Food and Beverage to Myanmar Australia

http://www.austrade.gov.au/export/export-markets/countries/myanmar/industries/foodand-beverage#.VRuKP_mUeCk

(Last updated: 29 Jan 2015)

TRENDS AND OPPORTUNITIES

The market
Myanmars modern retail sector is still small in regional terms but growing strongly. The number of
supermarkets and hypermarkets are expanding and the major retailers are broadening their imported food lines
across fresh, chilled and packaged categories. A range of Australian products are available in supermarkets
that cater to expatriates and the emerging middle class. Retailers are interested in new product offerings,
particularly in the fresh, healthy and baby food segments.
The hospitality and tourism sector is growing strongly, with visitor numbers from Australia anticipated to rise as
well following the signing of an air services agreement between Myanmar and Australia in early 2015. (Source:
eGlobal, Myanmar and Australia agree on new bilateral air pact, 14 Jan 2015)
This is driving demand for premium food and beverages from hotels and restaurants that cater to tourists,
business travellers, expatriates and the middle class. As a result, there are niche opportunities for Australian
suppliers.

Australia supplies food products for the processing and manufacturing sectors, particularly for noodles and
bakery products. Australias largest export to Myanmar is wheat, which increased by 45 per cent to A$96 million
in 2013/14 or 68 per cent of Australias merchandise exports to the country (Source: Department of Foreign
Affairs and Trade, Burma Country Fact Sheet (PDF), 28 Jan 2014). Other significant items for food processing
include dairy ingredients such as milk, butter and cheese powders.
Growth of Australias exports of wine to Myanmar has been severely curtailed since late 2013 due to the
enforcement of restrictions on who can legally import alcoholic beverages (hotels and duty free stores only). If
these restrictions are relaxed as has been proposed, it is likely that demand would rebound, though volumes
would still be small relative to other markets in the region.

Opportunities
There are number of opportunities open to Australian suppliers, including:
Retail

fresh fruit and vegetables in season stone fruit, apples, citrus, table grapes, avocados, salad
vegetables, mushrooms, etc.

processed foods cereals, biscuits, pasta, pasta sauces, chocolate

dairy UHT milk and cream, cheese, yoghurt

baby and infant food formula, sauces, nutritional products

healthy food (including organic and gluten free).

Food service and hospitality

premium/gourmet food and beverages

dairy catering packs.

Food processing

grains wheat, barley

dairy-based food ingredients milk powder, cheese and butter powder.

Competitive environment
The main competitors across the food industry for Australian exporters are:

fresh fruit and vegetables USA, China, Thailand, local producers

dairy New Zealand, EU

processed foods Thailand, Malaysia, China, Japan, Korea, USA, UK, Europe, Singapore

fruit juice Thailand, South Africa, EU.

TARIFFS, REGULATIONS AND CUSTOMS

Tariffs
Myanmar is a member of the ASEAN Australia New Zealand Free Trade Area (AANZFTA). Reflecting its lower
level of economic development, Myanmars commitments to reduce tariffs under AANZFTA are being phased in
at a slower rate than other parties to the agreement. Tariffs will start to fall on most items either in 2015 or
2020. Visit the ASEAN tariff finder for tariffs on specific products.
Food import procedures
There are no specific quarantine requirements for exports of fresh fruit and vegetables from Australia to
Myanmar. For more information, visit the Australian Department of Agricultures Manual of Importing Country
Requirements (MICoR)

The Ministry of Commerce issues import licences for most food products. The Department of Food and Drug
Administration (FDA) is responsible for inspecting and clearing imported food at the border.
Importers must obtain a food import licence for each product line being imported (i.e. each SKU requires a
separate licence). Food import licences will only be issued if the importer presents a food safety
recommendation for each food product. Food safety recommendations for most products are issued by FDA. A
limited number of products require a recommendation from the newly formed Meat Inspection Board and the
Ministry of Livestock and Fisheries, including fresh meat and fish products.
The application to the FDA for a food safety recommendation must be accompanied by:

an application letter

a product sample of 1.5 kilograms or 1.5 litres

a certificate confirming that the product is allowed for sale as food in the country of origin (a free
sale certificate)

product specifications containing the following information:

product description

ingredient list

physical and chemical analysis

nutritional information

microbiological standards

packing

storage and shelf life.

manufacturing licence

payment of the relevant fees.

The FDA reviews these documents and carries out a laboratory inspection on the product.
If granted, the FDA recommendation lasts for two years. The next time a consignment of the same product
arrives in Myanmar, a further recommendation isnt needed from the FDA up until the two year expiry.
Alcoholic beverages may only be imported by hotels and duty free stores.
Food labelling requirements
Food labelling is the responsibility of the Myanmar Food & Drug Administration, which comes under the Ministry
of Health. The relevant law is the Myanmar National Food Law 1997.
Following are the labelling requirements for pre-packaged food:

brand name of the product to be imported

kind of food and flavour

ingredients

net content or net weight

manufacturers name and address

country of origin

name and address of distributor in Myanmar

allergy information

nutrition information

storage instructions (especially for frozen food)

cooking instructions (if applicable)

English language is acceptable.

A label containing the distributors details can be attached either:

by manufacturer/supplier prior to import into Myanmar.

by the distributor after the goods have arrived in Myanmar.

While both options are allowed by the FDA, labelling prior to shipment means that the product can be both
cleared by Customs and registered with the FDA on arrival. The Customs Department forwards the paperwork
together with samples to FDA. If the label is attached by the distributor after the goods have arrived in
Myanmar, a separate application to FDA will be required once the labels have been attached.

MARKETING YOUR PRODUCTS AND SERVICES

Market entry
Local agents or distributors with specialist industry knowledge and established networks are generally the best
way for Australian food and beverage exporters. This is to build market contacts, navigate regulatory and
procurement processes and identify emerging opportunities.
Australian exporters wishing to enter the Myanmar market should plan a preliminary visit to meet potential
agents, distributors, customers and relevant government agencies. Once a relationship with an agent or
importer is established, regular visits should be made two to three times a year to maintain relationships and
develop new leads.

Distribution channels
Myanmar has a traditional distribution structure of importer, distributor, wholesaler, retailer, though the largest
retail companies are vertically integrated across the whole distribution chain. The larger firms also have trading
companies in Singapore or Thailand that place orders and organise payment for shipments.

Hotels and restaurants generally order product through local importers and distributors rather than dealing
directly with international suppliers.
Austrade Yangon is able to help identify potential local partners for interested Australian companies.

Transport
Most imported products arrive by sea through Yangon port, Myanmars busiest port. Road transport overland
from neighbouring countries, particularly China and Thailand, is possible but the road systems are generally
poor and road freight rates can be very high.
There are a growing number of direct air links with key Asia cities, and these provide a channel for air freight for
perishable items. Air freight routes from Australia are typically through Singapore, Kuala Lumpur or Bangkok
airports.