Agri-food sector

 

Myanmar has a total of 12.25 million hectares of arable land and permanent crops.

Agriculture represents 52% of the country's workforce, and this sector is an area of ​​great interest for foreign investors.

The agri-food sector accounts for over 70% of the country's total production volume.

It also provides employment to the widest number of workers, and is considered a high potential area, not only for import substitution but also for export promotion.

The sub-sectors most represented are rice production, legumes processing and oil production.

The relationship between companies operating in these sectors and the implemented Special Economic Zones (or under construction) in the country is significant, and opens up many opportunities for foreign investment, due to the favourable concessions and regulations in force in those areas.

Forms of collaboration, cooperation and investment can affect different phases of the production process, exploiting the numerous advantages offered by the country: abundant labour, the amount of arable land, rich water resources, access to unpolluted agricultural land, diversity of the agricultural resources produced, the country's tradition as rice basket in the world and, last but not least, the recent foreign investment legislation, which encourages the commercial activities of foreign operators.

Partnerships or joint venture contracts may affect the development of infrastructure, logistic and transport services, supply of production technologies (suitable machinery, cooling systems, quality control, production process management, health standards), boosting domestic sales (through improvements in the distribution system, market information, resale and catering) and promotion of export of agri-food products (logistic services, marketing, promotion activities).

The creation, in the major production areas, of Specialization Companies, which integrate the participation of experienced exporters, retailers, producers, entrepreneurs and even local farmers, aims to guide Myanmar in the process of transition from a small-scale agri-food industry to a wide-scale or commercial scale, with the support of partnerships between public and private entities.

These dynamics generate numerous spaces for private sector activity and for foreign investments.

Particular attention is paid to the rice sector, which has been subject to a series of progressive liberalizations since 2003. This has allowed the private sector to intervene in the trade of this product both locally and internationally.

The Ayeyarwady region is the area where rice growth is more flourishing. It represents the wider and more significant agglomeration of rice-producing plants in terms of geographical concentration, despite the quality and quantity of links between different stakeholders do not allow to use the term cluster.

With regard to the structure of the rice production sector, there are two categories: small-scale production plants (less than 15 tonnes of product) and medium-sized (over 15 tonnes).

The average quantity of rice produced by first-class establishments is 3-5 tonnes per day.