Role of Agriculture in Myanmar

Ministry of Agriculture and Irrigation

June 4, 2013

• In terms of geographical situation, Myanmar is located at strategic areabetween world’s biggest populated countries above one-third of world’spopulation over 7 billion reside: China with 1.3 billion; India with 1.2 billionand Bangladesh with 150 million.

2

Strategic Location of Myanmar

Role of Agriculture in Myanmar

• Myanmar is rich in natural resources, land and water togetherwith favorable weather conditions for crop production.

• 70% of population, more than 32 million of people, resides inrural areas depending on their livelihood in agriculture,livestock and fishery.

• That is why, Myanmar agriculture sector is contributing 37.8%of GDP in 2010-11 and 28% of export value in 2011-12.

3

• According to Millennium Development Goalsof the United Nations, we are to reducepoverty index from 26% to 16% by the year2015 and to do so we need to developagriculture sector relied upon by 70% of ourpeople. In the term of our government basingupon reality, this is most practical task to becarried out with current objective and shortterm objective.

• To boost income and to improve socio-economic status of majority of our people, weneed to develop commercial production inagriculture and livestock sectors using land andwater resources most effectively. In otherwords, we need to develop agro-basedindustries with great momentum.

Poverty Reduction and Millennium

Development Goals

4

Food Security and Prosperity

• The farmers and grass root levels are living from hand to mouth. It is surethat they have no time to spare interest themselves in politics and will notable to read newspapers, journals published and watch TV programsbroadcast daily inform and educate them.

• Therefore, this is the situation where the basis producers (the farmers) ofagricultural sector are not fully benefited from what they deserve and areforced into poverty (i.e. paddy for 'poverty' instead of 'prosperity'), dueto the lack of market access for Myanmar's agricultural produce to othercountries. In current situation, it can be easily observed that there aremany losses in agricultural value chain as a result of low level of post-harvest technology that translate into loss of quality and nutritional valuesas well as compliance to international market standards.

• In this case, I would like to stress the needs to solve the weaknesses incapital, technology and marketing experience in agriculture sector whichcan be fulfilled by the support of World Bank, ADB, international fundingorganizations, and beautiful minded donors.

5

LOSSES BY LACK OF POST HARVEST TECHNOLOGY

• Total production of

paddy (Mil. MT) 30

• Total production of

Rice (Mil. MT) 18

• Total Rice loss (Mil. MT)1.8

(10% by lack of post-harvest

technology)

6

Out-dated Milling Facilities

7

Under-utilization of Fertilizers

• Application of chemical and natural fertilizer is a basic need for increase ofcrop productivity. At present, utilization of chemical fertilizer in agriculturesector of Myanmar is still minimal, average use of 25 kg per acre.Comparison of fertilizer utilization among Myanmar and neighboring riceexporting countries are as follows:-

8

Country Fertilizer Utilization (mil. MT)

(2010)

Myanmar 0.14

Vietnam 2.18

Thailand 1.87

• Only for rice cultivation, N.P.K fertilizer requirement is around 150 kg

per acre and there will be 3 million metric tons needed for total sown

area of paddy (rice) 20 million acres (8 million hectares).

• Therefore, establishment of chemical fertilizer plants for the increase

of crop productivity will have to be carried out by grants and loans

from world community.

Natural Disasters and Myanmar• While putting efforts on agriculture development, rural development and

poverty reduction, Myanmar has been facing primary challenges likenatural disasters which are the consequences and impacts of GlobalClimate Change.

2nd May 2008

• As a world record of severe

damage by natural disaster, on

2nd May of the year 2008, lower

part of Myanmar was hardly hit by

Cyclone Nargis and more than

138,000 people whose

livelihoods were relied on

agriculture and fishery lost their

lives and properties and (1.3)

million acre of paddy lands were

damaged by salty water.

Measures are being done up to

these days in order to rehabilitate

the livelihoods in these areas. 9

Earthquakes (2012)

• Recently in the morning of 10th November 2012, an earthquake of 6.8 Richter Scale hit Sagaing and Mandalay Regions of Upper Myanmar and damaged farm lands, residential areas and basic economic infrastructure and we are now putting efforts to rehabilitate these areas.

10th November 2012 10

• Shifting cultivation is one of the causes for depletion of forests and whichare primary source of conserving environment and weather conditions tobe followed by green house effect, global warming and natural disasters.Also natural aquifers are being exhausted.

• So, shifting cultivation should be replaced by terrace or high landcultivation system in order to conserve environment and solve socio-economic problems of people in the area in the manner of sustainableagricultural production by promoting agro-based Small MediumEnterprises (SMEs) like Tea Industry, Rubber Industry and silk industrywhich are suitable for climatic condition.

Man-made Environmental Deterioration

11

Irrigation Networks to be renovated

12

Present Needs

• In order to avoid these situations, it is earnestly requested tothe world community in order to enable us to fulfilling thebasic needs in development process, such as financial capital,technology and experiences.

• At present, FDI in agriculture sector is still negligible, only0.4% of total investment, which reflects the need toreconsider both the conditions of supply and demand sides.

• Apart from FDI incoming, assistance to the agriculture sectorin the forms of grants and loans in order to improvedeveloping the infrastructure would be a key to jump start theinitial quick-wins.

13

Human Resource Development

• For the increased productivity in agriculture sector, role of extensionagents and specific experts in research and development activities andlinkage between them is crucial.

• Capacity of agricultural extension agents need to be equipped with thebetter provision of advanced agricultural methods, market information tofarmers for the production of quality and value-added products, whichcompels expansion and upgrade of present agricultural vocational andacademic institutions.

• At present, one agricultural university in Nay Pyi Taw and 10 StateAgricultural Institutes in regions and states, which are spawning outdiplomas, bachelors, and advanced Masters and Ph. D. in agriculturalsciences, are still lack of capacity to meet the demand.

• Therefore, establishment of a modern agricultural university in UpperMyanmar and upgrading the present State Agricultural Institutes need tobe carried out by international grants.

14

• In this juncture, region-wise workshops were held to find out needs foragricultural development and finally National Workshop on AgriculturalDevelopment was convened with the active participation of allstakeholders on 2nd and 3rd November 2012.

• Consequently, 11 priority areas and 65 activities for agriculturaldevelopment were identified as an outcome of this workshop .

National Workshop on Agricultural Development

15

Priority Areas for Agricultural Development identified at National Agricultural Development

Workshop

1. Quality seed production and distribution

2. Systematic and synchronized application of fertilizers

3. Value-added production in agriculture and increase of agro-based industries

4. Conventional farming to mechanized farming

5. Rain-fed conventional farming to irrigated farming

6. Research and development in agriculture

7. Domestic and foreign investment

8. Accuracy of agricultural statistics

9. Sustainable market

10. agricultural laws and regulations

11. information and media

16

Prioritized Areas in Five Year Short Term Plan

• During the implementation of 5 Year Short Term Plan, from 2010-11 to 2015-16, following areas are prioritized to carry out:

Agro-based value-addition industries

Input industries

Transforming from conventional to mechanized farming

Environmental conservation and disaster prevention

Human Resource Development

17

Present Rice Production Situation

and Future Potential in Myanmar

Ye Tint Tun

Director

Department of Agriculture

Myanmar Economy and Agriculture

•Agriculture is main economic sector in

Myanmar.

•The agricultural sector contributes 33.8

% of the nation’s GDP (2008-09

constant producers’ prices)

•The country’s export value in 2008-09

p.a was 37028 million Kyats of which

agriculture commodities shared 15.53%

Land Utilization in Myanmar

(2009-2010)Area

(mil. ha) %

Net sown area 11.98 17.71

Fallow land 0.24 0.35

Culturable waste land 5.61 8.29

Reserved forest 16.90 24.98

Other forests 16.25 24.02

Other 16.68 24.65

Total 67.66 100.00

Rice production in Myanmar

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.020

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Pro

du

cti

on

(M

MT

)

Harv

este

d a

rea (

mil. h

a)

Years

Harvested area Produciton

Rice sufficiency and surplus

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

1987-88 1988-89 2006-07 2007-08 2008-09 2009-2010

Yie

ld (t/

ha)

Pro

du

cti

on

(m

il. to

ns)

Years

Production

Yield

Year Seed Loss ConsumptionUtilization

Total

surplus

Rice

(mil.

ton)

Sufficien

cy %

1987-88 0.48 0.72 11.48 12.68 0.46 108

1988-89 0.49 0.74 11.70 12.93 0.11 102

2006-07 0.84 1.26 16.60 18.70 5.86 165

2007-08 0.83 1.25 16.89 18.98 5.98 166

2008-09 0.83 1.25 17.15 19.23 6.39 169

2009-2010 0.83 1.25 17.37 19.45 6.34 168

Major Rice Producer in the World (2008)

Source: Selected indicators, FAO RAP Pub., 2010/12

CountryHarvested Area Yield Production

(Mil.ha) Rank (Mt/Ha) Rank (Mil.ton) Rank

China 29 2 6.56 1 193 1

India 44 1 3.37 6 148 2

Indonesia 12 3 4.89 3 60 3

Bangladesh 12 4 3.99 4 47 4

Viet Nam 7 7 5.22 2 39 5

Thailand 11 5 2.96 7 32 6

Myanmar 8 6 3.72 5 30 7

Egypt 9.84 Mt/Ha, Australia 8.38 Mt/Ha, USA 7.78 Mt/Ha

Per Capita Consumption of Milled Rice in Selected

Countries

0.00

50.00

100.00

150.00

200.00

250.00

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

WORLD+ ASIA+ Myanmar China India

Basic Concepts for Improving

Agricultural Productivity

1. Use of quality seeds

2. Application of modern production technologies

3. Proper utilization of agricultural inputs (irrigation

water, organic and inorganic fertilizers)

4. Reduction of losses (seeds, inputs and post-harvest

losses)

5. Secure market for generating increased income

Varieties Change

0

1000

2000

3000

4000

5000

6000

7000

So

wn

are

a (

tho

usn

ad

ha)

HYVs

Hybrid varieties

Local varieties

• High yielding varieties– Yield level of 4 – 5 t/ ha

• Hybrid varieties– Yield level of 10-15t/ha

• Local varieties – Yield level of 2-3 t/ha

This is the right time to change varieties from local varieties to HYVs and Hybrid varieties.

Infrastructural development

• Technical development

• Crop management ( Seed, inputs, IPM, postharvest….)

• Water management

• Physical development

• Access farm road

• Harvesters

• Dryer

• Storage

• Milling

Seed Industry Development

• Improvement of seed distribution system

• Production of seed• HYVs – Breeder, Foundation, Register and Certified

• Hybrid – A, B, R lines and F1 seed production

• Seed Certification

SEED DISTRIBUTION SYSTEM[SEED FLOW]

IN MYANMAR

Seed class Responsible Organizations

Breeder Seed Department of Agricultural

Research (DAR)

Foundation Seed DAR + Myanma

Agriculture Service (MAS)

[Seed Division]

Registered Seed Myanma Agriculture

Service (MAS) [Seed

Division]

Certified Seed Myanma Agriculture

Service (MAS) [Extension

Division] + Contact farmers

Seed Flow

Breeder Seed

Foundation Seed

Registered Seed

Certified Seed

Department of

Agricultural Research

Myanma Agricultural

Service

Contact farmers Rice Specialized

Private Co.,

Farmers

Future Seed Industry Development

[Private- Public-Partnership]

Certified Seed production

Constraints Ways out

Farmers’ awareness on seed

utilization

Accessibility, precedent, Market, seed

producer

Training, media, market

guarantee, demonstration,

producer incentives

Storage facility Small warehouse for own use (round

bamboo basket for storing paddy)

Village seed bank

farmers groups

Input Limitation Fertilizers, pesticides, labour,

threshers, harvesters, Rouging cost

for purity,

Subsidy, loan or micro-

finance, education, knowledge

sharing

Infrastructure water management, farm road, land

reforming, dryers, processing

Land policy, formation of

farmers groups

Seed certification Field and lab inspection Produce trained inspectors

CONSTRAINTS ON SEED MULTIPLICATION

IN MYANMAR

Varietal development

Varietal development is the foundation of any seed supply

programme. Constraints to varietal development in Myanmar can

be summarized as follows.

(1) Shortage of varieties that are adaptable to different

agroecological conditions

(2) Varietal evaluation procedures commonly used in Myanmar limit

the release of superior varieties

(3) Limited resources for variety development research

(4) Fewer personnel trained in plant breeding

(5) Weakness to properly maintain varieties after they are released

Future Potential

Agro-ecosystem % of total sown area

• Favorable rice ecosystem 68%• Irrigated lowland 20

• Rain-fed lowland 48

• Unfavorable rice ecosystem 32%• Deepwater 5

• Submerge 9

• Salt-affected 3

• Upland 3

• Drought-prone 12

• Total rice sown areas 8.06 mha.

Rice Ecosystem and Area Distribution %

(2009-2010)

Drought Tolerant varieties

Research activities for Climate Change

Deepwater/Submerged varieties

Research activities for Climate Change

Saline tolerant varieties

Research activities for Climate Change

Upland rice varieties

Research activities for Climate Change

• Yield promotion of High Yielding Varieties• Varietal adaptation for different agro-ecological zonings

• Farmers, dealers and consumers participatory approach

• Farmers’ awareness of seed

• Effective utilization of improved crop management

Variety change

Variety change• Hybrid variety

43

Hybrid rice field in the Humum village, Lashio

townsip, Northern Shan state

44

F 1F 1

Hybrid rice field at Nay Pyi Taw

hybridhybrid

Hybrid rice field of leading private rice farms

Yield – 7.5 – 13.0 t/ha

Requirement for Variety change

• Emergence of Seed Production Companies• Sharing technical Know-how among stakeholders

• Strictly follow existing Seed law and Plant variety

protection procedures

e.g. C.P company for Maize seed production

East-west co./ Known-you-seed co. for vegetable

seed production

Enhance

Private-Public- Partnership

Developing infrastructure

as community basis

• Access farm road

• Farm level water management

• Land preparation (tractor,

seeder, etc.,)

• Harvesters

• Dryers

• Storage

• Market

Farmers’ group

More productivity

Good quality

Good prices

Enhance

Private-Public- Partnership

Conclusion

• Area expansion for rice fields may need high

investment and thus emphasis will be placed more on

increasing yield per unit area through using Hybrid and

High-Yielding varieties.

• It has greater potential for area expansion of Hybrid

rice varieties to assure food security and earn better

income than local and HYVs.

• Myanmar still has potential to boost rice production up

to double from existing yield level in terms of quantity.

• Quality improvement could further be enhanced

through Private Public Partnership in the near future.