Investment Opportunities in Agriculture Sector of Myanmar

1. Investment Opportunities in Agriculture Sector of Myanmar Aung Hlaing Deputy Director-General Department of Agricultural Planning Ministry of Agriculture and Irrigation

2. Contents • Country Profile • Current Status of Agri-Business and Investment in Myanmar • Opportunities for Investment in Agriculture Sector • Balance Sheet • Conclusion

3. Country Profile Nay Pyi Taw. *Encarta 2009

4. Basic Country Data Land Area: 676,577 sq. km. Population: 59.78 million Export: US$ 9.135 billion* Import: US$ 9.035 billion* Main Exports: Agriculture, livestock and forestry products, natural gas Main Imports: Machinery, transportation & construction material, industrial raw materials, consumer goods *2011-12

5. Role of Agricultural Sector 36% of GDP (including crops(27%),livestock & fisheries (8%) and forestry (1%)) 61% of Labor Force 28.1% of Export Earnings (crops (16.6%), livestock & fisheries (4.9%) and forestry (6.8%)) Source: Ministry of Agriculture and Irrigation (MOAI) 2012

6. Land Utilization in Myanmar Net Sown Land: 12.3 mil. ha. (18%) Waste Land: 5.4 mil. ha. (8%) Forest Land 33.5 mil. ha. (50%) Other Land 16.5 mil. ha. (24%) Total 67.7 mil. ha. (100%) Source: MOAI 2011-12

7. Land Utilization in Myanmar Net Sown 10.8 mil ha (16%) Net Sown 12.3 mil ha (18%) Other Land 16.5 mil ha (24%) Fallow 10.8 Waste Land 5.4 mil ha (8%) Forest Land 33.5 mil ha (50%) Source: MOAI

8. Recommended Crops for the Regions Source: MOAI 2011-12

9. Current Status of Agri-business and Investment in Agriculture Sector

10. Agricultural Trade Policy Domestic Agricultural Marketing Released all government controls on all crops including quota purchase on rice, sugarcane, cotton and rubber Farmers can trade their produce freely in domestic markets

11. Agricultural Trade Policy (contd.) Export Marketing Exports of rice is being allowed to private companies based on the assurance of surplus rice Other crops (e.g. pulses, oilseeds such as sesame, groundnut etc. and industrial crops such as jute, kenaf, rubber etc. and fruits and vegetables) have no restriction to export New commodities for value-added agricultural commodities are also being encouraged to export

12. Agricultural Exports (FY 2012) Source: Ministry of Commerce, Myanmar

13. Legal Framework for Investment Liberalized domestic and export markets in agriculture sector since 1988 Foreign Investment Law (2012) State Economic Enterprises Law (1989) Private Industrial Enterprise Law (1990) Promotion of Cottage Industrial Law (1991) Myanmar Citizens Investment Law (1994) Burma (Myanmar) Company Act Source: Myanmar Investment Commission

14. Types of Foreign Investment 100 percent foreign own Joint venture with private sector Joint venture with public sector Source: Myanmar Investment Commission

15. Land Tenure System • All the lands are owned by the State • Land Nationalization Act (1953) • Land Tenure Law and Rules (1963) • Farm Land Law (2012) • Vacant, Fallow and Virgin Land Management Law (2012)

16. Opportunities and Limitations

17. Rice Industry Supply Chain in Myanmar Ministry of Agriculture & Irrigation, Ministry of Commerce, UMFCCI (Legal and Regulatory Bodies) Seed Industry R&D + Extension + MIS Export Retail & Wholesale Outlets Fertilizer & Pesticides Producers (Farmers) Milling and Byproducts Industry Supermarkets Machinery Industry Hotels & Restaurants IrrigationTechnology Middlemen, Buffer Institutional Buyers OtherClusters Food Industries Transport & Logistics Cooperative Finance & Insurance Quality Institutions Consumer Society Source: MIS, DAP, MOAI

18. Opportunities for Investment in Agricultural Supply Chain • Input Industries • Seed Industry • Agro-Chemical Industry • Fertilizer Industry • Pesticide Industry • Agricultural Machinery Industry • small-scale agricultural machines at low cost, large-scale machines for bigger farmers and rental services • Irrigation Technology Industry • Dams and reservoirs, ground waters, hydro-powers • Technologies for water harvesting and water saving

19. Opportunities for Investment in Agricultural Supply Chain (Contd.) • Production and Processing Industries • Plantation Industry • On- and off-season food crops, oilseed crops, bio-fuel crops, fruits and vegetables, industrial crops and perennial crops • Processing Industry • post-harvest and value-added processing industries that include quality milling, storage and packaging technology industries • R&D Industry • production, processing, value-addition and marketing in all aspects of commodity value chains

20. Opportunities for Investment in Agricultural Supply Chain (Contd.) • Wholesales Market Industry • Competitive Drivers • Transport and Logistics • Agricultural Cooperatives • Credit and Insurance Industries • Quality and Food Safety Institutions • Consumer Institutions

21. Myanmar’s Regional Economic Integrations ACMECS GMS China Vietnam Laos Bhutan Cambodia Japan Nepal Bangladesh MYANMAR Thailand India Korea Sri Lanka Brunei Malaysia Philippines Singapore BIMSTEC Indonesia ASEAN+3 BIMSTEC: Bay of Bangal Initiative for Multi-sectoral Technical and Economic Cooperation GMS: Greater Mekong Sub-region ACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy

22. Balance Sheetfor Investment in Agricultural Sector of Myanmar Opportunities Constraints Strategic location Favorable agro-eco zones Uncultivated land (5.4 m ha) Resource endowment Democratic new government Domestic supermarket chains Favorable environment to go specialty food market R&D HRD Weak supply chain management and industrial clusters Poor cooperative culture Lack of market infrastructures Poor export market access Lack of financial and legislative framework Trade and FDI policy

23. Conclusion • Myanmar will remain an agricultural-based country for a foreseeable future • Present environment leads the country to agri-business development • Myanmar will become an major food supplier of the region in the near future

24. Thank you for your kind attention!aunghlaing7855@gmail.com