Role of Agriculture in Myanmar

Ministry of Agriculture and Irrigation

June 4, 2013

Strategic Location of Myanmar

In terms of geographical situation, Myanmar is located at strategic area between worlds biggest populated countries above one-third of worlds population over 7 billion reside: China with 1.3 billion; India with 1.2 billion and Bangladesh with 150 million.

Role of Agriculture in Myanmar

Myanmar is rich in natural resources, land and water together with favorable weather conditions for crop production. 70% of population, more than 32 million of people, resides in rural 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.

 According to Millennium Development Goals of the United Nations, we are to reduce poverty index from 26% to 16% by the year 2015 and to do so we need to develop agriculture sector relied upon by 70% of our people. In the term of our government basing upon reality, this is most practical task to be carried out with current objective and short term objective. To boost income and to improve socioeconomic status of majority of our people, we need to develop commercial production in agriculture and livestock sectors using land and water resources most effectively. In other words, we need to develop agro-based industries with great momentum.

Poverty Reduction and Millennium Development Goals

Food Security and Prosperity

The farmers and grass root levels are living from hand to mouth. It is sure that they have no time to spare interest themselves in politics and will not able to read newspapers, journals published and watch TV programs broadcast daily inform and educate them. Therefore, this is the situation where the basis producers (the farmers) of agricultural sector are not fully benefited from what they deserve and are forced into poverty (i.e. paddy for 'poverty' instead of 'prosperity'), due to the lack of market access for Myanmar's agricultural produce to other countries. In current situation, it can be easily observed that there are many losses in agricultural value chain as a result of low level of postharvest technology that translate into loss of quality and nutritional values as well as compliance to international market standards.

In this case, I would like to stress the needs to solve the weaknesses in capital, technology and marketing experience in agriculture sector which can be fulfilled by the support of World Bank, ADB, international funding organizations, 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)

Out-dated Milling Facilities

Under-utilization of Fertilizers
Application of chemical and natural fertilizer is a basic need for increase of crop productivity. At present, utilization of chemical fertilizer in agriculture sector of Myanmar is still minimal, average use of 25 kg per acre. Comparison of fertilizer utilization among Myanmar and neighboring rice exporting countries are as follows:Country Myanmar Vietnam Thailand Fertilizer Utilization (mil. MT) (2010) 0.14 2.18 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.
8

Natural Disasters and Myanmar

While putting efforts on agriculture development, rural development and poverty reduction, Myanmar has been facing primary challenges like natural disasters which are the consequences and impacts of Global Climate Change.

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.

2nd May 2008

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

Man-made Environmental Deterioration

Shifting cultivation is one of the causes for depletion of forests and which are primary source of conserving environment and weather conditions to be 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 land cultivation system in order to conserve environment and solve socioeconomic problems of people in the area in the manner of sustainable agricultural production by promoting agro-based Small Medium Enterprises (SMEs) like Tea Industry, Rubber Industry and silk industry which are suitable for climatic condition.

11

Irrigation Networks to be renovated

12

Present Needs
In order to avoid these situations, it is earnestly requested to the world community in order to enable us to fulfilling the basic needs in development process, such as financial capital, technology and experiences. At present, FDI in agriculture sector is still negligible, only 0.4% of total investment, which reflects the need to reconsider both the conditions of supply and demand sides. Apart from FDI incoming, assistance to the agriculture sector in the forms of grants and loans in order to improve developing the infrastructure would be a key to jump start the initial quick-wins.

13

Human Resource Development

For the increased productivity in agriculture sector, role of extension agents and specific experts in research and development activities and linkage between them is crucial. Capacity of agricultural extension agents need to be equipped with the better provision of advanced agricultural methods, market information to farmers for the production of quality and value-added products, which compels expansion and upgrade of present agricultural vocational and academic institutions. At present, one agricultural university in Nay Pyi Taw and 10 State Agricultural Institutes in regions and states, which are spawning out diplomas, bachelors, and advanced Masters and Ph. D. in agricultural sciences, are still lack of capacity to meet the demand. Therefore, establishment of a modern agricultural university in Upper Myanmar and upgrading the present State Agricultural Institutes need to be carried out by international grants.
14

National Workshop on Agricultural Development

In this juncture, region-wise workshops were held to find out needs for agricultural development and finally National Workshop on Agricultural Development was convened with the active participation of all stakeholders on 2nd and 3rd November 2012. Consequently, 11 priority areas and 65 activities for agricultural development were identified as an outcome of this workshop .

15

Priority Areas for Agricultural Development identified at National Agricultural Development Workshop
1. 2. 3. Quality seed production and distribution Systematic and synchronized application of fertilizers 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 nations GDP (2008-09 constant producers prices) The countrys 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 Fallow land Culturable waste land Reserved forest Other forests Other Total 11.98 0.24 5.61 16.90 16.25 16.68 67.66 % 17.71 0.35 8.29 24.98 24.02 24.65 100.00

Rice production in Myanmar

9.0 8.0
Harvested area Produciton

35.0

Harvested area (mil. ha)

30.0

7.0 25.0

6.0
5.0 4.0 3.0 10.0 2.0 1.0 0.0 5.0 20.0

15.0

0.0

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

Years

2010

Production (MMT)

Rice sufficiency and surplus

35.0
Production

4.5
Yield

30.0
Production (mil. tons)

4.0
3.5

25.0 20.0 15.0

10.0 5.0 0.0 1987-88 1988-89 2006-07 2007-08 Years 2008-09 2009-2010

2.5 2.0

1.5
1.0

0.5
0.0

Year

Seed

Loss

Consumption

Utilization Total 12.68 12.93 18.70 18.98 19.23 19.45

surplus Rice (mil. ton) 0.46 0.11 5.86 5.98 6.39 6.34

Sufficien cy % 108 102 165 166 169 168

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

0.48 0.49 0.84 0.83 0.83 0.83

0.72 0.74 1.26 1.25 1.25 1.25

11.48 11.70 16.60 16.89 17.15 17.37

Yield (t/ha)

3.0

Major Rice Producer in the World (2008)

Harvested Area
(Mil.ha) China India Indonesia Bangladesh 29 44 12 12 Rank 2 1 3 4

Country

Yield
(Mt/Ha) 6.56 3.37 4.89 3.99 Rank 1 6 3 4

Production
(Mil.ton) 193 148 60 47 Rank 1 2 3 4

Viet Nam Thailand

Myanmar

7 11
8

7 5
6

5.22 2.96
3.72

2 7
5

39 32
30

5 6
7

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

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

Per Capita Consumption of Milled Rice in Selected Countries

250.00

200.00

150.00

100.00

50.00

0.00

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002
India

WORLD+

ASIA+

Myanmar

China

2004

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
7000
6000
Sown area (thousnad ha)

High yielding varieties

HYVs Hybrid varieties

Yield level of 4 5 t/ ha

5000 4000 3000 2000 1000 0

Local varieties

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 Flow
Seed class Breeder Seed Foundation Seed Responsible Organizations Department of Agricultural Research (DAR)

DAR + Myanma Agriculture Service (MAS) [Seed Division] Myanma Agriculture Service (MAS) [Seed Division]

Registered Seed

Certified Seed

Myanma Agriculture Service (MAS) [Extension Division] + Contact farmers

Future Seed Industry Development [Private- Public-Partnership]

Department of Agricultural Research
Breeder Seed

Myanma Agricultural Service

Foundation Seed Registered Seed

Contact farmers

Rice Specialized Private Co., Farmers

Certified Seed

CONSTRAINTS ON SEED MULTIPLICATION IN MYANMAR

Certified Seed production
Constraints Farmers awareness on seed utilization Ways out Accessibility, precedent, Market, seed Training, media, market producer guarantee, demonstration, producer incentives Small warehouse for own use (round bamboo basket for storing paddy) Fertilizers, pesticides, labour, threshers, harvesters, Rouging cost for purity, water management, farm road, land reforming, dryers, processing Village seed bank farmers groups Subsidy, loan or microfinance, education, knowledge sharing Land policy, formation of farmers groups

Storage facility

Input Limitation

Infrastructure

Seed certification

Field and lab inspection

Produce trained inspectors

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

Rice Ecosystem and Area Distribution % (2009-2010)

Agro-ecosystem Favorable rice ecosystem
Irrigated lowland Rain-fed lowland

% of total sown area 68%

20 48

Unfavorable rice ecosystem

Deepwater Submerge Salt-affected Upland Drought-prone

32%
5 9 3 3 12

Total rice sown areas

8.06 mha.

Research activities for Climate Change

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

Variety 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
Hybrid variety

Hybrid rice field in the Humum village, Lashio townsip, Northern Shan state

43

Hybrid rice field at Nay Pyi Taw

F1 hybrid

F1 hybrid

44

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 Enhance Market

Farmers group

More productivity Good quality Good prices

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.