Opportunities for Cooperation in Myanmar Petroleum Energy Sector
Investment Opportunities in Agriculture Sector of Myanmar
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Transcript of Investment Opportunities in Agriculture Sector of Myanmar
Investment Opportunities in Agriculture Sector of Myanmar
Aung Hlaing Deputy Director-General
Department of Agricultural PlanningMinistry of Agriculture and Irrigation
Contents
• Country Profile• Current Status of Agri-Business and
Investment in Myanmar• Opportunities for Investment in
Agriculture Sector• Balance Sheet• Conclusion
Country Profile
Neighbors Border(km)
Population (mil)*
Border Trading Posts
Bangladesh 272 154 2
India 1,453 1,148 2
China 2,227 1,330 4
Laos 235 7 -
Thailand 2,099 65 4
Total 6,285 2,704 12
*Encarta 2009
Nay Pyi Taw .
Basic Country Data
• Land Area: 676,577 sq. km.• Population: 59.78 million• Export: US$ 9.135 billion*
• Import: US$ 9.035 billion*
• Main Exports: Agriculture, livestock and forestry products, natural gas
• Main Imports: Machinery, transportation & construction material, industrial raw materials, consumer goods
*2011-12
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
Land Utilization in Myanmar
• Net Sown Land: 12.3 mil. ha. (18%)• Waste Land: 5.4 mil. ha. (8%)• Forest Land 33.5 mil. ha. (50%)• Other Land 16.5 mil. ha. (24%)• Total67.7 mil. ha. (100%)
Source: MOAI 2011-12
Land Utilization in Myanmar
Net Sown 10.8 mil ha (16%)
Fallow10.8
Net Sown Land
Waste Land
Forest Land
Other Land
Net Sown 12.3 mil ha (18%)
Waste Land5.4 mil ha (8%)
Forest Land 33.5 mil ha (50%)
Other Land 16.5 mil ha (24%)
Source: MOAI
Recommended Crops for the RegionsSr. 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 Orchards, Seasonal Crops
9 Mandalay 32 Orchards, Seasonal Crops, Fruits
10 Mon 6 Rubber, Oil Palm, Orchards, Plantation, Fruits
11 Rakhine 107 Orchard, Rubber, Plantation Crops
12 Yangon 3 Rubber, Orchard, Seasonal Crops
13 Shan 1,943 Orchard, Tea, Coffee, Seasonal, Plantation Crop
14 Ayeyarwady 30 Orchard, Paddy, Seasonal Crops
Total 5,398Source: MOAI 2011-12
Current Status of Agri-business and Investment in Agriculture Sector
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
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
Agricultural Exports (FY 2012)
Sr. Item Volume (metric ton) Value (US$ Mil)
1 Rice and Rice Products 1,035,701 401.810
2 Pluses 901,758 573.867
3 Cereals 250,996 80.389
4 Oilseeds 108,556 173.121
5 Industrial Crops 51,530 144.671
6 Fruits and Vegetables 163,734 47.823
7 Culinary 26,345 20.846
Total 2,538,620 1,442.527
Source: Ministry of Commerce, Myanmar
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
Types of Foreign Investment
• 100 percent foreign own• Joint venture with private sector• Joint venture with public sector
Source: Myanmar Investment Commission
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)
Opportunities and Limitations
Rice Industry Supply Chain in MyanmarMinistry of Agriculture & Irrigation, Ministry of Commerce, UMFCCI
(Legal and Regulatory Bodies)
Seed Industry
Fertilizer & Pesticides
Machinery Industry
Irrigation Technology
Other Clusters
Transport & Logistics Cooperative Finance &
InsuranceQuality
InstitutionsConsumer
Society
R&D + Extension + MIS
Milling and Byproducts
Industry
Middlemen, Buffer
Export
Retail & Wholesale Outlets
Supermarkets
Hotels & Restaurants
Institutional Buyers
Food Industries
Source: MIS, DAP, MOAI
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
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
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
Myanmar’s Regional Economic Integrations
MYANMAR Thailand
LaosCambodia
Vietnam
Malaysia SingaporeIndonesia
BruneiPhilippines
BangladeshIndia
Sri Lanka
BhutanNepal
China
Korea
Japan
ACMECS
ASEAN+3
GMS
BIMSTEC
BIMSTEC: Bay of Bangal Initiative for Multi-sectoral Technical and Economic CooperationGMS: Greater Mekong Sub-regionACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy
Balance Sheet for Investment in Agricultural Sector of Myanmar
Opportunities• 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
Constraints• 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
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
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