recent developments in the cattle trade between myanmar ... · recent developments in the cattle...

Recent Developments inthe Cattle Trade betweenMyanmarandChinaTheingiMyint,SeinSeinMu,KhinNyeinSan

May2018

RecentDevelopmentsintheCattleTradebetweenMyanmarandChina

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TableofContents1.BackgroundtoNorthernMyanmar/CentralDryZonecattlesector......................................1

1.1Distributionofcattle..........................................................................................................................21.1.1NumbersofcattleandbuffaloinStatesandRegions................................................................21.1.2Cattlebreeds..............................................................................................................................41.1.3Productionsystemofcattle........................................................................................................51.1.4MeatConsumption.....................................................................................................................6

1.2Existingformalandinformalcattlevaluechains...............................................................................61.2.1Livecattletradingpattern...........................................................Error!Bookmarknotdefined.1.2.2Trade-domestic............................................................................Error!Bookmarknotdefined.1.2.3Trade-exportandimport............................................................................................................8

1.3Driversofthetradeandchange......................................................................................................101.3.1Production/Supply...................................................................................................................101.3.2Demographicsandagro-climaticcondition..............................................................................111.3.3.Currentpriceofcattlefordomesticandcross-borderexport.................................................13

2.ExistingGovernmentPolicies.............................................................................................162.1Productivecattleslaughter..............................................................................................................162.2SlaughterLicenses...............................................................................Error!Bookmarknotdefined.2.3Trade(domesticandexport)...............................................................Error!Bookmarknotdefined.

2.3.1Export..........................................................................................Error!Bookmarknotdefined.

3.RecentInitiativestoformalizetrade..................................................................................193.1Domesticandinternationalgovernmentandcommercialdiscussions...........................................19andnegotiations....................................................................................................................................193.2Infrastructureandinvestment.........................................................................................................20

3.2.1Existingtransport,holding,feedingandslaughter...................................................................203.2.2InvestmentinCentralDryZoneandborderpoints..................................................................21

4.Analysisofcattlevaluechain.............................................................................................234.1CattleValueChain............................................................................................................................234.2Constraints.......................................................................................................................................244.3.Potential..........................................................................................................................................30

5.Implications.......................................................................................................................345.1ForTrade(likelynumbersofcattleinvolved)..................................................................................345.2Fortheactorsinvolved(producers,cattletraders,buyers)................Error!Bookmarknotdefined.5.3TheEconomics(Cost,pricesandmargins).......................................................................................345.4ForAnimalHealth............................................................................................................................36

Appendixes...........................................................................................................................37

PhotoRecord........................................................................................................................46


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ListofTableTable1:PopulationofCattle('000Heads)inSouth-EasternAsia('000Heads)....................................1Table2:PopulationofBuffaloinSouth-EasternAsia('000Heads).......................................................2Table3:ListofImportedExoticBreed,ProjectsandInternationalAidfortheImprovementof QualitativeBreeds....................................................................Error!Bookmarknotdefined.Table4:MonthlyExportingNumbersoflivecattleandbuffalotoChinathroughlegalroutes...Error!

Bookmarknotdefined.Table5:NumbersofCompaniesinOperationalProcessofExporttoChinathroughlegalroutesError!

Bookmarknotdefined.Table6:Exportpriceandpopulationofcattleandbuffalofrom(1-4-2017)to(16-3-2018) betweenMyanmarandchinatrade.........................................Error!Bookmarknotdefined.Table7:DistributionofLivestockZoneAccordingtoAgroEcologicalCondition................................11Table8:DomesticandInternationalGovernmentDiscussionsandNegotiations..............................19Table9:CostandReturnAnalysisofExportCattle.............................................................................35ListofFiguresFigure1PopulationofCattleinState/Regionat2016-17.....................................................................3Figure2:PopulationofBuffaloinState/Regionat2016-17.................................................................3Figure3:PopulationofLivestockinUnion..........................................................................................11Figure4:MuseTownshipmapshowingthelocationof105milesTradeZone..................................13Figure5:DailyExportPriceofCowsinMay,2018..............................................................................14Figure6:DailyExportPriceofBuffaloeinMay,2018.........................................................................14Figure7:AverageMonthlyExportPriceofCattleinMarch,AprilandMay2018..............................15Figure8:AverageMonthlyExportPriceofBuffaloinMarch,AprilandMay2018............................15Figure9:LocationofLaboratoryandCheckpoints..............................................................................22Figure10:ValueChainMapandConstraintsofMajorStakeholdersofLiveCattleTrade..................30Figure11:ValueChainMapandOpportunitiesofMajorStakeholdersofLiveCattleTrade.............33

ListofAppendixesAppendix1:PopulationofCattleinState/Region(‘00000).................................................................37Appendix2:PopulationofCattleinState/Region(‘00000).................................................................37Appendix3:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTrade

Zone(inMarch2018)...................................................................................................................39Appendix4:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTrade

Zone(April)...................................................................................................................................41Appendix5:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTrade

Zone(May)...................................................................................................................................42Appendix6:ListofRespondents..........................................................................................................43


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Acronyms

AI - ArtificialInseminationAnGR - AnimalGeneticResourcesAPHCA - AnimalProductionandHealthCommissionforAsiaandThePacificCIDA - CanadianInternationalDevelopmentAgencyFAO - FoodandAgricultureOrganisationLBVD - LivestockBreedingandVeterinaryDepartmentLPEAR - LivestockProduction,ExtensionandAppliedResearchMDEP - MyanmarDairyExcellenceProjectMOALI - MinistryofAgricultureLivestockandIrrigationMOC - MinistryofCommerceNRAGR - NationalReportonAnimalGeneticResourcesUMFCCI - TheUnionMyanmarFederationofChamberofCommerceandIndustries

TheresearchprojecthasbeenfundedbyandconductedforACIARprojectAGB/2016/031“DevelopingatrademodelandinformationnetworkforthecattleandbeeftradesectorofSouthEastAsiaandChina”.

ThereportshouldalsobereadinconjunctionwiththereportSiZhizhi,YangGuorong,ScottWaldron,ColinBrown,DominicSmith(2018),“RecentDevelopmentsintheChina-MyanmarCattleTrade”whichgivesinsightsintorecenttradedevelopmentsfromtheChineseside.


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Synopsis

Thepoliticalandeconomicsystems inMyanmarare rapidlydeveloping,particularly since theelection of the new government in 2015. Liberalization of regulations across all sectors isoccurring in conjunction with this development. Liberalization of restricted trade, cattle formanydecades,theboomingofcattletradebenefittheactorsinvolvedinthevaluechain.Thecurrent policy on cattle export permit is mainly benefit for commercial farmers and smallholdersarenot.Permissiononcattlemovementwithinthecountryresultedthehighercattleprice for both domestic and exportmarket. And thismainly impacted the small farms, pricecompression,whichmayforceruralfarmertogiveuponsmallcattlefarming.Thegovernmentshoulddiscusswithstakeholdersfromall levels. It isalso importanttoraisetheawarenessofrural farmersoncattle tradingandasktheirattitudes for thedevelopmentofcattle industry.Moreover, thegovernmentneeds to supportnotonly loanmoneybutalso technologiesandfree services for them.Quarantine station should also operate in linewith the internationalquarantine standards or related countries’ policy. Beef market should also have the pricecontrollingsystemtosetupthegroundpriceforbeef.Myanmarhashugemarketdemandfromneighboringcountriesandpotentialtoexpandthecattleindustry.Developmentincattlesectorwillnotonlybenefitforthecountry’srevenuebutalsoforrurallivelihoodsofMyanmar.


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1. ThecattlesectorinMyanmarMyanmar is a predominately agrarian countrywithmore than 70 percent of the populationliving in rural areas. Cattle continue to play a key role in farming. Farmers raise cattle andbuffalomainlyfordraughtpowerorfordairy,butrarelyformeatproduction.MyanmarhasthehighestnumberofbothcattleandbuffaloinSoutheastAsiawitharound15.5millioncattleand3.4 million buffalo in 2014 (Table 1 and Table 2). According to LBVD, by 2017, the totalpopulationofcattle reachedmore than17million, including9.37milliondraughtcattle,3.24milliondairycattleand4.43millionothercattle(Thein,2017).Livestock contributes around 20 percent of the agricultural GDP in Myanmar and providesincome and employment of farmers and people involving in the chain of input and serviceproviding, trading, slaughtering, processing and consumption ( (Luong Pham, 2015; LPEAR,2016). In rural and remote areas, small-scalebackyard raisingof draft cattle, buffalo, sheep/goat,localpigs,chickensandduckspredominates.Mediume-scaleraisingisonlyfoundinperi-urbanareas(Thein,2017).Whereopen forageresourcesareabundant, smallholdercattle raising isbasedongrazingoncommon land areas. However, the most common feeding method is cut-and-carrysupplemented by crop by-products mixed with rice bran and groundnut cake. Paddyproduction,ismajorsourceofcropby-productsforfeedingtocattle(LuongPham,2015).Table1:PopulationofCattle('000Heads)inSouth-EasternAsia('000Heads)

Country 2007 2008 2009 2010 2011 2012 2013 2014Brunei 0.94 0.95 0.85 0.85 0.90 0.81 0.80 0.80Cambodia 3368.45 3457.79 3579.88 3484.60 3406.97 2914.97 2900.00 2875.00Indonesia 11514.90 12256.60 12759.84 13582.00 14824.00 15981.00 13127.80 15186.30LaoPDR 1353.00 1397.00 1430.00 1474.00 1538.00 1692.00 1714.00 1766.00Malaysia 873.33 882.67 893.53 836.91 768.40 744.38 751.50 761.00Myanmar 12633.92 12929.24 13185.52 13608.91 14088.04 14559.00 15046.00 15543.00Philippines 2565.90 2566.49 2586.00 2570.90 2518.40 2493.16 2497.91 2504.64Singapore 0.20 0.20 0.20 0.20 0.20 0.20 0.20 0.20Timor-Leste 142.42 145.34 148.40 161.65 170.22 173.12 176.06 180.00Thailand 6480.88 6700.00 6647.33 6498.00 5890.70 5392.58 5147.52 4898.58Vietnam 6724.70 6337.70 6103.30 5808.30 5436.60 5194.18 5156.73 5234.30South-EasternAsia 45658.63 46673.98 47334.85 48026.32 48642.44 49145.39 46518.51 48949.81

World 1428015.73 1441521.16 1449846.13 1453408.65 1451876.16 1464840.78 1467839.86

1482144.42

Source:MyanmarLivestockStatistics(2017)


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Table2:PopulationofBuffaloinSouth-EasternAsia('000Heads)Country 2007 2008 2009 2010 2011 2012 2013 2014Brunei 4.67 4.89 4.12 4.12 2.55 2.44 2.35 2.40Cambodia 772.78 746.21 739.65 702.07 689.83 680.00 676.00 680.00Indonesia 2085.78 1930.72 1933.00 1999.50 1305.00 1438.00 1109.50 1320.60LaoPDR 1123.00 1154.00 1178.00 1189.00 1197.00 1188.00 1190.00 1153.00Malaysia 130.78 131.23 127.15 125.90 123.31 124.99 123.65 122.94Myanmar 2841.73 2923.57 2874.86 2977.15 3096.89 3211.00 3321.00 3426.00Philippines 3383.62 3338.57 3321.00 3270.40 3075.30 2963.80 2912.84 2844.15Singapore 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00Timor-Leste 100.90 102.22 103.54 96.48 98.12 103.33 108.80 110.00Thailand 1743.55 1699.47 1670.51 1622.65 1587.73 1542.17 1288.81 1020.09Vietnam 2996.40 2897.70 2886.60 2877.00 2712.00 2627.81 2559.54 2511.90South-EasternAsia 15183.20 14928.56 14838.42 14864.28 13887.73 13881.53 13292.49 13191.08

World 183959.08 185839.57 187346.21 188186.23 190398.33 192319.41 193282.49 195098.32Source:MyanmarLivestockStatistics(2017)1.1DistributionofcattleMyanmarhasadiverserangeofagro-ecologicalzones,includingHillyandmountainous,CentralDry,DeltaandCoastal Zones.Highmountain ranges,plateauxand forestsare theprominentfeatures of the Hilly and Mountanous Zone and agriculture mostly consists of uplandcultivation.This region includesKachin,Kayah,ShanandChinStates.TheCentralDryZone ischaracterized by a flat topography and semi-arid conditions. Sagaing,Mandalay andMagweRegionsarelocatedintheCentralDryZone.Ayeyarwady,BagoandYangonRegionsarelocatedintheDeltaZoneandRakhine,MonStateandTanintharyiRegionsareintheCoastalZone.Differencesinagro-ecologicalconditions,farmingsystemsandproximitytomarketsmeanthatthedistributionofcattleandbuffalothroughoutthecountryisuneven.Thebuffalopopulationisconcentratedindelta,coastalandsomeuplandareas,whilethecattlepopulationisspreadmorewidelyacrosstheregions,withthehighestnumberbeingintheCentralDryZone(LPEAR,2016).1.1.1NumbersofcattleandbuffaloinStatesandRegionsCattle are more concentrated in the Central Dry Zone, which has favorable agro ecologicalconditions for cattle raising and have a largermarket potential and availability of veterinaryservices(LuongPham,2015).In2016-2017therewereanestimatedaround8millioncattleintheCentralDryZone(2.6millioninSagaing,2.98millioninMagweand2.4millioninMandalayRegion). This accounts for almost 50 percent of the total cattle population of the country.(Figure1).


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Figure1:PopulationofCattlebyState/Regionin2016-17Source:BreedingandVeterinaryDepartment(LBVD),2018

Compared toother Sates andRegions, thebuffalopopulations in Shan state, SagaingRegionandRakhine State are comparatively high, together accounting for around 1.8million of thetotalbuffalopopulationof3.4million(Figure2).Whilealargenumberoffarmersusebuffalofordraftpurposes,thetotalbuffalopopulationissmallerthanthecattlepopulationasfarmersgenerallyuseonlyonebuffaloinploughing,ratherthantwocattle(NRAGR,2001).

Figure2:PopulationofBuffalobyState/Regionin2016-17

Source:LivestockBreedingandVeterinaryDepartment(LBVD),2018

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1.1.2CattlebreedsShwe Ni and Pyar Sein are the most common cattle breeds in Myanmar. Shwe Ni is anindigenousbreedandPyarSeinisacrossbetweenlocalandIndianbreeds.ShweNicattlehaveagoldenredcolourandPyarSeincattlearewhiteincolour.TheformerisabundantinMagwayandMandalayRegionswhilethelatterismostcommonintheCentralDryZoneandtheupperregions.The government has introduced exotic breeds since 1958 with the aim of increasing theproportion of crossbred cattle from 50% to 70%. The government has received support fortheseeffortsfromprojectswithfundingfromFAO,WorldBank,UNDCP,ThailandandtheNewZealandGovernment(Table3,Table4andTable5).Table3ListofImportedExoticBreed,ProjectsandInternationalAidforbreedimprovement

ListofImportedExoticBreed(Cattle)NameofBreed Importedyear Country ProjectRedSindhi 1958 Pakistan Thari 1958 Pakistan Friesian67,Jersey62,PregnantHeifer129heads

1978,June NewZealand WorkBankLoan

Friesian(79PregnantHeifer,2youngBulls,81heads)

1978 Australia UNDCP

Donkey 1980 NorthernIndia,RajastanState

Source:(NRAGR,2001)(Thein,2017)(Wynn,2018)

Table4Listofkeyprojectsforcattledevelopment

ProjectsProjectTitle Project

DurationProjectBudgetandFundingAgency

ProjectArea

AIdevelopmentproject 1972-76 FAO Livestockdevelopmentproject 1976 WorldBank Myanmar-NewZealandDairyExcellenceProject

2014-2019 NZ$5.6millionsandNewZealandGovernment

Naypyitaw,Yangon,Mandaly,Shan,SagaingandMagweRegion

UpgradingArtificialInsemination 5years(2019- USD15.83million NayPyiTaw,Sagaing,


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Program 20to2023-24financialyear)

Magway,MandalayandYangon

Source:(NRAGR,2001)(Thein,2017)(Wynn,2018)

Table5Supplyofsemenstrawssupportedbyinternationalaid

InternationalAidSupplyofSemenStraw Country FundFrozensemenstrawofbeefcattle(100000)straws

Thailand InternationalAid

Frozensemenstrawofdairycattle(20000)straws

Thailand InternationalAid

Frozensemenstrawofdairycattle(5000)straws

NewZealandGovernment

InternationalAid

Source:(NRAGR,2001)(Thein,2017)(Wynn,2018)LBVDhaveimplementedafiveyearprojectofartificialinseminationwithWorldBankandthisproject supported the establishment of an artificial insemination center and suppliedequipmentforanAIcenterandfieldstudies(Phametal.,2015).CrossbreeddairyanddraughtcattleareproducedthroughArtificialInseminationservices(AI)withsemenfrombullskeptatanAIcentrenearYangon.FarmerspayanAIservicefeebutnotforthesemen(LPEAR,2016).Inaddition, theGovernmenthas setupa5 yearplan (2019 to2024)of upgrading theartificialinseminationprogramasapriorityprojectwithatotalbudgetofUSD15.83million.(Table3).1.1.3ProductionsystemsofcattleItisimportanttonotethatdespitehavingthelargestcattleherdinSouthEastAsia,therearevirtually no specialised beef production systems existing in the country, at either a small,mediumorlargescale.Untilveryrecently,cattleproductionsystemsinMyanmarwereeitherorientedtowardsdraughtpowerprovisionordairyproduction.Cattle production systems inMyanmar can be grouped around threemain typologies: smallscalemixed crop-livestock farming systems, small-scale dairy cattle farming andmedium tolarge-scaledairyproduction.Small-scale mixed crop-livestock farming system - This is the predominant farming systeminvolving cattle/buffalo in Myanmar. Farmers practice cropping and use pairs of workingbullocksorpairsofbuffalofordraftpurposes.Localbreedbullsareraisedprimarilyfordraughtwhile femalesareused forbreedingandcalvesarekeptwithcowsuntilweaning. Cattleare


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normallygrazedonpasture,roadsidesandcommunallandandthesystemcanbecharacterizedasbeingalowinputsystemwithpoorreproductiveperformance.

Small-scaledairycattlefarming-Thisfarmingsystemismainlypracticedbysmallfarmersforthepurposeofmilkproduction(usually>3heads).InthepastsmallscaledairyproductionusedPyar Sein cattle in a mixed dairy/draught power system. More recently,small-scale dairyproductionhasusedcrossbredcattle,eitherbetweenlocalandIndianbreedsofcattleorexoticbreeds introduced through various development projects. These projects have introducedfrozen straws of semen of exotic breeds such as Holstein Friesian, Jersey, Guernsey, andNorwegianRed.

Large-scale dairy cattle farming- This farming system is operated by commercial farmersraisingcrossbreedcattle(uptoseveralhundredcattle)formilkproductioninhighinput-outputsystems.Cattle are completely stall feedusing concentrates. Legumesaregrown to feed theanimals.Dairycattle farmingandsmallmilkprocessingplantsaremoreconcentrated inperi-urbanareasoflargecitiesandtownsincludingMandalay,KyaykSeandMeikhtilartomeettherisingdemandformilk,dairyproductsandconfectionaryamongurbanconsumers.

1.1.4MeatConsumptionPer-capita consumption of beef in Myanmar is at an extremely low level. Cultural factors,includingthebeliefthatcattlearethebenefactorsforriceproduction,aredeeplyingrainedinMyanmar,andthisisnotlikelytosignificantlychangeinthefuture.Thereissomedemandforbeef in larger cities, including Yangon,Mandalay, Bago, Taunggyi (Southern Shan State) andMawlamyaing(MonState).Thisdemandismostlyassociatedwiththepresenceofforeigners,eitherworkingintheseareasorvisitingastourists.Incomparison,annualper-capitaconsumptionoffishinMyanmarisaround22kg.Poultryandporkconsumption levelsarerelatively lowataround3kgpercapitaperyear.Most fish,porkandpoultryconsumptionissuppliedfromdomesticsources,withverylittleoftheseproductsimported.(Thein,2017).1.2Existingformalandinformalcattletradepatterns

DomesticTradePatterns


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Farmersselltheircattletoneighboringfarmersorinlocalmarketsforseveralreasons.Farmersmay sell the cattle (i)when cattle are needed to be replaced; (ii)when cattle are no longeruseful;(iii)whendraughtpowerofthecattleisbeingreplacedbymachinesor;(iv)whentheyneedmoneyinanemergency.Majordomestic flowsof cattle trading inMyanmar are trading (1) between farmers; and (2)from farmers to markets for sale to other farmers or for slaughter in urban areas (such asYangonandMandalayCity)(LPEAR,2016).Farmersusuallysellcattleat thebeginningandendof thecultivationperiodeachyear.Theymostlyselldirectlytootherfarmersortocollectorsatthefarmgateorthroughdealers.Sellingatlivemarketsisdonebythefarmersthemselvesor–lesscommonly–throughabrokerwhohandlesthetransactionforacommissionfee.CattlemarketsCattlemarketsareimportantintheMyanmarcattle-tradingpattern.Themarketsarethesitesforfarmer-to-farmertradeofproductiveanimals,thesupplyofslaughteranimalstothe localandYangonandMandalaymarket,andforthesaleofcattleandbuffalosfromCentralDryZoneandDeltatolinktheinformalcross-bordertradeinNorthernShanandMuse.Farmersortradersbringanimalstomarketsonfootoronvehiclesandeveryfarmerortraderhas to register the animals and pay a small amount of money per head for trading andregistration. The seller also needs to give a health certificate issued by LBVD to the buyers.People who do not want to pay market fees do informal trading at locations near thesemarkets.Thereare49cattlemarketsregisteredwithLBVD.ThesearelocatedalongthemajortransportroutesinMyanmar.Thesemarketsarenotopendaily-28ofthemarketsareheldeveryfifthdayandtheremaining21areheldeveryseventhday.Atotalofaround262,000cattleperyeararetradedthroughtheofficialmarketsystem.BeefmarketForslaughterandsaleofmeatproducts,alicencemustbeheld.Althoughonepersonmayholdmultiple licences, licencespertain tooneanimalspeciesonly.Licencesareawardedannually,usually with a baseline increase in the fee of 10-30 percent per year with tender system.LicencesrenewalmayoccurautomaticallyiftheCityDevelopmentCommittee(CDC)orMinistryof Border Affairs (MBA) has been happy with the licencee's performance. In some smallerdistricts,onlyonepersonbidsforthelicenceeachyear. Inadditiontotheannual licencefee,


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licenceespayaper-headslaughter fee.Licenceesnormallypurchased theanimalsevery fewdays and then keep at a farm near the slaughterhouse. A few animals are then taken toslaughtereachday.Animalsareslaughteredlateatnightorveryearlyinthemorningandareimmediatelydistributedtoretailersforsale(LPEAR,2016). 1.2.3ExportTradePatternsThreedistinctexporttradepatternsforcattlecanbeidentified.Theseare;(i)FormalExports;(ii) Semi-formalized export of cattle to China (since 2017); and (iii) informal/illegal export ofcattle.FormalExportsCattle have been classed as a restricted commodity since the Government nationalized alldomestic industries and imposed protectionist trade policies in 1962. The restriction on livecattlemovementsandexportswasreinforcedinthe2012MajorCommodityandServiceLaw.Formal exports of cattle before 2017were at a veryminimal level. In 2000, the governmentexported5400headofcattletoMalaysiaandafurther2223headwereexportedtoMalaysiain2010,throughseaportquarantineatRakhineState,TanintharyiRegionandYangonRegion.SemiFormalizedExportofCattletoChinaInOctober,2017thegovernmentannouncedaone-yeartrialofpermittingcattleliveexportstoChina and set up a series of rules and regulations for this export trade. The rules andregulations note that export license holders approved by MOC are able to export cattle inaccordancewiththespecificationsandrestrictionslaiddownfromLBVDandMOALI.This rapidly developing trade can still be classified as semi-formal, as the liberalization onlyaffectstheMyanmarsideofthecross-bordertrade.Chinastillhasnot issuedanyregulationsformalizingtheimportofcattledirectlyfromMyanmar,andbilateralagreementonthetradeisstillunderdiscussionbetweenthetwocountries.For legal routes, the trader/companymust have the export license issuedby theMinistry ofCommerce,thepermissionofcattlemovementfromthelocalauthoritieswherethecattlearelocatedand cattlemovement certificate (PC-3) issuedby LBVD.Veterinary inspectionand21daysquarantineisdoneforexportedcattle.Semi-formalcross-border livecattletradetoChinahassignificantly increasedsinceDecember2017.DuringthefourmonthsperiodfromDecember2017toApril,2018,thenumbersoflivecattleandbuffaloexportedtoChinawere25,250and2,990,respectively(Table6).Allofthecattleandmorethan99percentofthebuffaloexportedtoChinathorughthesemi-formalchannelweremale.SincetheliberalizationoftradefromtheMyanmarside,atotalof


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283 companies have become involved exporting, 447 companies have received a cattlemovement certificate (PC-3) issued by LBVD and 326 companies have applied for veterinaryinspectionandquarantinestatus(Table7).UntilApril2018,theexportvalueofcattlethroughthesemi-formalchannelhadalreadyreachedmorethanUSD24.2million(Table8).Table6:MonthlyExportingNumbersoflivecattleandbuffalotoChinathroughlegalroutes

Sr.No Month Cattle Buffalo CattleandBuffalo

Male Female Total Male Female Total Male Female Total1 December 773 773 318 9 327 1091 9 11002 January 7480 7480 446 54 500 7926 54 79803 February 6424 6424 887 149 1036 7311 149 74604 March 9173 9173 882 145 1027 10055 145 102005 April

(5.4.2018)1400 1400 87 13 100 1487 13 1500

6 Total 25250 25250 2620 370 2990 27870 370 28240Source:LivestockBreedingandVeterinaryDepartment(LBVD),2018

Table7:NumbersofCompaniesinOperationalProcessofExporttoChinathroughlegalroutes

Sr.No Description Numbers

1 CompaniesexportingthelivecattletoChina 2832 Companiesgettingthecattlemovementcertificate(PC3) 4473 Companiesapplyingforveterinaryinspectionandquarantine 326

Source:LivestockBreedingandVeterinaryDepartment(LBVD),2018Table8:ExportvalueofcattleandbuffaloexportstoChinafrom(1-4-2017)to(16-3-2018)

ItemName Value(millionUSD)Cattle 21.499Buffalo 2.760Total 24.259

Source:MinistryofCommerce(MOC),2018Export quality cattleweremainly obtained fromDelta and Central Dry Zone; Bago,Magway(Pakkoku, Magwe, Yenanchaung Townships), Mandalay (Mandalay, Myinchan, KyaukseTownship) and Sagaing ( Shwebo,Wetlet, Kantbalu Township). Kyauk Se, Tadaoo,Myinchan,Meikhtila townships in Mandalay region are the main places for collection of cattle forsubsequenttruckingtoNorthernShanStateforexporttoChina.


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Informal/IllegalExportofCattleThelargecattleandbuffalopopulationinMyanmarcombinedwithlowdomesticdemandandrestrictionsonslaughteringandexportofcattlehave ledtoasignificantdifferentialbetweenthepriceofcattleinsideMyanmarandoutsideMyanmar.Thispricedifferential,combinedwithrapidincreasesindemandforbeefandbeefproductsinChinaandVietnamhasledtothedevelopmentofasignificantinformal/illegalexporttradeincattlefromMyanmar.(Yuemingetal.,2015;LuongPhan,2015;KhaingH.,2017).LivecattlearemainlyexporttoChina(Muse)andothercountryincludesThailand(MaeSot,MaeSariang)andVietnam.AccordingtotheestimationofFAOSTATusingtradingpartners’databases,informal/illegallivecattle exports in 2011 numbered 71920 heads and reached to nearly 98419 heads in 2016.Likewise, from 2012 to 2016, number of export buffalo has increased from 28225 heads to31428 heads (FAOSTAT). The study of cattlemovement pathway through cross-border fromMyawaddy,MyanmartoMaeSot,Thailandshowedthattherewaslargelivestockmarketinthebordertradeincludingasmanyas5000headofcattleandbuffalopermarketsessionwithtwomarketsessionseachweek, reachingapotential levelof520,000headperyear (Smithetal.,2015).According to the 2012Major Commodity and Service Law, the maximum penalty for cattletransportingwithoutpermissionisthreeyearsofprisonand500,000MMKfine(Khine,2017).1.3DriversofcattlesectordevelopmentandexporttradeThehighcattleandbuffalopopulationsinMyanmar,combinedwithincreasedmechanization,favourableagro-climaticconditionsforcattlefarming,lowlevelsofdomesticbeefconsumptionandhighlevelsofdemandforbeefinChinaandVietnamaremajordriversofthedevelopmentofthecattleindustryandcattleexports.1.3.1Production/SupplyOver the past six years, between 2010-2016, cattle numbers across the country have beengrowing steadily from13,600,000 to16,500,000with theestimated increase rateof 500,000peryear(Appendix-1).Likewise,goatnumbershavebeendoubledoversixyearsandarelikelytocontinuetogrowincomingyears.Thebuffalopopulationhasincreasedalmost20percentoverthepastsixyears,from3,000,000in2010-2011and3,600,000in2016-2017.(Appendix-2).


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The abundant cattle and buffalo in the Central Dry Zone are themajor source of supply forcross-bordertradetoMuse.

Figure3:PopulationofLivestockinMyanmar

Source:LivestockBreedingandVeterinaryDepartment(LBVD),2018

1.3.2Demographicsandagro-climaticconditionAgro-climaticconditionsaresignificantfactorsinshapingthetradestructure.DifferentpatternsoflivestockraisingtakeplaceinMyanmarinthecontextofthecroppingsystems,topography,andagro-ecologicalzones.TheCentralDryZoneofMyanmarischaracterizedasdenselypopulatedareacontaining25%ofthecountry’spopulation,withthemajorityofhouseholdsearnedtheirlivingwithfarming.FlatplainsfeatureinthetopographyoftheDryZoneandtheclimaterangesfromsemi-aridtosemi-humidacrosstheregion.DryZoneisespeciallyimportantforcattle,sheepandgoatproductionduetofavorableagro-climaticconditionandattainingthehighestareaforlivestockandcattlefarming(Table9).Thedeltaandcoastalareashavehighpopulationsofbuffalo,pigsandducks.Dairy cattle are concentrated largely in the Mandalay region of the Dry Zone, and YangonRegionwherethereisgoodaccesstomarkets.

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ck ('

0000

0)

CattleBuffaloGoat


12

Table9:DistributionofMOALIdefinedLivestockZonesAccordingtoAgroEcologicalConditionAgro-EcologicalZone State/Region LivestockZone Area(acre)CentralDryZone NayPyiTaw KanGyi 1614.00 ShweMyo 271.33 PyaungGaungGyi 623.00 MinPyin 2000.00 Sagaing Yinmarpin 21.13 Kantbalu(Myoma) 59.23 Kantbalu(Zeegone) 16.44 KhinU 10.03 YeU 14.39 ShweBo 23.45 Monywa(Poultry/Quail) 123.45 Monywa(Dairy) 15.05 Mandaly Nabukyin(Alaekone) 813.00 HteeHlaing 60.00 YeU 1306.00HillyZone Shan Kyautme 61.00 Taunggyi 429.67 Kayin Kamamaung 15.00 Hlaingbwe 37.33 Hpha-An 76.60 Myawaddy(Yepu) 56.42 Myawaddy(KyautLoneGyi) 64.00 Kawtkarate(1) 16.32 Kawtkarate(2) 7.04DeltaZone Yangon Naungnapin 1983.00CoastalZone Tanintharyi Meik 81.27 Mon Yae 15.52

Source:MyanmarLivestockStatistics(2017)


13

Figure4:MuseTownshipmapshowingthelocationof105milesTradeZone

1.3.3Currentpriceofcattlefordomesticandcross-borderexportOversupply of cattle and buffalo, low levels of domestic beef consumption and increaseddemand for beef in China and restrictions on cattlemovements and exportsmeant that theaveragedomesticpriceofcowsorbuffalobefore2017wasonly500,000Kyats(USD365)perhead–significantly lowerthantheborderprice inChinaorThailand.After theOctober2017liberalization of trade with China and the relaxation of restrictions on cattlemovement thelocal market price of cattle in the Central Dry Zone has increased significantly to between1,200,000and1,500,000Kyats(USD889to1000USD)perhead.

PeopleRepublicofChina

ShweLiRiver

PanSai-KyuKoat

KutKaiTownship

NanKhamTownship

105milesTradeZone

MaiYuVillageTract


14

Figure 5 and Figure 6 present the daily minimum andmaximummarket price of cattle andbuffalo at theborder trade zone inMay2018. Chinesebuyers set up thepriceby cattle lot,dependingonthesize,well-beingandstrengthofthecattle.Theygivethemaximumpriceforgoodexportqualityandminimumpriceforaveragecattle.ThereisnofixedorstablepriceofexportcattleandcattletradersgenerallyhavetotakethepriceasgivenbytheChinesebuyers..Comparedtocattleprice,theexportpriceofbuffaloismorestable.

Figure5:DailyExportPriceofCattleinMay,2018

Source:105-MilesTradeZone

Figure6:DailyExportPriceofBuffaloinMay,2018


Figure7andFigure8representtheaverageminimumandmaximummonthlyexportpriceofcattle and buffalo in March, April and May 2018. The difference between maximum and

0200400600800100012001400160018002000

USD

Cows(Min)

Cows(Max)

0200400600800100012001400160018002000

USDBuf(Min)

Buf(min)


15

minimumcattlepriceislowinMarchandishighinApril.Theaveragemonthlypriceofbuffaloismorestableandthereisnotmuchdifferencesbetweenmaximumandminimumprices.DailyexportpriceofcattleandbuffaloinMarch,AprilandMayareshowninAppendixTable3,4and5.Thepricesarecalculatedbasedondailyexchangerates.

Figure7:AverageMonthlyExportPriceofCattleinMarch,AprilandMay2018


Figure8:AverageMonthlyExportPriceofBuffaloinMarch,AprilandMay2018


13781195 1199

15101657

1472

020040060080010001200140016001800

March April May

USDAvgMinPrice

AvgMaxPrice

1595 1588

1428

1683

1588

1450

12501300135014001450150015501600165017001750

March April May

USD

AvgMinPrice

AvgMaxPrice


16

2.ExistingGovernmentPoliciesProductivecattleslaughterIn1970,theGovernmentdecreedthatonlycattlelessthan16yearsandaboveorpermanentlydisabledorpermanentlysterilefemalecattlecanonlyslaughtered.(NRAGR,2001).TransportationofCattleStrictregulationsareappliedtotransportinglivecattleandit isanoffencetotransportcattlewithout the required permissions. Government agencies such as theMyanmar Police Force,Livestock Breeding and Veterinary Department and village administrators are involved indecisionmakingontransportationofcattle(Khaing,2017).SlaughterLicencesBefore2012-2013,thelicensesystemwasnotacompetitivebiddingsystemandgenerallyonepersonwasabletomonopolizeslaughteringinanyonelocation(Khaing,2017).Nowadays,thesystemhasbeenchangedtohavingtwotypesoflicensesforslaughter-townshiplicensesandmarket licenses, the former have the individual sole rights to trade and slaughter withintownship and the latter is formanagingmunicipal live stockmarkets. Licenses are awardedannually, usuallywith a baseline increase in the fee of 10-30 percent per year (Pham et al.,2015). Licenses may be open to tender each year, although it often appears that licenserenewaloccursautomatically if theCityDevelopmentCommittee (CDC)orMinistryofBorderAffairs(MBA)satisfythelicencee'sperformance.Slaughterfacilities,whicharesimplypartially-walledbuildings,areownedbyCDCs.Only the slaughter person can sell beef to other vendors and customer in eachmarket. It isillegaltosellbeefwithoutalicense.Thereisnolimitationonthenumberofslaughtercattleperday. The slaughter person also needs to pay tax at the slaughterhouse, which is calculatedbaseduponnumberofheadperday.Thecurrenttaxrateis2500MMKperhead.Itisillegaltokillthecattleoutsidethegovernmentslaughterhouse,evenforslaughterperson.ExportRegulationsTherulesandregulationsfortheoneyeartrialoflivecattleexportstoChinanotethatexportlicenseholdersapprovedbyMOCareabletoexportcattleinaccordancewiththespecificationsandrestrictionslaiddownfromLBVDandMOALI.Thepolicyaddressescattleage,healthstatus,ownershipverification,numbersofcattleperpermit,farmregistration,exportlicenseandtaxobligations.Exportinguncastratedmales, femalecattleandcattleunder5yearsofage isnotpermitted–thisisregulatedinordertoensurethemaintainenceofthecattlepopulationlevel.Theproceduresforlegalexportofcattleunderthe1yeartrialareasfollows:

(a)RegistrationasExporter/Importer


17

Thefollowingindividual/enterpriseswhowishtocarryonanexport/importbusinessmayapplytotheDirectorateofTradeforregistrationasexporter/importer:§ Acitizenorassociatecitizenornaturalizedcitizeniftheapplicantisasloeproprietor;§ PartnershipfirmsThefollowingenterprisesregisteredunderMyanmarCompaniesActandSpecialCompanyActof1950§ LimitedCompanies(inclusiveofforeigncompanies’branches)§ JointVentureCorporation§ Co-operativesocietiesregisteredundertheCo-operativeSocietiesLawNecessaryDocumentsforApplicationoftheRegistrationofExporter/Importer§ Theoriginal“MemorandumofAssociation”and“ArticlesofAssociation”§ ApplicationFormwithCompanyLetterHead§ Exporter/ImporterRegistrationForm§ TheCopyoftheletteroftheCompanyRegistrationOfficefortheissuingof§ CertificateofRegistration§ TwocopiesoftheCertificateofCompanyRegistration§ ThecertifiedcopyofForm26whichisrecognizedbyCompanyRegistrationOffice.§ ThecopiesofNationalRegistrationCard(or)CitizenshipScrutinyCard,PhotoandSpecimenSignatureofBoardofDirectors§ CertificateoftheMembershipofUMFCCI(b)Applyingforanexport/importlicenseandcattleexportpermitCattlefarmsorcompaniescanapplyforanexport/importlicensefromtheMinistryofFinanceandCommerce and apply a cattle export permit in the office of theMinister ofMOALI. Thecattleexportpermitcoverstheexportationofatotalof100cattle.Whenapplyingforacattleexportpermit,theapplicantmusthavearegisteredcompanyandbeabletoshowthathe/shealreadyhas a cattle farmwhich canmaintain100 cattle.When theapplication for the cattleexport permit is approved, a total of 100 cattle are collected at the registeredor temporaryfarm.ThecollectingfarmneedstobelocatedinadistrictwhichhasaDistrictofficeofLivestockBreedingandVeterinary.ThecollectingfarmsareusuallylocatedinMandalay,whichhasgoodroadconnectionsforcollectingandexportingcattle.When traders collect the cattle for transport to the collecting farm, they need to get arecommendationfromthevillageor townshipauthorities.Thecattlemustalsohaveahealthcertificatefromaveterinaryofficer.Aftercollecting100cattle,theapplicanthastoinformtheheadquartersofLBVDtoorganize forLBVDtocheckeachcattleandrecordear tagnumber.TheentireofficialprocesstakesuptotwomonthsforeachexportationtoMuse.(c)Exporting


18

With health certificate, transportation route and plan, the applicant can apply for a tradinglicenseattheDepartmentofTrading,MOC.LBVDwillreleaseatransportationcertificatewiththeexacttrucknumber.CattleareexportedtoMusebytruckswithacapacityofaround20to25cattle.WhenexportingtoMusethroughlegalroutes,thedocumentsandcertificateshavetobeinspectedunderthecheckpointsof16milesgate,Yay-Pugateand105milestradingzone.AlthoughtheChinesemarketdoesnotcurrentlyhaveanyofficialrequirementsforquarantine,thecattlearevisuallyobservedatAnimalQuarantineStationatMuse.Ifthereisanyindicationthatanimalshavehealthproblems,abloodsamplewillbesenttothe laboratoryandtested.Usually, live cattle andbuffalo aremaintained for one to twodays at the animal quarantinestation in Muse before selling to Chinese buyers from Mensi, China (Muse, 2018). Afterchecking theexport license, cattle exportpermit andquarantine certificate, theGovernmentimposes awithholding tax of 2%on the exported value of the cattle. Trading process in theMusetakesonlytwoorthreedays.


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3.RecentInitiativestoformalizetrade3.1 Domestic and international government and commercial discussions andnegotiationsWhentheGovernmentrealizedthatimposingbansoncattleexportshadcreatedasignificantblack market for cattle and buffalo exportation, exempt from regulation, taxation andconsumersafetyoversight,formalandinformaldiscussionsaroundtheissueofreducingtraderestrictions on cattle export were undertaken. Various stakeholders from relatedministries,private sector, livestock traders and NGOs participated in these discussions around theinitiationofcattleformaltradeinMyanmar.At the Initial stageof trade liberalization, theGovernmenthasallowedone-year trial for liveexportsandrestructuringtherulesandregulationsforthetrade;cattleageforexport,healthstatus, ownership verification and withholding tax etc., to address the policy on live cattleexport.Construction of Muse cross-border inspection facilities and ways to meet China Qualitystandards and the standards set by the General Administration of Quality Supervision,Inspection and Quarantine (AQSIQ) of China were on the agenda of recent bilateralnegotiationsoncattletradebetweenMyanmarandChina(Table7).Table10:DomesticandInternationalGovernmentDiscussionsandNegotiations

Year DiscussionsandNegotiationsSeptember,2012

Government officials, businessmen and NGO officials are discussed about the live cattle trade inMyanmar to reduce the illegalexportof cattle toChina (Muse)andThailand (Myawady,MaeSotandTarchiliek)and toearn thegovernment revenue from legalexportofcattle,goatsandsheep.TheMinistryof LivestockandFisherieshasdirecteddepartments concerned toban theexportoflivecattletoneighboringcountries(ElevenMedia,2012)

August,2016

Livestock traders requestedMOC to removeexcludebuffalo and cows from the restrictedexportitems listbecause rulesand regulations released for cattle trade issued in July,2016approved toexportdogs,cats,pigs,goats,horsesandsheeponly(Kyi,2016).

July,2017

Provision of loans to farmers and allow livestock export to develop the agricultural and animalhusbandryindustriesarediscussedinameetingofVicePresidentUMyintSwe(CurrentPresident)andbusinessmenonJuly,2017.Afterdiscussionwiththestakeholders,permitexportofliveanimalsanddairyproducts,andslaughterlicenseswithoutrestrictionsaredecided.(Htwe,2017).

August,2017

AccordingtospokespersonfromtheMinistryofPlanningandFinance,anofficialannouncementoflivestock export will release soon and trader can apply the permit to export live cattle toneighboringcountriessuchasChina,ThailandandBangladeshaftertheofficialannouncement.Thegovernment will also support semen straw, technologies and animal health services for thebreeders. The exportation will include not only live cattle but also other livestock and LBVD ofMyanmarwillbe responsible for thequarantinecertificate tomeet thequarantine standard fromtheexportingcountry(San,2017).

2017 ChineseandMyanmarGovernmentshaveconductedmeetingsforconsultationandconstructionofNorthernShan,Musecross-border inspectionfacilitiestotestanimalsforvirusanddiseasebeforeenteringtheChina(Thu,2017)

September,

GrowingdemandofmeatinChina,legalexporttoChinaandQualitystandardsimposeonexportedandimporteditems;standardssetbytheGeneralAdministrationofQualitySupervision,Inspection


20

2017 andQuarantine(AQSIQ)ofPCRwerediscussedattheforumjointlyhostedbyMyanmarFederationof Chamber of Commerce and Indus-tries (UMFCCI) and Yun-nan Provincial General Chamber ofCommerce(YPGCC)(Hein,2017;Thu,2017)

October,2017

TheMinistryofCommerceofficiallyallowedthelivecattleexporton9thOctober2017whichaimsto build the independent livestockmarket and to create job opportunities for the farmers. Theexportation process needs to operate in accordance with the rules and regulations from LBVD(MOC,2017).

November,2017

According to theofficial fromtheMinistryofCommerceandLBVD,banon livecattleexportswillcancelandplannedtoallowone-yeartrialofliveexports.Thegovernmentispreparingapolicyonlive cattleexport,whichwill setup rulesand regulation for the trade. Thispolicywill addressoncattle’sage,healthstatus,ownershipverificationandtax,etc.andwillallow100cattleatatimeforeachtrader(Khaing,2017)

Source(LocalMedia,MOPF,MOCandLBVD)3.2InfrastructureandinvestmentSince the trial liberalizationof cattleexports commenced in late2017, thenumbersof cattleand buffalo exported to China have increased significantly. Improvements in infrastructuresuch as the quality and quantity of transporting vehicles for the cattlemovement from oneplace to another, the holding capacity and are of cattle, feed, slaughter and investment inestablishingofbreedingfarmandimprovementofcross-borderinspectionfacilitiesarecrucialforthecontinuedexpansionofcattletrade.3.2.1Existingtransport,holding,andfeedinginfrastructureTransportVehicles used in inland routes to carry the cattle from Mandalay to Muse are trucks withcapacityofbetween20-25cattleeach.Thetrucksareopenontheroofandcoverwithstrawonthefloortofeedthecattle.Thetradershirecattledriverstotakecareofthecattleontheway.HoldingCentralDryZoneisthemaincattlecollectingareaforexport.CattlefarmintheDryZonearesmall-scaleandmaximumholdingcapacityofcattleineachfarmisaround20to30.Withtherecent boom in the cattle industry there is a lack of adequate cattle holding facilities in theCentralDryZonetoholdcattlebeforesendingtoMuse.Mostofthecattletradersarenotcattlefarmersandtheycollectthecattlefromvariousplacesandregionstogettothetargetednumberof100head.Asthereareaverylimitednumberoffarmswithcapacitytohold100head,tradersplacethecollectedcattleinseparatetemporaryfarms,whichhavepoorfacilitiesforfeed,waterandmaintenance.FeedingThe common feeding systemof cattle inMyanmar aremixing the crop stubbles (rice, corn ,sesame,legumes)andricebran,groundnutandsesamecakesandgrazingontheroadsideandcommunal land.Thereisnoextensiveimprovedpastureinthecountryexceptnaturalgrazingground set aside by the Government for cattle grazing. The areas of natural grazing land


21

becomesmallerduetoencroachmentbyurbanizationandindustrialization.Thepresentareaofnaturalgrazinglandamounttoover800000acres(324559ha)thatisequivalentto0.056.acre(0.02 ha) per cattle (NRAGR, 2001). When the numbers of cattle for export to China haveincreased,cattlefeedresourceshavebecomeincreasinglyscarce.Aftercollecting100cattleforexport, thetradershavetowait the longverificationprocessofLBVD inMandalaywhichwillandfeedthecattleonincreasinglyexpensivefeedforoneortwomonths.3.2.2InvestmentinCentralDryZoneandborderpointsCentralDryZoneCurrently,livecattleforcross-borderexportaremostlyproducedfromsmall-scalecattlefarmsintheCentralDryZone.Thereareveryfewcattlebreedersandinvestmentincommercialcattlebreedingfarmsisneeded.Provisionofloanstofarmerstodeveloptheagriculturalandanimalhusbandryindustriesarestillintheearlystagesofdevelopment.Inordertotrytomaintainthepopulation of cattle, LBVD have proposed that cattle export companies should raise 10breedingcowsforevery100cattlethattheyexport.BorderpointsThere are six check points along the border areas, Tamu, Muse, Tacheleik, Myawaddy andKawtthaung (Figure 9). These check points are for checking necessary documents forexport/import(Khaing,2017).ThecurrentquarantinestationinMuseislocatedinthecompoundofprivatecattlefarmatTonKhan, 105milesMuse. LVBD havemade a contract with the farm owner to hold the cattlebefore exporting to China. All cattle coming from legal routes are placed in this farm forquaranrine.Duetothe limitedspaceofTonKhanquarantinestationtoaccommodateall livecattle,LBVDistryingtosetupanewquarantinestationinKutKhai.Investment inquarantinestationstoupgradethe inspectionfacilitiestotestanimalsforvirusanddiseaseareimportanttomeetthequarantinestandardfromtheexportingcountry.LBVDisplanningtoinvest3.116millionUSDinMuseandMyawadyforupgradingAnimalCheck-pointsin border areas and upgrading animal and animal products export/import process between2018and2023(Wynn,2018).


22

Figure9:LocationofLaboratoryandCheckpoints

MyitkyinarLab(2008)

MuseLab(2003)CheckPoint(1998-99)

LashioLab(2008)

KyaingtonLab(2005)

TarchilakeCheckPoint(1998-99)

Taunggyilab(1985)

MyawaddyCheckPoint(1998-99)

KawtthaungCheckPoint(1998-99)

TamuCheckPoint(1998-99)

Moneywarlab(1985)

Mandalaylab(1985)

MaungTawCheckPoint(1998-99)

Magwaylab(2008)

Patheinlab(1985)

Inseinlab(1977)


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4.Analysisofcattlevaluechain4.1CattleValueChain

Major actors involved in the cattle value chain are farmers, middlemen, agents, agents ofwholesalersinlocallivestockmarkets,exporters,buyers,beefwholesalersandretailersandlocalbeefconsumers.Cattle are collected from small-scale and medium farmers from Central Dry Zone (Magwe,Mandalay,Sagaing)andShanRegionsfordomesticandexporttrade.Currentlythecattletradeisbooming and the value chain actors including farmers, collectors, brokers and agents ofwholesalers in local livestock market have accrued benefits due to the good market price ofexportablestandardofcattle.ExportersplacethecollectedcattleatthetemporaryfarmsofCentralDryZoneuntiltheyreceiveanexportpermit.Afterthat,cattlearetransportedbytrucktoMuse.CattlebuyersfromChinacomeand see cattle at theMuse105milesQuarantine Station. Chinesebuyersoffer differentpricesdependingonavailabilityandqualitystandardofthestock.Domestically, cattle are tradedbetween the farmers for farmoperations and for growing as abreeder farm for cattle production or for beef market. For beef market, collectors link thepersons holding the slaughters license and butcher license for wholesaling and retailing. TheopportunitiesandconstraintsofeachactorwillbediscussedinSections4.2and4.3.


24

Figure10:CattleValueChaininMyanmar

4.2ConstraintsForFarmersFarmershavenotyetbeenabletotakefulladvantageoftheliberalizationofthecattleexporttrade.Ingeneraltheylacktheneededcapitaltocollect100cattle,maintainthematcollectionpointsandthentransport toMuseforsale. Inaddition,applicationprocess toget theexportpermitwasalsonotedasbeingtoocomplicatedforthem.Thefarmgatepriceofcattlefarmeris compressedby transport cost, feed cost, license and toll fees provided from cattle trader.This impacted the highermarketingmargin between the farm gate price and exportmarketprice.

CattlefarmersfromMagwe

ExportableStandardCattle

Cattlefarmersfrom

Mandalay

CattlefarmersfromSagaing

CattlefarmersfromShan

Agentsofexporter

DomesticStandardCattle

Exporters

ExportersFarmers,Collectors,Brokers,and

AgentsofWholesalerinLocalLivestockMarket

LicenseesLivecattlebuyersatborder

Localbeefcustomers

Collectors Wholesalers

Licensees

Slaughterhouse Retailers

Farmerforcattleproduction

ExportMarketFlowDomesticMarketFlow


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Case1

USoe,asmall-scalecattlefarmerfromfromKyanKhinvillage,PatheinGyivillagediscussed that the price/ tax for an export permit is not clear but seemed to beexpensive.Heclaimedthat“wedidnotknowhowtoapplyandwheretoapplyandwhichlevel toapply?”.Hementionedthathe felt therewasnoonewhocanhelpsmall farmers toapply for thepermit toexport and suggested that the townshipveterinaryofficershouldhelpthem.

Case2

UKoKoGyi,smallfarmeranddealerfromChanMyarTharZanTownshiprevealedthat there isno fixedprice for farmer. “Currently, cattle exportsarepermittedandcattlefromallStatesandRegionsareexporttoMusealmosteveryday.Farmersareunable to get export permits and did not get good price because the brokers andtraders already considered the cost such as transportation, checkpoint tolls, cattledriver etc.,. So they reduce theprice fromus. Legalpermits ruin the small trader’sbusinessandrichpeoplemonopolizethecattlemarket.ItwillbebetterifwecansellthecattleatourfarmandtheChinesebuyercametoourplace,whichcanalsosolvetheunfairpriceproblem.”

Case3

U Hla Shwe, cattle farmer and trader from Magway Township explained thatcollectingthecattle,enoughplacetoholdthecollectedcattleandfeedareproblemsnow. “I established the cattle farm for the last four years and have only 20 to 30cattle.AlthoughIgotprofitinthefirstandsecondtimeoftrading,Ididnotgetprofitin the third time. This is because of the long verification process of LBVD aftercollecting 100 cattle for the approval of export permit. It costsmemuch in cattlefeedingandmaintenancefortwomonths.”


26

ForcollectorsandagentsCollectors and agents link the farmers, traders and departmental personnel. Although theexporttradeisnowlegalized,themovementofthecattleinsideMyanmarisstillrestricted.Thecollectorsmeetdifficultiesintransportingthecattlefromoneplacetoanother.Movementofcattle needs permits from government agencies such as theMyanmar Police Force and theLBVDaswellasvillageadministrators.Cattlecollectorscarrythecattlewithtruckfromnearbyvillages of Dry Zone to Mandalay. Sometimes, cattle become tired or injured duringtransportationanddonotgotgoodpriceinMuse.Theremaybelegalandillegalpaymentstoconcernedauthorities.WhencattlearrivefromMandalaytoMuse,tradersconnectagentsfortheverificationprocessofexportlicenses,recommendationofLBVDtoDOT(inaccordancewiththerequirementofthebuyer and specification of importing countries) and health certificates. After validating of allrequireddocuments, theagents informed trader toprovide thewithholding taxof2%of theamountoftradingtothegovernment.

CaseStudy4

UKhinMaungKyaw, cattle farmer and trader fromPakkokuTownshipmentionedthat the cost of feeding for 100 cattle was around 150,000 MMK per day. “Afterverificationprocess,assoonaswereachMuse,wesellthecattlewiththepricesetupby the Chinese buyers. Now, the cattle breeding of small farmers has decreasedbecauseofpricecompressioninlocalmarket.Thisisbecause,costsareaddedtothecattleprice,suchasfeedcost,transportation,commissionfee,townshiplicenseeandtollspoints.”

Case5

MaNanShaneMay,headoftheagentsinthe105miletradezone,providedaserviceforprocessingverificationofexportdocumentsinDOT.Shereportedthat,“thisisthebusinessthatIhaveengagedinforthelastfourmonthsandIworkedasfruitsagentbefore that”. There are around five personswho are working as cattle agents.Wehave to collect all required documents form traders and submit toDOT to get theexportpermit.Theverificationprocessdoesnottakestimeandlastsonly1or2days.TraderscanselltheircattleafterarrivingtoMusewithin3days.


27

ForwholesalersandexportersMajorconstraintsforwholesalersandexportersaretimespentonapplyingthepermitduetolengthyprocessofverificationfromLBVD,valueaddedtocattleprice,poormarketstructure,scarcity of feed and less numbers of cattle in the local cattlemarket and the uncertainty ofmarketpriceattheendpoint.IncreasingnumbersofcattleexportersmeansthattheLBVDhasinsufficientpersonneltoundertaketheverificationprocessinatimelyfashion.Duringtheverificationperiod,exportershavetofeedthecattlewiththeaveragefeedcostof1500MMKpercattlewhichcost150,000MMKofadditionalfeedcostperdayfor100cattle.The longer theperiodof permit verification, thehigher the feed cost is. Further, there is noenoughspacefor100cattleononefarmandtradershavetolocatethecattleseparately.Whenthe export cattle are predominately located in one region (Mandalay), traders face a feedshortageproblem.Addingfeedcosts,maintenancecostsandtransportcosts lessentheprofitmarginofthetraders.Traderswhoexportcattlethroughillegalroutesreportedlycanearnupto 2-3 times the profit of those that export through legal channels. Chinese buyers set upexport price at the cross-border. The given price is based on lots of cattle size and highernumber of stocks at the border point. In fact, Chinese buyers are brokers and they have noimport/exportcompanies.

Case6

UMyatKhunThar, cattle farmerand trader ofRoyalPyawBweCompany complainedthat the verificationprocess forpermit takes twomonthsand threedaysnow.He saidthat in thepast itonly tookonemonth. Hesuggested, ifpossible, thathewould liketorequest the Government to set up the fixed market price or bilateral discussion onnegotiation of price with China Government. Currently, Chinese buyers have nocompaniesandcomeandbuyourcattlebyholdingonlyonemobilephone.”Iamalwaysworriedwhenever these buyers bought the cattle becausemoney is transferred 2 or 3daysafterbuying.”


28

Fordomesticbeefwholesalers,retailersPermission is requiring not only for live cattle trade but also for slaughter. If the slaughterperson wants to carry the cattle from other township, it is necessary to have the requireddocuments such as licenses, recommendation from the veterinary officer and the townshippass for transport. Without these documents, the person in charge of each checkpoint canarrest and take action. Some illegal slaughterers negotiate at the checkpoint and avoid thepunishment.TheslaughterlicenseholdersfromMandalayalsoillegallybuybeeffromotherregions,mostlyfromMagwayandSagaingregion.Itischeapertobuybeeffromotherregionsinsteadofbuyingcattle.Thebeefpriceis7100kyatsperviss inMagwaywhichis1900kslessthanMandalay. Inorder todothat, theslaughterpersonneedstopayacertain feetothe legalcattle trader inrespective townshipor regions tobuybeef and carry toMandalay and checkpoint tolls. Thisincreasesthepriceofbeefforconsumers.Itwillbebetterforbeefmarket,ifthegovernmentallowsbeefandcattletobetransportedfreelyinallregions(Htun,2018).

Case7

U Le Shaw, cattle farmer and trader ofWan Ywal Company suggested that it will bebetter if there ismore space to hold the cattle inMuse.He explained that “ Currently,thereisonlyoneregisteredfarminTonKhan,Musebesidethequarantinestation.”Thefeed cost andmaintenance per cattle is 4000MMKand it costs 400,000MMK for 100cattleitmakesmyprofitlower.”

Case8

UZawMoeTun,managingdirectorofHighHillcompanyarguedthatthereshouldbeanexact verification period or permit to reduce the unnecessary and additional cost fortraders.“AlthoughIgotaprofitofaround1.5millionMMKperheadinthefirsttrade,Icouldnotcoverfeed,transportandlabourcostsinthesecondtrade.Uncertaintyofcross-borderexportpricefromunnamedChinesebuyersexposedmetoriskandIwishthattheGovernmentcanstructurethegoodmarketforthesakeofcattlefarmersandtraders.”


29

ForinternationallivecattlebuyersThe cross-border trade inMuse is still semi-formal tradeand thehealth certificate issuedbyLBVD isnot fullyaddressing theQuality standards imposedonexportedand imported items;standardssetbytheGeneralAdministrationofQualitySupervision,InspectionandQuarantine(AQSIQ) of China. However, the vaccinations of LBVD for health certificate of export cattleincludeAnthrax,HemorrhagicSepticemiaandBlackLegorBlackQuarterfortheprotectionofinfectiousdiseasesprevalentinthecountry.


30

Figure11:ValueChainMapandConstraintsofMajorStakeholdersofLiveCattleTrade

4.3.PotentialForfarmersFormalizingthecattletradecanbenefitthefarmersduetothehighdemandforcattle.Farmershavepotential toexpandthecattle farmingby frequentsellingandbuying. If the farmercandirectly sell their cattle atMuse or in the localmarket, itwill be better andmore profit forfarmer.Althoughtheallottednumberofcattleperpermitis100,farmerscangrouptogetherandapplyfor an export permit as a farmer group. Given favorable agro-climatic conditions and long

CattlefarmersfromMagwe


Cattlefarmersfrom

Mandalay

CattlefarmersfromSagaing


Constraintsoffarmers• lowerprice• nocapital• impossibletoapplypermit(100cattleperpermit)

• nocattletransport

• paytolicensee,authorities

Agentsofexporter


Exporters

Constraintsofcollectorsbrokersandagents• Restrictionsondomestictrade(transport)

• permissions• Paymenttolicenseeandauthorities

Constraintsofwholesalersandexporters• Timespentonapplyingpermit

• Valueaddedtocattleprice

• Nofixedprice• PriceisbasedonChinesebuyer

• Poormarketconditions

Constraintsofinternationallivecattlebuyers• Illegal/legalcattle• Healthcertificate(visualexamination)

• InternationalQuarantineStandards

Exporters

Wholesalers

Farmers,Collectors,Brokers,and

AgentsofWholesalerinLocalLivestockMarket

Licensees

China,Thailandlivecattlebuyers

Localbeefcustomers


Licensees



Constraintsofdomesticbeefwholesalers,retailersandcustomers• Illegal paymentadded to beefprice

• Monopolizelicense

• Licensee controlbeefmarket



31

experienceofcattlebreeding there isgoodpotential for farmers toexpand fromfromsmall-scaletocommercialbreeding.Further,theGovernmentistryingtoconfinecattleexportingtogroupsororganizationswhohavecattlefarmsandplantocontinuethecattlebusinessinthelong run. This will encourage the small and medium scale cattle farmers to become moreinvolvedincattleexportmarketingchannel.

ForcollectorsandagentsCollectors and agents also benefit in the cattle value chain in terms of commission fees fortransportingthecattlefromMandalaytoMuse,feesfornegotiatingbetweenbuyerandsellerandagentfeesforprovidingtheserviceofofficialprocessingofexportdocuments.

Case2Continued…

UKoKoGyi,smallfarmeranddealerfromChanMyarTharZanTownshipsaidthat“thetrader andanimalhusbandrygot information about the export frommeetingwith thegovernmentauthorities.Ithinkitwillbenefittothefarmerifthegovernmentlimitstheprice atMuse becausemost of the small trader sold their cattle at the price given byChinesetradersatMuse.Mostly,bothlargeandsmalltraderdidnotgotthegoodpriceatMuse”. The farmers already have long experience in cattle breeding and if thegovernment limits the fixedprice forChinesebuyer, I thinkcommercialcattlebreedingwillbecomedeveloped.”

Case9

Dr.ThanMyoOo,headofquarantinestation,fromToneKhan,105milesMuseCheck–Pointsdiscussedthat“Iobservedthattraders,buyersandbrokersgotmorebenefitthanactual cattle farmer. Although one farmer cannot afford to apply for 100 numbers ofcattle, they should try and group and export together. The profit will increasesignificantly as they don’tneed to expend extra costs for feed and places to locate thecattle.”.

Case5continued…

MaNanShaneMay,headof theagent in105mile trade zone reported that “I got400,000 to500,000MMKofagent fees foronepermitofcattle.Wetakeagent feesper truckandtheaverageagent feeperonecattle truck is100,000MMK.This isagoodbusinesscomparedtoworkingasafruitagent.Inonemonth,Ihaveprovidedservicesfor4or5companiesandmymonthlyincomehasincreased.”


32

ForwholesalersandexportersWholesalersandexportersgotthehighestprofit inthechain if theycanmanagethecostsoftransport,feedingandholdingfacilities.Theycangetcertainamountofprofit inashorttimeandgothigherpricethanthelocalmarket.Exportershavehugecapitaltooperatethebusinessand enough potential to develop commercial breeding farms. Despite collecting cattle fromvariousplaces,exportingthecattlefromtheirownfarmswillpotentiallybringmorebenefitandsustainthecattletradeforthelongrun.ForinternationallivecattlebuyersChinesebuyersareabletobenefitbybuyingcattleatalowerpricethanintheChinesemarket.Theycanbargaintheprice fromthe legaland illegalmarketsandcontrol themarketpriceatborder.

Case8Continued…

UZawMoeTun,managingdirectorofHighHillcompanymentionedthat,“Iguess,cattlebusinesswill stop if theGovernmentdid notplan for commercialbreeders. Iknowcollectingthecattlefromhereandthereandexportingwill lessenlocalcattleherds.Iwelcometheproposedplanofthegovernmenttomakethetradesustainable..andIwilltrytochangemybusinessfromnaturaltocommercialbreedingfarm.”


33

Cattlefarmers

fromMagwe


Cattlefarmersfrom

Mandalay

Cattlefarmers

fromSagaing


Opportunitiesoffarmers- Expandcattlefarming(commercialcattlefarming)

- Frequentselling/buyingcattle

Agentsofexporter


Exporters

Opportunitiesofcollectorsbrokersandagents• CommissionfeefortransportingcattletoMuse

• Feefordealingbetweensellerandbuyer

Opportunitiesofwholesalersandexporters• Certainamountofprofitwithinshorttime

• Higherpricethanlocalmarket

Opportunitiesofinternationallivecattlebuyers• Cheaperthanothercountries

• Illegaltrading(toavoidtax)totheircountry

• Enoughsupply

Exporters

Wholesalers

Farmers,Collectors,Brokers,andAgentsofWholesalerinLocalLivestockMarket

Licensees China,Thailandlivecattlebuyers

Localbeefcustomers


Licensees



Opportunitiesofdomesticbeefwholesalers,retailersandcustomers• Higherpricethanlocalmarket

• Growingdemand


Figure12:ValueChainMapandOpportunitiesofMajorStakeholdersofLiveCattleTrade


34

5.Implications5.1ForTrade(likelynumbersofcattleinvolved)Thecurrentlegalpermitisfor100cattleperpermit,whichislargecapitalforsmallfarmers,andonlylarge-scaleandmediumscalefarmerswhohaveenoughcapitalareabletotradewiththispermit.Atpresent,70%ofcattleexportersarethetraderswhohaveexportlicensefortradeanddidnotownthecattlefarm.Marketoutletsofexportcattlearefivedayslivestockmarket,dealers and brokers. The small-scale farmers trade their cattle depending on the given pricefromthebuyers.When legalpermit forcattleexport isavailable, thesmall-scale farmerscansell theircattlewithhigherprice (dependonqualityofcattle)andmore frequently.But theystilldonothavefixedpricefortheircattle.Pricedifferentialbetweenthemarketpriceofcattlefarmers(gotfromthebrokers,dealersandtraders) and export price is still high because they have not enough numbers of cattle for apermitorcapitaltoexportthecattlebythemselves.Despiteapprovingonlyregisteredexportcompanies, considerationon theapplicationof cattlepermit for small-scale farmergroups (agroup which have two or three farmers who own 20 to 30 cattle per farm) should beconsideredbyLBVDforthebenefitofsmallcattlefarmers.Alternatively,thenumbersofcattleperpermitshouldbeadjusteddependingonthetypeof traders.Encouragingthesmall-scalefarmers tobe involved in theexport sectorwill benefit themwith thehighestprofit of theircattletobeinvestedagaininthecattlebreedingwillachievethesustainablecattlevaluechaindevelopment.Therestrictiononexportqualitysuchasallowablesizeorweightofcattleshouldbereleased.Recent cattle trade is informal and there is no official trade specification imposed from theimportedcountry.Quality restrictionofexportcattlesizeenhancestheblackmarket throughillegalroutesandthegovernmentrevenuewillbelostfromtaxexemptfromillegaltraders.5.2TheEconomics(Cost,pricesandmargins)ForSemi-fomalexportsFor semi-formal exports, the additional costs on top of the local market price of cattle aretransportationcost,inspectionfees,feedcostduringtheverificationprocessofexportpermits,maintenance costs and withholding tax. The average domestic transportation cost rangesbetween160,000and200,000MMKperhead.The transportation route isCentralDryZone-Mandalay-Museontruckscarrying20to25head.OnthewaytoMuse,tollssuchas16miles,Yay-PuGateand105milesgatecheckthenecessarydocumentsforcattleexport.The informal toll fees for tradingdiffer fromonetownship toanother, ranging from3,000to5,000MMKperhead.BeforeexportingtoChina,thecattlearekeptinatemporaryfarmwhere


35

thefeedingandmaintenancecosts15,000Kyatperhead.Ifthefarmerorsmalltraderwantstoexport theircattlebut theydon’thaveanexportpermit, theycanalsogive40,000MMKperhead to the traderwhohas an export permit. This traderwill take care the cattle until theyarrivetoMuse.Theestimatedpriceforexportqualitycattleisaround1,600,000to2,000,000MMKperhead.Theaverageprofitmarginof cattle is around161,203Kyat foraverageexportqualityand to232,343Kyatforgoodexportquality(Table11).Forinformal/illegaltradeIllegally,sometraderscollectedthecattlefromthefarmersandexporttoMuse.Largetradersusedtheillegalroutesbymixingwiththetruckforlegalroutes.ThisisrelativelyeasytodoastheyhavetopassthesameroutefromDryZoneandMandalaytoMuseasthe legaltraders.Some small traders drive the cattle on foot by using jungle routes. They have to pay cattledriver,tollfee,illegalpaymentsandthetownshiplicensee(whichdifferwithregion,from6,000kyats to 12,000MMK per head). It is not allowed to transport cattle from one township toanotherwithoutpermissionand it is illegal. If thecattleareboughtfromothertownship,thebuyer has to pay for transport charges or cattle driver, legal cattle traders; checkpoint tolls(includebothlegalandillegalpayment).

Table11:CostandReturnAnalysisofExportCattleVariables

LegalRoute IllegalRouteAverage

ExportQualityGoodExport

QualityAverageExportQuality

GoodExportQuality

AverageMarketingCost(percattle) 1507066 1807066 1406000 1706000Cattlepriceatcattlemarket,dealersandbrokers

1200000 1500000 1200000 1500000

Feedandmaintenancecostduringverificationprocessofpermit(foronemonth)

45000 45000

DomesticTransportation(DryZone–Mdy-Muse)

200000 200000 200000 200000

Tollfees 3000 3000 6000 6000Inspectionfees 6666 6666 FeedandmaintenancecostatMuse 15000 15000 AgentFees 5000 5000 WithholdingTax 32400 32400 AverageExportPrice(percattle) 1668089 2039409 1668089 2039409 AverageRevenue(percattle) 161023 232343 262089 333409


36

Source:(105milesTradeZoneandRespondents)Theeconomicsofcattletradersaredifferentdependingonthedifferentmarketingcosts.Inthecross-bordertradewithChina,exportersusedlegalandillegalroutes.Traderswhoexportthecattlethroughillegalroutesgotahigherprofitmargincomparedtothetraderswhoexportthecattlethroughlegalroutes(Table11).Thisisduetothefactthatillegaltradersdonotpaytaxanddonotneedtopayinspectionfeesandfeedandmaintenancecosts.For the legal exporter, feeding cost of cattle during the regular permit verification processshares2%ofmarketingcost.However,thelongertheverificationprocesstheyhave,thehigherfeedingandmaintenancecostare.Developingtheverificationsystemasaonestopservicewillshortentheprocessandreducethecostsoflegaltradeincattle.Chinese brokersmonopolize the exportmarket atMuse.When there are a large number ofcattle arriving fromMandalay, the price given by the buyers is low. The price is set up asmaximumandminimumdependingonthesizeandqualityofthecattle.The unit price of exported cattle is 1200 USD and the total value of trade for 100 cattle is(120,000USD).Theexportershavetopay2%withholdingtaxoftotaltradevalue.Therefore,withholdingtaxfor100cattleis2400USDandforonecattleis24USD(Theaverageexchangerateis1USD=1350MMKandwithholdingtaxforonecattleinMMKis32,400).Completely formalizing the trade with China and reducing the voume of cattle exportedthrough informal channels will increase the flow of money from export taxes to thegovernmentrevenue.5.4ForAnimalHealthQuarantine stations are mainly responsible for inspection of export/import licenses, exportpermission, and issuing animal health certificates which include laboratory test resultsapprovedbyveterinarianandvisualexaminationsofanimals.InMuse,thequarantinestationislocatedatToneKhan,105milestradezoneandcheckstheexportanimalsbyvisualobservationandsendthebloodtesttolabifnecessary.TherequiredocumentsforQuarantineCertificateoflivecattleexport

(a) Animalhealthanddevelopment/preventionandcontrolform-1(AHD/PC-1)(b) Animalhealthanddevelopment/preventionandcontrolform-3(AHD/PC-3)(c) Animalhealthanddevelopment/preventionandcontrolform-7(AHD/PC-7)(d) Summaryofhealthcertificate(e) Recordofanimalquantityontransportationvehicle(f) PermitfromMinistryofTrade


37

(g) PermitfortransportationCurrently, export to China is semi-formal and there are no quality standards imposed onexportedcattlebytheChineseauthorities.Whenthetradeisfullyformalized,qualitystandardsofexporteditemswillneedtobeinspectedinaccordancewiththeGeneralAdministrationofQualitySupervision,InspectionandQuarantine(AQSIQ)ofChine.

AppendixesAppendix1:PopulationofCattleinState/Region(‘00000)


38

No. State/Region 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

1 Naypyitaw - 2.19 2.23 2.29 2.34 2.41 2.482 Kachin 3.14 3.31 3.48 3.58 3.64 3.71 3.783 Kayah 0.83 0.85 0.87 0.89 0.92 0.95 0.984 Kayin 3.27 3.37 3.46 3.56 3.66 3.75 3.855 Chin 1.52 1.57 1.62 1.68 1.74 1.80 1.866 Sagaing 22.49 22.98 23.47 23.99 24.57 25.27 26.097 Tanintharyi 1.47 1.50 1.54 1.58 1.62 1.66 1.708 Bago 13.95 14.27 14.58 14.91 15.23 15.56 15.89 Bago(East) 6.96 7.11 7.26 7.42 7.57 7.73 7.89 Bago(West) 6.99 7.16 7.32 7.49 7.66 7.78 8.009 Magwe 22.66 23.72 24.88 26.07 27.29 28.56 29.8610 Mandalay 22.07 20.52 21.17 21.86 22.55 23.26 24.0011 Mon 4.46 4.60 4.75 4.9 5.06 5.21 5.3712 Rakhine 8.80 9.50 10.25 11.02 11.79 12.57 13.2313 Yangon 5.85 6.01 6.17 6.34 6.51 6.68 6.8114 Shan 13.44 13.90 14.45 14.93 15.43 15.93 16.42 Shan(South) 6.99 7.26 7.61 7.89 8.19 8.49 8.79 Shan(East) 1.32 1.36 1.41 1.45 1.49 1.53 1.57 Shan(North) 5.13 5.28 5.43 5.59 5.75 5.91 6.0615 Ayeyarwady 11.71 11.94 12.18 12.33 12.46 12.60 12.75 Union 135.6 140.23 145.10 149.93 154.81 159.92 165.07Source:LBVD

Appendix2:PopulationofCattleinState/Region(‘00000)


39

No. State/Region 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17

1 Naypyitaw - 0.68 0.68 0.68 0.69 0.70 0.702 Kachin 2.26 2.42 2.58 2.67 2.70 2.74 2.773 Kayah 0.31 0.32 0.33 0.34 0.35 0.36 0.374 Kayin 0.82 0.86 0.89 0.92 0.95 0.99 1.025 Chin 0.43 0.45 0.46 0.48 0.50 0.52 0.546 Sagaing 4.32 4.43 4.55 4.67 4.79 4.94 5.107 Tanintharyi 1.43 1.47 1.51 1.56 1.59 1.63 1.688 Bago 2.88 2.96 3.04 3.12 3.20 3.28 3.37 Bago(East) 2.41 2.47 2.53 2.59 2.65 2.71 2.78 Bago(West) 0.47 0.49 0.51 0.53 0.55 2.57 0.599 Magwe 1.21 1.29 1.39 1.49 1.59 1.69 1.8010 Mandalay 1.30 0.66 0.68 0.70 0.71 0.72 0.7311 Mon 0.84 0.86 0.89 0.91 0.94 0.96 0.9912 Rakhine 3.29 3.49 3.68 3.88 4.07 4.26 4.4313 Yangon 1.37 1.42 1.47 1.52 1.57 1.63 1.6614 Shan 7.05 7.32 7.62 7.91 8.19 8.49 8.78 Shan(South) 2.82 2.94 3.08 3.20 3.33 3.47 3.60 Shan(East) 1.41 1.46 1.51 1.57 1.62 1.67 1.72 Shan(North) 2.82 2.92 3.03 3.14 3.24 3.35 3.4615 Ayeyarwady 2.23 2.27 2.31 2.34 2.38 2.41 2.44 Union 29.74 30.90 32.08 33.18 34.22 35.32 36.38Source:LBVDAppendix3:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTradeZone(inMarch2018)


40

DateExchangerate Buffalopriceperhead(Yuan) Cowspriceperhead(Yuan)

YuantoMMK

MMKtoUSD Min Max Min Max

1.3.2018 205 1340 10600 11024 8048 97563.3.2018 205 1335 10600 11024 9512 107314.3.2018 205 1336 10600 11024 9512 107315.3.2018 206 1336 10600 11024 9512 107316.3.2018 206 1329 10600 11024 10339 103467.3.2018 206 1336 10600 11024 10339 103468.3.2018 206 1345 10600 11024 8734 1043610.3.2018 206 1345 8106 10436 10600 1102411.3.2018 206 1345 7427 10436 10600 1102412.3.2018 207 1333 8019 8067 10600 1102413.3.2018 207 1330 10600 11024 7971 1109614.3.2018 207 1340 10600 11024 8212 869515.3.2018 207 1345 10600 11024 8260 859916.3.2018 207 1338 10600 11024 8502 850217.3.2018 207 1338 10600 11024 7729 772918.3.2018 207 1338 10600 11024 7729 908219.3.2018 207 1332 10600 11024 8405 1062820.3.2018 207 1349 10600 11024 8212 1004821.3.2018 207 1329 10600 11024 7729 884122.3.2018 207 1344 10600 11024 7971 859923.3.2018 207 1338 10600 11024 10200 1020024.3.2018 207 1338 10600 11024 8116 879225.3.2018 207 1328 10600 11024 8116 879226.3.2018 207 1328 10600 11024 8116 879227.3.2018 207 1339 10600 11024 8116 879228.3.2018 207 1339 10600 11024 8116 879229.3.2018 207 1336 10600 11024 9010 995230.3.2018 207 1331 10600 11024 10000 1062831.3.2018 207 1331 10600 11024 10000 10500Source:105MilesTradeZonehttps://www.exchange-rates.org/history/MMK/USD/T


41

Appendix4:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTradeZone(April)


YuantoMMK


2.4.2018 207 1334

8454 111113.4.2018 210 1335 9143 101674.4.2018 210 1332 193806.4.2018 210 1336

7476 11234

7.4.2018 210 1335

8476 100958.4.2018 210 1332

7620 10952

9.4.2018 170 1324

8195 895210.4.2018 210 1326 10000 10952 7666 990511.4.2018 211 1327 10000 10952 7251 1095212.4.2018 211 1332 9953 11611 6327 1064013.4.2018 211 1332 9479 10374 7701 1028414.4.2018 211 1332

10900 6800 9620

15.4.2018 211 1332 7820 9953

1090016.4.2018 211 1332

6635 10900

17.4.2018 211 1325 10427

6256 995318.4.2018 211 1325

6706 10924

19.4.2018 211 1328

7242 962120.4.2018 211 1332

9621

8294

21.4.2018 211 1332

11374 7583 995322.4.2018 211 1332

10332 7583 9100

23.4.2018 210 1336 7976 1000024.4.2018 210 1325 25.4.2018 210 1338 8815 1161126.4.2018 210 1340 11143 6429 904827.4.2017 210 1332 11143 8857 1138128.4.2018 210 1332 10238 8095 976229.4.2018 210 1344 10000 8810 1038130.4.2018 210 1334 10381 7286 10000Source:105MilesTradeZonehttps://www.exchange-rates.org/history/MMK/USD/T


42

Appendix5:CattleandBuffaloexportpriceperheadinquarantinestationofMuse105mileTradeZone(May)


YuantoMMK


1.5.2018 210 1346 10381 8810 10602.5.2018 210 1348 10381 7762 97623.5.2018 210 1350 10714 824 99294.5.2018 211 1346 10664 7867 87205.5.2018 210 1346 10762 7619 99056.5.2018 210 1346 10762 7619 102387.5.2018 210 1344 10762 8000 85718.5.2018 210 1348 10000 8048 91439.5.2018 210 1348 10000 8500 923810.5.2018 211 1334 9953 8104 919411.5.2018 211 1345 9858 7251 924212.5.2018 212 1345 9811 7217 919813.5.2018 212 1344 9670 8443 882114.5.2018 211 1344 10095 7872 985815.5.2018 211 1346 10900 7820 995316.5.2018 211 1345 9336 9573 7820 895717.5.2018 211 1351 7346 8531 781018.5.2018 212 1350 7311 8491 7783 872619.5.2018 211 1350 7346 8531 7488 1033220.5.2018 211 1350 7346 8531 7678 1037921.5.2018 210 1353 7820 7109 928922.5.2018 212 1354 7783 7075 924523.5.2018 210 1355 7820 0 7441 853124.5.2018 210 1355 7725 0 6872 853125.5.2018 210 1356 8009 0 7251 933626.5.2018 210 1356 8009 0 7962 1080627.5.2018 210 1364 9858 0 6825 938428.5.2018 210 1364 8720 0 8152 872029.5.2018 210 1354 6667 0 6667 785730.5.2018 210 1357 6809 9619 7619 1114331.5.2018 210 1357 11048 0 6810 11143Source:105MilesTradeZonehttps://www.exchange-rates.org/history/MMK/USD/T


43

Appendix6:ListofRespondentsNo. Name Gender Age Occupation Address1 UKoKoGyi Male 55 Cattlefarmer ChanAyeTharZanTownship,

Mandalay2 UKhinMaungSoe Male 53 Cattlefarmer ChanAyeTharZanTownship,

Mandalay3 UNyuntAung Male 57 Cattlefarmer AmarapuraTownship,

Mandalay4 UThawZinPhyo Male 22 Cattlefarmer GanVillage,PyiGyiTakon

Township,Mandalay5 USoe Male 60 Cattlefarmer KyanKhinVillage,Patheingyi

Village,Mandalay6 NanShaneMay Female 28 Agentleaderprovidingservice

forprocessingexportlicenceandtaxdocuments

105MileTradeZone,Muse,ShanState

7. UMoeZat Male 49 FarmOwnertoretainthecattleatMusebeforeexportingtoChina

ToneKhan,Muse105miles,ShanState

8. Dr.ThanMyoOo Male 39 AssistantDirector,HeadofQuarantineStation,LBVD,MOALI

QuarantineStation,ToneKhan,Muse105miles,ShanState

9. ULanSanOo Male 52 DeputyDirector,DepartmentofTrade,MOC

105MilesTradeZone,Muse,ShanState

10. UZawMoeTun Male 43 Cattlefarmerandtrader,ManagingDirectorofHighHillCompanyLtd.,

KyaukSeTownship,Mandalay

11. UHlaShwe Male 60 Cattlefarmerandtrader,ManagingDirectorofMinChanTharPinMyintSan,SeinAharyaandSatKhineKhineKyawCompanyLtd.,

MagwayTownship,MagwayRegion

12. UKhinMaungKyaw Male 58 Cattlefarmerandtrader,ManagingDirectorofPyaePhyoTharzanandPanKahtaySanCompanyLtd.,

PakkokuTownship,MagwayRegion

12 ULiShaw Male 44 Cattlefarmerandtrader,ManagingDirectorofWanYwalCompanyLtd.

LewayTownship,NayPyiTawRegion


44

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PhotoRecord

Interviewwithlocalfarmers(dealers,traders)inMandalay

Interviewwithgovernmentofficials,farmowners,tradersandagentsinMuse


48

1.Collectingthecattle


49

2.Transportingthecattle


50


51


52

BriefBiographyofAuthorsTheingiMyintDr.Theingi Myint is an Agricultural Economist working in thefield of rural developmentespecially agricultural marketing and value chain, project planning and management,socioeconomic impact assessment and rural development policy. She started her career inYezin Agricultural University since 1992. She hasmore than 26 years of work experience inUniversity and rural development projects with some International Organizations such asICRISAT,SEARCA, IRRI,CSEAS-KyotoUniversity,ACIAR,WB, IDE,JICA,UNHELVETAS, IFADandGRET etc. At the meantime, she is working as a Professor of Department of AgriculturalEconomics,YezinAgriculturalUniversity,NayPyiTaw,Myanmar.SeinnSeinnMuDr. Seinn Seinn Mu is a Rural Development Specialist working in the filed of developmentplanning,naturalresourcemanagement,projectmonitoringandevaluationandclimatechangeadaptation.ShehasstartedhercareerinMinistryofAgriculturesince2001.Shehasmorethan15 years of extension and research experience affiliatedwithDepartment ofAgriculture andsomeinternationalorganizationssuchasAIT,SEARCA,ADBandICIMOD.Atthemeantime,sheisworkingasanextensionofficerofDepartmentofAgriculture,DistrictOffice,Muse,NorthernShanState,Myanmar.KhinNyeinSanMs. Khin Nyein San is a Forester working in the field of natural resources managementespecially forest management, rural development project and socioeconomic impactassessment. She has an M.Sc in Natural Resources Management from NTNU (NorwegianUniversity of Science and Technology), Trondheim,Norway. For herM.Sc, she had done herresearch on “Impacts on the biodiversity by living inside a protected area, Natma TaungNationalPark,Myanmar;Ahumanperspective”inChinState.ShestartedhercareerasaRangeOfficer since 2011. She has more than 6 years of work experience in natural resourcesmanagementandnowworkingwithHELVETASduringwhichshehasgainedexperiencesinruralagricultural marketing, value chain analysis, socioeconomic impact assessment, sustainablelivelihood development and sustainable agricultural development. At the meantime, she isworking as a Staff Officer of Nature andWildlife Conservation Division, Ministry of NaturalResourcesandEnvironmentalConservation,Mandalay,Myanmar.