cbi import intelligence: seafood in myanmar

Source: CBI Market Information Database • URL: www.cbi.eu • Contact: [email protected] • www.cbi.eu/disclaimer

CBI Import

Intelligence: Seafood in Myanmar Myanmar has a large potential as a seafood exporter. As a

result of the political situation, in recent years trade has been focussed on regional exports. However, the potential to supply

other markets such as the EU and US is increasing. This factsheet provides you with import intelligence about seafood

in Myanmar.

Country Information

Map 1: Myanmar Table 1: Myanmar snapshot (2013)

Myanmar, one of the least developed countries in the world, is going through enormous economic, political and social transformations after decades of stagnation, mismanagement and isolation. Until 2012 it was virtually impossible for Western companies to do business with Myanmar due to sanctions and reputational risks as the country was ruled by the oppressive military junta. Followed by the relatively free and fair elections held in April

Indicator

Population 61.9 mln

Nominal GDP (US$) 44.8 bln

GDP per capita (US$) 868

(ranked 154th / 184 countries)

EU average: 32.518

Real GDP growth 5.5%

Inflation (consumer prices) 6.7%

Government budget deficit -4.5%

Capital Nay Pyi Taw (capital since 2006, 1 million

inhabitants)

Area 675,578 km²

(second largest country in

South East Asia)

Currency Kyat

Exchange rate (Kt : US$) 948

(average free-market rate)

Time zone GMT + 6.5 hours

Source: Economist Intelligent Unit (2013).

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CBI Product Factsheet Frozen Black Tiger Shrimps in the EU


2012 and several political reform measures taken by the Myanmar government, the EU suspended all sanctions (except arms) on May 25th 2012. Myanmar’s economy

Myanmar has a population of 62 million and is rich in natural resources such as arable land, minerals, natural gas, timber, as well as freshwater and marine resources. The economy is driven largely by the agricultural sector. Agriculture, livestock, fisheries and forestry account for approximately 40% of GDP and around 70% of the population relies on these sectors for their livelihoods. The economy is expected to grow with 5.5% in the fiscal year ending March 31 2014. In the short run (2014-2015) the expansion of its economy will be underpinned by large projects funded by foreign investors (mainly from Asia), notably in the (offshore) oil & gas, telecom, power and construction sector in combination with exports of natural gas, oil and commodities. In the long run (2016-2018) the growth in private consumption will be an important contributor. Improved access to trade and capital markets will spur activities in many other sectors of the economy such as tourism, textile manufacturing, agriculture and fisheries. Myanmar’s expected economic growth is shown in

Figure 1. Figure 1: Real GDP growth (% change)


Myanmar is a (US) dollar market, though recently banks also start accepting Euros and Singapore dollars. The exchange rate of the country’s currency Kyat depreciated last year, on the unofficial market, to around Kt950 : US$1, driven by strong import growth. Trade & investments

Myanmar’s main trading partners are Asian countries. Myanmar exports natural

gas, gemstones & jade and other natural resources such as agricultural products (including fisheries), timber, copper and hydropower. Key export locations are Thailand (40.5%), India (14.7%), China (14.2%) and Japan (7.4%). Besides the official statistics Myanmar has a large informal sector, including smuggling of valuable products such as gems and other minerals. Main imports include machinery & equipment and consumer products, which come from China (37%), Thailand (20.2%), Singapore (8.7%) and South Korea (8.7%). Foreign investors from around the globe are seeking to enter a market that has been largely isolated from the world economy for over two decades. China, Thailand, Singapore and Korea are among the largest contributors of foreign investment, mainly undertaking projects in the infrastructure, energy and oil & gas industries. Main investors from Europe are the UK, France and the Netherlands, though the size and number of investments are relatively modest. An overview of the economic and trade statistics are shown in table 2.

-1,0

0,0

1,0

2,0

3,0

4,0

5,0

6,0

7,0

2010 2011 2012 2013F 2014F 2015F

Myanmar European Union

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Table 2: Economic and trade statistics (2013)

Indicator Year Value

Main industries (GDP

composition)

2012

Agriculture: 38.2%

Industry: 18.2%

Services: 43.6%

FDI industry composition (in

terms of investment amount)

2012

Power: 46%

Oil & gas: 34%

Mining: 7%

Manufacturing: 4%

Real estate: 3% Other: 6%

Export 2013 US$ 9.0 bn

Import 2013 US$ 10.1 bn

Trade balance 2013 US$ -1.1 bn (deficit)

Main export products 2013 Natural gas

Gemstones & jade

Agricultural products (including fisheries)

Other natural resources including timber,

copper zinc, marble and hydropower

Main import products 2013 Machinery & equipment

Automotive Consumer products

Main export locations 2013 Thailand: 40.5%

India: 14.7%

China: 14.2%

Japan: 7.4% Other: 23.2%

Main import locations 2013 China: 37%

Thailand: 20.2%

Singapore: 8.7%

South Korea: 8.7%

Other: 25.4%


Politics and international relations

Although the government continues its course of political liberalization, the

current constitution still bans the main opposition leader Aung San Su Kyi from being elected as president. In addition, the military has the right to nominate several members of the parliament. This gives them de facto a veto on the constitutional changes necessary to introduce full democracy. The country’s ethnic division and sectarian conflicts (especially in the border regions) also pose serious threats to stability in the country. The administration continues to promote an ambitious economic reform agenda, however, the business environment is expected to improve only gradually. Key industries which have long been controlled by the military are highly inefficient and corruption is rife. Due to these circumstances, Myanmar ranks relatively low on its competiveness. Figure 2 gives an overview of the relative competitiveness of Myanmar compared to major peers in the region.

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Figure 2: Global competitiveness index

Source: World Economic Forum (2013).

With a population of 4 million, Yangon is the country’s largest city, main economic hub and seaport. Myanmar is a member of the World Trade Organisation (WTO) and joined the Association of South-East Asian Nations (ASEAN) in 2012 and will chair the regional bloc in 2014. As a member of ASEAN Myanmar will benefit from increased economic integration with economies in the region, which alone have a cumulative population of more than 700 million and a joined GDP of over US$ 3,600 billion. Bilateral trade agreements are signed with the Republic of Korea, People’s Republic of China, Thailand, Bangladesh, India, Pakistan, Vietnam, Laos, Philippines, Malaysia, Sri Lanka and Israel on the principle of equality of rights and mutual benefits Infrastructure

Myanmar's infrastructure is considerably underdeveloped. According to the Asia Development Bank, the road and railway networks are in poor condition and investment in track renewal and upgrading of signalling and communications systems have been inadequate. In contrast, the number of vehicles in urban areas increases rapidly and this strong growth trajectory is expected to be maintained as the economy continues to expand, putting more pressure on the current road system. There are 9 ports along the 2,800km coastline, namely: Yangon, Sittwe, Kyaukphyu, Thandwe, Pathein, Mawlamyine, Dawei, Myeik and Kawthaung. There are 3 international airports, Yangon, Mandalay and Nay Pyi Taw and the number of international and domestic airlines operating is increasing rapidly.

Regulatory Framework

The information provided in this section has been collected during November

and December 2013. Regulations change rapidly in the current reform process and some information may therefore be outdated. EU regulation for Myanmar seafood imports

Tariffs GSP status: In 1997 Myanmar lost its GSP status in the EU as a result of the

political situation. Since the government of Myanmar started political reforms, in July 2013 the EU retroactively reinstated Myanmar’s GSP status for all exports since June 2012. The EU applies the Everything but Arms (EBA) status to Myanmar which grants Myanmar with a 0% import duty. The only requirement to apply for the 0% import duty is that the products have been produced in Myanmar in line with the rules of origin regulations.

2937

60

110

139

China Thailand India Bangladesh Myanmar

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Food Safety Capture fisheries products: In 2003, the EU banned seafood products from

Myanmar because hygienic conditions in the supply chain did not meet the EU requirements. In 2007, the EU re-approved the imports of wild catch products. Although earlier, there were more than 40 EU approved processing establishments, now only 14 processing establishments regained EU approval. One of the problems for exports to the EU is that only three jetties are EU approved by the Department of Fisheries. As a result, the volume of material that can be exported to the EU is limited.

Aquaculture products: Till now, the import of aquaculture products from Myanmar is banned in the EU. The main reason is that the Department of Fisheries has not yet implemented the Residue Monitoring Plan. The Department of Fisheries is recently supported by the EU to develop the RMP and is expected to regain EU approval for the exports of aquaculture products in the first half of 2014.

Local laws and regulations in Myanmar

A. Trading activities There is no quota for buying and exporting seafood in Myanmar. However

buying and exporting is considered a “trading business” which requires a permit under Section 27A of the Companies Act. In practice, these permits have not been granted to foreign companies active in seafood in the last decade (foreign companies being defined as a company which is incorporated overseas or incorporated in Myanmar with shares or stocks held by foreigner companies).Therefore a foreign company can only export seafood from Myanmar via existing Myanmar trading companies. In case a foreign company would like to have more control on its seafood transactions, there are two alternatives to be considered: 1. Agent / business representative

I. An agent engaged in accepting indents and placing orders for goods from the suppliers abroad on a commission basis;

II. A business representative employed to do any business transaction for any individual or organization abroad or to represent another person in dealings with third persons (including product specialists, buying agents, technicians and business consultants employed by foreign companies who purchase Myanmar products).

After appointment of a business representative the foreign company may register and set up its own representative office (branch office in Myanmar with limited objectives and activities). This representative office will allow the foreign company to station in Myanmar and assist the transactions. Both the agent as well as the business representative need to be Myanmar nationals and registered at the Ministry of Commerce (Ministry of Trade Order No.2/89 dated 13 October 1989). 2. Service company In order to have more control on the local transactions, it is possible to arrange the Myanmar trading company to hire a subsidiary company of the overseas company. This service company will undertake all duties related to seafood buying and export on behalf of the Myanmar company, to be described in an outsource agreement. This service company can be set up with a 100% foreign shareholding structure. Currently the minimum foreign capital to be brought in the local entity has been stipulated at US$ 50,000. Figure 3 shows a schematic overview of the parties, flows and agreements.

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Figure 3: Schematic overview of service company.

B. Foreign investment 1. Fisheries According to Section 4 of the Foreign Investment Rules (2013), the Fishing Business in the Myanmar’s Territorial Waters with the following conditions can be carried out by Myanmar citizens or companies only:

I. Far distance fishing of marine fish, prawn and other aquatic creatures in the Myanmar’s territorial waters; II. Fishing at ponds, lakes and other close distance/onshore fishing.

2. Aquaculture There is no maximum foreign investment ratio on this kind of business. However, it needs the recommendation from the Ministry of Livestock, Fisheries and Rural Development and comply with the environmental friendly and scientific breeding standards. Aquaculture production of fresh water and marine fish that affects local biodiversity is not allowed. An environmental and social impact assessment is required for foreign investments in large scale fresh water, marine fish and prawns breeding activities.

3. Local processing A foreign company can set up a local food processing business in Myanmar according to Section 20 of Foreign Investment Rules (2013) . However

preserving, manufacturing, canning and marketing of fish products is only allowed in the form of a Joint Venture with Myanmar citizens. The Myanmar Investment Commission (MIC) formally allows foreign shareholding up to a share of 80% of the total equity of the to-be-established company. However, this ratio is judged on a case-to-case basis. In practice the MIC allows foreign ownership between 50-70%. The current minimum of foreign capital to be brought in has been stipulated at US$ 500,000. Subject to consideration of the MIC, this company may obtain some privileges under Foreign Investment Law such as a tax holiday of 5 years, permissible long term lease up to 50 years with two extendible terms of 10 years and exemption of commercial tax for export products. There are restrictions applied for employing staff. For unskilled workers, a foreign company can employ Myanmar citizens only. As to skilled workers, quotas apply. In first two years of operations, Myanmar employees must make up at least 25% of the skilled workforce. This increases to 50% in the third and fourth year and to 75% in the fifth and sixth year. For more complex operations, the MIC may extend this period. Furthermore foreign companies should pay the same salaries for Myanmar and foreign workers, given the same level of expertise. In case the company would like to operate a laboratory, for instance to check the quality of the water or for product inspection, it has to be in compliance with ISO 17025 under the Foreign Investment Law.

100% Myanmar Company Offshore Company

Service Company

Supplier

Dividend

100% Shareholding

Goods Exportation Purchase Agreement

Outsourcing

Agreement

Marketing

Overseas Myanmar

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C. Taxes & duties Relevant taxes for buying and exporting seafood include:

I. Commercial Tax: 5% on every local transaction. However, it’s not applied to international sale proceedings.

II. Export duties: currently there are no export duties for seafood. III. Prepaid Income Tax: 2% over the sales price of the products.

D. Licenses

I. Permit to Trade: commonly known name of “permit for business operation”, required for every (foreign) company prior to doing business in Myanmar under Section 27A of Companies Act.

II. Export License: Every export transaction an export license is needed. However, some products have been exempted including all kinds of fish, eel, dried small fish, dried fish, salted fish, fish air sac, crab, prawn, dried prawn, fish crispier, mother of pearl and other value-added marine products under the Ministry of Commerce Notification No. 16 /2013 (dated 28th February 2013).

III. License for purchase and storage of seafood: required license

from the Ministry of Livestock Fisheries and Rural Development. It will be applied to the case of buying the seafood locally in order to control the quality up to the international standards.

E. Arbitration law Foreign companies involved in a trading dispute with a Myanmar company shall resolve the dispute in accordance with the existing laws of the Arbitration Act 1944. F. Customs An application form can be submitted at the Customs Department at the departing port. This application includes the following documents:

I. Health Certificate (by Department of Fishery). II. Certificate of Country of Origin (depending on Foreign Buyer

instructions, by Department of Fishery or UMFCCI). III. Bill of Lading IV. Packing List V. Receipt for Prepaid Income Tax

The procedures for the customs normally take around 10-14 days. With a little ‘tea money’, the process can be speeded up.

Cultural aspects of doing business in Myanmar

Introductions & meetings Businessmen will typically greet each other with a handshake. If a businesswoman offers you her hand, it is acceptable to shake it, however you should not offer your hand to a woman – a small bow is enough. The exchanging of business cards is common in Myanmar. As in other Asian countries, please use both hands to exchange cards and take a short time to read a business card. Please clearly introduce yourself with the title described on your business card. Doing business Setting up business in Myanmar requires patience and investment in relationships. Attempts to do business in a fast-track way,

Cultural do’s & don’ts Do stand-up when an older (senior) person

enters a room it is normal to stand up. Do stand-up / make place for monks. Do bring a (small, formal) gift at your

business meeting. Do be on time for your business meeting. Don’t directly point at images of Buddha. Don’t show the below side of you feet. It’s

common to take out your shoes when entering a room.

Don’t abbreviate the names of your business partners.

Don’t discuss political topics. Don’t touch people at the head, which is

seen as offensive. Myanmar is in majority a Buddhist country

(90%). In general, any male to female

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without sufficient regard for the local culture and personal introduction, may lead to frustration, and perhaps offence. Often a first (or even second) meeting will simply be an opportunity for parties to get to know each other, as a prelude to more serious or in-depth matters being discussed later. As in much of Asia, making the right connections is crucial to successfully doing business. Being introduced by a mutual trusted contact will bring you in a good position.

contact should be avoided in public.

Seafood in Myanmar

This section provides you with an overview of available data and information of seafood production, consumption, imports and exports in Myanmar. It is important to note that the availability of production and consumption data is lacking. Figures presented here are compiled from the best available sources. There will be provided considerations for actions which support you to monitor developments more closely.

Analysis and interpretation Production Overall Production: In 2012, fisheries and

aquaculture production in Myanmar is higher than the production in Bangladesh (3.1 million tonnes) and Thailand (2.9 million tonnes) According to the official figures of the department of fisheries production increased from 1.6 million tonnes in 2002 to 4.5 million tonnes in 2012. This increase is partly accounted for by an actual increase in production of mainly aquaculture and partly by an adjustment of capture fisheries statistics because previously illegal and unreported fisheries were not included.

Fish landings: Although production is dispersed, fish landings both from aquaculture and from fisheries are concentrated in Yangon in the central of the country and Myeik in the South of the country close to the Thai border.

Deep sea fisheries: Although currently deep sea fisheries rights have been given to foreign vessels landing fish outside Myanmar, this situation will change early 2014. The deep sea fishing rights are terminated in the first half of 2014 and it has been announced that the fishing rights will not be given to foreign vessels in the future. This will have considerable implications for the volume of marine fish and other seafood landed in Myanmar. Increased landings will contribute to increased domestic processing and exports of marine fishery products from Myanmar.

Considerations for action Although the Department of Fisheries is

publishing a yearly report, this is not published online. The only source for online data is the FAO. FAO data is not very accurate.

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http://www.fao.org/fishery/statistics/global-production/en



Aquaculture production: Between 2002 and 2012 aquaculture production increased from 0.25 million tonnes to almost 1 million tonnes. The total production area in 2012 amounts 450.000 acres of which 200.000 is used for fish ponds and 250.000 for shrimp ponds. Especially the area for fish ponds increased drastically while the area for shrimp ponds remained relatively stable. Fish ponds are concentrated in Bago, Yangon and Ayeyarwaddy. Shrimp ponds are concentrated in Ayeyarwaddy, Yangon and Rhakine.

Shrimp production: Shrimp is sourced both from aquaculture and fisheries sources. M. rosenbergi, P. Monodon and P. Vannamei are produced in extensive and semi-intensive aquaculture production systems. Total production from aquaculture accounts approximately 10,000 tonnes per year. As a result of intensification programs, shrimp production increased steadily between 2000 and 2008. However, since several cyclones hit major production areas in 2008 and 2010, production stagnated and has not yet revived. Now the political climate is improving, it is expected that international support will contribute to an increased production in the coming years. In addition to aquaculture, from fisheries there is sourced 43,000 tonnes of wild

shrimp. This is mainly larger size tiger shrimp destined for export markets. Catches from fisheries are not expected to increase in the future.

Fresh water fish production: freshwater fish is mainly produced from aquaculture sources (carps 700,000 tonnes, tilapias 40,000 tonnes). Myanmar had a flourishing Indian carp sector with several integrated producers. However, production crashed as a result of an oversupply in the regional and local market and a lack of competitiveness of exporters from Myanmar. However, freshwater fish remains an important source of animal protein and production is expected to increase further in the coming years as support for further development is provided. While currently most products are supplied to the local market, there might be an export potential for species like tilapia and pangasius.

Marine fish production: According to FAO data, more than 2 million tonnes of marine fish is captured in marine waters. Unfortunately there is no specification of the captured species but they include barramundi, and various pomfret species. Marine fish landed in Myanmar is limited to the fish captured in the coastal areas because the fish rights for the deep see areas are given to foreign vessels. As a result, high value species like tuna are

For a presentation about the marine shrimp

farming sector in Myanmar, please take a look at this presentation that was presented at the GOAL conference 2013.

For a report on the production of Indian

carp please read this article in Aquaculture Asia

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http://www.gaalliance.org/cmsAdmin/uploads/goal13-pijl.pdf



almost not landed in Myanmar. Marine aquaculture (e.g. barramundi) is currently limited but developing and production is expected to increase in the future.

Mud crab: Besides the above mentioned products there is also produced a significant volume of mud crab destined for export markets. Mud crab is mainly produced in commercial farms managed by small and medium sized entrepreneurs. Although mud crab farming is a lucrative business because of its good market prices, its sustainability is questionable. The main reason is that the seeds are coming from wild sources and not from hatcheries. So far, there are no proper hatcheries that can produce seeds and reduce the pressure on wild stocks.

Consumption Fish is a key staple food in Myanmar.

Rice and fish are among the key staples in Myanmar. Although the figures are rather old, 2001 data indicated that on average 12.3% of household spending on food products was spent on fish.

Fish consumption is higher than in Europe. Based on Department of Fisheries estimations for national fish production (almost 4.5 million tonnes) and subtracting exports (400,000 tonnes) suggests a per capita consumption of 51 kg/caput/yr.

Also preserved fish has a good local market. Preserved fish (dried, salted, etc.) plays an evident role in the local diet. However, the small quantities consumed make the consumption of preserved fish products an often hidden contribution to the overall fish consumption.

Imports Myanmar is not a significant seafood

importer. Myanmar only imports small volumes of crustaceans, fish fillets and frozen whole fish. The total value of imports does not exceed €8 million euros. As a result of high import taxes it is not expected that imports will increase on the short term. It is observed that small volumes of shrimp are imported to supply the local market because local production costs for shrimp are too high.

Exports Myanmar is a small player in the

region. Seafood exports from Myanmar have only increased slightly between 2001 and 2012 from just less than €190 million to just less than €220 million. This is much less than export values of Bangladesh (€424 million) and Thailand (€2.2 billion). However, now sanctions are lifted and the enabling environment for international trade is improved, exports are expected to

For more information on fish consumption in

Myanmar, take a look at this FAO Report or this other study that included an overview of domestic seafood consumption.

For a more detailed report on the export

potential of seafood from Myanmar read this report.

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http://www.fao.org/docrep/004/ad497e/ad497e04.htm

http://www.ide.go.jp/English/Publish/Download/Vrf/pdf/433.pdf

http://www.wageningenur.nl/upload_mm/9/b/7/131e0d1a-1b1d-476b-a0a8-65416fc9a1ee_LEI_Nota_12-138%20vdPijl_DEF_WEB.pdf



increase on the short term but even more significantly on the longer term if production of high value species increases. The main export markets in 2012 are Japan (€56 million), China (€46 million), Thailand (€36 million) and Malaysia (€30 million).

Shrimp represents a significant share of the exports. The exports of crustaceans consist mainly of wild caught shrimp (€80 million) and are mainly exported to Japan (€50 million), China (€10 million) and a variety of other Asian countries. A smaller part of the exports are taken account for by live (€24 million) and frozen (€10 million) soft shell crab. Live crab is mainly exported to China while frozen crab is also exported to other markets like Australia, Malaysia and Japan. Now Myanmar has gained GSP, also EU buyers are interested to source shrimp and possibly crab from Myanmar. Exports of crab are expected to increase further as the market conditions are good.

Exports of fish are limited. Frozen whole fish is mainly exported to the UK (€12 million) and distributed among the Bengali diaspora. Frozen fresh water fish is also exported to e.g. Malaysia (€12 million) and China (€6 million).

Exports of fresh fish are underestimated. Fresh whole fish is according to the statistics mainly exported

to Thailand (€27 million). However, it seems that exports of fresh whole fish to China are not included in these COMTRADE statistics. Other sources report that Chinese buyers are buying crustaceans and marine as well as fresh water fish at jetties in Myanmar, chill the fish in ice and transport the products by road to Chinese processing establishments or markets across the border.

EU approved processing establishments

In Myanmar there is a total number of 14 EU approved processing establishments. Most (13) of these factories are located in Yangon while one is located in the Ayeyarwaddy delta. There are no factories that have additional food safety certificates such as IFS or BRC. At this moment an additional number of 5-10 processing establishments have applied for EU certification. These establishments are expected to get EU approval in 2014. With these new companies the total number of EU approved processing establishments may exceed 20. The total number of EU approved processing establishments is expected to increase further when EU companies increase their purchasing activities in Myanmar. The main problem for processing establishments is the lack of electricity and the lack of raw material. Regular power cuts forces processors to use diesel aggregates to keep their factories running. Diesel prices are very high and add to the production costs. The lack of raw material supply is the result of stagnant aquaculture production of shrimp and other high value aquaculture species and also the declining wild catches. Processors hope that in the coming years, the government will improve the electricity supply and that aquaculture production

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will be revived. In addition, additional raw materials may be available when the deep sea fishing rights are redistributed. List of EU approved processing establishments, contact details and product information

No Company

Name Phone E-Mail Type of products

1. United K.M.K

Co., Ltd. 01-294536, 298551 [email protected]

Integrated

Barramundi

production

2. Great In'l Co.,

Ltd. 01-685043, 685045 [email protected]

Wild and cultured shrimp

3. Shwe Yamone

Co., Ltd 01-685045, 685472 [email protected]

Wild and cultured

shrimp and fish

4. May Yu Co.,

Ltd. 01-590655, 590517 [email protected] Fish and shrimp

5. Twin Brother

Co., Ltd. 01-294045, 294685 [email protected] Soft shell crab

6. Myint Myat

Hein Co., Ltd. 01-686051, 686056 [email protected] fish and shrimps

7. Ghani Win Int'l

Co., Ltd. 01-618628, 618627 [email protected] Fish and shrimps

8. G.F.T.I Co.,

Ltd. 01-686018, 686019 [email protected]

Value-added

shrimp products

9. Ayeyarwaddy

Cold Store 01-540742 [email protected] n/a

10. Myanmar Sea-

Foods Ltd 01-680836, 680837 [email protected] Mainly shrimp

11. Yuzana

Fisheries Ltd. 01-220526 [email protected] n/a

12. Shwe Myanmar Cold Store

01-592157, 592338 [email protected]

Mainly fish and

small volumes of

shrimp

13. Crab World Co.,

Ltd. 01-519305, 519301 [email protected] Soft shell crab

14. Htu Nay Linn

Co. Ltd. n/a n/a n/a

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The Supply Chain

Business Support Organizations

Shrimp and Fish Farmers

Inland fisheries

Marine fisheries

Jetty’s90% Supply agent90%Processing

establishments 90%

10 %

10 %

Domestic market

EU COMPETENT AUTHORITY = Department Of Fisheries (DoF) and the Fishery Inspection and Quality Control (FIQC)

Myanmar Fisheries Federation (MFF)

Myanmar Shrimp Association

Myanmar Fish Farmers Association

Seafood Exporters Association (MPEA)

Overseas buyers

Analysis and interpretation

Buyers and exporters do business directly. Contrary to many other countries in the region, in Myanmar it is not common to work through agents. Processing establishments maintain direct contact with their buyers and facilitate the entire export process. As a result of the small number of EU approved suppliers it is relatively easy to scope for the most potential suppliers that meet your product and buyer requirements.

Some processors have their own farms

or fishing boats. Although most exporters purchase their material from the jetty’s, some of the exporters buy directly from farms or even have their own farms and integrated supply chain. An example is the Yuzana company which has an EU approved processing establishment and in addition has 3 large shrimp farms and 1 large fish farm where they produce shrimp that is supplied to its own factory.

Processors mostly rely on agents to purchase raw materials from jetty’s. Most processing establishments rely on supply agents that purchase raw materials from jetty’s where both aquaculture and fisheries products are landed. Most of the products exported to the EU are landed in jetty’s in the major fish market in Yangon. Exporters prefer to work through agents because the hassle of the auction at the

Considerations for action

Consider to become a member of the Seafood Trade Portal which will allow you to find more detailed information about the export companies that have their own farms or fishing boats.

FAO is working on the improvement of SPS

circumstances of jetties in Myanmar. FAO looks for private companies that are interested to get involved in their project. Please see contact details in the next section.

CBI is currently considering to set up an

export coaching program for exporters that want to access the EU market. For this purpose CBI works closely together with some of the exporters. Don’t hesitate the CBI program manager if you have any questions about this.

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Business Support Organizations

1. Union of Myanmar Federation of Chambers of Commerce and Industries (UMFCCI)

Activities: The UMFCCI is the largest business federation in Myanmar, representing the interests of private businesses in Myanmar and offering business services (training, information, facilitating). Useful network for foreign companies that want to do business in Myanmar.

Address: No.29, Min Ye Kyawswa Road, Lanmadaw Township, Yangon, Myanmar. Contact: Tel: + 95-1-214344, 214345 / www.umfcci.com.mm

2. Myanmar Fisheries Federation (MFF) and the Seafood Processors and

Exporters Association (MPEA)

Activities: The MFF is the umbrella organization for all private sector stakeholders in the seafood sector in Myanmar. MFF has 9 member organizations for different sectors within the industry. MFF is the highest level association in the industry. MPEA is one of the strongest associations within MFF and represents all the seafood processors and exporters..

Address: Corner of Bayint Naung Road & Say War Sat Yone Street, West Gyo Gone, Insein Township, Yangon, Myanmar. Contact: + 95-1-683652 / [email protected]

jetty’s is a specialty job. The consequence is that they have less control over traceability. A limited number of export companies purchase directly from jetty’s. Only a few jetty’s are at this moment EU approved by the Department of Fisheries.

Producers send their products to the jetty’s by own transport. Producers generally transport their products with their own transport to the jetty’s in Yangon or closer the production location. Processors or supply agents will send their refrigerated trucks to the jetty’s to transport the products to the factories. In general ice is provided already at the farm and boat level and products. Products are transported in 72 hours cool boxes and chilled with ice.

The Department of Fisheries (DoF) is responsible for food safety in the supply chain. The DoF is responsible to certify and register jetty’s, supply agents and processors. The quality department (FIQC) regularly visits and audits all facilities across the supply chain.

All the stakeholders are represented in the Myanmar Fisheries Federation (MFF). Under the MFF all stakeholders are represented in its member associations such as the exporters association (MPEA), the shrimp association (MSA) and the fish farmers association (MFFA)

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http://www.umfcci.com.mm/



3. Larive Thailand Co. Ltd. Activities: Larive develops and implements market entry & growth strategies in emerging markets, including Myanmar.

Address: Interchange 21 Building, Room 3249, Sukhumvit Road 399, Bangkok 10110, Thailand Contact: Tel: +66 2 660 3630 / www.larive.com

Government Institutions

4. Myanmar Investment Commission (MIC), Directorate of Investment and Company Administration (DICA)

Activities: The MIC is amongst others responsible for promoting and facilitating foreign investments in Myanmar. The commission can issue investment permits and grant investors reliefs for taxes and duties. The Myanmar Minister of National Planning and Economic Development is the secretary of the MIC. Therefore, the front office of the MIC is located at the Directorate of Investment and Company Administration (DICA). Address: Building No. 32, Nay Pyi Taw, Myanmar Contact: Tel: +95 – 67 406 122 / www.mnped.gov.mm 5. Export-Import Registration Office

(Directorate of Trade, Ministry of Commerce)

Activities: Amongst others responsible for providing export-import licenses and temporary trade permits.

Address: Building No. 3, Nay Pyi Taw, Myanmar Contact: Tel: 95 – 67 408009 / www.commerce.gov.mm 6. Department of Fisheries

(Ministry of Livestock, Fisheries and Rural Development)

Activities: The EU appointed competent authority responsible for issuing catch and health certificates, inspection of factories, landing sides and farms and the implementation of the Residue Monitoring Plan.

Address and contact (NPT): Office No.(36), Ministry of Livestock, Fisheries and Rural Development, Ministry Zone, Nay Pyi Taw Tel: +951-408059

Address and contact (YGN): Bayint Naung St., West Gyoe Gone. Insein Township, Yangon, Myanmar. Tel: +951-647520 7. Embassy of the Republic of the Union of Myanmar Brussels, Kingdom

of Belgium

Activities: Only Embassy of Myanmar in the Benelux. People who would like to visits Myanmar can apply at this Embassy for their visa.

Address: No. 9, Boulevard General Wahis, 1030 Brussels. Contact: Tel: +32-2-701-9381 / E-mail: [email protected]

http://www.cbi.eu/



http://www.larive.com/

http://www.mnped.gov.mm/

http://www.commerce.gov.mm/




International Organizations, NGO’s and Universities

1. The Centre for the Promotion of Imports from Developing Countries (CBI)

Activities: CBI plans to implement an export coaching program for Myanmar exporters interested to export to the European market.

Contact: Hugo Verhoeven: [email protected] 2. Worldfish (CGIAR)

Activities: Worldfish is implementing the Myfish product aimed at supporting small scale fishermen and farmers and to built capacity within the DoF.

Contact: [email protected] 3. Food and Agricultural Organization (FAO)

Activities: FAO is implementing several support programs but currently focuses on the improvement of food safety standards at jetty’s.

Contact: Bui Thi Lan: [email protected] 4. Solidaridad

Activities: Solidaridad and LEI Wageningen UR are implementing the Seafood Trade Portal project and are setting up a sustainability program for aquaculture products.

Contact: Daniel Knoop: [email protected] 5. LEI Wageningen UR

Activities: Solidaridad and LEI Wageningen UR are implementing the Seafood Trade Portal project and are setting up a sustainability program for aquaculture products.

Contact: Willem van der Pijl: [email protected]

6. EU Delegation

Activities: The EU delegation is supporting the Department of Fisheries to meet EU standards for seafood exports to the EU.

Contact: [email protected]

This survey was compiled for CBI by LEI Wageningen UR in collaboration with Larive International

Disclaimer CBI market information tools: http://www.cbi.eu/disclaimer

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cbi import intelligence: seafood in myanmar

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