Impact of Contract Farming in Myanmar. Dr. Soe Tun Myanmar Farmer Association

Transcription

1 Impact of Contract Farming in Myanmar Dr. Soe Tun Myanmar Farmer Association

2 Introduction Agriculture is backbone of Myanmar economy (70%) Rice farming is major agricultural activity However, due to inefficient farming techniques and limited irrigation networks, the yield level of rice farming is well below that of its neighbours The current low yields and the large remaining uncultivated area, there is significant scope for rice farming development in Myanmar 2

3 Limited market access, poor fund and underdeveloped agricultural infrastructure are major bottlenecks constraining rice farming development in Myanmar Myanmar Government can help ease these constraints through extension services and public investments, contract farming is an institutional arrangement in the private sector that may help to overcome some constraints 3

4 Rice contract farming in Myanmar has been implemented by Rice Specialized Companies The companies have been introducing large scale contract farming since 2008 The accumulative number of farmers who have joined the contract is about farmers. 4

5 Aim of the study is determined the impact of contract farming in Myanmar. Community based study was done selected 46 Townships in Yangon, Magway, Bago, Ayarwaddy and Sagaing Regions, Mon and Rakkhine State. The study was taken from October 2011 to April, The total sample size was 3600 farmers. 5

6 Loan for farming The main resource of taking loan for paddy production from Rice specialized companies, Myanmar Agricultural Development Bank (Government), outside and other sources. Loan with low interest rate is 50% of production cost and others were borrowed from outside with high interest rate (100 to 150 % per year). 6

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8 Receiving Technology According to the survey, distribution technology for agriculture is made by Myanmar Agriculture, Rice specialized companies, NGO and Agri-experts. The percentage of receiving technology is 65 in contract farming and 53 in non-contract farming. 8

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10 Seed Contract farmers and non-contract farmers used seed about 3 baskets per acre. On average, the cost of seeds per one acre is ks and 15% of contract farmers received high yield seed from rice specialized company. That is expensive so that there are a few users. 10

11 Fertilizer In order to observe fertilizer utilization per acre, the amount of usage is different on farmers used; 1.5 bags per acre on average and the cost is around 22000ks ks. The contract farmers used more fertilizers 11

12 Pesticide farmers use more pesticide for summer production than monsoon production. The average pesticide cost for summer paddy is ks and perhaps pesticide cost for monsoon paddy is 6300ks. 12

13 Income In studying farmers' household income, 75% of contract farmers and 77% of non-contract farmers earned income from monsoon paddy. Moreover, 90% of family income came from monsoon paddy 13

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15 Operating Costs more production of summer paddy in contract-farmers than non-contract farmers summer paddy production was 80 baskets in contract farming and 76baskets in non-contract farming. 15

16 Per Acre Producution Cost 9% 33% 27% Seed Fertilizer Pesticide labour (growing paddy) Labour (harvest paddy) Labour (Seasonal Labor) 13% 3% 15% 16

17 The production cost includes labor cost, fertilizer, pesticide and fuel costs. Over 62% spent for labor cost, 27% for fertilizer, and 3% for pesticide. Most farmers used their own seed 17

18 Farming with machine, they spent 150,000ks per acre, The labor cost is lower in mechanized farming than in traditional farming farmers prefer to use machanized farming because of most effective in production, time saving, reducing waste of paddy in harvesting. 18

19 Rice Market Condition over 70% sold out in village, about 20% sold to rice merchants or rice mills in the nearest town. Some sold directly to Yangon market with only 1%. There has been 4 types of supporting styles from Rice specialized company; 65% of contract farmers receiving money and fertilizer, 24% getting money only. The farmers who receive not only money and fertilizer but also machine and technology receiver is 6% and 5% of contract farmers being provided money, machine and fertilizer 19

20 Selling place other. In village N - CF CF Township Yangon 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 20

21 Migrant workers According to the study, migration to Thailand and Malaysia is more than other countries. There are 32% of population working in Thailand; 38% being non-contract farming. Less than 5% migrated to other neighbor country. Some villagers migrated to Yangon Most of them left farm because they did not get profits from farming 21

22 Migrant Workers 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 1 Thailand 2 Malaysis 3 Singapore 4 Dubine 5 Korea 6 Frontier (Nal Sut) 7 others Contract Non - contract 22

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24 Conclusion Contract farming is good for farmer in Myanmar. The government should to decide a policy about PPP model in Myanmar PPP should be generalize all over the country 24

25 Thank you 25