UNNExT Workshop on Promoting Cross-border Agricultural Trade for Sustainable Development November 2016 Bangkok, Thailand
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1 UNNExT Workshop on Promoting Cross-border Agricultural Trade for Sustainable Development November 2016 Bangkok, Thailand
2 UN-ESCAP Promoting Cross Border Agricultural Trade for Sustainable Development Bangkok November 28-30, 2016 Value Chain Development and Sustainable Practices for Exporting Fresh Fruit - What are the Lessons from Myanmar?? Dr. Astrid Faust Senior Advisor, Myanmar Fruit, Flower &Vegetables Producer and Exporter Association (MFVP)
3 1 Table of Content 1. Key Terms: Value Chains, Sustainability and Fruit Exports 2. Myanmar at a glance 3. Strategies and challenges to facilitate market access and for engaging smallholders for sustainable supply chains 4. Experiences (innovations/approaches) and Lessons Learnt
4 2 1. Value Chains, Fruit Exports and Sustainability Reflection on Key Terms
5 3 1. What is a Value Chain (VC)?. a vertically integrated set of enterprises that deals with the same product group. e.g. Teak Products Teak growers Teak traders (logging, transportation) Furniture Factories (manufacturing, showrooms) Domestic Traders (showrooms, shops) Exporters (supplying importers from abroad, logistics, customs etc. )
6 6 1. Value Chains Value Chains what is it? Buzz Word for rural development project? What is special about VCs? Who is Involved in VC Upgrading? Value Addition WIN-WIN Share of Value Participation, Collective Action Governance, Creating Common Assets Input Suppliers, Farmers, Processors, Traders, Consumers ++ Who is directing the process? Individual Firms Private Sector Representatives/BMOs International Organizations NGOs Government (Union and State levels) Civil Society?
7 5 MFVP Head Office WINROCK & US AID MFVP Branch/Cluster Dry Zone Input Suppliers Farmers Processors Traders SP SP SP Players in Melon Value Chain Myanmar Dry Zone
8 6 2. Fruit Exports - Evolution of World Exports of Mango Exports" refers to selling goods and services produced in the home country to markets in other countries. Export of commercial quantities of goods normally requires involvement of the customs authorities in both the country of export and the country of import. 1,600,000 1,400,000 1,200,000 1,000, , , , , Tons MT Value ('ooo $)
9 7 2. Global Mango Trade Flows EUROPE ASIA North NORTH AMERICA, Canada Middle East Japan Central AMERICA ASIA South SOUTH AMERICA SOUTH AMERICA AFRICA Trade Flows of Mango Source: own analysis based on data from FAOSTAT Nov-16
10 8 3 Sustainable Practices based on Sustainability Development Goals No Poverty 2. 0 Hunger 3. Good Health and Well Being 4. Quality Education 5. Gender Equality 6. Clean Water and Sanitation 7. Affordable and Clean Energy 8. Decent Work and Economic Growth 9. Industry, Innovation & Infrastructure 10. Reduced Inequalities 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Change 14. Life below Water 15. Life on Land 16. Peace, Justice and Strong Institutions 17. Partnership for the Goals 1 On September 25th 2015, countries adopted a set of goals to end poverty, protect the planet, and ensure prosperity for all as part of a new sustainable development agenda. Each goal has specific targets to be achieved over the next 15 years.
11 9 Triple Bottom Line + 3 SDGs
12 10 SDGs in 5 Categories 1. No Poverty 2. 0 Hunger 3. Good Health and Well Being 4. Quality Education 5. Gender Equality 6. Reduced Inequalities 10. Reduced Inequalities 8. Decent Work and Economic Growth 9. Industry, Innovation & Infrastructure 13. Climate Change 14. Life below Water 15. Life on Land 16. Peace, Justice and Strong Institutions 17. Partnership for Goals
13 11 Mixed/Result based SGDs 6. Clean Water and Sanitation 7. Affordable and Clean Energy 11. Sustainable Cities and Communities 12. Responsible Consumption and Production
14 12 2. Myanmar at a Glance - Geography and Key Features of Agri-based Production
15 13 2. Myanmar at a Glance Potential for Agricultural Production The country s total area is 676,577 km2, of which approx % is cultivated (2009). Approx. 17% of the cultivated area is used for horticultural crops. The countries cover a wide range of agro-climatic zones, which are feasible for both, the cultivation of tropical and temperate fruits and vegetable.
16 Myanmar at a Glance Key Features Agriculture is a key driver of Myanmar s economy. The government s economic development strategies focus on improving productivity and marketing in the agriculture sector not only to stimulate GDP growth, but also to help reduce poverty and boost food security. The agriculture sector contributed around 36% of Myanmar s GDP (2010) and still accounts for around 70% of total employment as well as 30% of the country s exports. There are an estimated 6.5 million rural households in Myanmar. Horticulture products - fresh fruits, vegetables and flowers - provide earnings for about 15% of the rural households (approx. 1 Mio households).
17 15 Export of Myanmar Fruits, (value-million USD) Mango 2 Watermelon 3 muskmelon 4 Banana 0 Value (million USD) Value (million USD) Value (million USD) Value (million USD) Value (million USD) Value (million USD) Value (million USD) Value (million USD) ( as on ) Source: Department of Trade Promotion, May 2015
18 16 2. Myanmar at a Glance Fruit trade profile 90% of trade volumes/values are effected by border trade to China this fact is due to past trade sanctions and its effect on Physical infrastructure Supply chain logistics Development of trading hubs Quality infrastructure Two other factors (1) high transportation cost inside the country, (2) Limited consistency and transparency regarding rules and regulations for exports (Myanmar side) Limit trade, they constitute trade barriers.
19 17 3. Strategies and challenges to facilitate market access for Myanmar Farmers VC Development & Governance Enabling Environment & Cross Commodity Services Shaping Future Opportunities for Fresh Fruit & Food Production from Myanmar Market Diversification & Development
20 Value Chain Upgrading Projects Melon, Mango, Avocado, Tea, Others (Coffee, turmeric, vegetables etc.) Identify cooperation partners (local and international organizations GIZ, WINROCK, LIFT, FAO, etc.) Assess relevant markets inside and outside the country Assess competitiveness of products on respective markets Participatory planning of VC upgrading with all actors or their representatives Identify/build a body (association, branch, product cluster) who is able to implement VC upgrading strategies and build respective capacity on-the-ground
21 Development of Cross-Commodity Facilities Capacity building/training of farmers, packing house operators, processors, traders Policy Advice Quality Infrastructure Capacity building of public services providers (MOALI) Integrated public-private partnerships for GlobalGAP, PGS+ Facilitating joint learning among Product Cluster e.g. by defining quality standards and protocols
22 Development of New Markets/ Facilitation of Cross-Border Trade Organization of Product Festivals (Mango, Pomelo, Avocado) and Local FFV Trade Fairs (e.g. Shan State) Participation in ASEAN Trade Fairs (ThaiFEX, SIMA, Horticultural Trade Fairs Naning, Khunming etc.), Promotion Campaigns (Mango Coffee, Avocado) Business Matches, Pilot Shipments Annual Supply Plans for Champion Commodities Facilitation of Joint Learning among Product Cluster
23 21 Contributions to SDGs by Developing the Myanmar Food Sector 1. No Poverty Minimizing Environmental Impact (life on land) Decent Work and Economic Growth Reduced Inequalities 2. 0 Hunger 3. Good Health and Well Being 4. Quality Education 5. Gender Equality 6. Reduced Inequalities 8. Decent Work and Economic Growth 9. Industry, Innovation & Infrastructure 10. Reduced Inequalities Good Health and Wellbeing of Farmers and Consumers Peace, Justice and Strong Institutions 13. Climate Change 14. Life below Water 16. Peace, Justice and Strong Institutions 15. Life on Land 17. Partnership for Goals Partnership for the Goals
24 22 4. Experiences and Lessons Learnt Exporting Perishables is a High Risk Business, you need good physical and quality structure for it and whole range of functional services. Japan and EU are demanding overseas markets with competitive supplies from allover the world. Don t start with the most difficult thing and try to small scale farmers in remote supply clusters with EU markets on perishables, use it as a long term vision. Develop options for diversifying markets inside the country and ASEAN, develop supplies, quality or unique selling points while minimizing risks. The rule in perishables is What can go wrong, will always go wrong. Network, different partners have different core competencies. Build ownership and develop business cases/models for lacking services. Work with larger companies for pilots to demonstrate first moves (e.g. via ippps) and generate outreach by adding a capacity building step for related grower clusters
25 Thank you for your interest and attention! Dr. Astrid Faust Senior Management Advisor UMFCCI & MFVP Yangon, MYANMAR
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