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INVESTING IN SUSTAINABLE AGRICULTURE IN MYANMAR Organization of an agricultural value chain. Roland Poupon Yangon Myanmar 20 July 2014. Share of Agricultural Commodities in Food Products. Rice. 50%. Instant Noodles. 5%. Agricultural C ommodities and Food Trends. `.
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INVESTING IN SUSTAINABLE AGRICULTURE IN MYANMAROrganization of an agricultural value chain Roland PouponYangon Myanmar 20 July 2014
Share of Agricultural Commodities in Food Products Rice 50% Instant Noodles 5%
Agricultural Commodities and Food Trends ` Along with development, the weight of Agriculture in the global economy is shrinking
Service Suppliers • Technical assistance • Brokers • Traders • Surveyors • Marketing • Logistics • Finance • Insurance • Internet • Certification Today, Food is more about energy and documentation which get the added value than about agriculture
Food Sales Channels Complexity • Broiler supply chain in Thailand • Self-consumption • Pulse market in Myanmar Food supply chain becomes longer with complex integration tendencies
Sellers and Buyers Needs • Volume guarantee • Logistics, transportation, storage, loss insurance • Payment terms, advance and credit • Prices • Others First and foremost, both parties are striving to prevent trading risks rather to focus on added value, cash before profit!
Types of Agreements • Collectors • Cooperatives • State office • Contract farming • Market deals (auction) • Third party channels • Future markets • Other? There is a great diversity of types of deals – no standard how to share the added value
Transnational Companies • Agro industries • Seeds • Fertilizers & feed • Plantation • Food processing • First transformation • Second transformation • Retailers • Restaurants • Hypermarkets • Etc. New global players control agricultural commodities know-how, finance and market and as consequence centralize the added value always more downstream
Third Party Certification • Hygiene • Administration • Ethics • Religion • Farming practices • Localization • Technology • Environment • Varieties/breeds • Etc. Standardization Accreditation Authentication TPC A new way of managing the market between producers and end-consumers to better control the added value distribution
Conclusion • Farmers’ empowerment Financing system Wholesale market Marketing Tool (OTOP, IGP) • Keep the added value In Myanmar • Maintain environmental assets • Forest • Know-how • Water • Soil • Local or Export Market?
Thank you for your attention ! Roland PouponYangon Myanmar 20 July 2014