machinery Industry
small-scale agricultural machines at low cost, large-scale machines for bigger farmers and rental services
Irrigation Technology Industry
Dams and reservoirs, ground waters, hydro-powers
Technologies for water harvesting and water saving

19. Opportunities for Investment in Agricultural Supply Chain (Contd.)
Production and Processing Industries
Plantation Industry
On- and off-season food crops, oilseed crops, bio-fuel crops, fruits and vegetables, industrial crops and perennial crops
Processing Industry
post-harvest and value-added processing industries that include quality milling, storage and packaging technology industries
R&D Industry
production, processing, value-addition and marketing in all aspects of commodity value chains

20. Opportunities for Investment in Agricultural Supply Chain (Contd.)
Wholesales Market Industry
Competitive Drivers
Transport and Logistics
Agricultural Cooperatives
Credit and Insurance Industries
Quality and Food Safety Institutions
Consumer Institutions

21. Myanmar’s Regional Economic Integrations
Thailand
Laos
Cambodia
Vietnam
Malaysia
Singapore
Indonesia
Brunei
Philippines
Bangladesh
India
Sri Lanka
Bhutan
Nepal
China
Korea
Japan
ACMECS
GMS
BIMSTEC
ASEAN+3
BIMSTEC: Bay of Bangal Initiative for Multi-sectoral Technical and Economic Cooperation
GMS: Greater Mekong Sub-region
ACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy

22. Balance Sheet for Investment in Agricultural Sector of Myanmar
Opportunities
Constraints
Strategic location
Favorable agro-eco zones
Uncultivated land (5.4 m ha)
Resource endowment
Democratic new government
Domestic supermarket chains
Favorable environment to go specialty food market
R&D
HRD
Weak supply chain management and industrial clusters
Poor cooperative culture
Lack of market infrastructures
Poor export market access
Lack of financial and legislative framework
Trade and FDI policy

23. Conclusion
Myanmar will remain an agricultural-based country for a foreseeable future
Present environment leads the country to agri-business development
Myanmar will become an major food supplier of the region in the near future

24. Thank you for your kind attention! aunghlaing7855@gmail.com