MYANMAR THE RICE VALUE CHAIN CHALLENGE

Randy Barker May 31, 2013

HYPOTHESES
The greatest potential for increasing rice production in Asia lies with Myanmar but even with appropriate investments and policies it will take a decade or more to realize that potential.
In managing the water in the Ayeyarwady Delta, there is much that Myanmar can learn from the experience of Vietnam in the Mekong and Bangladesh.

FOOD VALUE CHAIN

Definition: Part 1
Food value chains comprise all activities required to bring farm products to consumers including agricultural production, processing, storage, marketing (including exports), distribution, and consumption.

Gomez et al., 2011

FOOD VALUE CHAIN

Definition: Part 2
Which consumer behaviors, public policies, and decisions by private firms and civil society organizations are likely to promote the emergence of poverty-reducing environmental sustainability.

Gomez et al., 2011

Value chain links

PRODUCTION
POST HARVEST MARKETS POLICY

Conceptual model explaining the yield gap between experiment station and actual farm yields (Herdt et al., 1978)
what
Attributable to environmental differences Economically non-recoverable gap

Yield gap

why

Economically recoverable gap

Experiment station yield

Potential farm yield

Actual farm yield

Economical farm yield

PRODUCTION
Constraints: Water management Land tenure Government disincentives nitrogen/rice price ratio Credit IRRI activities: CURE (David Johnson) research in lower Delta IRC (Grant Singleton)

Missing scientists: Production economist, Hydrologist

Trend in Output of Paddy in Vietnam

30000 25000
Decree No. 100 Decree No. 10 Land Law

35000

Thousand tons

20000 15000

5000 0 1975 1980

1985

Doi Moi

10000

1990

Liberalization of markets

1995

Years

Water Law

2000

Mekong Delta

THE DIKE SYSTEM

The dike system in the deep water of the Mekong Delta has been highly successful. Production increased from one crop of 2 tons per year to 2 crops of 4 tons each, one before and one after the flood. Four provinces in the Mekong Delta account for essentially all of Vietnams exports.

POST-HARVEST AND MILLING

Constraints Due to inadequate drying, storage, and milling equipment Myanmar exports low quality 25% broken rice to Africa and China.

IRRI activities Martin Gummerts promoting the use of drying equipment.

BREEDING FOR THE MARKET

Which market? Super market? (Paw San) Domestic market? Mahsuri? Export market?

SUPERMARKET
Paw Sam super premium Sagajng region Price: $1.00 per kg Paw Sam premium Ayeyarwady region Price: $0.67 per kg Breeder objective Short season, high yielding paw sam

LOCAL MARKET
Mahsuri:
In addition to high grain quality Mahsuri has the capacity to give yields slightly higher than traditional varieties with low level of fertilizer and at water depths up to 30 or more centimeters which inhibit the growth of the semi-dwarf varieties. Barker and Herdt 1985

Breeding for abiotic stresses

Samba Mahsuri plus sub-1.

EXPORT MARKET
Of the following four countries below which has the highest yield per hectare, which the lowest and why?
Philippines Indonesia Thailand Vietnam

Rice yield per hectare

Thousands 60
Indonesia Philippines

50

Thailand Viet Nam

40

Hg/Ha

30

20

10

Year

POLICY
Papers of David Daice, Harvard Kennedy School and Proximity designs Burmese NGO (see web)
Revitalizing agriculture in Myanmar June 2010 Rejuvenating the sector in Myanmar- Sept 2010 Appraising post-sanction prospects for Myanmars economy Jan 2012 Rice policy in Myanmar. It is getting complicated. April 2013.