Investment Opportunities in Agriculture Sector

Report
Investment Opportunities in
Agriculture Sector of Myanmar
Aung Hlaing
Deputy Director-General
Department of Agricultural Planning
Ministry 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:
Population:
Export:
Import:
Main Exports:
676,577 sq. km.
59.78 million
US$ 9.135 billion*
US$ 9.035 billion*
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:
Waste Land:
Forest Land
Other Land
Total
Source: MOAI 2011-12
12.3 mil. ha. (18%)
5.4 mil. ha. (8%)
33.5 mil. ha. (50%)
16.5 mil. ha. (24%)
67.7 mil. ha. (100%)
Land Utilization in Myanmar
Other Land 16.5 mil ha (24%)
Net
Sown12.3
10.8 mil
mil ha
Net
Sown
ha (16%)
(18%)
Fallow
10.8
Waste Land
5.4 mil ha
(8%)
Forest Land 33.5 mil ha (50%)
Source: MOAI
Net Sown Land
Waste Land
Forest Land
Other Land
Recommended Crops for the Regions
Sr.
States/Regions
Hectare
(000)
Major Types of Activity
1
Kachin
1,456
2
Kayah
16
Seasonal, Plantation Crops
3
Kayin
45
Orchards, Plantation Crops
4
Chin
1,209
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
14
Ayeyarwady
Total
Source: MOAI 2011-12
1,943
30
5,398
Orchards, Seasonal, Plantation Crops, Fruits
Orchards, Sericulture, Tea, Fruits
Orchard, Tea, Coffee, Seasonal, Plantation Crop
Orchard, Paddy, Seasonal Crops
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)
1,035,701
401.810
1
Rice and Rice Products
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
2,538,620
1,442.527
Total
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 Myanmar
Ministry of Agriculture & Irrigation, Ministry of Commerce, UMFCCI
(Legal and Regulatory Bodies)
Seed Industry
Export
R&D + Extension + MIS
Retail & Wholesale
Outlets
Fertilizer &
Pesticides
Irrigation
Technology
Producers
(Farmers)
Machinery
Industry
Milling and
Byproducts
Industry
Middlemen,
Buffer
Other Clusters
Transport &
Logistics
Source: MIS, DAP, MOAI
Supermarkets
Hotels &
Restaurants
Institutional
Buyers
Food Industries
Cooperative
Finance &
Insurance
Quality
Institutions
Consumer
Society
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
ACMECS
GMS
China
Nepal
India
Bhutan
Bangladesh
Vietnam
Laos
Cambodia
MYANMAR
Thailand
Sri Lanka
BIMSTEC
Japan
Korea
Brunei
Malaysia
Singapore
Philippines
Indonesia
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
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
•
•
•
•
•
Conclusion
• Myanmar will remain an agriculturalbased 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
Thank you for your kind attention!
[email protected]

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