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Interim Report
GOVERNMENT OF THE REPUBLIC OF THE UNION OF MYANMAR
Formulation and Operationalization of National Action
Plan for Poverty Alleviation and Rural Development through Agriculture
(NAPA)
Yangon, June 2016
1.
Ministry of Agriculture,
Livestock and Irrigation
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TABLE OF CONTENTS
EXECUTIVE SUMMARY ................................................................................................................................................................................... vii
INTRODUCTION ................................................................................................................................................................................................... 1
BACKGROUND TO FORMULATION OF THE NATIONAL ACTION PLAN FOR AGRICULTURE ...................................................... 2
THE NATIONAL AND REGIONAL CONTEXT ................................................................................................................................................ 5
1.2 Natural Setting .......................................................................................................................................... 5 1.3 Historical Setting ....................................................................................................................................... 6 1.4 Social and Demographic Context .............................................................................................................. 7 1.5 Economic Infrastructure ............................................................................................................................ 9 1.6 National Economy ................................................................................................................................... 10 1.7 Political and Administrative Context ...................................................................................................... 14
SECTOR BACKGROUND .................................................................................................................................................................................. 16
1.8 Sector Overview ...................................................................................................................................... 16 1.9 Production Overview .............................................................................................................................. 17 1.10 Natural Resource Access and Use ........................................................................................................... 28 1.11 Inputs and Services ................................................................................................................................. 33 1.12 Marketing System ................................................................................................................................... 37 1.13 Value Addition ........................................................................................................................................ 39 1.14 Consumption and Food supply ................................................................................................................ 40 1.15 Exports and Imports ................................................................................................................................ 41 1.16 Data and Information on Sector Performance ......................................................................................... 46
SECTORS AND SUB-SECTORS UNDER REVIEW ........................................................................................................................................ 48
INSTITUTIONAL ENVIRONMENT ................................................................................................................................................................. 51
1.1 Line Government Agencies for Commodity and Thematic Sectors ........................................................ 52 1.2 Research .................................................................................................................................................. 55 1.3 Extension ................................................................................................................................................. 57 1.4 Education ................................................................................................................................................ 59 1.5 Cross-Cutting Sectors/Themes ................................................................................................................ 61 1.6 Legal Frameworks ................................................................................................................................... 63
KEY OPPORTUNITIES AND CONSTRAINTS BY SECTOR ........................................................................................................................ 67
POVERTY AND SOCIAL INCLUSIVENESS ................................................................................................................................................... 71
INTERVENTIONS AND INVESTMENTS ........................................................................................................................................................ 74
1.1 Commodity Sector Recommended Interventions and Investments ......................................................... 75 1.2 Cross-Cutting Sector Recommended Interventions and Investments ..................................................... 79 1.3 Configuration of Investments in an Overall Framework ......................................................................... 82
CROSS-LINKAGES BETWEEN SECTORS ..................................................................................................................................................... 85
IMPLEMENTATION RISKS .............................................................................................................................................................................. 87
FINDINGS OF REGIONAL STUDY TOURS AND VERIFICATION WORKSHOPS ................................................................................. 89
ANNEX 1: INVESTMENT AND INTERVENTION BRIEFS .......................................................................................................................... 93
ANNEX 2: POLICY AND INSTITUTIONAL CONSTRAINTS IDENTIFIED IN EACH COMMODITY SECTOR .............................. 161
ANNEX 3: CONSTRAINTS IN COMMODITY SECTOR VALUE CHAINS .............................................................................................. 163
ANNEX 4: CONSTRAINTS IN COOPERATIVES AND RURAL FINANCE .............................................................................................. 164
ANNEX 5: RURAL EMPLOYMENT AND GENDER AND SOCIAL INCLUSION ................................................................................... 165
ANNEX 6: MARKETING, TRADE, POST-HARVEST AND AGRO-INDUSTRY ...................................................................................... 166
ANNEX 7: CONSTRAINTS AND OPPORTUNITIES IN LAND TENURE ................................................................................................. 167
ANNEX 8: REGIONAL STUDY TOUR PARTICIPANTS ............................................................................................................................. 169
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ANNEX 9 TOWNSHIP AND REGIONAL WORKSHOPS ............................................................................................................................ 170
APPENDIX ----------------------------------------------------------------------------------------------------------------------------------------------------------171
FIGURES
Figure 1: Inflation Rate and Exchange Rate 2000-2013 ............................................................................. 13 Figure 2: Conceptual Framework for the Agriculture Sector ..................................................................... 16 Figure 3: Structure, Dynamics amongst Smallholder, Commercial and Agribusiness Entities .................. 19 Figure 4: Major Industrial Crops: Area Harvested 1990-2013 ................................................................... 22 Figure 5: Conceptual Framework for an Extension System Facilitating Smallholder Development ......... 36 Figure 6: Myanmar Merchandise Imports and Exports (total value) 1990-2012 ........................................ 41 Figure 7: Export Values of Major Crops 1990-2013 .................................................................................. 43 Figure 8: Fishery Exports by Category and Value 2008-2014 ................................................................... 44 Figure 9: Five Areas of Importance to Smallholders, and Relation to Cooperatives and Groups .............. 68 Figure 10: Differentiated Livelihood Strategies ......................................................................................... 69 Figure 11: Conceptual Framework for Investments and Interventions ....................................................... 76 Figure 12: Conceptual Framework for the Configuration of Investments .................................................. 82 Figure 13: Potential NAPA Program Structure based on Five Thematic Areas ......................................... 83 Figure 14: NAPA Strategic Directions ....................................................................................................... 84
TABLES
Table 1: Land and Water Areas in Myanmar ................................................................................................ 6 Table 2: National Populations of Regional Countries in 1983 and 2014 ...................................................... 7 Table 3: Regional Countries: Percentage of Population in Urban Areas ...................................................... 9 Table 4: Regional Countries: Rural and Urban Populations 1983 and 2014 ................................................ 9 Table 5: GDP per capita in mainland ASEAN countries 2000-2013 .......................................................... 10 Table 6: GDP and GDP per capita 2000-2013 ............................................................................................ 11 Table 7: Structure of Output percent of GDP at current producer prices ................................................... 11 Table 8: Contribution of Agriculture to GDP in Mainland ASEAN countries ........................................... 12 Table 9: Exports of merchandise as a percentage of GDP in regional countries ........................................ 12 Table 10: Government Expenditure as a Proportion of GDP in Mainland ASEAN Countries .................. 13 Table 11: Estimated number of households engaged in agricultural production ........................................ 20 Table 12: Sown Area 2012-2013 of Industrial and Plantation Crops ......................................................... 22 Table 13: Indicative Asset Values of Smallholders by Category ............................................................... 24 Table 14: Agro-Ecological Zones and Farming Systems ........................................................................... 25 Table 15: Climate Change: Examples of Agricultural Drivers and Impacts ............................................... 31 Table 16: Protein Food Supply Quantity (kg/cap/year) of Regional Countries .......................................... 41 Table 17: Major Exports and Imports 2013 by Value................................................................................. 42 Table 18: Major Export Items by Value ..................................................................................................... 42 Table 19: Livestock and Livestock Product Exports by Value (2013) ....................................................... 43 Table 20: Formal and Informal Imports of Livestock and Livestock-related Items ................................... 45 Table 21: Relative Value of Major Crop and Livestock-related Imports 2008-2012 ................................. 45 Table 22: Commodity Sectors and Sub-Sectors.......................................................................................... 48 Table 23: Identified Issues within Cross-Cutting Themes .......................................................................... 49 Table 24: Overview of the Institutional Environment in Commodity Sectors ........................................... 52 Table 25: Institutional Environment in Cross-Cutting Themes .................................................................. 62 Table 26: Major Legislation for each Rural Sector ..................................................................................... 64 Table 27: Summary of Interventions and Investments ............................................................................... 74
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Table 28: List of Interventions and Investments in Commodity Sectors .................................................... 77 Table 29: List of Interventions in Cross-Cutting Themes ........................................................................... 79 Table 30: Technical Cross Linkages between Sectors ................................................................................ 85
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ACRONYMS
ADB Asian Development Bank
AMD Agriculture Mechanisation Department
ASEAN Association of South East Asian Nations
CAHW Community Animal Health Workers
CB Cooperative Bank
CBM Central Bank of Myanmar
CCS Central Cooperative Society
CDZ Central Dry Zone
CP Charoen Pokphand Group
CSO Central Statistics Office
DAP Department of Agriculture Planning
DAR Department of Agricultural Research
DICD Department of Industrial Crops Development
DOA Department of Agriculture
DOF Department of Fisheries
DFID Department for International Development
DRD Department of Rural Development
ESCAP Economic and Social Commission for the Asia Pacific
FAO Food and Agriculture Organization of the United Nations
FD Forest Department
FY Financial Year
GAD General Administration Department
GAP Good Agricultural Practices
GDP Gross Domestic Product
GoRUM Government of the Republic of the Union of Myanmar
HPAI Highly Pathogenic Avian Influenza
ID Irrigation Department
IHLCA Integrated Household Living Conditions Assessment
LBVD Livestock Breeding and Veterinary Department
LIFT Livelihoods and Food Security Trust Fund
LUD Land Use Division
MADB Myanmar Agriculture Development Bank
MOA Ministry of Agriculture and Irrigation
MLFRD Ministry of Livestock, Fisheries and Rural Development
MOC Ministry of Cooperatives
MOECF Ministry of Environmental Conservation and Forestry
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MPA Marine Protected Area
MSY Maximum Sustainable Yield
NGO Non-Government Organisation
NAPA National Action Plan for Agriculture
NPK Nitrogen Phosphorus Potassium
NSPARD National Strategy on Poverty Alleviation and Rural Development
PGMF PACT Global Microfinance
PRRS Porcine Reproductive and Respiratory Syndrome
REDD Reducing Emissions from Deforestation and Forest Degradation
SEE State economic enterprises
SEZ Special Economic Zone
SPDC State Peace and Development Council
SLRD Settlement Land Record Department
TBD To Be Determined
TVO Township Veterinary Officer
UK United Kingdom
US$ United States Dollars
UVS University of Veterinary Science
VFV Virgin, Fallow, and Vacant
WRUD Water Resources Utilisation Department
YAU Yezin Agriculture University
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MAP
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EXECUTIVE SUMMARY
1. The purpose of the National Action Plan for Agriculture (NAPA) is to guide investments
in the agriculture sector that will contribute to poverty alleviation, rural development and
ultimately, national economic growth under the umbrella of the National Strategy for Poverty
Alleviation and Rural Development (NSPARD). This Interim Report of the NAPA aims to
stimulate broad discussion amongst agricultural sector stakeholders and lay the foundation for
the complete National Action Plan for Agriculture (NAPA) for Myanmar. The Interim Report
consists of a main body, and the Executive Summary.
2. Main Body of the Interim Report. The main body of the report provides a synthesis of
the findings of thirteen technical studies of various sub-sectors/themes covering the agricultural
and rural sector undertaken during the first phase of NAPA formulation. It also incorporates the
recommendations of eight subsequent local and regional verification workshops which reviewed
the findings and recommendations of the sub-sector studies; the recommendations arising from a
regional study tour conducted by senior government officials, and the recommendations of the
National Consultative Conference on the draft Interim NAPA report.
3. The technical studies were: (i) crop production, extension and applied research, (ii)
livestock, (iii) agricultural water and soil management, (iv) fisheries, (v) forestry, (vi) coastal
areas, (vii) rural cooperatives (viii) rural employment (ix) rural finance, (x) land tenure, (xi)
agricultural marketing and trade (xii) post-harvest and agro-processing, and (xiii) gender and
social inclusion. The technical studies were conducted by teams of international and national
specialists working collaboratively, over the period September 2014 to February 2015
4. The verification workshops were conducted between 27 April and 15 May 2015. Four
verification workshops took place at township level and four at regional level. Over 900 people,
representing 15 stakeholders’ groups participated in these workshops, including farmers and their
associations, cooperatives, civil society organizations, private sectors, INGOs, UN agencies and
government departments.
5. The regional study tour+ allowed senior Government officials to meet with their
counterparts in Vietnam and Malaysia and see personally the successes and constraints
encountered in these countries in moving the rural sector towards a more dynamic and equitable
pattern of growth.
6. The National Consultative Conference (NCC) was held in Nay Pyi Taw on 10-11 August
2015. The National Conference endorsed the Draft Interim Report, and the objectives, approach
contained therein, subject to the report being updated to include recommendations from the study
tour and the Conference itself. The endorsement included that the key target groups would be
smallholders of various categories and that rural enterprise and employment should be included
in the NAPA.
7. Executive Summary. The Executive Summary, rather than consisting of a summary of
the information in the main body of the report, describes a number of key strategic elements that
provide a direction for Phase II. These strategic elements emerged from the technical studies,
verification workshops, study tour, and National Consultative Conference, and are considered
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essential for any pro-poor rural development strategy and investment plan for Myanmar. The
strategic elements are encapsulated in the eight findings described below.
8. The Interim Report is not a strategy document per se (this will be the role of the final
NAPA document), but rather offers a number of conclusions and recommendations for
consideration by a wide range of stakeholders, including Government, agricultural producers,
civil society and the private sector, during Phase II of the NAPA project. Among these
recommendations are a number of preliminary investment and intervention proposals arising
from the technical studies. These are presented in Annex 1 to this document. On the basis of the
endorsement received at the NCC, the second phase of the formulation process will undertake
more detailed analyses in areas identified as needing further attention and examine in detail the
legislative, policy, institutional and other changes required to implement the selected investments
within the framework of an overall sector investment plan. In particular, the NCC recommended
that further study be undertaken of the feasibility, structure and institutional basis of an
integrated agriculture and rural development extension, research and training system for the
country.
Finding 1: The NAPA program structure developed in Phase II should ensure that all
investments are appropriately configured in an overall program framework.
9. The investment recommendations in the technical studies have been presented as lists of
individual recommendations, so there is a need in NAPA Phase II to both examine the
recommendations to determine their appropriateness to overall NAPA objectives, and to consider
how they can be configured into an overall framework.
10. This report proposes a conceptual framework for the configuration of investments as
shown in the figure below. The diagram (Figure 1) shows only two programs, for illustrative
purposes. An “appropriately-configured investment” is one that is appropriately positioned
within such an overall framework.
Figure 1: Conceptual Framework for NAPA Program Structure
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11. The framework also recognises that progress in agricultural development occurs in the
context of general rural development (e.g. economic and rural infrastructure) and that Phase II of
NAPA needs to consider how linkages with such development are managed.
12. The “portfolio level” is at the highest level, with a number of programs at the next level,
followed by projects and sub-projects or components that consist of activities or both activities
and sub-projects. Projects are defined as a series of activities with an agreed aim, using resources
from a variety of sources (development assistance, government, private sector etc.).
13. The distinction between components and sub-projects is that sub-projects allow for
partnership arrangements (e.g. private sector, farmer groups, NGOs) to be made in a more formal
manner.. For example, sub-projects could be developed that include joint contributions (e.g.
financing, technical support) from the project and from private sector entities on the basis of
agreed business plans for income-generating activities. Another example would be joint
contributions (e.g. project and community group), for an agreed plan for a non-income
generating activity for the community public good. Given that sub-projects require resources
from non-project sources, they are often identified during the period of implementation, rather
than being agreed on in the design. Components, on the other hand, are an essential part of
project design, are fashioned around technical areas or institutional mandates, and can consist of
both activities that are fully supported through project resources, and sub-projects.
14. This is a general structure, and there is flexibility for sub-programs to be developed under
the program level. Linkages between program areas would be expected at project and sub-project
level, and this would be strongly promoted by the NAPA institutional structure.
15. The portfolio level would provide
broad long-term strategic objectives
strategic oversight and coordination of programs
investment guidelines at both program and project level. More detailed investment
planning would take place at lower levels in the framework.
program and project priority-setting, and develop indicative budgets and time-lines. The
NCC recommended that interventions and investments should be categorised into short
term (5 years), medium term (5-10 years) and long term (10-20 years) and should be
aligned with the timing of the national 20 year development plan.
16. Some suggested investment guidelines arising from the findings of this report are shown
in Table 1 below.
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Table 1: Suggested Investment Guidelines Arising from the Report
Given the resources and mandate of the investment:
Is the investment appropriately configured in the
overall investment framework?
Finding 1
Is the investment sufficiently comprehensive? This
encompasses issues such as gender sensitivity and
nutrition sensitivity.
Finding 2
Is the investment strategic? This includes issues such
as value for money, rate of return and sustainability.
Finding 2
Is the investment focused on the needs and priorities
of different categories of smallholders, including those
with commercial potential, those considering exit from
agriculture and those requiring basic assistance?
Finding 3
Does the investment allow for sufficient
encouragement for private-sector investment?
Finding 4
Does the investment address a sufficient number of the
five areas of importance to smallholders?
Finding 5
Does the investment support a coherent extension
system?
Finding 6
17. There are a variety of options for a program level structure, including:
Regional-, or agro-ecosystem based programs, such Central Dry Zone, Delta, Upland,
Coastal; or economic corridors-based. LIFT, for example has established regional
programs in the Central Dry Zone and Delta, with funds flowing through to a series of
projects.
Sector-based, for example “Crops Program”, “Livestock Program”, “Fisheries Program”
“Forestry Program”, or “Land Program” with funds flowing through to projects in these
technical areas.
Commodity-based, for example “Rice Program”, or “Dairy Program”.
Institution-based, for example shaped around Union-level Ministry or Department
mandates, or State/Regional, or township level mandates
Thematic area–based , for example extension, cooperatives, financial services, etc. and
other thematic areas of importance to smallholders
18. The advantages and disadvantages of different program and planning approaches e.g.
national vs. regional, will be examined more closely in Phase II.
19. The provision of sub-projects within projects is an especially useful mechanism for
developing joint public-private investment into business plans that can benefit smallholders, and
may be less of a challenge than attracting private sector investment at the project or program
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level. Private investment could nevertheless be sought at project, or indeed program level, on a
case by case basis.
20. NAPA provides a framework into which funds can flow to programs, project or sub-
projects. While funds can flow into NAPA at any level, it is most likely that they will flow to
project or sub-project level, with the NAPA providing the overall coordinating structure.
21. While economic and rural infrastructure also plays an important role in agriculture and
rural development, the NCC recommended that it not be included as one the core programs under
NAPA. Instead, as shown in Figure 1, NAPA programs should be implemented within the
context of coordinated supporting infrastructure development.
22. Further issues to be addressed in Phase II of NAPA (see Finding 8) with respect to the
Investment Framework include
The institutional governance of the NAPA structure, including strategy, fund
mobilisation, coordination, and decision making entities at national, State/Region and
lower levels, as well as Technical Working Groups structured around programs, and
strategic directions. The NCC recommended that the NAPA should operate under the
Central Committee on Poverty Alleviation and Rural Development;
How to bring funds and resources from a variety of sources (e.g. Government,
international financing agencies, bilateral assistance, INGOs and NGOs, etc.) into the
portfolio, programs, projects and sub-projects (“horizontal flows”);
How funds will flow downward from programs to projects and sub-projects (“vertical
flows”);
Appropriate monitoring and evaluation (M&E) systems which will provide NAPA
management with the necessary feedback on performance and areas requiring closer
supervision;
How to achieve convergence and coordination of donor and government funding sources.
A starting point could be an information system on current donor and government
programs and projects.
Finding 2: Program or project level investments under NAPA should aim to be both
comprehensive and strategic and encompass investments to support both agricultural
production related activities as well as off-farm employment and rural enterprise.
23. A comprehensive investment is one which aims to make improvements at the levels of
policy, institutions, value chain, and data and information on sector performance, and takes into
account cross-sector issues such as gender and social inclusion. A strategic investment is one
that makes a significant impact during the period of investment and which continues to have an
impact into the future resulting from the adoption of systems and functions established during the
investment period.
24. The NCC and verification workshops endorsed a conceptual framework for developing a
comprehensive investment strategy, as shown in Figure 2 below.
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Figure 2: Conceptual Framework for Comprehensive Investments and Interventions
25. Policy level interventions: These include investments and interventions aimed at
improving policies, the legislative and regulatory framework, and the investment frameworks
that guide public and private investment in the sector, and in reviewing public sector budget
allocations. These are largely public sector systems and functions but, where feasible, there
should be significant private sector engagement in the improvement process.
26. Institutional level investments: These include investments to strengthen the capability
and sometimes modify the mandate of public sector institutions responsible for rural education
and training, agricultural research, and line government institutions responsible for elements of
the sector, as well as institutions engaged in value chain governance. These are mostly areas for
public sector investment, but value chain governance has a strong private sector involvement.
27. Value Chain investments: Investments in the value chain systems and functions include
those aiming to improve (i) the provision of inputs and services (including financial services and
insurance); (ii) broad-based extension services; (iii) crop, livestock, aquaculture, fisheries and
forestry productivity and collection of forest products; (iv) access to, and use of natural resources
(land, water); (v) value adding functions; (vi) marketing, markets and market information
systems; (vii) consumption of nutritious and safe food (including nutrition) and utilization of
forestry products; and (viii) imports and exports. Investment in most of these systems and
functions is largely a private sector issue, albeit within a framework of public sector facilitation
and regulation. However, extension services and governance of natural resources are essentially
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public goods. Examples of the supply of inputs and services targeted at the public good can be
also found (e.g. livestock vaccines, water for irrigation).
28. The conceptual framework allows for investment in the area of food security and
nutrition (encompassed in “production”, “markets” and “consumption”, equating to the four
pillars of food security: availability, access, utilization and stability). However, nutrition was not
addressed as a specific topic in any of the Phase I technical studies. Examining the role of NAPA
in nutrition is an issue for Phase II of NAPA (see Finding 8).
29. Data and information: Investments to improve data and information include (i)
investments to improve public sector information on sector performance. For example, an
improved system would have an increased emphasis on a people-centred rather than commodity-
centred approach, enabling a better understanding of the situation of households and enterprises,
and with a focus on livelihoods, food security, and nutrition. The information system should aim
to capture data on the status and dynamics of smallholders levels of commercial agricultural
viability – from “subsistence, non-commercial level” through to “medium-large commercial
level”, as well as data on households ‘stepping out” of agriculture. (ii) improving the M&E
systems that relate to individual specific investments. (iii) improving the flow of relevant
information to smallholders. This can include information generated from the public sector
information system (e.g. on weather, climate and markets), as well as feedback to farmers on
specific investment M&E information. Flow of such information is seen as constituting an
important part of any extension system.
30. Off-farm employment and rural enterprises. Investments in this area aim to assist
poorer farming households to gain additional income either locally or through migration while
retaining their farm assets, or allow them to “step out” of agriculture altogether. While
investments in non-agriculture sectors – manufacturing, resource extraction, services – might be
expected to provide greater off-farm employment opportunities, there are also significant
opportunities in the agribusiness and agro-processing sectors. Investment should be directed
towards job creation and income generation at local level supported by appropriate skill
development.
31. In Finding 5 (below), the value-chain level issues of most importance to smallholders are
described in more detail.
32. Gender equality and social inclusion: This issue is of paramount importance for the
eradication of poverty, the construction of an equitable economy, and sustainable development.
Investments should recognize the role women play in the household and in the rural economy,
remove institutional barriers and enhance incentives to increase the access of diverse individuals
and groups to development opportunities.
33. This report proposes a conceptual framework for a developing a strategic investment
approach, as shown below (Figure 3).
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Figure 3: Conceptual Framework for Strategic Investments
34. While an investment can occur in a variety of sequential steps – for example several
phases (e.g. pilot and expansion phases), the key aspects of the strategic approach are (i) high
impact during the investment period, which includes issues such as value for money, rate of
return and sustainability, (ii) high ongoing, and preferably increased, impact after the end of the
investment period, during which time the public and private sectors, as well as rural beneficiaries
themselves, would take over the investment and operating costs of the systems and processes
established in the investment period. This approach requires that planning for the post-
investment period should be an integral part of the design and implementation of the initial
investment. This also links to the comprehensive investment approach which includes reviewing
public investments in the sector (this issue was highlighted by a World Bank presentation during
the National Conference).
35. Improvement of general economic infrastructure such as roads, communication systems,
and power supply, as well as local infrastructure such as wells, ponds etc. also plays a substantial
enabling role in poverty alleviation and rural development. Several studies outlined the
importance of such infrastructure to enable development. However, investments in such
improvements are generally considered outside the realm of agriculture. A potential study in
Phase II of NAPA is to investigate potential technical, operational and financial linkages
between development of infrastructure and agriculture. For example, on a case-by-case basis
(e.g. electricity supply for pumps), investment in such infrastructure may be considered a critical
component of a “comprehensive investment”.
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Finding 3: Investments under NAPA should be targeted to improve the livelihoods of
smallholders, either enabling them to “step up” to a more enterprise-oriented system of
production, “hang in” with a better quality of life, or alternatively partially or completely
“step out” of smallholder agriculture.
36. With the focus of NAPA being on poverty reduction and rural development, it is
inescapable that the objective of investments should be to improve smallholder livelihoods. This
report proposes a conceptual framework for approaching investment aimed at improving
smallholder livelihoods. This framework posits that smallholders can be broadly categorised on a
scale of commercial viability, from non-commercial “subsistence” level, through producers with
the potential to increase and expand their operations, to small commercial smallholders.
Among subsistence farmers, many have little short term opportunity to improve their
livelihoods through agriculture, and their strategy is termed “hanging in”. Addressing
this group requires a strong focus on improving the quality of their lives through
improved nutrition, off-farm employment opportunities and simple improved
technologies;
For potentially commercially successful farmers, their efforts to increase and expand their
activities are termed “stepping up”, and this term can also be applied to small
commercial farmers who wish to increase their incomes. This group requires access to
more advanced technologies, improved technical assistance and the availability of
necessary input and market systems, including financing;
Lastly, many smaller farmers may decide to step out of agriculture, either temporarily
(e.g. migration), or permanently. This is termed “stepping out” and involves shifting the
focus of their economic activities from production to wage labour and small enterprise
creation, although they may retain some production activities as well(Fig 4);
Smallholders, commercial farmers and agribusiness share the production space, and
agribusiness has an important role in supplying many inputs and services to both
commercial and smallholders, the purchase of outputs through various exchange
arrangements (e.g. spot markets, or contract arrangements), and the provision of
employment opportunities for rural inhabitants. As a result, an effective agricultural and
rural development strategy should include this group.
37. As has been observed in many other countries, the trend over time is that the proportion
of the total population involved in agriculture will decrease, although the absolute number of
people remaining in the agricultural sector will depend on population growth. The average area
of land per household is likely to rise and agricultural labour costs to increase. Greater
productivity will be needed to pay for the higher labour costs, and technologies that reduce
labour requirements will come into play, including mechanisation. The underlying assumption is
that farming will be viewed more consistently as a business and that land will become a tradable
asset. A steady, managed progression from an agriculture-driven economy to one with an
increasing proportion of manufacturing, industry (some of which may be agriculture value-
adding), and services is a public good. Increasing agricultural productivity is a key part of the
process, as is the gradual transition of a significant portion of the rural population from natural
resource exploitation to employment, value addition and rural enterprises.
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Figure 4: Conceptual Framework for Investments Aimed at Smallholders
38. The role of the private sector in facilitating and supporting the transition of subsistence
and semi-subsistence producers towards either commercial production of partial or complete exit
from agriculture, is critical. The private sector provides the post-harvest and marketing services
essential to producers and is also often the source of financing and employment.
Finding 4: Investments should aim to facilitate private sector participation through the
identification and support for mechanisms to encourage private investment that can benefit
smallholders.
39. Effective leveraging of public resources through the facilitation of private sector
investment in the rural sector is of major importance; as long as such investment meets one or
more of the criteria for investment outlined in Finding 3. Where this is the case, private
investment can not only expand the resources available, but can also address potential investment
areas which public institutions are generally poor at establishing and operating; e.g. many value
chain activities. Such investments also have the strong advantage that, if successful, they
generate sufficient income to ensure their long-term sustainability, while government support is
always conditional on the availability of funds.
40. There are a variety of mechanisms that can be utilised for encouraging private investment
in the sector, including privatisation of government functions, start-up grant subsidies, co-
investment, public-private partnerships (PPP), public-private and producers/farming community
partnership (PPPP/PPCP) and so on. One example of such collaboration could include public
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investment in cold storage facilities which can then be leased to private sector operators, thus
reducing the capital requirements to enter the marketing system.
41. The development of public-private partnerships and other mechanisms for facilitating
private sector investment is an issue that must be addressed during implementation both at policy
level (investment framework), and at institutional level (e.g. strengthening value chain
governance). This issue will be addressed in more detail during Phase II of the NAPA
formulation process and is expected to emerge from the policy and legislative study as well as
the overall investment plan and investment profiles.
Finding 5: Investments under the NAPA program framework should, as a whole, aim
address the five key areas that are important to smallholders.
42. While the technical studies focused on specific technical areas, the studies alluded to the
important linkages and dependencies between the various technical areas. Based on this, this
report proposes to group the areas of importance to smallholders into the five following areas:
Natural Resource Access: Securing sustainable access of smallholders to the key
natural resources required for agricultural production: land, and water. For land, this
involves a system to enable smallholders to use, control, and transfer rights for private
land; and to sustainably utilise other land, such as community or forest land. For water,
this involves flood control, access to water for aquaculture and fishing activities,
groundwater access, and irrigation where feasible;
Agriculture and Nutrition: Facilitating smallholder efforts to improve net income
and to improve nutrition. This includes farmers having the capacity to choose the
appropriate enterprise mix (e.g. cropping/livestock/fishery), and to increase productivity
where it leads to more income. This includes improving income through crop, livestock
and aquaculture production, as well as the through fishing and forestry-related
production, capture or collection on a sustainable basis. Improving farm-gate prices and
linkages to markets is also an important aspect of improving net income. Extension
services, as well as the availability of credit, are key factors in increasing productivity
and income, as farmers move from low-input-output systems to higher-input-output
systems. Nutrition is included since extension services that aim to provide information
and change behaviour with respect to agriculture production are well placed to contribute
to behaviour change in the area of nutrition, on the assumption that this is linked to
human health/nutrition support systems.
Financial Services: Enabling smallholders to both protect and expand the assets they
hold – in land, livestock, finances and other assets – and avoid depletion through, for
example, the need to sell off assets at low prices in emergencies. The availability of
financial services is a key factor in both expanding and protecting assets. It should be
noted that any expansion in land assets by farmers (who are stepping up) can generally
only be realised if other farmers (who are stepping out) sell their land or usage rights,
thereby decreasing their assets.
Rural Employment: Enabling smallholders and their families to gain off-farm
employment through the development of rural enterprises, and through such actions as
vocational education, support to microenterprise growth, local value-addition, improved
availability of rural finance, and the ability to sell land to provide capital for new
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activities. Any interventions need to articulate the relative roles of public and private
sector investment. Commercial agriculture and agribusiness may play an important role
through providing employment opportunities, contract farming, demand for smallholder
production and even financing. The issue of fair and equitable dealings between small
holders and commercial agri-business/processing deserves careful attention. Since the
investment recommendations in the technical studies have been presented as lists of
individual recommendations, there is a need in Phase II of the formulation process to both
examine the recommendations to determine their appropriateness to overall NAPA
objectives, and to consider how they can be configured into an overall framework.
Climate Change and Shocks: Management and mitigation of climate change, and
short-term shocks. Short-term shocks include floods, droughts, cyclones and disease
outbreaks. For such shocks, effective early warning systems are needed. In the cases of
climate change and shocks, realistic forward planning and readiness preparations can
significantly reduce negative impacts to producers and the national economy.
43. The development of smallholder cooperatives and groups is viewed as a cross-cutting
issue, since such groups that can contribute to one or more of the five areas outlined above
(Figure 5). Now the Ministry of Cooperatives has been reorganized under the Ministry of
Agriculture, Livestock and Irrigation as two departments: Department of Cooperatives and
Department of Small-scale Industries.
44. As noted under Finding 1, economic and rural infrastructure is also critical for
smallholder development, but this is considered as a contextual issue, not a core program under
NAPA.
Figure 5: Five Areas of Importance to Smallholders, and Relation to Cooperatives and
Groups
45. A potential program structure based on these five thematic areas as core programs is
shown below (Figure 6). Several issues remain outstanding in terms of this program structure
Climate Change and Shocks: There has as yet been no technical study into how climate
change and shocks will be integrated into the NAPA. The decision as to whether climate
change and shocks is considered as a program, or integrated into other programs as a
cross cutting issue, is an issue which will be addressed under the technical study
scheduled for Phase II.
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Cooperatives and Farmer Groups: Since farmer and cooperatives are considered to be
a cross-cutting issue, each program area can potentially include actions on cooperatives
with mechanisms that may help small holder farmers to access markets. It is an issue for
Phase II as to whether cooperatives and farmer groups could be placed at program level,
to support the policy and institution building level interventions.
Figure 6: Potential NAPA Program Structure based on five thematic areas
Finding 6: To reach smallholders, investments will have to utilize an extension system
which although it may be aimed primarily at “stepping up”, will also contribute
significantly those “hanging in” and “stepping out”.
46. Extension is the major public investment that can facilitate smallholder efforts to step up
through increasing their income through, for example increasing sustainable productivity of their
assets, but only if it is responsive to smallholder needs and priorities. An extension system can
also play a supporting, contributory, or linking role in relation to the other four key areas defined
previously by:
providing extension service related to asset expansion (for example if a farmer starts a
new enterprise e.g. buys fattening pigs for the first time), and linking with financial
services;
playing a role in preparation for, and the management and mitigation of, shocks and
climate change;
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supporting the responsible use of natural resources through promotion of community
based approaches and in understanding access issues, albeit with caution, as this is an
area of regulatory activity and of potential conflict;
facilitating, where possible, some aspects of off-farm employment, particularly if this
includes some local farm household-level value addition which could be the subject of
demonstrations. This contributes to some extent to stepping out.
47. The extension system can also play an important role in supporting cooperatives.
Cooperatives themselves can play an important role in all the key development areas, for
example in engaging with government agencies, and private sector value chain actors.
48. The extension system must have strong functional linkages to research and education.
Research helps to develop technologies for extension, while education develops the human
resources suited for the extension system. Education and research functions are themselves
closely linked.
49. The extension system has significant potential to contribute to nutritional improvements.
The extension system can link to human health/nutrition focal points and mainstream nutrition
into the wide range of extension activities such as demonstrations, and in working with farmer
groups.
50. The extension system can contribute to “hanging in” through
involvement of subsistence farmers in targeted extension activities (e.g. demonstrations)
subsistence farmers having more casual labour opportunities from commercial farmers
and those farmers stepping up
linking to organisations (e.g. NGOs, Civil Society) with activities that are targeted to the
poorer, subsistence level farmers e.g. asset transfers (e.g. small livestock, nutrition cash
transfers), which could be strengthened with significant extension support.
51. A conceptual framework for the role of an extension system in the five key areas is
shown in the figure 7 below. This shows that the primary function of the extension system is in
facilitating productivity improvements, but can also play a role in each of the other four areas,
and in supporting cooperative development.
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Figure 7: Conceptual Framework for an Extension System Facilitating Smallholder
Development
52. While not shown in the figure above, there is also an opportunity for the extension system
to engage in several additional areas:
The systems and processes being developed to address infrastructure needs in villages.
This can be particularly important where such infrastructure e.g. water supply or ponds
for livestock and vegetables, can be directly related to agricultural productivity issues.
The extension system can contribute to and gain from diagnostic and planning systems in
collaboration with smallholder producers and other system participants, and potentially
receive financial support from local development funds.
Monitoring and control of animal diseases of public health concern, such as Rabies,
Anthrax, and avian influenzas, under the “One Health” umbrella;
Significantly closer collaboration with producers, research technicians and those
developing and delivering training and education in rural areas to ensure that producer
priorities are addressed and that research and training reflect these priorities.
53. None of the technical studies undertaken in Phase I directly addressed the issue of the
design of an overall extension system, and this topic will be further explored in Phase II of the
NAPA formulation process (see Finding 8). However, the individual technical areas reviewed in
Phase I did highlight some principles and opportunities:
The extension planning should be ‘bottom-up”, based on an analysis of smallholder
needs, resulting from regular smallholder consultations;
The extension planning and system delivery should be based on a thorough understanding
of farming systems, commodity value chains, and livelihood strategies on a local,
regional, and in some cases, national, basis. This will require not only intensified initial
training of extension field staff in areas such as marketing, private sector linkages and
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livelihood/farming system linkages, but will also require periodic ‘refresher’ courses to
ensure that field staff are aware of changes arising in these areas;
The extension planning and system delivery should be cognisant of Government, private
sector and civil society institutions that possess technical skills in cropping, livestock,
aquaculture, fisheries and forestry which may not be found within the extension system,
and of the special characteristics to be found within each technical area. For example,
o the livestock sector study highlights the potential of strengthening existing networks
of Community Animal Health Workers to act as contracted “extension agents” on
livestock productivity;
o the water study highlights the issue of crop extension being linked to irrigation
system design and management;
o the forestry study highlighted the role of cooperatives in community-managed
forestry;
o the credit study highlighted the role of credit cooperatives
54. The design of an extension “system” that involves and engages with private sector value-
chain actors – especially but not limited to input and service suppliers – as opposed to an
extension “service” that is essentially public sector driven technology delivery, adds to the
complexity in extension design. Provision of an integrated extension service has also been
highlighted by the stakeholders during the course of verification workshops. A comprehensive
dedicated extension system requires appropriately trained and equipped field-level technical
support staff addressing the whole range of farming relevant to the geographical area covered,
including such topics as crops, horticulture, livestock, fisheries, aquaculture, and social forestry.
These generalists would be supported by subject matter specialists, who would liaise also with
external agencies. The concept of a unified and integrated extension, research and training
system, linked to community level actors (e.g. key farmers) received support from the regional
study tour and verification workshops and was endorsed by the NCC.
55. The institutional arrangements for extension management, including financing, need to
take into account the principles of decentralisation of government functions.
Finding 7: Phase II of NAPA formulation needs to develop strategic directions to bring
together the program level investments into a framework that shows how the programs
contribute to overall strategy, with an overall institutional framework.
56. A proposed strategic directions framework as shown at the National Conference is shown
in Figure 8 below.
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xxiii
Figure 8: NAPA Strategic Directions
57. This framework represents a synthesis of the program framework with people-centred
strategic directions framed around hanging in, stepping up, and stepping out, and recognises the
role of commercial farmers/fishers and agribusiness in the sector. This framework includes the
five core programs, but also refers to the role of farmer cooperatives and group development as a
cross-cutting issue; and recognises that the investments are taking place in the context of rural
development (e.g. economic and rural infrastructure development).
58. The issue of NAPA institutional arrangements will be considered in Phase II of NAPA
formulation and should take into account the possibility of Working Groups at the level of the
four strategic directions as well as Working Groups at the core program level. The M&E system
that captures program and project performance, will also need to be adapted to support
information collection at the strategic direction level.
Finding 8: Phase II activities should include a range of activities as recommended by the
National Conference.
59. Based on recommendations of the National Conference, Phase II Activities should
include
Development of the NAPA program structure and strategic directions structure;
Development of the NAPA institutional structure. The National Conference
recommended that NAPA should operate under the Central Committee on Poverty
Alleviation and Rural Development, and that NAPA will need strong Region/State level
management under the Chief Minister, as well as playing a central role in District and
Township level Development Committee activities. At national level, NAPA must have a
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xxiv
strong capacity for planning, policy formulation and M&E. Other considerations for the
institutional structure is the establishment of technical working groups at the level of
Strategic Directions (see Figure 8), and at program level.
The Zero Hunger Challenge program, currently under development in Myanmar as part
of an important United Nations global initiative, should comprise an important element
within NAPA;
The planned Phase II institutional study should focus on the institutional structure of the
future NAPA itself but also address the relationship between NAPA and other initiatives,
such as those proposed for gender, regional or state level development, and infrastructure;
The planned Phase II Policy/Legislative study should examine the actions required to
enable NAPA to function as the vehicle for agricultural investments to contribute to
poverty alleviation under the NSPARD.
Additional study is required on the structure and operations of an integrated extension/
research/training system. This should include consideration of the role of the extension
system in nutrition, including nutrition education, particularly among the “hanging in”
group.
Proceeding with the scheduled study on the impact of, and preparedness for, climate
change and shocks, seen as a critical element for many producers;
Development of the investment plan with interventions/investments categorised into short
term (5 years), medium term (5-10 years) and long term (10-20 years) and alignment with
the national 20 year development plan
60. The technical studies included specific recommended investments. In Phase II, these
must be refined further, and in some cases individual investment recommendations merged into
investment projects or programs within an agreed program and strategic framework. For
example, the NCC recommended that:
the investment recommendations for the financial services were too narrow (related only
to Community Managed Financial Services) and that the investment in financial services
should take a far broader approach to the sector, including review of the role of MADB.
the many individual investment recommendations on land tenure needed to be reviewed,
and merged into a program or manageable project structure
there should be strong links between financial services and rural employment investments
the Ministry of labour should be included as stakeholder in rural development
investments
investments that could involve child or forced labour should be actively avoided
NAPA Interim Report
1
INTRODUCTION
1. The Interim Report of the National Action Plan for Agriculture (NAPA) aims to stimulate
broad discussion amongst agricultural sector stakeholders concerning priorities and actions of
most importance to a National Action Plan for Agriculture (NAPA) for Myanmar.
2. The report is an outcome of the first phase of the process of formulating the NAPA. It
represents the synthesis of thirteen technical studies of various sub-sectors/themes covering the
agricultural sector; the recommendations of eight subsequent verification workshops which
reviewed the findings and recommendations technical studies; regional study tours; and the
National Consultative Conference held in Nay Pyi Taw on 11-12 August 2015.
3. The sub-sector studies were as follows:
(i) crop production, extension and applied research;
(ii) livestock;
(iii) agricultural water and soil management;
(iv) fisheries;
(v) forestry;
(vi) coastal area management;
(vii) rural cooperatives;
(viii) rural employment;
(ix) rural finance;
(x) land tenure;
(xi) marketing and trade;
(xii) post-harvest and agro-industries; and
(xiii) gender and social inclusion
4. The technical studies were conducted over the period September 2014 to March 2015,
and the verification workshops were conducted between 27 April and 15 May 2015. Four
verification workshops were conducted at township level and four at regional level. Over 900
people, representing 15 stakeholders’ groups participated in these workshops, including farmers
and their associations, cooperatives, civil society organizations, private sectors, INGOs, UN
agencies and government departments.
5. The technical studies reviewed sector status, the institutional environment, opportunities
and constraints, and gave broad recommendations on areas for interventions and investment
which could yield impacts on poverty alleviation and rural development.
6. The Interim Report is structured as follows:
Background to the development of the NAPA
Overall review of the agricultural sector
Summary of investment opportunities by theme/sub-sector
Working Papers representing the thirteen technical studies.
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BACKGROUND TO FORMULATION OF THE NATIONAL ACTION
PLAN FOR AGRICULTURE
7. The Government of the Republic of the Union of Myanmar (GoRUM) accords the
highest priority to poverty alleviation. Just one month after the inauguration, the new
Government organized in May 2011 the first ever national level workshop on Rural
Development and Poverty Alleviation and articulated a National Strategy on Poverty Alleviation
and Rural Development (NSPARD). This strategy included eight strategic priority areas, most of
which are on agriculture and rural areas.
8. The GoRUM requested FAO to provide technical support to the formulation of the
agricultural component of the NSPARD, to be termed the National Action Plan for Agriculture
(NAPA). The request was through the National Committee on Poverty Alleviation and Rural
Development chaired by the Vice-President. The formulation process would be inclusiveness of
stakeholders at all levels to ensure a diversity of views, and to enable ownership of the project by
stakeholders and Government. Given the fundamental shifts in priorities and policy orientation
taking place in Myanmar, the scope of the NAPA would have to be broad enough to cover all
important segments and inter-linkages within the agriculture and rural development sectors. The
NAPA would also be guided by other strategic documents, the Framework for Economic and
Social Reforms (FESR), formulated in May 2012, and the National Comprehensive
Development Plan (NCDP).
9. The Livelihoods and Food Security Fund (LIFT) is providing the financial support to
FAO for technical assistance for the formulation of the NAPA. The FAO project is titled the
“Formulation and operationalization of a National Action Plan for Poverty Alleviation and Rural
Development through Agriculture” (NAPA) to implement the “National Strategy for Poverty
Alleviation and Rural Development (NSPARD) for Myanmar”. The project began in May 2014,
and will continue for a period of 18 months until December 2015. The project is being
implemented in two phases.
10. The formulation of the NAPA is taking place under the supervision of a Project Steering
Committee (PSC) chaired by the Deputy Minister of the Ministry of Livestock, Fisheries and
Rural Development (MOLFRD), who is also the chairperson of the Secretariat of the National
Committee on Poverty Alleviation and Rural Development. The PSC includes representatives
from other concerned Ministries, including the Ministry of Agriculture and Irrigation, Ministry
of Environmental Conservation and Forestry, Ministry of National Planning and Economic
Development, Ministry of Cooperatives, Ministry of Home Affairs, Ministry of Commerce and
others, as well as representatives from FAO and LIFT Fund Management.
11. Phase I included the following activities:
An Inception Workshop to familiarize government and non-government
stakeholders with the scope, objectives and formulation process for the study;
The preparation of thirteen technical studies covering a wide range of
thematic areas of relevance to the rural sector. These studies drew on existing
secondary materials, including the 2003/2004 Myanmar Agricultural Sector
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Review and census and survey data, as well as on interviews with various
stakeholders and visits to key agro-ecological zones of the country.
A study tour for GoRUM officers to two other regional countries to increase
their awareness of the approaches taken to pro-poor rural development in
these countries;
Four stakeholders’ meetings at township level to share the findings and
recommended development interventions and capture the views of
participants;
Four regional verification workshops. These workshops involved regional
government officials, community representatives, entrepreneurs and civil
society members or organizations from the area in order to discuss and verify
the results of the technical studies including findings and recommendations;
A National Consultative Conference on Agriculture, Poverty Alleviation and
Rural Development in Myanmar. The objective of the conference was to
review the Interim Report in depth and to provide guidance for Phase II of the
study.
12. This Interim Report is a key outcome of Phase 1 as it includes details on the thematic and
sub-sectoral analyses and provides the basis for the work in Phase II. Phase II will
include the following activities:
Further modification and development of the sub-sector analyses, as
needed, based on additional in-depth studies;
Assessment of thematic areas critical to the implementation of the NAPA,
including institutional strengthening/change, human resources
development, policy, legislation, monitoring & evaluation and
environmental impact;
Development of a Public Investment Plan and subsidiary Profiles for the
most important or immediate individual investments contained within the
overall plan. The scope of the investment work would include (i) provision
of a general framework for investment in agriculture from all sources,
public and private; and (ii) identification and definition (to profile stage)
of possible investment opportunities required for the realization of NAPA
objectives;
Identification and assessment of existing data and conduct of focused
surveys to collect additional statistics and information required to establish
a baseline that will be essential for monitoring and evaluation of NAPA
implementation;
Conduct a second round of overseas study tours for senior officers of
GoRUM;
Conduct four township level and four regional consultations with
participation of concerned stakeholders for validation and fine-tuning of
the final NAPA document. All policy, institutions and investment
proposals formulated need to be accepted by regional bodies and validated
for their effectiveness for agricultural development and poverty
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alleviation. A National Validation Workshop will be convened to discuss
the plan and various provisions of NAPA with stakeholders in order to
validate and further fine-tune.
Development of a fully operationalized NAPA document. Among other
aspects, it will include action plans in the following areas: (i) Policy
reforms; (ii) Institutional reforms; (iii) Human resource capacity; (iv)
Investment plan and investment profiles; and (v) M&E.
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THE NATIONAL AND REGIONAL CONTEXT
1.2 Natural Setting
13. The Republic of the Union of Myanmar covers a total area of 67,659km2 and has lengthy,
and largely mountainous, borders with Bangladesh, India, the People's Republic of China, the
Lao People's Democratic Republic, and Thailand. The country has extensive deltaic regions,
created by several riverine systems, the most of important of which are formed by the
Ayeyarwady and Sittaung rivers.
14. Myanmar has a lengthy coastline of about 1,900 km extending along the Bay of Bengal
and the Andaman Sea, where the country has long narrow coastal strip backed by mountains
bordering Thailand. The shoreline is characterised by extensive coastal mangrove swamps, while
a number of island clusters are found within its coastal and offshore areas.
15. The centre of the country comprises extensive alluvial lowlands, bisected by a forested
hill range (the “Bago Yoma”). The northernmost part of the central lowlands is referred to as the
“Central Dry Zone” (CDZ) and has a semi-arid climate with a lengthy dry season, and is
bordered to the north, east and west by highlands and mountains.
16. The surrounding mountain and upland areas have higher rainfall than the central lowlands
and have significant teak and other hardwood forests. Within the upland areas between the
second city, Mandalay, and the Chinese border, lies the Shan Plateau - a major region which is
highly suitable for agriculture.
17. Myanmar is divided into two main climatic regions, namely the tropical south comprising
over two-thirds of Myanmar, and the sub-tropical, temperate north which comprises the
remaining one-third of the country. There are distinct seasons; the dry season occurs from mid-
October to mid-May and is followed by the wet season. There is a cold spell from December to
February during the dry season. The southwest monsoon varies with both locality and elevation.
18. Myanmar is susceptible to natural disasters and threats. Cyclone Nargis, which struck the
Ayeyarwady Delta and Yangon areas in 2008, resulted in widespread devastation and huge loss
of human life. Cyclone Giri struck areas along the Bay of Bengal coast in 2010 and devastated
local areas. Climate change is also of serious concern, especially for the Central Dry Zone due to
its already low and increasingly uncertain rainfall.
19. Of the total country area (Table 1), 97 percent is land and 3 percent is inland water. Of
the land area, 48 percent is forested, 19 percent is agricultural, and 33 percent is classified as
‘other”. The country has an inshore fishing area of 124, 280 km2
and an Economic Exclusion
Zone of 520, 262 km2.
The agricultural area has increased from 17 percent to 19 percent of the
land area since 1990, an increase of about 1.8 million hectares.
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Table 1: Land and Water Areas in Myanmar
Category Area
(m ha) Importance Notes
Country area 67.66
Includes an Economic Exclusion
Zone of 5.2 m ha, equal to 7.6%
of total country area
Land area 65.33 97% of country area
Inland water 2.33 3% of country area
Inland fishing area of 1.24 m ha,
equal to 53% of the inland water
area
Area of land Use
Forest area 31.15 48% of land area
Other land 21.58 33% of land area
Agricultural area 12.59 19% of land area
Source: FAOstat
1.3 Historical Setting
20. Previous to the 11th Century, the land area that makes up modern Myanmar existed as a
number of relatively independent states, reflecting the country’s wide geographical and ethnic
diversities. A single political entity emerged in the 11th Century, with the establishment of a
powerful Burmese (Bamar) Buddhist kingdom in central Myanmar, which for the first time
achieved dominance over such important ethnic groups as the Mon to the South and the Shan to
the East. This kingdom remained dominant until the late 13th Century, when it was toppled by
repeated Mongol incursions. A period of fragmentation followed until a new Burmese kingdom
re-emerged in the 16th Century.
21. Rising tensions with Britain, the colonial power in neighbouring India, led to three
Anglo-Burmese wars in 1824, 1853, and then 1885. Annexation by Britain of the whole country
followed on from the third war in 1885, in so doing abolishing the monarchy which had led the
annexed kingdom. Britain divided the country into two areas: “Burma proper” which was
comprised of the central and coastal areas, and the “Frontier areas” comprised largely of upland
areas peopled by the Shan, Chin, Kachin, Kayin, Kayah, Mon and other non-Bamar ethnic
groups. British rule continued until it was broken by the invasion of Japanese forces in late 1941
during the Second World War, and was re-established temporarily in 1945 at the end of the war,
before ending in full independence for Burma in 1948.
22. With independence in 1948, considerable autonomy was granted to States representing
major ethnic populations in upland areas. However, civil disturbances continued through the
1950s and led to the military taking control of the country, initially in 1958 and then again in
1962, ushering in a strongly centrally-planned approach to national development.
23. Land-tenure challenges in Myanmar are largely related to legacies of the British colonial
period and the regimes that followed. The period dominated by central planning, which only
started to change in the late 1980s, was characterised by extensive controls on agricultural and
other forms of production, with centralised planning for choice of crops, procurement prices, and
the availability of inputs, among other factors. Export controls were introduced for many
commodities and, even where trade was permitted, only state enterprises were generally
NAPA Interim Report
7
authorised to enter export markets. State economic enterprises (SEEs) were created through
nationalisation of existing enterprises and most industrial activity passed under state control.
24. In 1989 the country was renamed Myanmar, and the first steps were taken towards a
market economy. In 2003, the ruling State Peace and Development Council (SPDC) developed a
seven-step "roadmap to democracy". In 2008, a new constitution was established. The country
name was changed from “Union of Myanmar” to “Republic of the Union of Myanmar”, and
general elections were held under the new constitution in 2010. The new government took up its
place in March 2011.
25. The current government has made significant steps to expanding democratic, social and
economic reforms, and in opening up the country to foreign investment and trade. International
development assistance, which grew rapidly in response to the 2008 Nargis Cyclone, is rapidly
increasing. Private investment across the whole economy is also rapidly expanding, with rapid
improvements in economic infrastructure. The next national election is slated for November
2015.
1.4 Social and Demographic Context
26. The provisional results of the most recent census, held in March 2014, found the
population of Myanmar to be 51.4 million people, well below previous estimates of about 60
million. While Myanmar’s population has been steadily increasing, growth has been slow in
comparison with regional countries. The previous census had been held in 1983, when the
population was recorded as being 35.4 million. The population had increased by 45 percent from
1983 to 2014, which was the lowest increase of all countries in the region except Thailand (Table
2).
Table 2: National Populations of Regional Countries in 1983 and 2014
Area/Country Year %
change 1983 2014
Cambodia 7.2 15.4 114%
Malaysia 14.9 30.2 103%
Lao PDR 3.5 6.9 97%
Viet Nam 58.9 92.5 57%
Myanmar 35.4 51.4 45%
Thailand 50.2 67.2 34%
Source: Census results 1983 and 2014 (provisional results) for Myanmar; ESCAP for other countries
27. Ethnically, Myanmar is a highly diverse country. Census results on the populations of
ethnic groups are not yet available from the 2014 census, but previous government estimates1
show that the Bamar group dominant at 69.0%, other Indigenous Races (Kachin, Kayah, Kayin,
Chin, Rakhine, Shan, other indigenous, foreign) at 25.7 percent, Indians and Pakistanis at 1.3
percent, Chinese at 0.7 percent, and Bangladeshi, Nepalese, other Foreign, and mixed foreign
and Burmese 3.3 percent. This diversity is reflected in the estimated 100 languages found in
1. Central Statistics Office, 2010, based on the 2010 census.
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Myanmar, with the major language being that of the Bamar majority, and with other major ethnic
groups having their own languages. Burmese is the language of school instruction, and English is
the second language, much used by the educated and urban elite.
28. Myanmar is overwhelmingly Buddhist, with Christianity and Islam estimated to account
jointly for less than 5 percent of the population. The key delta and dry zone regions are almost
entirely ethnic Burmese. Minority ethnic groups, by contrast, are concentrated in the highland
and mountain areas. Among the most important ethnic groups are the Shan, located mostly in the
eastern upland areas, and the Kayin in the southern upland areas.
29. There is large variation in the density of population within Myanmar. From the 2014
census, the average population density was found to be 76 persons/km2, but with large variations
between States and Regions, with Yangon and Mandalay Regions being the highest at 723 and
206 persons/km2 respectively, and the lowest being Kachin and Chin States, at 19 and 13
persons/km2 respectively. In other words, the population is concentrated in the central lowland
and delta areas dominated by the Bamar, with lower populations in the upland and mountainous
areas dominated by other ethnic groups.
30. The provisional National Population Census results of 2013 indicate that there are
10,889,348 households in Myanmar. On average, 4.4 people live in each household in the
country. The average household size is highest in Kachin and Chin States at 5.1.
31. Poverty is still high, but is reportedly declining. The Integrated Household Living
Conditions Assessment (IHLCA) conducted in 2010 found that the incidence of poverty on a
national basis had reduced from 32 percent in 2005 to 26 percent in 2010. The incidence of
poverty declined faster in urban areas than in rural areas. Consequently, rural poverty remains
higher considerably higher than urban poverty. The rural poor accounted for 84 percent of the
total poor. Disaggregated data on poverty showed that the highest incidence of poverty is
observed in Chin State (73 per cent), followed by Rakhine (44), Tanintharyi (33), Shan (33), and
Ayeyarwady (32)2. Most social indicators are relatively poor. Total adult literacy rate for the
period 2008-2012 has been estimated at 93 percent3, with the infant mortality rate (under 1 years
of age) estimated in 2013 at 41 per 1,000 births4.
32. Food security remains a major problem in Myanmar, especially in poor rural areas. In
2010, almost 44 per cent of children below the age of five were moderately (34 per cent) or
severely (9.4 per cent) under-weight. The highest levels of moderate malnutrition were observed
in Rakhine (53 per cent), followed by Magway (37), Ayeyarwady (34), and Chin (33). In 2005,
the proportion of moderately and severely malnourished children was 41 per cent.
33. Although still overwhelmingly rural, the proportion of urban inhabitants in Myanmar has
increased from 24 to 30 percent of the total population over the period 1983 to 2014. However,
urbanization in Myanmar has been slow in comparison with other regional countries and only
Cambodia was more rural in 2014. The percentage of the Myanmar population living in urban
areas increased by only 25 percent; significantly lower than all other countries.
2 UNDP: http://www.mm.undp.org/content/myanmar/en/home/mdgoverview/overview/mdg1.html
3 UNICEF. www.unicef.org/infobycountry/myanmar_statistics.html
4 UNICEF
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Table 3: Regional Countries: Percentage of Population in Urban Areas
Country Year Change
(%) 1983 2003 2014
Lao PDR 13 25 38 192
Thailand 28 35 49 75
Viet Nam 19 26 33 74
Malaysia 44 65 74 68
Cambodia 13 19 20 54
Myanmar 24 28 30 25
Source: ESCAP; Myanmar provisional census data for Myanmar 2014 figure
34. In absolute numbers, an additional 6.9 million people were recorded as living in urban
areas and an additional 9.1 million people were living in rural areas in 2014, as compared to
1983. Of regional countries, only Thailand and Malaysia have recorded drops in absolute rural
populations.
Table 4: Regional Countries: Rural and Urban Populations 1983 and 2014
Country
1983 2014 Increase in
rural
population
(%)
Rural
Population
(m people)
Urban
Population
(m people)
Rural
Population (m
people)
Urban
Population
(m people)
Cambodia 6.3 0.9 12.3 3.1 95
Lao PDR 3.0 0.5 4.3 2.6 43
Myanmar 26.9 8.5 36.0 15.4 34
Viet Nam 47.7 11.2 62.0 30.5 30
Thailand 36.1 14.1 34.3 32.9 -5
Malaysia 8.3 6.6 7.9 22.3 -5
Source: ESCAP; Myanmar provisional census data for Myanmar 2014 figure
1.5 Economic Infrastructure
35. In general, economic infrastructure remains at a low level relative to other regional
countries, but is improving with increased investment in both the public and private sectors.
Access to telecommunications – either fixed line or mobile - remains poor, although significant
new investments are underway that are expected to rapidly expand coverage. Access to
electricity also remains poor with 73 percent of the population reportedly not yet having access5.
36. Road access remains poor in many rural areas, especially in upland areas and during the
wet season. In delta areas, much transport, especially during the wet season, is via water. Road
access to neighbouring countries that could promote cross-border trade, still faces serious
challenges, partly due to the mountainous nature of the border areas, and also due to ongoing
unrest in some upland regions. It is now easier and cheaper to import vehicles and this has
5 World Bank http://www.worldbank.org/en/country/myanmar/overview
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contributed to overall development. With the rapid recent increase in tourism and general
economic activity, domestic and international flights and associated infrastructure have also
increased in recent years.
37. Although economic infrastructure is a vital element in the rural development process, the
decision was taken in consultation with GoRUM and LIFT at the planning stage not to examine
such aspects as roads, electricity supply and telecommunications in depth within the scope of this
study. This decision was taken primarily for pragmatic reasons – with so many sub-sectors to
consider, including additional studies would have required reduced attention to other important
areas or increased budget and time. However, a limited amount of resources have remained
unallocated and during the National Consultative Conference to consider this report, the
opportunity will exist for stakeholders to consider whether such infrastructure should be
considered during Phase II of the formulation process.
1.6 National Economy
38. On a regional basis, Myanmar GDP per capita has been increasing in recent years but
remains the lowest amongst mainland ASEAN countries (Table 5).
Table 5: GDP per capita in mainland ASEAN countries 2000-2013
Country Year
2000 2005 2013
Malaysia 4,862 5,554 6,990
Thailand 2,321 2,881 3,740
Viet Nam 456 623 955
Lao PDR 371 469 741
Cambodia 329 471 709
Myanmar 134 238 465
Unit = US$ per capita (2005)
Source: ESCAP
39. Myanmar GDP and GDP per capita steadily increased over the period 2000-2013, while
the proportion of contribution by agriculture to GDP decreased from 53 percent to 36 percent
over the same period (Table 6).
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Table 6: GDP and GDP per capita 2000-2013
Item Units Year
2000 2005 2013
GDP
US$
m
(2005)
6,514 11,931 24,743
GDP per capita US$
(2005) 134 238 465
Share of Sectors in GDP
Agriculture % 53 47 36
Mining, Manufacturing, Utilities % 9 14 20
Wholesale, retail trade, restaurants
and hotels % 23 22 21
Transport, storage and
communication % 8 11 15
Construction % 2 4 5
Source: ESCAP
40. The decreasing proportional contribution of agriculture to overall GDP is further
illustrated with data from ADB (Table 7) which shows agricultural GDP (at current producer
prices) has dropped from 60 to 31 percent over the period 1996 to 2012, while those of industry
and services have risen from 10 to 32 percent and from 30 to 38 percent respectively. This trend
has been reflected in urbanization increasing from 27 to 33 percent of the population from 2000
to 2013, according to ESCAP.
Table 7: Structure of Output percent of GDP at current producer prices
Sector Year
1996 2000 2005 2012
Agriculture 60.1 57.2 46.7 30.5
Industry 10.4 9.7 17.5 32.0
Services 29.5 33.1 35.8 37.5
Source: ADB
41. Myanmar remains the country with the highest percentage contribution to GDP by
agriculture amongst mainland ASEAN countries (Table 8). However, the proportional
importance of agriculture has declined in all regional countries.
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Table 8: Contribution of Agriculture to GDP in Mainland ASEAN countries
Country Year
2000 2005 2013
Myanmar 53 47 36
Lao PDR 41 34 25
Cambodia 37 31 25
Viet Nam 25 21 17
Thailand 11 9 8
Malaysia 9 8 7
Unit = % of GDP
Source: ESCAP
42. In comparison to other regional countries, the importance of merchandise exports in
Myanmar is low, representing less than 18 percent of total GDP in 2013, significantly lower than
all other countries in the region (Table 9).
Table 9: Exports of merchandise as a percentage of GDP in regional countries
Country Year
2000 2005 2013
Viet Nam 46.5 56.3 80.5
Malaysia 100.7 98.7 71.5
Cambodia 37.9 49.1 61.9
Thailand 54.7 58.8 57.5
Myanmar 22.3 31.7 17.7
Source: ESCAP
43. Myanmar is generally on a par with other countries in the region with respect to
government expenditure as a percentage of GDP. In 2013, the figure for Myanmar was 29
percent, a substantial rise since 2000 when the figure was less than four percent (Table 10).
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Table 10: Government Expenditure as a Proportion of GDP in Mainland ASEAN
Countries
Country Year
2000 2005 2013
Lao PDR 21 18 30
Myanmar 4 NA 29
Viet Nam 23 25 26
Malaysia 23 23 26
Thailand 17 17 20
Cambodia 15 13 20
Unit = % of GDP
Source: ESCAP
44. The inflation rate has steadied over the period since 2009, after a volatile period in the
prior ten years. However, the exchange rate has fluctuated significantly from 2008 to 2013, after
a period of generally strengthening local currency over the period 2000-2007 (Figure 1).
Figure 1: Inflation Rate and Exchange Rate 2000-2013
Notes: Inflation Rate: The rate of increase of the level of prices during a given period. It is the
percentage change in the consumer price index between two points in time.
Exchange Rate: Units of national currency required to purchase one United States dollar, usually
representing the period average. The average annual rate of change in the exchange rate of the
national currency against the United States dollar for the period indicated. A positive value means
that the national currency has weakened, whereas a negative value indicates a stronger national
currency. Rates of change over several years are calculated using the arithmetic growth model.
Source: ESCAP
45. Economic forecasts for future growth in Myanmar are generally optimistic. The World
Bank has estimated that the economy grew by 8.3 percent in FY2013/14, driven mainly by
construction, manufacturing, and services. Recovery in agriculture is also estimated to have
contributed to the growth. The economy is projected to expand further by 8.5 percent in
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FY2014/15, led by gas production and investment. As the World Bank states6: “Myanmar is
currently in a triple transition – from an authoritarian military system to democratic
governance, from a centrally directed economy to a market-oriented economy, and from 60
years of conflict to peace in its border areas. These transitions have the potential to create
opportunity and shared prosperity for the people of Myanmar and for the country to resume its
place as one of the most dynamic economies in Asia”.
1.7 Political and Administrative Context
46. There are two levels of government and legislature – the Union level and State/Region
level.
47. At the Union level, there are two legislative bodies, the People's Assembly (Pyithu
Hluttaw) with 440 members, elected on the basis of township as well as population, and the
House of Nationalities (Amyotha Hluttaw) with 224 members, which has an equal number of
representatives elected from Regions and States. Each body has both elected and military
personnel, with latter making up 25 percent of members in each body. Nay Pyi Taw, the nation’s
capital is designated as Union Territory.
48. There is a legislative body in each State/Region. There are seven Regions and seven
States. The seven regions are Ayeyarwady Region, Bago Division, Magway Division, Mandalay
Division, Sagaing Division, Tanintharyi Division and Yangon Division; the seven states are
based on the dominant ethnic group in the area and are: Chin State, Kachin State, Kayin State,
Kayah State, Mon State, Rakhine State and Shan State. There are five self-administrated zones
consisting of a group of townships in different States/Regions and a self-administrated division
"for national races with suitable population”. There is a single two-township self-administered
zone in Sagaing Region; and a further three within Shan State, two of which consists of two
townships, and one of three townships. The self-administered division is within Shan State and
consists of six townships.
49. The Union executive branch is headed by the President, and there are two Vice-
Presidents, and a total of 36 Ministers, of which six Ministers are designated as Ministers of the
President’s Office. Each State/Region is led by a Chief Minister.
50. Administrative divisions below the State/Region are the district, township, wards (in
urban areas), village tracts and villages (in rural areas). There are 73 districts, 417 townships,
3,154 wards, 13,610 village tracts and 63,899 villages7. There are thus, on average, about five
districts per State/Region; about five townships per district; about 50 village tracts or wards per
township; and about five villages per village tract.
51. Township administration includes Township Management Committee which is led by a
Township Administrator of General Administration Department and Township Security, Peace
and Solidarity Committee which is led by township departmental heads. There are also
committee and consultative structures, including: Township Planning and Financing Committee;
6 World Bank http://www.worldbank.org/en/country/myanmar/overview
7State & Region Administrative structure by Official Gazetteer at 2012 August: General Administration Department,
MOHA
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Urban-Rural development projects, Economic Production and Creation of Employment
Opportunity working committee, the Township Development Support Committee (TDSC);
Health Committee; Education Committee; Implementation Committee, Human Resource
Development Committee, Rural Development and Poverty Alleviation Committee, International
Grant, Loans and Investment Coordination Working Committee. Additionally, the Township
Municipal Affairs Committee (TMAC) Technical Committees and Township Farmland
Management Committee have been formed to implement township level development.
52. At the Village Tract/Ward level, there is a Village Tract Administrator who is admirer in
village and elected according to committee and consultative structures. There are also Ward/
Village Tract Development Support Committee and Farmland Management Committee.
53. It should be noted, however, that the creation of Union and Regional/State administrative
structures has only recently occurred, and there still exists considerable uncertainty as to
responsibilities and mandates.
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SECTOR BACKGROUND
1.8 Sector Overview
54. Perhaps the overriding role of agriculture in the economy is the provision of livelihoods
for its citizens. It is estimated 65 percent of the population is primarily employed in agriculture.
55. The overall conceptual framework for description and analysis of the agriculture sector
and for describing the roles of those employed in the sector, is shown in Figure 4. In this
framework, the systems and functions that make up the sector are assigned to four categories: (i)
Policy; (ii) Institutions; (iii) Value Chains, and; (iv) Data and Information on sector performance.
Figure 2: Conceptual Framework for the Agriculture Sector
56. Policy and legislative systems and functions, budget allocation and the investment
frameworks that guide public and private investment in agriculture, can be grouped together
under the overall term “policy”. These are largely public sector-driven systems and functions,
but should have significant private sector input.
57. The key public sector institutions are those responsible for education and training,
research, and the line government institutions which are responsible for the sector itself.
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Institutions engaged in value chain governance are commonly government-driven, but with
significant private sector engagement.
58. The systems and functions of the commodity value chains (crops, livestock, fisheries,
forestry), are: inputs and services (including financial services); extension services; crop,
livestock, aquaculture and forestry production, capture fisheries ; collection of forestry products;
the natural resources (land, water, grazing areas, feeds, coastal ecosystems) utilised for the
production function; value adding functions such as slaughtering, processing, packaging,
wholesale, retail; marketing and markets; consumption of crop, livestock, and fishery products
and utilization of forestry products; and imports and exports of inputs and services, production
factors, and value-added, wholesale and retail items. The majority of these systems and functions
are essentially private sector, being managed as businesses. The most important exception is
natural resource management and use, which is very often highly regulated by the state but
compliance level depends largely on resource user communities. Extension services, especially
to smallholders, are also usually the domain of the public sector, given that it rarely attracts
private investment. However, private sector can also play an important role in some aspects of
extension.
59. Data and information on sector performance is largely kept by the public sector, in the
form of statistics, and occasional agricultural censuses. Some of this data is submitted to
international organizations, the most important one for the sector being FAO. Since other
countries also submit data to international organisations, there is the opportunity compare sector
performance to that of other countries.
1.9 Production Overview
60. Agricultural producers form the core of the sector and can be broadly categorized as:
Smallholders8 who live in rural villages and who engage in one or more of growing
crops, raising livestock, catching or raising fish, or engaging in forest-based activities.
Included amongst smallholders are those that are landless9 or who own only a small area
of land (e.g. less than two acres), and are considered as marginalized.
Commercial farmers and fishers who manage large or intensified production systems that
require significant investment and operating costs. These include intensive livestock
systems (chicken layer and broilers, pigs), industrial fishing and large aquaculture
operations, and large cropping operations such as industrial crop plantations, vegetable
and pulse farms, and fruit orchards. Within each commercial sub-sector there are small,
medium and large farmers. Commercial farmers and fishers can generally be assumed to
have higher capacity, better access to resources and services and more assets than
smallholders.
8 For purposes of simplicity, the term “smallholders” in this Interim Report refers to the two categories of rural
households, both landless and those that do not own land, unless otherwise stated. 9 Data from the 2013 LIFT household survey showed that land ownership was greatest amongst households in the
Hilly zone, with over three-quarters of them having land, followed by Dry zone households (64 percent) and
Coastal/Delta zone households (34 percent).
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Agribusinesses manage even larger production units such as industrial crops and
plantation crops. Due to their size, as well as their manner of interacting with supply
chains and governance, they have characteristics that are distinct from commercial
farmers and fishers running their own businesses and they are also often involved with
inputs and services. Sometimes contracting production and marketing activities to
outsiders. Some agribusinesses, such as CP company, are directly involved in production
and contract farming and marketing, as well as input supplies such as animal feeds.
61. Smallholders dominate agricultural production in Myanmar. In carrying out their
agricultural activities, they utilise land for cropping or grazing, water-bodies for fishing, and
forested areas to which individual or community entitlement and use is subject to complex
arrangements. For both landed and landless, the exchange of labour, paid casual labour for
agricultural activities, non-farm rural employment and share-farming arrangements for cropping
and livestock are a feature of life in the villages, as is seasonal and other migration for casual
labour employment. This is the system which is the essential driver of the rural village economy.
62. Smallholders can be categorised according their level of assets and livelihoods10
.
Subsistence smallholder farmers and landless households are at the bottom of the spectrum. At
the next higher level, are those farmers with potential to be commercial in a smallholder sense.
The next are farmers who are commercially successful smallholders, and above them the
medium-large commercial smallholders.
63. Among subsistence farmers, many have little short term opportunity to improve their
livelihoods through agriculture, and their strategy is termed “hanging in”. Addressing this group
requires a strong focus on improving the quality of their lives through improved nutrition, off-
farm employment opportunities and simple improved technologies.
64. For potentially commercially successful farmers, their efforts to increase and expand their
activities are termed “stepping up”, and this term can also be applied to small commercial
farmers who wish to increase their incomes. This group requires access to more advanced
technologies for diversification of farming practices, productivity enhancement and value
addition improved technical assistance and the availability of necessary input and market
systems, including financing;
65. Lastly, many smaller farmers may decide to step out of agriculture, either temporarily
(e.g. migration), or permanently. This is termed “stepping out” and involves shifting the focus
of their economic activities from production to wage labour and small enterprise creation,
although they may retain some production activities as well(Fig 4);
66. A diagram illustrating the general structure for the smallholder, commercial, and
agribusiness sectors is shown in Figure 5 below. While the commercial level of production (large
scale aquaculture and industrial fishing in the case of fisheries) is essentially based around
private businesses, the “commercial” level of production in the forestry sector is more complex
due to a variety of interactions between government, farmers, communities and private sector
10
Adapted from TOPIC GUIDE: Stepping out of Agriculture. Steve Wiggins, Sharada Keats. February 2015.
Overseas Development Institute with the assistance of the UK Department for International Development (DFID),
contracted through the Climate, Environment, Infrastructure and Livelihoods Professional Evidence and Applied
NAPA Interim Report
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actors, with a variety of management systems including plantations, community forestry, and
forests in shifting cultivation areas.
67. Smallholders, commercial farmers and agribusiness share the production space, and
agribusiness has an important role in supplying many inputs and services to both commercial and
smallholders, the purchase of outputs through various exchange arrangements (e.g. spot markets,
or contract arrangements), and the provision of employment opportunities for rural inhabitants.
As a result, an effective agricultural and rural development strategy should include this group.
Figure 3: Structure, Dynamics amongst Smallholder, Commercial and Agribusiness
Entities
68. Estimates of the number of households involved in the various forms or agricultural
production show the dominance of the livestock-crop mixed farming system, but also show the
importance of aquaculture / fisheries (Table 11).
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Table 11: Estimated number of households engaged in agricultural production
Producer Type
No. of
Production
Units
Production
Unit
Details
Categories Source
Smallholder
households 1
8.2 million
households
est. 5.8
million
households
with land
holdings
Medium-large farms: 0.4 m households
Successful: 1.2 m households
Potentially successful: 2.0 m households
Subsistence and landless: 4.6 m households
NAPA
estimates,
based on
agricultural
census
Capture
fisheries /
Fishers
1.3 million
fishers
29,025
marine
fishing
vessels
Inland capture: 787,000 persons
Full-time: 487,000 persons
Part time: 300,00 persons
Marine capture: 481,000 persons;
Fulltime: 230,000 persons;
Part time: 251,000 persons
NAPA
Fisheries
Technical
study
Commercial
Fish farmers
216,284
households
Freshwater:
90,000 ha
Brackish:
92,000 ha
Aquaculture: 216,284 persons
Full-time: 125,978 persons
Part time: 90,306 persons
Leasable fisheries: 3,290 leasable fisheries
(no data on households engaged)
NAPA
Fisheries
Technical
study
Commercial
layer ducks
48,238
farms 5.5 m head
Small size:33,480 farms: less than 150 ducks
Medium size: 260 farmers with 500-999
Large size: 119 farms with 1,000-4,999
Very large farms: seven farms: over 5,000
FAO-LBVD
survey 2009
Commercial
layer chickens 3,777 farms 6.6 m birds
Small size: 3,235 farms: 500-2,000 birds
Medium size: 316 farms: 2,000-5,000 birds
Large size: 226 farms: 5,000 birds
FAO-LBVD
survey 2009
Commercial
cross bred
dairy cattle
1,216 farms 19,367
head
Small size: 805 farms with 6-10 head
Medium size: 230 farms with 11-20 head
Large farms: 124 farms with 20-50 head
Very Large farms: 56 farms with over 50
head
FAO-LBVD
survey 2009;
Myanmar
dairy sector
(2014); ;
mission
estimates
Commercial
pigs 566 farms
57,352
head
Small size: 442 farms with 20-49 head
Medium size: 124 farms with 50-999 head
Large size: seven farms with over 1,000
FAO-LBVD
survey 2011
Commercial
broiler chickens 505 farms
1,861,708
birds
Small size: 189 farms: less than 1,000 birds
Medium size: 221 farms: 1,000-5,000 birds
Large size: 95 farms: over 5,000 birds
FAO-LBVD
survey 2009
Commercial
sheep and goats 110 farms
57,000
head
Medium size: 106 farms with 100-999 head
Large size: 4 farms with over 1,000 head
FAO-LBVD
survey 2011
Honey bee
farmers 720
62,000
beehives
Large size: 20 farms: over 600 beehives
Medium size: 100 farms: 300-600 beehives
Small size: 600 farms: 50-300 beehives
FAOstat
Industrial
Crops NA
1,033,00 ha
(sown)
Rubber: 581,000 ha; Sugar cane:154,000 ha
Cotton: 154,000 ha; Oil Palm 144,000 ha CSO 2103
Plantation
Crops NA
168,588 ha
(sown)
Tea:91,000 ha; Coconuts: 57,000 ha;
Coffee: 20,000 ha; Fruits: 588 ha
1/ Number of smallholder households assumes all households identified as rural households in the 2014
provisional census results can be classified as smallholders.
Note: data on production units in commercial cropping e.g. rubber, sugarcane, cotton and oil palm plantations
and large forestry operations, is not included here
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69. It can be estimated that there are 8.2 million rural households that can be classified as
smallholders.. The most common assets held by smallholders are livestock, including draft cattle
and buffalo, dairy cattle, pigs, sheep, goats, chickens or ducks, or Mithun (an indigenous cattle
type) in upland areas. Livestock are an important asset for both the landless and the landed. Land
is an important asset, with the order of 70 percent of smallholders owning some amount of land.
It has been estimated11
that 40 percent of smallholders engage in some form of forestry activity,
while surveys have indicated that about 12 percent of smallholders12
have assets related to
capture fisheries.
70. Fisheries and Aquaculture. Artisanal fisheries is also a significant fishing activity in
Myanmar. The data in Table 10 shows that there are about 1.5 million people (both fishers and
farmers) engaged in fishing and aquaculture in Myanmar. About 1.3 million fishers are engaged
mostly in small-scale artisanal fisheries and also with about 29,000 units of commercial fishing
vessels. Of the capture fisheries, the majority of operations are inland capture fisheries (62
percent), and the remaining 38 percent are marine capture operations. Besides about 0.2 million
people are engaged in freshwater and brackishwater aquaculture. Majority of the aquafarms
operate on commercial scale. Small-scale or family farm based aquaculture is yet to be
popularised.
71. Commercial livestock. Commercial livestock farms make up only 4 percent of the
commercial units. Of these, the great majority (89 percent) are commercial duck farms, with the
others being layer chickens (7 percent), dairy cattle (2 percent), pigs (1 percent), broiler chickens
(1 percent), and commercial sheep and goats and honey bees (each less than 1 percent.
Commercial livestock farms are intensive and therefore take up relatively small areas on a
national basis.
72. The commercial sector gives rise to substantial economic activity beyond the commercial
business itself. While commercial units are outnumbered by smallholder units by over 5:1 (8.2
million smallholders as compared to 1.6 million commercial units), commercial units have a
higher demand for inputs (e.g. equipment, housing, feeds and medicines) and services (e.g.
extension and animal health services, equipment repair and maintenance) as well as employment
of labour on production units. Management demands of commercial units are also higher, with
managers needing to be more skilled in technology and business than the average smallholder.
For example, commercial livestock farms, with the possible exception of commercial duck
farms, require a high standard of animal health and biosecurity. They may also be more
demanding of the natural resource on which they rely, given the intensification which brings
risks of disease spread, and waste contamination. An overall assessment of the relative value to
the economy of the smallholder and commercial farming/fishery units needs to take account
these factors.
73. Crops: The sown area of industrial and plantation crops takes up about 10 percent of the
agricultural area of Myanmar. The main crops grown commercially by large commercial farmers
and agribusinesses are the industrial crops, cotton, rubber, oil palm and sugarcane, and the
plantation crops of fruits, tea, coffee, and coconut. The sown area in 2012-2013 is shown in
11
NAPA Forestry Technical Study 12
LIFT Household Survey 2013
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Table 12 below. Rubber takes up the largest area (45 percent), followed by sugarcane, cotton and
oil palm (all close to 12 percent).
Table 12: Sown Area 2012-2013 of Industrial and Plantation Crops
Crop 2012-23 Sown
Area (ha)
% of
Total
Rubber, natural 581,000 45
Sugar cane 154,000 12
Cotton 154,000 12
Oil Palm 144,000 11
Tea 91,000 7
Coconuts 57,000 4
Coffee, green 20,000 2
Fruits 588 < 1
Total 1,203,601 100%
Source: CSO
74. As shown in Figure 6, rubber production has expanded significantly in the last ten years.
Sugarcane production expanded in the late 1990s but has since flattened. Wheat production has
been falling while tea, coffee and fruits have all grown steadily.
Figure 4: Major Industrial Crops: Area Harvested 1990-2013
Source: FAOstat
Linkages between smallholders, commercial farmers/fishers and agribusiness
75. Commercial farming/fishing and smallholders are linked through commonalities in inputs
and services, technical aspects of production, marketing systems and consumption.
Agribusinesses linkages vary, but can include provision of inputs and services, as well as
production and marketing. Large agribusinesses can have a significant influence on policy-
making within their sector of activity. An example of linkages between commercial and
smallholders is the potential for disease transmission and disease control programs. For example,
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23
the occurrence of Porcine Reproductive and Respiratory Syndrome (PRRS) among pig
populations in Myanmar in 2010 caused severe impacts across the sector both due to morbidity
and mortality, but also due to controls on trade and decreases in consumer demand for the pork.
76. While it is critical to stress the core importance of smallholders in Myanmar’s
agricultural (and rural development) strategy, this does not imply a hostile or negative attitude
towards larger-scale commercial agriculture and agribusiness, rather we need to look at the areas
in which they may play key complementary role to support smallholders agriculture. Clearly in
some subsectors, including rubber, sugar and oil palm, large-scale plantation based agriculture
may well have an important role to play and as noted above can also be an effective complement
and support to smallholders operating in the same subsectors. However, where agribusiness has
its most critical role is in the development and improvement of the supply chain. On the output
side this not only includes traditional areas such as storage, processing and marketing but also
value-addition in terms of packaging, branding, and logistics services. On the input side it
includes the supply of production inputs, particularly fertilizers and agro-chemicals, seeds, feed,
irrigation equipment, power tillers, tractors, threshers, combine harvesters in the cropping sector;
and feeds, medicines and vaccines in the livestock sector; seed and feed in aquaculture and
increasingly extension and also finance.
Smallholder categories
77. The four categories of smallholders indicated in the table, as subsistence and landless,
potentially successful, successful, and medium-large is based on the assets held and an
estimation of their livelihoods with respect to a “threshold of commercial viability”. While there
is considerable variety in the types of assets owned by the different categories of smallholders,
some generalizations can be made, on the understanding there will be many exceptions. Table 13
provides an indicative classification of smallholders into the four groups discussed above.
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Table 13: Indicative Asset Values of Smallholders by Category
Item Unit
Unit
Value
(USD)
No. Units Value (USD)
1 2 3 4 1 2 3 4
Land ha 1000 0.5 1 6 10 500 1,000 6,000 10,000
Draft cattle head 600 0 0 2 4 0 0 1,200 2,400
Draft breeder cattle head 450 0 2 3 5 0 900 1,350 2,250
Draft calves head 120 0 2 3 5 0 240 360 600
Pig Sow head 100 0 1 2 2 0 100 200 200
Pig grower head 0 0 10 20 20 0 0 0 0
Sheep/goats head 40 2 6 6 6 80 240 240 240
Chickens head 40 10 25 50 50 400 1,000 2,000 2,000
Land Asset Value 500 1,000 6,000 10,000
Livestock Asset Value 500 2,500 5,370 7,710
Total Value 1,000 3,500 11,370 17,710
% land value of total asset value 25 29 53 56
% livestock value of total asset value 75 71 47 44
Notes: 1 = subsistence/landless smallholder; 2 = potentially successful; 3= commercially successful; 4 =
medium-large smallholder
Source: NAPA mission generated example
78. The larger the land assets owner by a smallholder, the greater the livestock assets would
be expected to be. This is expected to be most marked with respect to the ownership of draft
cattle or buffalo: the more land a farmer has the greater need for draft animals. FAO (2010)
estimated that a pair of draft cattle in the dry zone can prepare about 2.5 ha land in any given
season, so farmers with more land, need more draft pairs, and more cattle manure for crops.
79. In the example shown above, the subsistence farmer has only 0.5 ha of land, and
livestock in the form of two growing pigs, 10 sheep/goats and four chickens; the potentially
successful smallholder has 1 ha of land, 2 breeding cows with calves, one sow, six grower pigs,
25 sheep and goats and five chickens; the successful smallholder has six ha of land, two draft
cattle, three breeding cows and calves; two sows and six grower pigs; fifty sheep and goats and
five chickens; the medium-large farmer has 10 ha of land, four draft cattle, five breeding cows
and calves, two sows and six grower pigs, 50 sheep and goats and five chickens. Field
experience suggests that while many wealthier households own breeding cows and sheep and
goats, they often contract poorer households to look after them.
80. In this example, land assets as a percentage of overall assets ranges from 25 percent for
the poorer farmers, to 56 percent for the wealthiest, with livestock comprising the balance. Total
asset value, using the value assumptions shown in the table, range from US$ 2,000 for the
subsistence farmer through to US$ 17,710 for the larger smallholder. Other assets, such as
housing, equipment, transport and household items, are not included in the example. It would be
expected that the poorer the farmer, the higher would be the proportion of income from casual
and other labour.
81. This example is drawn from the dry zone: a similar example drawn from the delta would
not include sheep and goats, but would also include ducks; it would have less cattle but more
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buffalo; and more pigs. A delta or coastal example would also include assets related to fish
capture, including rice-field fish capture.
82. The example serves to illustrate the value of examining land and assets of smallholders of
different wealth classes. Smallholders make decisions based on a variety of factors: capital
investment, operating costs, risk, and labour availability, and this will be reflected in the variety
of asset mixes found.
Table 14: Agro-Ecological Zones and Farming Systems
Hilly and Mountainous Central Dry Zone Delta Coastal
States/
Regions
Kachin, Kayan, Shan,
Chin States
Sagaing, Mandalay,
Magwe Regions
Ayeyarwady,
Bago, Yangon
Regions
Rakhine, Mon States,
Tanintharyi Region
Topography
High mountain rage and
forests; crops in valleys,
shifting cultivation in
uplands
Flat topography; dry,
semi-dry conditions;
some paddy grown in
riverbank areas
Lowland paddy
mono-culture
Narrow, low lying
coastal regions rising
towards hilly regions
Crops
Northern: Rice –
Vegetables
Pulses-Groundnut
Rice-Rape Seed.
Tea/Coffee
Western Yoma:
Maize-Rice
Rice- Pulses/Oilseeds
Rice- Rice
Shan Plateau:
Potato- Wheat/Niger
Rice-Vegetables
Mandarin/Pear/Coffee/Tea
Sesame-Groundnut
Rice- Pulses/Oilseeds
Rice - Cotton
Groundnut/Pigeon
Pea mixed
Sesame/Pigeon Pea
mixed
Mango/Banana/Guava
etc
Ayeyarwady: Rice-Rice
Rice-Pulses
Mango/Banana
Bago: Rice-Pulses
Sugarcane
Rice –Cotton
Rice-Rice
Rice-Pulses
Sittaung River
Basin:
Rice-Rice
Rice-Pulses
Rakhine Coastal:
Monsoon Rice –
Green Gram
Monsoon Rice- Pulses
Monsoon Rice-
Vegetables
Coconut/Rubber/Oil
Palm/Cashew/Durian
Tanintharyi:
Rice-Rice
Rice-vegetables,Jute,
Rubber/Oil
palm/Coconut/
Cashew/Durian
Livestock
Buffalo, cattle, pigs,
chickens, Mithun
Commercial chicken
layers in Taunggyi area
Cattle, sheep, goats,
pigs, chickens
Commercial pigs,
chickens (layers,
broilers) near
Mandalay
Buffalo, cattle,
pigs, ducks,
chickens
Commercial duck
raising, pigs,
chickens
Buffalo, cattle, pigs,
ducks, chickens
Fisheries Relatively low importance
Inland fisheries
along rivers and
aquaculture in and
around Mandalay
Coastal and nland
openwater
fisheries including
Leasable fisheries
Aquaculture
Coastal and off-shore
fisheries
Inland fisheries
Leasable fisheries
Aquaculture
Forestry
High importance:
Afforestation is a key
issue; agroforestry on
farming land
Afforestation is a key
issue; agroforestry on
farming land
Mangrove loss due
to cropping
expansion and
wood for fuel
Mangrove loss due to
cropping expansion and
wood for fuel
Land
Tenure
issues
Tenure issues related to
areas under shifting
cultivation practices
(taungya), land held under
customary tenurial
arrangements and
communally-held
common land areas
Increasing
landlessness; area
held by smallholders
is beginning to shrink
Increasing
landlessness; area
held by
smallholders is
beginning to
shrink
Destruction of
mangrove ecosystems
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(community titling)
Agro-Ecological Zones and Farming Systems
83. Four agro-ecological zones are recognized through which the nature and relative
importance of cropping, livestock, fisheries and forestry can be broadly defined. Table 14
summarizes the four zones in terms of topography, farmer enterprise mixes, the role of fisheries
and forestry, and some land tenure issues. The four zones are: Hilly and Mountainous; Central
Dry Zone; Delta; and Coastal.
84. Amongst smallholders in the various zones, an important sub-category is that of ethnic
minority smallholders in shifting agriculture systems in the hilly and mountainous zone.
Cooperatives
85. The technical studies undertaken for the formulation of the NAPA have identified
potential for producer cooperatives, involving smallholders and commercial producers, to enable
them to interface with the broader aspects of the supply chain, including input and service
providers (including financial services), traders and agribusiness. Despite this, there are serious
challenges facing the current institutional culture and arrangements around cooperatives that may
inhibit their utility. As long as the establishment of cooperatives is seen as a top-down structure,
it will face challenges and often resistance. The government has an official policy of promoting
one cooperative in each village. However, it is not the role of government to promote or create
cooperatives. This can only be undertaken by potential members at the grass roots level.
86. Cooperatives are overseen by the Ministry of Cooperatives. The MOC has designated
three major types of cooperatives:
Agricultural, Livestock and Cottage industry – small -scale industries Cooperatives
Services and Financial service Cooperatives
Trading Cooperatives
General Business Cooperatives
87. Each of these has its own National Union. Although they are termed “agricultural
cooperatives”, most cooperatives in the rural area are multipurpose, in that they undertake both
agricultural and financial activities followed by decision from the General Body Meeting.. There
are a few cases of other types of rural cooperatives, such as stores. Cooperatives are grouped in a
defined hierarchy: Primary Cooperatives, Township cooperatives, Region/State Cooperatives and
Central Cooperatives at the national level.
88. A number of new cooperatives have been formed and the exact number of cooperatives
are yet to be confirmed. The best available data indicates that there are 31,576 cooperatives (at
all levels) in Myanmar. These include: Central Cooperative Society (CCS), 20 Unions, 283
federations, and 31,090 primary societies. The number of individual cooperative members is
3,118,623. There are 6 functional unions (e.g. for agriculture) and 14 which are geographically
based. There is no information on how many cooperatives can be designated as “rural”.
89. The cooperative sector in Myanmar offers a number of opportunities as regards the
promotion of rural, especially agricultural, development. These are primarily as follows.
- National coverage.
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- Strong government support.
- Provision of services.
- Potential to empower
- Potential market linkages
90. There are also significant constraints to the functioning of the cooperative system. These
include:
91. Autonomy. According to the Cooperatives Law (1992) and Cooperatives Regulation
(2013), cooperative sector in Myanmar is given full autonomy to implement their works with
own decision and management within the frameworks of laws and regulations. However, the
Cooperatives Law and Procedure enacted during socialist era in 1970 is still overwhelming.
92. Cost of Membership. Based on the decisions from the General Body Meeting, per value
of a share is found to be high for membership in some cooperatives. In such general body
meetings, decision could be made upon retaining, increasing and decreasing of per value of share
and formation of new cooperatives. These decisions would be approved by majority of
cooperative members.
93. Role of the Ministry of Cooperatives. The cooperative society rules (bylaws) have
been developed by the Ministry of Cooperatives following consultation with CCS and some
Union representatives. The bylaws should, instead, come from the cooperative itself, following a
discussion among members. Model bylaws may be provided as a guide. But the final version
must be that which is approved by a majority of members in a membership meeting.
94. Administration of external subsidized loans. The government of Myanmar has
accepted a loan from the Export/Import Bank of China for on-lending to farmers at 4.5 percent
per annum. This is being provided in tranches, the first being USD100 million13
. The Ministry of
Cooperatives has been charged with administration of the loan. The maximum amount of a loan
is 100,000 kyats, however, there are not sufficient funds to lend to all members. Thus the
representative of the Department of Cooperatives decides which members qualify for loans.
95. If farmers are not supported by cooperative or MFI loans, they may have to borrow from
moneylenders with high interest rates. However, acceptance of external loans comes with some
risk: (a) Members are not encouraged to save. It is ultimately savings which will determine the
economic development of a rural community and the availability of subsidized external loans.
The cooperatives could save 10 percent of the loan amount that the members borrowed and the
cooperative could accumulate capitals with their savings.
96. Lack of data. There are some weaknesses in verifiable data on the cooperative sector at
either CCS or within the Ministry of Cooperatives. The expansion of the formation of
cooperatives, loan subsidies, extended hire purchase programmes will support to get concise and
aggregate data in near future.
97. Role of Cooperative Bank. The Cooperative Bank (CB Bank) was originally
established by the shares of Central Cooperative Society, States/ Regional cooperatives and all
cooperatives with cooperative movement. There is an annual meeting for CB Bank and Board of
13
It is set to increase to $800 million in the near future.
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Director is elected in such meeting. Every members who followed the rules and regulation of
cooperatives could be participated and selected in Board of Director.
98. Farmer organisations. There are a number of non-governmental organizations which
have been promoting local farmer-based organizations. These include: the United Nations
Development Programme (UNDP), Save the Children, Pact Global Microfinance Fund (PGMF),
Welt Hunger Hilfe (WHH), Associazione Volontari del Servizio Internazionale/Association of
Volunteers in International Service (AVSI), the Tat Lan Project in Rakhine State.
99. Welt Hunger Hilfe is a foreign supported organization which has established Village
Development Committees (VDCs) in 50 villages. These are established based on cooperative
principles. Their main function is managing a revolving fund. When a VDC reaches a stage
where it can become institutionalized it is provided with information regarding how it may
register either as a cooperative or as an association.
100. AVSI is another foreign supported organization which initially (2003) focused its
efforts on the promotion of rural cooperatives. In 2008 it provided technical assistance in the
delta region, affected by Hurricane Nargis. It now supports two registered cooperative, which
are affiliated to a township federation. One has 650 members, while the other has 81.
101. These, and other, initiatives effectively serve as laboratories for local cooperative
development. They apply recognized cooperative principles and are not tainted by the historical
reputation of the government promoted entities. Their reach at the moment is very limited, but
they offer valuable lessons learned.
1.10 Natural Resource Access and Use
102. The issues related to natural resources that are covered in the thirteen technical studies
included: land and land tenure, climate change, water resources, soils and forests. Only 19
percent of land being is currently used for agriculture, with 48 percent as forested areas, and 33
percent of “other areas”. In general, natural resources issues focus on tenure and use of the
existing agricultural areas; issues related to expansion of agriculture or other uses of the forested
and “other” land, and use of the inland water areas.
Land and Land Tenure
103. The structural trends in land holdings are decreasing average farm sizes; the skewed
pattern of land holding areas; consolidation and fragmentation of land holdings, and increasing
landlessness; the use of state lands including for concessions; conversion of forests to
agricultural holdings; the depletion of forests, and actions taken with respect to vacant, fallow
and virgin lands.
104. Average farm sizes are falling, decreasing from 2.5 ha in 1993 to 1.8 ha per household in
2010. While the total agricultural area increased by 20 percent (equal to 2.2 million ha) from
1983 to 2012, the rural population increased by 33 percent (equal to about 2.1 million
households)14
. Skewed land ownership is the norm. The 2010 Agricultural Census showed that
20 percent of households controlled close to 69 percent of farmland. A large number of
14
FAOStat
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households have less than five acres (or about two hectares) of land, which is considered the bare
minimum to support a household (according to government poverty estimates).
105. Consolidation of land ownership is increasing. The preliminary results of the 2010
Agricultural Census show a sharp increase in the number of parcels of 50 acres and more.
Significant consolidation occurred in the early-1990s with a push for large-scale land
development and large-scale plantations run by agribusinesses. Available anecdotal evidence and
field studies show that the government regularly clears land (reportedly around 243,000 ha per
year) for granting agribusiness leases or for non-farm purposes.
106. Fragmentation, where land household land holdings are made up of several parcels, is
increasing. It has been driven by government-led crop prescriptions and quotas. Fragmentation
became more frequent as the military-backed government of the mid-1990s reclaimed “fallow
and vacant land.” Land supply for farming households became non-existent and sub-divisions or
informal transactions occurred within the family. The situation was further exacerbated by
unequal distribution of farmland in rural areas and households made every effort to protect their
meagre holdings by sharing land among family members.
107. Landlessness or near-landlessness seems to be on the rise, especially in the Ayeyarwady
delta and dry zone. One-fifth of the households in some villages visited15
were landless and
engaged in wage labour; an equal number had marginal landholdings of less than one acre.
Village tract leaders and residents reported that landlessness had been increasing over the past 4-
5 years, with forced sales due to indebtedness being the leading cause of land alienation. For
some farmers it is a rational decision to sell their small area of land and invest in livestock. Rates
of landlessness in Upper Myanmar were generally lower but still ranged from 25 to 40 percent in
every village. Forced sales due to indebtedness have been reported as the leading cause of land
alienation in some areas.
108. The granting of state land for land leases and concessions lacks transparency. There is
lack of any evidence of transparent allocation of land leases or concessions so far, i.e., the right
type of land areas allocated at the right costs, for the right purposes and providing benefits to the
right people. In most cases, state land leases or concessions were awarded on a specific condition
that investments will be made. However, the overall records on investments made are patchy and
suggest only 25 percent of land has been invested in. Consequently, few concessions have
generated the anticipated social benefits and revenue streams for the government.
109. Forested and mangrove areas have been converted to agriculture or depleted through
other means, as noted above. Loss of forests impacts on soil degradation and water conservation,
on watershed viability, and rainfall. Forests also act as a resource for many smallholders. Loss of
mangroves reduces coastal protection.
110. The allocation of land classified as vacant, virgin, or fallow is also a major issue,
especially in upland areas where recognition of customary tenure in shifting cultivation farming
systems is an ongoing issue.
111. The farming of riverbeds is a popular off-farm income source. Access to riverbeds is
generally allowed by village headmen. However, riverbeds do not feature in rural development
15
NAPA Land Tenure report
NAPA Interim Report
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programs or long-term strategies to improve landless households’ access to land. The
government should consider promoting “riverbed farming” to improve livelihoods and income-
earning opportunities among landless and land-poor households. Land distribution and allocation
for riverbed farming and appropriate training for farmers should be considered. This will allow
farmers to make the most of large areas of fallow land near riverbeds which are normally
unclaimed and uncultivated.
112. The policy, institutional functions and investment frameworks on land are dynamic.
These issues are addressed in other sections of the report. Suffice to say here that these systems
have historically been largely inadequate for smallholder livelihood improvement. These issues
affect all agricultural producers, as land tenure issues have a broad impact including affecting
confidence in investment and social cohesion.
Climate Change
113. Most formal assessments suggest that climate change will affect Myanmar significantly.
Major expected changes include rising temperatures, higher rainfall and a possibly a shorter
rainy season, which in combination will contribute to a considerable increase in flooding. Rising
sea levels along the coast are likely to compound these problems by aggravating salt water
intrusion and soil salinity in the coastal areas and river deltas. The potential impact of climate
change on the NAPA and its component investments will be considered in more detail in Phase
II of the NAPA formulation process, but a brief summary of the current situation is provided
below.
114. Agriculture interacts with climate change in two ways: agricultural practices can
contribute to climate change and can be affected by it. A summary of some of the main points
raised in the technical studies is shown in Table 15 below.
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Table 15: Climate Change: Examples of Agricultural Drivers and Impacts
Drivers of climate change Impacts of Climate Change
Cropping
Deforestation for increased
cropping; increasing
cropping pressure in
shifting cultivation areas;
Salt water intrusion and soil salinity in the coastal areas and
river deltas; Reduce yields; cropping becomes more risky,
leading to less investment by farmers in cropping (especially
in the Central Dry Zone)
Livestock
Gas emissions from
ruminants, emissions from
manure
Less investment in cropping in the dry zone may lead to more
investment in livestock; livestock are susceptible droughts;
increased grazing pressure can lead to soil degradation
Fisheries None specified
Loss of mangroves has indirect serious implications on coastal
fisheries including habitat degradation and declining fish
stock and loss of aquatic biodiversity.
Physical damage of estuary river banks has detrimental effect
upon water resources such as siltation and pollution.
Declining in indigenous fish populations due to drought.
Serious damage on fish/shrimp aquaculture due to flood and
heavy rain.
Forestry Deforestation and loss of
mangroves Forests react sensitively to climate changes
115. While climate change is a global phenomenon with global causes, there are contributing
factors from Myanmar. Deforestation is a key issue. Between 1990 and 2010 the average loss of
forests was 372,000 hectares per annum. A significant area of Myanmar’s mangrove forests has
already been lost. In 1980, Myanmar had approximately 704,000 hectares of mangroves. By
2002, this was reduced to 284,000 hectares (a loss of 60 percent in 22 years).
116. According to recent REDD reports, subsistence and commercial agriculture account for
nearly 70 percent of annual deforestation in Myanmar. The agricultural area has increased from
17 percent to 19 percent of the land area since 1990, an increase of about 1.8 million hectares.
Livestock contribute to greenhouse gases through gas emissions from ruminants, and emissions
from manure.
117. The impact of climate change is of major importance to agriculture, but has implications
well beyond the sector. The reliability of crop production and yields will reduce with increasing
uncertainty over rainfall amounts and distribution, while salt water intrusion and soil salinity in
the coastal areas and river deltas can seriously constrain crop production. This could lead to less
investment by farmers in cropping. If cropping in the dry zone becomes progressively more risky
and less attractive, farmers may shift investment to livestock. Flood control and drainage
infrastructure will become increasingly important in the presence of global climate change. Loss
of mangroves has indirect but serious implications on coastal fisheries resources including
habitat degradation and declining of aquatic biodiversity. Physical damage of estuary and river
banks has detrimental effect upon water resources such as siltation and pollution. Declining in
indigenous fish populations due to drought and serious damage on fish/shrimp aquaculture due to
flood and heavy rain are also major impacts of climate change. As was witnessed during the
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catastrophic Nargis cyclone of 2008, the mangroves serve as an effective barrier in cyclonic
events.
Water
118. The key resource issues related to water are river flows, irrigation, groundwater and flood
and drainage control.
119. River flows are under threat. Inappropriate agricultural practices and the loss of forest
cover are leading to siltation of reservoirs and riverbeds and to more and faster runoff, causing
greater variations in river flows. Hydropower has been steadily increasing its water usage as
Myanmar seeks to increase economic productivity, raise incomes, and alleviate the acute poverty
of the majority of the population. The retention of large volumes of water by hydropower dams,
several of which are under construction or planned on the Ayeyarwady, Chindwin, Sittaung, and
Thanlwin, will affect river flows, especially during the dry season.
120. Many irrigation schemes function below their potential. This is due to inappropriate
operation of reservoirs, poorly developed systems, and inadequate management, operation and
maintenance. The performance of formal irrigation schemes has been sub-optimal, with actual
areas irrigated much lower than nominal command areas.
121. There is a high risk of unsustainable groundwater development. There is a lack of
comprehensive, compiled data on the locations, depths, extent and quality of suitable aquifers
and this increases the risk of unsustainable development.
122. Flood control in the low-lying Delta Region is inadequate. The area is subject to
flooding, storm surges, and salinity intrusion, resulting in crop losses and reduced crop yields.
Many flood, drainage, and salinity control structures were damaged in Cyclone Nargis in 2008,
and some have yet to be repaired or replaced. Climate change is expected to bring a greater
frequency of intense rainfall, severe cyclones along the coastline, and increase in flooding
compounded by rising sea levels. This will aggravate salt water intrusion and soil salinity in the
coastal areas and river deltas. Over the next 20 or 30 years it is essential that flood defences are
improved – including raising the height of embankments and strengthening them, replacing or
repairing sluice gates, renovating or constructing drains, and protecting riverbanks.
Soils
123. Land degradation is the key issue with respect to soils. Deforestation, poor agricultural
practices, overgrazing and shifting cultivation - all of which are exacerbated by the increasing
population - are causing land degradation particularly in the upland areas. Soil and water
conservation, though not a priority in village consultations, is important in three contexts:
reducing and repairing land degradation; protection of infrastructure from sediment damage; and
managing water effectively in rain-fed systems at both field and watershed levels. The emphasis
should be on working across catchments to slow the movement of water through the landscape,
to enhance infiltration and availability of water, and reduce erosion. Low cost water conservation
practices in rain-fed upland areas are important to improve crop yields and to reduce production
risks and droughts.
Forests
124. Myanmar enjoys a wide range of forest ecosystems, including some of the only
indigenous teak forests in the world. Despite covering an estimated 47 percent of total national
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land area, official statistics appear to heavily undervalue the economic importance of forestry to
the Myanmar economy, claiming a contribution of less than 0.5 percent. The forestry study
undertaken as part of the NAPA formulation process, however, estimates that a minimum of
eight percent is closer to the real situation, and this does not include monetization of many forest
services. Apart from a wide range of tropical, hill and temperate rain forests, as well as drier
forests in some areas, mangrove areas in the delta and along coastal areas provides important
protection for farming communities from cyclones and similar catastrophes.
125. As noted above, deforestation is the major issue with respect to forests as a natural
resource, despite existing plans for every village in the country to establish at least one acre of
plantations. Deforestation has resulted from unsustainable commercial and smallholder
extraction, ever more intensive shifting cultivation (as available land areas decrease) in hill areas
and the large scale removal of wood for fuel. Mangrove and teak forests have been particularly
heavily degraded and reduced. The total forest area has decreased by 20% over the period 1990-
2012. According to Forest Department (FD) the main threats to forest resources in Myanmar are
a combination of factors namely: encroachment of land for agriculture; shifting cultivation; over
exploitation of forests, removal of fuel wood, poles & posts, illegal logging, illegal trade in
timber, forest fires, mining, hydropower projects, urbanization, infrastructure development and
lack of awareness among the people about the importance of forests.
126. Nevertheless, considerable potential still exists for recovery of many forested areas,
including through replanting and improved management, community forestry programmes and
agroforestry. If such opportunities are not effectively pursued, real risk exists of accelerated
climate change, reduced water availability in many farming areas and greater exposure to lethal
environmental events such as Cyclone Nargis in 2008. However, the availability of only limited
resources for key tasks such as reforestation and forest protection have so far resulted in little
being achieved.
1.11 Inputs and Services
127. Crops. Smallholder farmers buy seeds, agro-chemicals, and fertilizer for their crops,
when they have enough money, and when they think they will get a return, taking into account
various other risks such as rainfall, floods and so on. Farmers with their own cattle or buffalo can
use their own manure, but if not, will buy it if resources permit. Farmers with their own draft
animals (or machines) can prepare their own fields, but if not, they need to hire teams or tractors.
The DOA has been making concerted efforts to increase smallholders’ income and enhancing
productivity of agricultural crops in order to ensure food security in the country. Due to
insufficient amount of investment, smallholder farmers face common constraints such as
inability to purchase inputs including fertilizer, pesticides and find difficulties in bearing high
cost of cultivation to hire farm equipment (tools, draft animals, mechanical power). In this
regard, the DOA has made linkages to get timely seasonal loans from MADB, MOC and DRD in
order for the smallholders’ long run benefit. With regards to harvesting in the smallholder’s
farms, the DOA also makes arrangement with AMD to sell farm machineries (tractors,
harvesters, and threshers), provide private sector services and arrange training for application of
farm machineries (driving and fixing equipment). Water is a critical input for crops, farmers in
the right place get access to water for irrigation.
128. Livestock. The services that most smallholders procure for their livestock are: treatments
for sick animals; surgical interventions such as castration of male pigs and cattle, and
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occasionally spaying of young female pigs; and the services of boars or bulls to mate their own
sows and cows. They mostly procure these services on a user-pays basis from community animal
health workers (CAHWs), since qualified veterinarians do not commonly provide services in
rural and remote villages. Some farmers do not pay for treatments and just sell their animals
quickly at a discount. Smallholders may also pay a small fee for the vaccines delivered through
the government animal vaccination programs, which are mostly targeted at cattle and buffalo.
But distribution of vaccines is weak and many farmers do not understand what the vaccines are
for, so coverage is often poor. Most farmers have little or no understanding of parasite diseases
that affect the growth of their animals. The CAHWs who provide services have often had little
training and technical support, which increases the probability of poor treatment.
129. Most smallholders usually do not buy feed for their cattle, buffaloes, sheep, goats. They
collect what they can locally, or use some of their own production to feed them. There is,
however a market for rice straw for feeding cattle and buffalo. Farmers do not generally buy feed
for their backyard chickens. Farmers may buy feed for their pigs if they have too many to feed
from local resources. They may buy feed for their ducks. While most farmers can get access to a
male for mating their cattle and pigs, sheep and goat farmers in the dry zone often find it difficult
to find an appropriate male, and so inbreeding is common.
130. Water is an important input for livestock, with village-based community ponds needed to
support livestock watering in the dry season, as well community aquaculture and vegetable
farming.
131. Smallholders who raise a few ducks, may breed their own replacements, but many buy
day old ducks once the previous flock has been sold off. Smallholders who do not have their own
sow may buy piglets to fatten. Smallholders with draft cattle sell and replace them every few
years.
132. Fisheries. Marine fisheries supplies more than half of all fish production nationally, with
just under 20 percent of supplies derived from aquaculture including both freshwater and
brackish water production. The remaining fish supplies are the product of inland capture on
leased or open-access water areas. In total, fisheries provide livelihoods for approximately 1.5
million families – over 80 percent in capture and less than 20 percent in farming. within the
marine capture sub-sector, some 90 percent of boats and fisherfolk operate inshore. The amount
of fish landed from both marine and inland fisheries has increased steadily over the last eight
years, according to Fisheries Department data, and is now almost 50 percent greater than in
2008, raising serious concerns that marine catches in particular are exceeding sustainable levels.
133. Marine fisheries infrastructure is weak, with inadequate landing facilities in relation to
the volumes of fish currently being landed. However, marine facilities, such as ice plants, were
better than those available to most inland fisheries. Within the inland fisheries – particularly that
occurring in leased areas – there is some conflict between fishers and rice farmers, the latter
often planting paddy as waters recede and affecting fish populations with agrochemical runoff.
134. For aquaculture, the supply of seed and fingerlings does not appear to be a constraint for
major commercial species. However, there is increasing competition between the private sector
and government hatcheries, while some species are not being produced by either party.
135. Financial services. Capital is a critical input, and very often this is in the form of credit.
Farmers borrow money for consumption, health and education, and agricultural inputs. Cropping
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is to a large extent dependent on credit to fund inputs and to smooth consumption between
harvests. The most common sources of loans are money lenders and family and friends. Value
chain actors such as input suppliers often provide goods in advance, e.g. pig feed. Poorer
households borrow mostly for food purchase and health emergencies, whereas higher income
households borrow for input purchase and business investments. A large section of the
population relies on informal lenders to meet their cash flow needs.
136. Agricultural Input Providers. The most commonly found input providers are local
shops that sell one or more of the variety of inputs such as fertilizers, animal feeds, chemicals,
and animal medicaments. These shops have a variety of relationships with the agribusinesses that
supply them with their product. Many of the shop owners have little knowledge of the products
they sell, and are not a reliable source of information for farmers who purchase from them.
Nevertheless, these actors can be potentially a source of information to farmers. Other countries’
experience suggests that as agriculture develops, and productivity improves, farmers need to
procure more inputs and they appreciate informed advice on what to buy and how to use them.
The migration of input outlets from simple retailers to combined retail/advisory services should
be promoted.
137. Animal health service providers. Community animal health workers provide the front-
line services to smallholders on a user-pays basis, with the overall technical support and
coordination of their own network, with strong links to LBVD. As the CAHWs are already
active and making a business from offering these services, there is an opportunity for them to be
contracted to provide extension services on livestock productivity – improved animal feeding
and breeding.
138. Extension. None of the technical studies focused on the review and recommendations of
an extension system or service. However, extension is the major public investment that can
facilitate smallholder efforts to step up through improving income, but only if it is responsive to
smallholder needs and priorities. An extension system can also contribute to the other four key
areas of concern to smallholders:
providing technical support role to asset expansion (for example if a farmer starts a new
enterprise e.g. buys fattening pigs for the first time), and coordinating with financial
services;
playing a front-line role in preparation for, and the management and mitigation of,
external shocks;
supporting the responsible use of natural resources, facilitating to get them organised and
in resolving access issues, albeit with caution, as this is an area of regulatory activity and
of potential conflict;
facilitating, where possible, some aspects of off-farm employment, particularly if this
includes some local farm household-level value addition. This contributes to some extent
to stepping out.
61. The extension system can also play an important role in supporting cooperatives.
Cooperatives themselves can play an important role in all the key development areas, for
example in engaging with government agencies, and private sector value chain actors.
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62. The extension system must have strong functional linkages to research and education.
Research helps to develop technologies for extension, while education develops the human
resources suited for the extension system. Education and research functions are themselves
closely linked.
63. The extension system has significant potential to contribute to nutritional improvements.
The extension system can link to human health/nutrition focal points and mainstream nutrition
into the wide range of extension activities such as demonstrations, and in working with farmer
groups.
64. The extension system can contribute to “hanging in” through
involvement of subsistence farmers in targeted extension activities (e.g. training and
demonstrations)
subsistence farmers having more casual labour opportunities from commercial farmers
and those farmers stepping up
linking to organisations (e.g. NGOs, Civil Society) with activities that are targeted to the
poorer, subsistence level farmers e.g. asset transfers (e.g. small livestock, nutrition cash
transfers), which could be strengthened with significant extension support.
65. A conceptual framework for the role of an extension system in five key areas is shown in
the figure below. This shows that the primary function of the extension system is in facilitating
productivity improvements, but can also play a role in each of the other four areas, and in
supporting cooperative development.
Figure 5: Conceptual Framework for an Extension System Facilitating Smallholder
Development
66. While not shown in the figure above, there is also an opportunity for the extension system
to engage in several additional areas:
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The systems and processes being developed to address infrastructure needs in villages.
This can be particularly important where such infrastructure e.g. water supply or ponds
for livestock and vegetables, can be directly related to agricultural productivity issues.
The extension system can contribute to and gain from diagnostic and planning systems in
collaboration with smallholder producers and other system participants, and potentially
receive financial support from local development funds.
Monitoring and control of animal diseases of public health concern, such as Rabies,
Anthrax, and avian influenzas, under the “One Health” umbrella;
Significantly closer collaboration with producers, research technicians and those
developing and delivering training and education in rural areas to ensure that producer
priorities are addressed and that research and training reflect these priorities.
67. The institutional arrangements for extension management, including financing, need to
take into account the principles of decentralisation of government functions.
1.12 Marketing System
139. Marketing systems in Myanmar are complex and vary considerably within and between
the sub-sectors.
140. Crops: Some farm households organize themselves for group/collective marketing of
their crops but, overall, 90 percent of households sell their crops immediately after harvesting.
The smallholders also have lack of access to price information on current market price and
consequently, the smallholders received low price for their produce. Nearly a quarter of
households that marketed their crops had no price information before selling, although large land
holders are more likely to know the price of their main crops before selling them. Crop price
information is predominantly obtained from family, friends and crop buyers. The majority of
households sell their main crop immediately upon harvest (62 percent). Only 17 percent of
households sell their crops two or more months after harvest and these are likely to comprise the
larger and wealthier agricultural producers. Currently there is no market information system for
farmers or the rural communities.
141. To disseminate market information to the farmers on time, the DOA has been taking
actions on provision of market news and information in Agriculture Business Journal, issuing
monthly market information newsletter, question and answer radio programmes, broadcasting on
Farmers TV Channel, etc. Furthermore, the GoRUM has been planning to develop wholesale
markets to reduce value chain losses and to transmit market information to farmers.
142. Post-harvest crop losses, while high for stored crops, do not pose a major problem
because most crops are sold immediately after harvest. However, if farmers do change to storing
their crop produce longer, then improved storage technologies will need to be introduced.
143. Less than five percent of national rice production is exported (this is less than half of
government targets) and shipments are primarily of low quality grains. Significant exports of
maize also occur, primarily to China. Almost 2 million tons of pulses were exported in 2013,
primarily to India, accounting for more than one third of total domestic production. Rubber is
another major export crop, almost entirely to ASEAN and Chinese markets.
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144. Livestock: Smallholder livestock make their way from the farm to the slaughterhouse
through a complex system of traders, live markets and transports. The live market system is
especially well developed for cattle in the dry zone. Livestock may change hands several times
on the way to market. There is also a heavy farm-to-farm trade of live animals meant for
breeding and fattening, including young cattle and buffaloes for breeding or draft; piglets for
fattening or breeding; and sheep and goats for breeding. The current systems of marketing piglets
for growing leads to a high degree of stress and disease transmission. The livestock marketing
system to slaughter is generally characterized by high transaction costs, including a variety of
formal license and market fees and informal transport fees. There are opportunities for on-farm
value adding through fattening of cattle and pigs based on better knowledge and availability of
feeds.
145. Rapid increases in the flow of chickens to urban markets, has led to challenges in the
physical market infrastructure and market flow for poultry. This was brought to the fore as an
important issue with the onset of Highly Pathogenic Avian Influenza (HPAI), where live markets
have been considered as posing a risk of increased disease transmission. While this fear has
decreased to some extent in recent years, the problem of modernising the poultry market system
remains, as does modernising slaughterhouse standards in other species.
146. Commercial livestock trading to slaughter markets – mostly finished grower pigs and
broilers - is more orderly, and larger producers are more aware of the sensitivities of markets and
market demand. A range of other livestock which are breeder culls from the commercial sector -
cull layer chickens and ducks, and cull sows and boars – are also traded for slaughter.
147. Chicken eggs are almost exclusively marketed from intensive commercial chicken layer
farms in an organized fashion, as are duck eggs. Milk is mostly collected at farm level and
immediately enters into a company-specific supply chain that processes the milk into a variety of
products.
148. Myanmar imports significant quantities of day-old chicks as well as retail dairy products
and semen for artificial insemination. Official exports include frozen and dried beef, some live
animals and hides, but a major proportion of international sales (especially to China and India)
are informal and not recorded in export statistics. These include live cattle, buffalo and goats to
China and live pigs to India. Formal international trade is limited by the availability of approved
processing facilities and adequate laboratory testing facilities in Myanmar.
149. Fisheries: In marine capture fisheries, appropriate handling and storage infrastructure at
smaller landing points or even the availability of ice at a reasonable cost, is an issue. Though
some of the villages visited were close enough to ice plants and cold rooms to enable
preservation of catch, many weren’t. An inability to preserve the catch at least until it reaches the
market impacts on poorer communities as catch quality deteriorates before reaching the
marketing centres, drawing a much lower wholesale or retail price. As a result, the fishermen
become vulnerable to buyers and traders and are forced to accept the price they are offered.
150. Exports of fish and marine products have grown rapidly over the last decade, with
volumes increasing by more than 150 percent ad export values almost tripling since 2000 to
reach almost USD 700 million in 2013.
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1.13 Value Addition
151. Overall, Myanmar is resource-rich yet suffers from a low level of value-addition on a
regional basis. At present, the agricultural value added per agricultural worker is estimated at
USD$194, which is half that of Vietnam ($367) and Cambodia ($434) and much lower than
Thailand ($706).
152. Downstream value-addition is for the most part an issue for private sector investment,
and the extent to which value addition for any product will impact on smallholders will depend
on how farm gate price is affected, with higher producer returns generally leading to an
expansion of production. However, it is likely that unless value-addition is significant enough to
have a major impact on a sector, the majority of returns will accrue to the upstream actors
(wholesalers, processors, retailers) and no additional benefits will be seen by producers.
153. Crops. There is only a low level of value-addition for crops. Any increase in value will
most likely be led by agribusiness, which can play an important role, with potential
improvements in packaging, branding, and logistics services. An improved pricing system,
which rewards producers for better quality product, is likely to be necessary in order to elicit a
production response for most crops.
154. Livestock. There is limited value-addition in the livestock sector. Most meat products –
from cattle, buffalo, pigs, poultry and sheep and goats – are sold as freshly-killed meat in retail
markets. However there is some drying, packaging and labelling of beef. Eggs are sold as freshly
delivered from farms, although there is some labelling and packaging of chicken eggs is taking
place for the supermarket trade in chicken eggs.
155. A high degree of processing and value-addition occurs for milk, with fresh milk being
labelled and marketed for the supermarket trade, large scale processing into condensed milk, and
other products such as yogurt. A significant improvement in farm-gate milk value could have a
major impact on the sector, leading to more investment in commercial production. If downstream
supply chains from smallholder dairy systems can be improved, benefits will accrue to the
smallholder. There is a strong demand for processed milk products in urban areas in which the
domestic product competes with imported products.
156. Fisheries: The level of value added is very limited. Myanmar has a rich tradition of
processing fish and fish products, utilizing a wide range of fish species in the production of dried
fish, fish pastes, fish sauces and crackers. Industrial processing appears to be less diverse, with
the primary focus being on the production of frozen fish for the export market. Currently, there is
only one factory in the country producing fish fillet for export, among over 160 other processing
plants.
157. There is scope to increase value. With a vast variety of traditional fish products value
addition can be broadened beyond simply freezing and chilling. The perception that traditional
fish products only have a local demand is an erroneous assumption, as one processor markets
such products to Singapore.
158. Among other possibilities, there are opportunities to develop fish-based medicinal
products to enhance dermal wound healing, to reduce post-operative pain and discomfort and in
the treatment of skin conditions such as eczema. The snakehead, Channa striata, for instance, is
a fish that is widely in demand in the Malaysia/Indonesia/Singapore markets for this purpose.
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Antiseptic creams and tonics containing extracts of the fish are widely sold in these countries.
However, these countries lack the supply of the fish that Myanmar enjoys.
159. The DOF lacks a section responsible for the development of post-harvest handling and
processing of fish and fish products. While DOF has some involvement in this area, its primary
focus appears to be on quality inspection and food safety, rather than in product development
and upgrading of traditional skills and human resources. The latter become important if the
county wishes to be a producer of fish-based materials or of value-added products.
160. Forestry. Very few value-added timber products are exported, reflecting a domestic
processing industry that has languished due to a lack of proper business environment (lack of
continual electricity, difficulty in obtaining necessary permits, etc.) and the relative profitability
of raw log export sales.
161. Amongst forest products, bamboo offers a great scope for product development and
value addition. At least 40-50 different marketable products can be made out of bamboos.
Bamboo propagation and development is an area which needs immediate and serious attention.
162. The Forestry Department feels that the country has a huge bamboo resource, but
marketable species and quality need to be clearly identified. There is opportunity for bamboo
plantations on the farm lands. In the past, bamboo was readily available, but now more effort is
needed to collect and transport it. Major uses of bamboo include food, raw material for vessels,
handicrafts, construction and paper pulp. Bamboo shoots are produced and processed using local
knowledge for domestic use only. Due to lack of advance technical know-how, Myanmar
bamboo shoots products still cannot enter international markets. With technical assistance on the
utilization of bamboo and bamboo shoot processing, Myanmar has a high potential to earn
revenue from bamboo products. Non-wood bamboo products such as sheaths and braches are
used for making hats, brooms, utensils etc. There are markets for bamboos and bamboo shoots.
Bamboo handicrafts can also be developed.
1.14 Consumption and Food supply
163. Nutrition was not addressed as a specific topic in any of the thirteen technical studies, but
agriculture development contributes to availability, stability and access to food.
164. The diet of the domestic population is influenced by the mix of ethnic groups (especially
Bamar, Chinese, Indian, Shan and Rakhine), geographical location, and religious customs.
Typical meal items can include steamed rice and accompanying dishes such as curried or pickled
or dried fish or eggs, curried meat dishes, a light soup, and fresh or boiled vegetables, as well as
bean dishes. Tea shops are ubiquitous, of which milk - usually condensed or evaporated - is a
key ingredient.
165. The livestock study noted that in comparison to other regional countries, Myanmar has a
comparably high supply of protein per capita per year. It is also notable that, in comparison with
other regional countries, a relatively high proportion of the supply of high protein feed in
Myanmar comes from fisheries. Myanmar has also the highest sheep/goat meat supply; and a
significant milk supply.
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Table 16: Protein Food Supply Quantity (kg/cap/year) of Regional Countries
Items Country
Myanmar Malaysia Thailand Viet Nam Cambodia
Marine Fish, Other 29 12 0 13 4
Freshwater Fish 26 7 8 13 30
Poultry Meat 22 38 12 16 2
Milk, Whole 17 6 16 6 2
Pig meat 11 9 13 34 8
Eggs 6 14 12 4 1
Bovine Meat 5 6 3 7 5
Mutton & Goat
Meat 0.9 0.7 0.0 0.1 0.0
Protein Supply (all animal and fish sources)
kg protein/cap/day 82 79.3 58.7 77.7 63.2
Source: FAOstat
166. As noted already, food security remains a major problem in Myanmar, especially in poor
rural areas, with the group of subsistence/landless smallholders being expected to be the most
affected by food insecurity.
1.15 Exports and Imports
167. Overall merchandise exports and imports have expanded rapidly since 2004-5, with
imports and exports being roughly equal in total value. In 2013, merchandise imports were
slightly higher than exports, at about US$ 12,043 m, or some seven percent higher than export
value at US$ 11,23316
.
Figure 6: Myanmar Merchandise Imports and Exports (total value) 1990-2012
Source: ESCAP
16
WTO
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168. Agricultural products accounted for 26 percent of exports by value, and seven percent of
imports by value, in 201317
. Fuels and mining products were the major exports, making up 40
percent of the total, while manufactures made up the majority of imports at 59 percent. Details
are shown in Table 17 below.
Table 17: Major Exports and Imports 2013 by Value
Item % by value
Exports Imports
Agricultural products 26.6 7.6
Fuels and mining products 40.4 20.4
Manufactures 26.4 59.4
Source: WTO
Exports
169. Though fuels and mining products, especially natural gas, tops the list of Myanmar‘s
exports by value, agriculture commodities are key exports, on par with manufactured goods.
Agricultural exported items include forestry, fishery, crop and livestock products.
170. Available data sources suggest that forestry products make up the largest contribution to
exports, being valued at US$ 1,095 m18
in 2011. The next highest categories are fishery products
and pulses, with similar values (US$ 536 m and US$ 531 m), followed by livestock and livestock
products and rice (US$ 107m and US$ 98 m). Maize and sesame are also important export crops,
valued at (US$ 36 m and US$ 31 m). As this represents a compilation of data from various
sources and times, the figures shown in Table 18 should be taken as a guide only.
Table 18: Major Export Items by Value
Products USD m Date, Source
Forestry Products 1,095 FAOstat 2011
Fishery Products 536 2013-14. NAPA fishery study
Pulses 531 FAOstat 2011
Livestock and Products 28 CSO 2012-13 for official exports of livestock products (20m
USD), FAOstat 2012 for live bovine export (estimate)
Rice 98 FAOstat 2011
Maize 36 FAOstat 2011
Sesame 30 FAOstat 2011
Others 87 FAOstat 2011
Note: FAOstat data for forestry products and live bovine export is an aggregate figure, and may include
official, semi-official, estimated or calculated data
171. Crops. As noted in the above table, the major export crops are the pulses (as a group),
followed by rice, maize and sesame. Pulses rose rapidly as an export product from the early
1990s, and then extremely rapidly from 2004-5. During this period, the other major crop export
values fluctuated but were relatively steady. Maize is exported mainly for animal feed. It is not
clear as to why the data shows a rapid drop in pulse export value since 2010.
17
WTO 18
FAOstat 2011
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Figure 7: Export Values of Major Crops 1990-2013
Source: FAOStat
156. Livestock. Live cattle and buffalo exports are estimated to make up over 30 percent of
the export value of livestock and livestock products. Official exports in 2012-13 are reported as
being around US$ 19.5 m, while the export of live cattle and buffalo are estimated to be worth
about US$ 8.9 m. Due to informal nature of this trade, exact data on numbers and values is
difficult to arrive at. There is also a major informal trade in small ruminants reported from the
Dry Zone to China, although this is not reflected in the official data. Of the formal trade, the
export of frozen beef made up the majority of the trade, by value.
Table 19: Livestock and Livestock Product Exports by Value (2013)
Description Value (US$)
Frozen Beef 15,302,600
Live Bovine 8,900,000
Buffalo / Cow Hide 3,615,480
By Products of Cattle/
Buffalo 243,250
Dried Beef 200,000
Sheep/ Goat Hide 100,854
Raw Dried Bone Grist 63,000
Frozen Mutton 48,000
Inedible Tallow 5,000
Total 106,578,184
Source: FAOStat estimate for live bovines; CSO for other data
172. Fisheries. Fish and fish products are the major export item by value in this category,
followed by prawns. Shrimp constituted the top export commodity in 1990s, generating up to 50
percent of earnings. However, shrimp exports have declined since 200.
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Figure 8: Fishery Exports by Category and Value 2008-2014
Source: Department of Fisheries, 2014
Imports
173. Manufactured products make up the majority of imports by value (59 percent), followed
by fuels and mining products (20 percent), while agricultural imports make up less than eight
percent by value. Palm oil is the only agri-based item in the top 9 imported commodities.
174. Crops and Livestock. Fertilizer is the key import item related to crop production. The
domestic fertilizer industry in Myanmar is concentrated around the production of urea fertilizer
from the abundant sources of natural gas in the country. As a requirement for plant nutrients,
phosphate and potash fertilizers are imported. The Ministry of Energy prefers to export natural
gas in order to obtain foreign exchange, and thus supplies of gas to the urea plant have been
decreasing. Although the private sector can import fertilizers, most farmers are unable to acquire
sufficient amount of fertilizer mainly due to financial constraints.
175. Imported livestock items relevant to the sector include input-related merchandise – feeds,
medicaments and equipment – and livestock and livestock products. These include inputs such as
day old chickens, breeding boars, semen for artificial insemination, as well as retail products –
meat, eggs, dairy products. While meat and egg imports are of relatively low significance, being
limited largely to border area towns, dairy imports are significant. Table 20 summarizes items
imported by formal and informal means.
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Table 20: Formal and Informal Imports of Livestock and Livestock-related Items
Official imports
Parent and grandparent day-old chicks and hens for the layer and broiler chicken
sector
Milk retail items – milk powder, condensed milk, evaporated milk, UHT milk,
yoghurt, cheese
Retail processed meats, small volumes of frozen meats
Livestock feeds, medicaments and equipment
Frozen semen for artificial insemination in dairy cattle
Breeding boars
Eggs from China to internal areas
Informal trade
Retail livestock products such as chicken meat and pork meat, and eggs are
brought into border towns, especially along the China and Thai borders.
Pigs for slaughter to towns on China border
Broiler day-old chicks to local border towns on the Thai border
Dairy retail items
176. Compilation of a variety of data suggests a high level of oil palm and dairy imports.
Dairy items have been rising steadily since 2008. Imports of animal feeds, medicaments and
equipment have increased rapidly since 2008, presumably due to increases in the commercial
livestock sector. Imports of NPK fertilizers have been steady. Import of chickens, mainly day old
chicks and hens have also been fairly constant.
Table 21: Relative Value of Major Crop and Livestock-related Imports 2008-2012
Item 2008-09 2009-10 2010-11 2011-12 2012-13
Oil Palm 169 188 230 260 NA
Dairy 45.9 52.7 36.2 60.8 NA
Feeds 0.3 0.1 0.9 9.6 26.0
Medicaments 12.2 14.1 22.4 23.4 24.8
NPK fertiliser NA 3.4 3.0 3.0 NA
Equipment 0.4 1.1 6.1 6.8 3.9
Chickens 0.6 0.6 0.6 0.8 NA
Source: CSO for data on feeds, medicaments, equipment; FAOstat for data on
oil palm, dairy, chickens, NPK fertiliser
177. It should be noted that other estimates of total dairy imports have differed markedly from
those in FAOstat. A recent study estimated total imports could be of the order of US$ 355 m,
with about US$ 300 m being made up of informal imports19
.
178. Fisheries and Forestry. No significant import items related to the fisheries and forestry
sectors have been reported in the technical studies.
19
The Myanmar dairy sector (2014), Livestock Research, Wageningen. Assumption of US$ 1 per kg milk
equivalent.
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1.16 Data and Information on Sector Performance
179. Across the sector, there is a sense that data collection and availability, and therefore its
use, is poor and limited in scope. There is certainly substantial scope for improving government
collection and management of data and statistics on sector performance, including taking a more
people- and farm-centred approach rather than a commodity approach. Amongst the challenges
is that of collecting realistic data on imports and exports, when there is substantial informal
trade.
180. Cropping. The establishment of a reliable statistics and marketing information system
will support an improved crop research and extension function. For example, there is a need for
sufficient and quality data base on sown rice areas, yield and production, and reliable data on
cultivatable waste land with sustainable cropping potential that could drive policies and actions
on crop expansion. In order to get reliable data, the MOAI has continuously managed and
instructed state/ regional authorities to collect actual ground data. Even though there is about five
million hectares of cultivable waste lands in Myanmar, area expansion of crops, however, is
limited. Due to this limitation, the MOAI has made every effort to develop Good Agriculture
Practices, conduct trainings to farmers’ level, regional level workshops, field demonstrations and
trials those are essential to drive policies and actions on crop expansion.
181. Livestock. Data collected includes that on livestock populations, vaccinations delivered
through LBVD, pasture areas, and disease events. In livestock, there is uncertainty in the official
livestock population data, and the informal nature of much of the live cattle and buffalo export
trade makes it difficult to estimate the total quantity and value of the trade. There is currently no
formalized system for collecting data on the number, nature and location of commercial livestock
farms, although FAO has supported government to collect data on chicken, duck and pig farms.
Data on dairy farms, both commercial and smallholders with native cattle, is also lacking but
would contribute to sectoral planning.
182. Overall, the livestock statistics collection and management system needs to be
strengthened. This includes reviewing the content and processes in the current system and
implementing an improved system. One aspect to be addressed is the movement from paper-
based and highly aggregated data management to a computer based system including a GIS
component. Once strengthened, there needs to be improvement in the use of the data for policy
making and directing interventions.
183. Water. Inadequate water sector statistics and data is a serious constraint to water
resources planning and coordination among water users and the different agencies dealing with
water resources development. A comprehensive analysis of the water sector, both surface and
groundwater, and the development of a coherent development strategy to guide water resources
investment in the future, are urgently required to avoid piecemeal development with limited
impact and high risk of unsustainable practices. There is an urgent need to establish an effective
nation‐wide water related data management system that comprises contemporary monitoring
networks supported by appropriate data collection protocols and modern easily accessible
databases and analyses tools.
184. Fisheries. Statistics and data collection on the industry is poor and limited in scope. The
data in the annual fisheries statistics provide voluminous data on catch , aquaculture production,
seed production, etc., but not on value or specieswise catch / landings, a major shortcoming that
stymies the ability of the sector to assert its economic importance. There is not dedicated data
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collection and management system within the DOF that can provide accurate and actionable
data on the various sub-sectors within the industry, a consequence of which, appropriate
management measures cannot be taken. Accurate data is necessary to capture trends such as
there so that the DOF can be more mindful of the impact of resource shifts on the socio-
economics of its stakeholders.
185. Forestry. Statistics and data management has a long history in the forestry sector and
while the technical study makes no specific comments on the system, it affirms the importance of
good data and statistics for forestry sector development.
186. Despite this, there is a strong suggestion that official data on the forestry sector does not
adequately reflect the role of the sector in national economic development. While forests cover
47 percent of the land area of the country and contributes to the livelihoods of a large proportion
of the 70 percent of the population in rural areas, GDP data shows that forestry contributes only
0.4 percent to the GDP in Myanmar. Referring to the contribution of forestry to GDP as indicator
of its contribution to the economy is thus very misleading.
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SECTORS AND SUB-SECTORS UNDER REVIEW
187. The technical studies underlying this document reviewed a range of production sub-
sectors within the main agricultural sectors of crops, soil and water, livestock, fisheries and
forestry, and cross-cutting issues - marketing and trade, rural finance, rural employment, land
tenure, social and gender, post-harvest, cooperatives and coastal areas – identified a range of key
sub-issues. These are summarized in Table 22 below.
Table 22: Commodity Sectors and Sub-Sectors
Commodity Sectors and Sub-Sectors
Crops, Soil and Water Livestock Fisheries Forestry
Cereals Smallholder systems Marine Capture
Restoration of
Degraded Teak
Forests and Teak
Plantations
Rice Draft Cattle and buffalo Inshore fisheries Bamboo
Wheat Sheep and Goats Offshore fisheries Community Forestry
Maize Pigs Inland Capture Afforestation and
Agroforestry
Oilseed crops Smallholder dairy cattle Rivers Shifting Cultivation
Groundnut Backyard poultry Estuaries
Sesame Mithun Leasable Fisheries
Oil palm Commercial systems Confined waters
Other Layer chickens Open waters
Pulses Broiler chickens Aquaculture
Industrial crops Pigs Freshwater pond
Culinary Crops Dairy cattle Brackish water
Plantation Crops Duck egg layers
Vegetables Meat ducks
Fruits Bees
Water Resources
Flood control
Irrigation
Water Conservation
188. The cropping technical study defined sub-sectors in terms of the types of crops grown.
The soils and water technical study defined sub-sector issues in terms of overall water resources,
flood control, irrigation, and water conservation. The livestock technical study defined sub-
sectors firstly in terms of the smallholder and commercial livestock production systems, and then
the species within those systems. In fisheries, sub-sectors were defined as either capture fishing
(marine or inland) or fish raising (aquaculture), as well as management system (leasable
fisheries).
189. The bases for sub-classification within the cross-cutting themes vary considerably from
theme to theme (Table 23). The marketing and trade study focused on a number of major
commodities on a national basis - rice, maize, pulses, rubber, fisheries and livestock – and on the
major marketing issues related to the four major agro-ecological zones – coastal, delta, upland
and dry zone. The rural finance report focused on the institutions relevant to rural finance: banks:
unregulated money lenders, pawnshops, the Myanmar Agricultural Development Bank,
agricultural input providers, microfinance institutions, co-operatives, and rice companies.
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Table 23: Identified Issues within Cross-Cutting Themes
Cross Cutting Issues and Sub-Issues
Marketing and
Trade Rural Finance Land Tenure Cooperatives
Major commodities Banks Customary tenure and
community forestry Agricultural Coops
Rice Unregulated Money Lenders Information management Financial Coops
Maize Pawnshops Land concentration and large-
scale landholdings Trading Coops
Pulses MADB Landlessness Multipurpose Coops
Rubber Ag. Input Providers Land sub-divisions and
fragmentation
Fisheries cooperatives
Farmer Organisations
Fisheries Microfinance Institutions Leasing, water use right
Livestock Co-operatives Riverbed farming
Timber Rice specialised companies State land leases, acquisition,
confiscation
Coastal Zone
Commodities
Land registration system in
issuance of land use certificates
Delta Zone
Commodities
Land Governance (Service
Delivery, land use planning,
access to Land Information and
procedures for subsequent
transactions)
Upland Zone
Commodities Management of state land
Dry Zone
Commodities
Land disputes and conflict
resolution
Lack of supply of suitable land
for poor households
Rural Employment Social and Gender Post-Harvest Coastal Areas
Smallholders Gender situation analysis in
rural sector Rice and other cereal crops Infrastructure
Landless and
migration Social Inclusion Pulses Mining
SMEs Agricultural policy Oilseed Hydro or coal fired
power
Women Research Horticulture Oil and Gas
Youth Extension Fisheries Tourism and recreation
Education level Rural Finance Dairy Agriculture
Forestry
Livestock
Off-farm opportunities Forestry
Other (mechanisation,
irrigation, fuel) Fisheries
Community co-
management
High priority marine
corridors
Water quality
Natural hazards
Offshore resources
Coastal issues
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190. The land tenure study focused on tenure systems, governance and management, land
transfers and management of disputes.
191. The cooperatives study focused on institutions and governance of cooperatives, including
agricultural coops, financial coops, trading coops, multipurpose coops and fisheries cooperatives.
192. The rural employment study focused on the smallholders landless and migration, small
and medium enterprises, women, and youth. The study also looked at the influence of education
level on rural employment.
193. The social and gender study looked at the degree to which gender situation analysis is
conducted in the rural sector, social inclusion in agricultural policy research and extension, in
rural finances, the forestry sector, and in relation to off-farm opportunities. The study also looked
at social inclusion in relation to other issues such as mechanisation, irrigation, and fuel supply.
194. The post-harvest study focused on the opportunities for improving the post-harvest
management of rice and other cereal crops, pulses, oilseed, horticulture, fisheries, and dairy. The
interventions derived from the technical study include trainings for efficient and systematic post-
harvest technology, awareness stakeholder trainings in value chain, creation of better opportunities in
providing infrastructure, equipment, private sector investments, long and short term loans and
promotion of linkages for incoming foreign investments. Additionally the interventions of NAPA
will also include need based post-harvest technologies such as market based post-harvest
extension services; ICT based daily market information system; rental services for costly post-
harvest machineries those farmers cannot afford; market/value chain field survey and evaluation
programmes for post-harvest and processing of oil seed crops those will be conducted in
Magway, Mandalay, Pakokku, Monywa, Myingyan, Kyaukpadaung, Kalay and Yangon;
development of market, capacity, standard and working condition of machines related post-
harvest such as harvesters, threshers, peas and beans colouring machines, rice color sorters and
destoners.
195. The coastal area study looked at the opportunities for investment in the large range of
areas relevant to the coastal zone including: infrastructure, mining, hydro or coal fired power, oil
and gas, tourism and recreation, agriculture, (cropping, livestock, forestry, fisheries), community
co-management, and the development of high priority marine corridors. The study also addressed
issues of water quality, natural hazards and offshore resources.
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INSTITUTIONAL ENVIRONMENT
196. The major systems and functions that fall under institutions are those that are essentially
public sector in nature: research, extension, education and training, line sector management; and
the one area where there can be significant private-public sector engagement, which is value
chain governance.
197. Although no individual study conducted under Phase I considered specifically
institutional issues (this will comprise one of the studies under Phase II), institutional issues
identified in each of the technical studies tend to fall into the following areas:
Organizational cultures need to change from a top-down system for developing priorities
and programs to one that is bottom-up and takes into account stakeholder needs,
especially the poor and those with historically little influence on decision making;
Organizations need to change from a commodity-production approach to a more “people-
cantered and sustainable resource use approach” which also takes into account service-
provision needs and environmental impact;
Resource conflicts relating to potentially conflicting land use priorities for various
agricultural/fisheries/livestock uses need to be addressed;
Human resource capacity needs must be addressed both in internal management and in
long-term education and training;
Education, extension and research capabilities need to expand beyond traditionally
narrow technical areas to areas such as business management, farming systems, and
bottom-up, demand driven priority setting;
Statistics and information management needs to be improved, including the use of new
technologies;
Expanded support is required to create an enhanced capacity and role for primary
producers in product processing and value addition;
Mainstreaming of integrated farming systems within family farms to optimize resource
use, spread risk and diversify income.
198. The dominant public sector line institutions in the agriculture sector are the three
ministries: Ministry of Agriculture and Irrigation (MOAI), Ministry of Fisheries, Livestock and
Rural Development (MLFRD), and Ministry of Environmental Conservation and Forestry
(MOECF).
199. An overview of the major aspects of the institutional environment as described in the
technical studies is shown in Table 24 below.
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Table 24: Overview of the Institutional Environment in Commodity Sectors
Crops, Soil and Water Livestock Fisheries Forestry and
Environment
Union
Ministry
level
Ministry of Agriculture and
Irrigation (MOAI)
Water: Ministry of Transport
(MOT); MOECF
Ministry of
Livestock, Fisheries
and Rural
Development
(MLFRD)
MLFRD;
Ministry of
Environmental
Conservation and
Forestry (MOECF)
MOECF
Ministry of
Agriculture and
Irrigation
(MOAI)
Union
Department
level
MOAI: 7 departments
MOT: Directorate of Water
Resources and Improvement
of River Systems; The
Department of Meteorology
and
MOECF: watershed
management and
sedimentation in lakes,
reservoirs, rivers and other
water bodies
MLFRD: Livestock
Breeding and
Veterinary
Department
(LBVD)
MLFRD: Department
of Fisheries (DOF);
MOECF: Dept. of
Environmental
Conservation (Marine
Protected Areas and
Riverine Protected
Areas)
MOECF: six
departments;
MOAI:
Settlement Land
Record
Department
(SLRD)
Research
MOAI: Department of
Agricultural Research
(DAR); Soils: he Land Use
Division (LUD) under
Myanmar Agriculture
Service (MAS)
No specific body
Department of
Fisheries (DOF);
Research and
Development
Division
University of
Forestry, Forest
Research
Institute,
Myanmar Forest
School and
several training
centres Education
Yezin Agricultural
University (YAU)
Yezin University of
Veterinary Science
(UVS)
No university level
courses on fisheries.
However, two
universities offer a
marine science
programme
Private
Sector
groups
Myanmar Rice Federation
(MRF)
Myanmar Livestock
Federation (MLF)
Myanmar Fishery
Federation (MFF)
Myanmar Timber
Merchants
Association
(MTMA)
Other Myanmar Academy of Agricultural, Forestry, Livestock and Fishery Sciences
1.1 Line Government Agencies for Commodity and Thematic Sectors
Crops
200. The MOAI is responsible for all aspects of agriculture and irrigation as well as water
resources with the mandate to develop agriculture and irrigation nationally. At State/Regional
level, agriculture is organised under a State/Regional Minister for Agriculture who reports
directly to MOAI at Union level in Nay Pyi Taw where the majority of budget decisions are
currently made. The main objective of MOAI is stated as being to increase crop production. The
MOAI comprises of the following key departments: the Department of Agriculture (DOA) which
was formerly the Myanmar Agriculture Service (MAS), Department of Agricultural Research
(DAR), Department of Agriculture Planning (DAP), Irrigation Department (ID), Agriculture
Mechanisation Department (AMD), Water Resources Utilisation Department (WRUD),
Myanmar Agriculture Development Bank (MADB), Yezin Agriculture University (YAU), and
Department of Industrial Crops Development (DICD).
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Soil and Water
201. Two of the MOAI departments - Irrigation Department and Water Resources Utilisation
Department - have responsibility for water management issues. In addition to the ID and WRUD,
a number of other agencies have responsibility for protection and management of water
resources. Under the Ministry of Transport, the Directorate of Water Resources and
Improvement of River Systems has responsibility for: (i) improving and protecting waterways
and river systems particularly for navigation; and (ii) monitoring water quality and quantity, and
preventing river water pollution. The Department of Meteorology and Hydrology is responsible
for: (i) weather/water monitoring stations, sediment discharge stations on main rivers and big
tributaries; (ii) water quality stations on the Ayeyarwady delta for measuring discharge and
sediment flows and monitoring salt intrusion. Municipalities and township development
committees are gradually taking responsibility for urban water supplies. The Ministry of
Environmental Conservation and Forestry (MOECF) is responsible for watershed management
and reducing sedimentation in lakes, reservoirs, rivers and other water bodies.
202. Agencies important to soil and water conservation activities include the Extension
Division and Land Use Division of MOAI and the Environmental Conservation Department and
the Dry Zone Greening Department of MOECF.
203. Some research undertaken by the Department of Agricultural Research is of relevance
to irrigation and to soil and water conservation. However, there is inadequate coordination
among water users and the different agencies dealing with water resources development.
Livestock
204. The Livestock Breeding and Veterinary Department (LBVD) within the Ministry of
Livestock, Fisheries and Rural Development (MLFRD) is the line technical agency responsible
for livestock. Currently the major focus of the focus of the LBVD is on animal health. The
facilities operated by the LBVD include vaccine production unit, a veterinary assay laboratory,
the central diagnostic laboratory, twelve regional veterinary diagnostic laboratories, six border
area animal quarantine laboratories, an artificial insemination centre and offices of the LBVD at
State/Region, district and township level. At township level there is a township veterinary officer
(TVO) and, depending on the township, deputy TVOs who have undergone Bachelor level in
veterinary science are taking responsibilities for sub-townships. The LBVD has in recent years
established a capacity in epidemiology.
Fisheries
205. The primary management institution for fisheries in Myanmar is the Department of
Fisheries (DOF). Located within the Ministry of Livestock, Fisheries and Rural Development,
the DOF has several divisions and sub-divisions that enable it to cover a wide gamut of fisheries
and aquaculture activity in the country (Figure 9). The DOF also has field offices at
Region/State, District and Township levels.
Marine and Riverine Protected Areas
206. Marine Protected Areas and Riverine Protected Areas come under the jurisdiction of the
Department of Environmental Conservation, under the Ministry of Environmental Conservation
and Forestry. Due to the development projects driven by public and private sectors, a number of
environmental problems are encountered in these areas. In order to protect MPAs, the MOECAF
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and other relevant departments have undertaken responsibilities and enforced laws, regulation
and procedure relating to biodiversity and environmental conservation. At present, there are two
major MPAs in country i.e. the Lampi Island Marine Park in the Myeik archipelago, while a
second one, the Mainmahla Marine Park in Bogalay Township is under planning. Both come
under the Forest Department and the Department of Fisheries has been engaged with the fishing
communities as part of a major initiative to provide sustainable livelihoods and increased
incomes.
Forestry
207. The institutional and policy frameworks governing forests and natural resource
conservation in Myanmar are under the MOECF and MOAI. The Permanent Forest Estate (PFE)
is under the direct management of MOECF. Unclassified forests are primarily under the
authority of the Settlement Land Record Department (SLRD) within MOAI. Land administration
is fragmented and thus the President ordered the creation of the National Land Resources
Management Central Committee. This committee is chaired by Vice President and two vice-
chairs, the MOECF and Home Affairs Ministers. The committee includes 18 other high-level
members. This new Committee is tasked with coordinating land administration across ministries,
to finalize the Land Use Policy and to oversee the drafting of a National Land Law. The new
land law will aim to harmonize Myanmar’s existing and new laws into an overarching ‘mother
law’. It is likely that the committee will be transformed into a National Land Use Council
through an act of Parliament. These agencies have staff located across the country responsible
for issues ranging from use of resources, extension services, law and policy, and professional and
academic training. The MOECF has offices operating at all levels of government from the
capital to the rural locations and there is an extensive institutional and planning framework in
place. However, this framework is largely focused upon issues related to the extraction of high-
value timber and afforestation efforts are oriented towards industrial-style forest plantations. The
role of forests in rural livelihoods in the form of food, fodder, biomass energy, housing and
support to agriculture is not adequately recognised in the national accounting and planning
process, as most of these commodities are not monetized and are calculated only in terms of the
cost of labour.
208. It is important to note that the government service delivery systems is going through a
period of transition from a traditional command system (top down) to a more market driven
approach.
Land
209. Institutional responsibilities for land are extremely complex. Responsibilities are
distributed among 10 different government entities. In general, the Ministry of Home Affairs
(through GAD) and SLRD (through MOAI) continue to play a major role in all levels of non-
forest land administration. The MOECF assumes primary responsibility in areas designated as
forests. Others like the Ministry of Mines hold sectoral responsibilities on land, but land maps
and data responsibilities rest with the SLRD.
210. The GAD, of the Ministry of Home Affairs, has branches at the township and the
state/region levels and acts as the representative of the central government at these levels. The
SLRD under the MOAI is responsible for maintaining land registry and cadastral maps and has
branches at the state, district, and township levels. Each township is further divided into a
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number of circles, each headed by a land inspector (assistant staff officer) who is responsible for,
among other things, validating and checking land records.
211. Administering land and its uses mainly falls under the purview of three ministries i.e.,
GAD, MOAI/SLRD and MOECF. These administrators are also responsible for protecting the
land under their jurisdiction from encroachment and squatting and ensuring adherence to
prescribed land use. Any transfer of tenancy rights (all farmers being tenants) and any request for
change in land use must be initiated at the village tract or ward level and go through successive
tiers in the structure to be eventually endorsed/approved at the state level, after going through
factual verification by the SLRD branch at the township and district levels. The administrative
unit responsible for processing such applications is the GAD branch at the township level. Thus,
the process of land rights transfer or change of land use is lengthy, requiring considerable time
and frequent visits to various offices.
212. In urban areas and the three major cities — Yangon, Mandalay, and Nay Pyi Taw —
activities related to land use and ownership are managed by development committees. These
enjoy a broad range of authority in reclassifying use, acquiring land and buildings, and
transferring “ownership” titles. In urban areas, the Land Revenue Department is also involved in
validating the transfer of titles and other deeds.
213. The role of the military in land administration and management is, in theory, limited to
protecting national boundaries. However, post-1991, the military has acquired large tracts of land
for its encampments and also retained control over “conflict zones” in Kachin and Karen states.
SLRD has not mapped several of these conflict zones or maintained any data on these areas. The
military’s role in land matters remains a serious concern in discussions on reforms. The fragile
peace process and the military’s continued influence further complicate land administration.
Thus far, no comprehensive peace agreements have been finalized, although progress has been
made towards political dialogue on many fronts. Several groups have documented increased land
grabbing and land confiscation in the context of ceasefire agreements and peace negotiations in
Karen and Mon states in particular and to a certain extent in Karenni and Shan as well.
1.2 Research
Crops
214. Research systems and functions in their current form are unable to adequately contribute
to poverty reduction and rural development. While there is a substantial institutional structure
related to agricultural research, it faces a range of problems including mandates, leadership, and
institutional arrangements, as well as human, physical and financial resources.
215. The Department of Agricultural Research (DAR) has seven Crop Research Centres and
17 Satellite Farms. Although DAR is carrying out suitable research, particularly with new
varieties, there still remains the problem of applying this to the farmers’ fields on a large scale
and the adequate connection of this knowledge with extension services to farmers. Basic research
including state/ regional level trials are being conducted in collaboration with the DOA on:
locally adaptable and promising crop varieties to be selected and utilized by farmers;
irrigated/rain-fed paddy varieties; rice varieties needing less water; salt tolerant rice varieties;
drought tolerant rice varieties; upland rice varieties; flood tolerant rice varieties; and high quality
rice varieties. Research on varietal selection of rice, pulses and groundnut are also conducted in
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collaboration with farmers, and organizations like IRRI, JICA and ACIAR at farmers’ fields in
project areas.
216. There are seven State Agricultural Institutes involved in agriculture extension training
and research with the Yezin Agricultural University (YAU) at the apex, plus several agricultural
research institutes that provide specialised training for farm advisers.
217. Research planning and management is inadequate. Most research projects are centrally
planned at headquarters for implementation on research farms. Issues of profitability, production
cost, marketing, environmental constraints, and socio-economic conditions of farmers are seldom
considered in the planning and design stage of research projects. Research is conducted in
relatively controlled situations that generally are not relevant to farmers’ fields. Research on
farm machinery focused on needs of small farmers is virtually non-existent.
218. Insufficient research is carried out to address technological problems confronting the
post-harvest and agro-processing sector. Hence, there is an urgent need to strengthen the human
and material resources of the present research and development organizations to undertake both
pure and applied research in post-harvest and agro-processing technology.
219. Operational linkages between the various research institutions and among research,
extension, and training organizations within MOAI are very weak. The exchange of scientific
information and research results between research organizations, and with research, extension
and training institutions is very limited
220. Human resources are inadequate in terms of knowledge, skills and motivation. The
number of skilled research staff with advanced degrees is still limited. The very low salary and
incentives in research contribute to exacerbate this problem. There is in general, a lack of
understanding, diagnosis and analysis of farming systems across the country.
Soils and Water
221. The Land Use Division (LUD) under DOA has overall responsibility for research on
soil problems. Under the supervision of LUD, state/ regional DOA staff are carrying out research
based extension services and trainings including formulation and utilization of natural fertilizers,
systematic and timely application of chemical fertilizers, application of soil conservation measures to
prevent soil degradation, awareness trainings related to soil nutrition, fertilizer law and regulation,
etc. those are continuously providing to farmers. Additionally, regional soil problems have been
solved to get sustainable soil improvement such as nutrition and soil pH. Soil testing laboratories
were established in Yangon and Mandalay Region to conduct testing including nutrient
composition of soil, amount of chemical composition of fertilizer mentioned in on the bag, etc..
The DOA has formed regional inspection teams to manage quality and standard of fertilizers and
pesticides those farmers will purchase for agriculture purpose in regular basis.
222. Some research undertaken by the Department of Agricultural Research is of relevance
to irrigation and to soil and water conservation. However, applying research findings to farmers’
fields remains a problem. DAR’s links to the agricultural extension system, while good at
regional level, are very weak at township and village level and with farmers.
223. DAR has committed staff, but the more experienced are now retiring. Lack of
investment has led to decline in the number and quality of research staff and of research
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facilities. Until recently, international sanctions hindered access to external knowledge and
resources.
Livestock
224. The LBVD includes in its mission statement: “To support extension on research and
development”. However, livestock research systems and functions are extremely limited. Within
the LBVD, a recently established epidemiology section is able to carry out field surveys and
investigations, but limited if any applied research as such. Within LBVD laboratories, little or no
research of any kind is conducted, unless it is linked to an internationally funded student study.
At the UVS, post-graduate students conduct small research studies but these often lack practical
application, especially for smallholders. There is no institutional framework for livestock
research, and little mandate to create one.
Fisheries
225. At a policy level, the DOF includes in its mission statement “Promotion of fisheries
research and surveys”. But the DOF needs to promote establishment of a dedicated research
facilities and system that look at the needs of fisheries and aquaculture technologies and their
application in a local setting.
Forestry
226. The National Forestry Master Plan includes an activity on research and forestry extension
services. There is a substantial infrastructure, with the University of Forestry, Forest Research
Institute, Myanmar Forest School and several training centres having been established with a
specific mandate to produce competent foresters, trained forest technicians and carry out
research activities.
227. Forestry research and development programmes in Myanmar are conducted by Forest
Department. Research conducted by Forest Department mainly focus on natural regeneration,
restoration, afforestation, reforestation, logging and agro forestry research.
228. Research objectives and topics need to be reviewed. There should be research on the
multiple uses of forests and development of forest based enterprises, on agroforestry and
community forestry, restoration of degraded forest areas and management of shifting cultivation
areas. Forest Department is undertaking people-centred forest based enterprises such as
community forest development, crop-forest mixed cultivation, other forest produce production,
bamboo cultivation, production and bamboo-based value added products production.
Additionally, these works should be included in the action plan.
229. There is also need for policy and sociological research to find out the reason as to why, in
spite of favourable policy and legal provisions, forests are still continuously degrading and
community forestry has been slow to develop.
1.3 Extension
230. Crops. Currently the Government-run crop extension system needs more staff and
resources. In order to help farmers, the DOA has conducted extension services by dissemination of
information related to scientific agricultural technologies and provision of high yielding varieties and
quality seeds. Farmers could accept the technology with understanding. DOA has a large staff of
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around 17,800 most of whom are based at the village tract level. In 2014- 2015 Fiscal Year there
are (41655) numbers of trainings started from village/village tract/ township and district. Totally
21.95 Lakh of staff and farmers were attended in those trainings. Due to the climate change
effect in these days, extension services mainly focus on selection and cultivation of regionally
suitable varieties, cropping pattern trials, field demonstration and education, mix cultivation of
seasonal and perennial crops, cultivation of income generating vegetables and fruits, and
introducing and cultivation of new varieties.
231. However, basic institutional infrastructure for crops extension exists. In 2014-2015, there
are 28 trainings and workshops for capacity building of staff held in Central Agricultural
Research and Training Center, Hlegu Township, Yangon Regiona. A total of 1568 staff were
attending those trainings and workshops. Furthermore, collaboration programmes with
international organizations namely IRRI, CIRDAP, SEARCA, UNDP, CISRO, UNEP, and
domestic agricultural input providers also provide extension education trainings and workshops.
232. The extension function needs to be re-oriented. Extension should focus on a number of
key themes including: (i) adoption of quality seeds and planting materials of new high yielding
varieties; (ii) integrated balanced plant nutrition, capitalising on the already good work in the use
of organics combined with increased use of chemical fertiliser; (iii) integrated pest management
techniques in pest and disease control; (iv) integrated cropping and farming systems; (v)
rainwater harvesting and water use efficiency in irrigated systems and rain-fed conditions; and
(vi) support to farm enterprises and value chains such as kitchen gardening, horticulture,
aquaculture and livestock production especially relevant for the small and marginal farmers and
the landless. Its main role should be to improve farm incomes through the development of
sustainable integrated farming systems.
233. Soils and Water. There is an opportunity to improve linkages between irrigation systems
and extension services. Better linkages will improve the results from irrigation schemes through
more extension of agronomic advice to assist farmers to make best use of irrigation. There is a
need of qualified staff in soil and water sector as about 50 staff are deployed in state/ region
LUD and some of them are not soil scientists. Therefore, the DOA has carried out special
domestic trainings concerning soil and water technology and sent the staff to attend international
training to build up the capacity of staff. However, there are a few numbers of invitations for
international trainings and workshops in soil and water technology and the DOA is now trying to
link with international organization to develop human resources in this sector.
234. Livestock. Institutional infrastructure for extension services on livestock requires
strengthening. LBVD staff based in the field are engaged mainly in vaccination-based animal
health services, and animal health care extension. These staff for a strengthened extension
function would be graduates of the new livestock development course at UVS. The township
veterinary officer (TVO) must be a graduate from University of Veterinary Science.
235. Fisheries. There opportunities to strengthen extension and training programmes in the
fishery sector. The DOF is conducting extension services through Research and Development
Division and Aquaculture camps under Aquaculture Division. Practical trainings for hatchery,
aquaculture and conservation of indigenous species are provided by linkages between Research
and Development Division and District/ Township offices of DOF. In addition, trainings and
extension services are also supported by development project such as JICA, ACIAR and
SEAFDEC.
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1.4 Education
236. Crops. Yezin Agricultural University is the principal agricultural agency of higher
education in Myanmar, and most agricultural scientists at the government agencies graduated
from this university. Currently YAU has seven outreach campuses nationwide.
237. Compared to other national universities YAU has considerable strengths and
opportunities and plays a vital role in many areas of agriculture sector development in Myanmar.
The institution enjoys with strong human resources, and has good functional linkages to the
MOAI. Basic infrastructure is adequate, and there is sufficient land and stations for the
university’s field research, practicum for students, and physical expansion. The university has
strong international linkages.
238. Opportunities for improvements include:
Review of YAU curricula and identification of new curricular areas/programmes on
Agricultural Extension Education, Agribusiness, Food Science/Nutrition Science,
Biotechnology, and Information and Communication Technology-ICT;
Develop an agro ecosystem-based curriculum and research programme;
Review the organization, management and governance system of the university;
Review of academic procedure and administration in the university;
Develop strategy and approaches to strengthen the research function of the university;
Develop ideas on utilization of the seven sub-campuses of YAU;
Establish a sub-campus in Ayeyarwaddy region.
239. Agricultural education training is also provided through the State Agriculture Institutes
(SAI). There are twelve agricultural institutes in Myanmar. Students gain a Diploma in
Agriculture after they complete a three-year study programme. Up until 2013-2014, there are
3879 diploma holders and in 2014-2015 there are 15530 students are still attending in all SAIs.
In 2015-2016 fiscal year, two new SAIs will be opened in Longpii, Chin State and Kyauktaw,
Rakhine State. The curricula of SAIs include subject matter theory classes, crop production field
practical courses, locally adaptable and profitable crop production research, marketing and
environmental justification courses. Besides production of agriculture technicians, there are also
plans and implementation to promote knowledge, skills and kindness of each student.
240. Livestock. The University of Veterinary Science (UVS) located at Yezin, near Nay Pyi
Taw, is responsible for undergraduate and post-graduate education for the livestock sector. The
UVS has a long and admirable history of educating veterinarians, a large percentage of whom
traditionally joined the LBVD. Entry points for employment would be at township level.
However, with opportunities expanding in the private sector (especially with regards to
commercial chicken, pig and dairy systems) which often offer better salaries and conditions, the
destinations of graduates are changing. Urbanisation is increasing the demand for urban small
animal practices. In recent years, the LBVD has had many vacancies at township level that have
not been filled by graduates. The most important recent event is the establishment of the
Diploma in Livestock Production. The courses from UVS in previous days were prioritized in
animal production and animal health. The Bachelor level animal science program is started in
UVS education programmes. It has recently become LBVD policy to establish a new position at
township level for graduates of this course to be employed in the area of livestock production
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and extension. The UVS is well led, with enthusiastic staff and with good linkages to the
MOLFRD.
241. Opportunities for improvements include:
Review current education, training and research systems, and linkages between extension
and research;
Review career paths of previous graduates of degree, diploma, certificate and other sector
courses; review future options and review the current and future demands of the sector;
Develop policy options for education, training and research;
Support curriculum development at UVS, including the newly developed Diploma in
Livestock Production, in line with domestic, regional and international standards;
Develop on-campus practical livestock production units at UVS in poultry, dairy, pigs,
cattle, sheep and goats, artificial insemination, forage and fodder plots;
Support professional training for UVS staff, including international further study and
study tour;
Support expanded practical field work by undergraduate and post-graduate students;
Develop additional infrastructure at UVS, including student accommodation, laboratories,
lecture rooms, and access to educational materials
242. Several of the future options for education at UVS involve adapting to the rapidly
changing environment, including: government policy drives on reducing poverty which drives a
demand for smallholder extension services; growth of the commercial livestock sector;
increasing risk of pathogens that affect both humans and animals; increased demand for
improved breeding programs including artificial insemination; increased regional trade with
implications for livestock health programs; and increasing consumer demand for food product
quality and animal welfare.
243. Fisheries. There is no tertiary-level institution for fisheries in the country. Such an
institution would be able to provide professional level personnel for both the private sector, as
well as to undertake basic research in all facets of the fisheries activities in the country. The
institution could take the form of a college or faculty within an existing institution. Its mandate
would be to plan, undertake, aid, promote and co-ordinate education, research and extension in
Fisheries Science, Aquaculture, Fishery Microbiology, Fish Processing Technology, Fisheries
Resources Management and Fisheries Environment and Ecology, among others, and offer B.Sc.,
M.Sc. and Ph. D. degrees in these subjects.
244. Forestry. The University of Forestry, Forest Research Institute, Myanmar Forest School
and several training centres produce competent foresters and trained forest technicians, and carry
out research activities. Forestry education has a long history in Myanmar, and there is a strong
institutional infrastructure in place.
245. Cooperatives. There is a lack of focus at the training institutions. There are two
Cooperative Universities20
and two Cooperative Colleges21
. All are state run. Some train
20
Thanyin and Sagaing
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Cooperative Department staff. Some train any new civil servants, most of whom will not work
in the cooperative sector. The Cooperative University and Cooperative Colleges offer the
course works in the basic, refresher and capacity building courses for the cooperative staff.
1.5 Cross-Cutting Sectors/Themes
246. There are no specific institutions with core responsibilities for rural employment, social
and gender issues in agriculture, or specifically on post-harvest issues.
Cooperatives
247. Institutional arrangements concerning cooperatives centre on the Ministry of
Cooperatives. Major functions of the Ministry are: organizing, educating, and regulating. The
Ministry of Cooperatives is right now reorganised in the Ministry of Agriculture, Livestock and
Irrigation with two departments – Department of Cooperatives and Department of Small-scale
Industries. The Cooperative Department employs 5,500 staff of which 300 are in Nay Pyi Taw.
There are 14 Region/State Offices and 306 Township Offices.
Rural Finance
248. The institutional environment for rural finance is complex. The supervisory capacity is as
follows:
The Central Bank of Myanmar (CBM) and line ministries for state-owned banks
supervise banks as per earlier guidelines. The CBM was a department under the Ministry
of Finance and Revenue. Currently CBM directly report to the President;
Ministry of Cooperatives and its regional offices supervise the cooperative lending;
The Microfinance Supervisory Committee and Financial Regulatory Department
supervise microfinance;
The MOAI supervises the Myanmar Agricultural Development Bank (MADB);
Local /Municipal authorities supervise local pawnshops;
249. The MADB constitutes the main, and lowest cost (5 percent per annum) source of formal
lending available to small holders, but loans are only available to those possessing land, so
landless families are excluded. Furthermore, maximum loan amounts per acre (set by
government) are significantly below the levels needed if a range of inputs are to be purchased,
although maximum limits are set higher (Kyat 100,000/acre) for paddy production which
receives 90 percent of seasonal MADB lending.
250. In addition to MADB, there are a number of microfinance institutions (MFIs) which
operate in rural areas of Myanmar, of which the largest is PACT and its related institution, PACT
Global Microfinance (PGMF). Both organizations lend on an uncollateralized basis to members
of small groups. Initial maximum loan amounts under PACT are Kyat 200,000, or Kyat 250,000
for agricultural loans, with interest rates of 2.5 percent per month. Borrowers who have repaid
one or more loans successfully can apply for microenterprise loans of up to Kyat 500,000, while
2. 21
Phaung Gyi and Mandalay
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those with an established credit history with the organizations can borrow even higher amounts.
Other significant MFIs include Proximity, World Vision, Save the Children and GRET.
251. Microfinance and informal loans (money lenders, suppliers, family) comprise the main
source of loan funds that can be accessed by smallholder farmers. The providers comprise a
variety of formal and informal actors. Studies quoted in the Rural Finance study, based upon
estimates of informal lending, suggest that unmet demand for formal credit in the agricultural
sector is in the range of Kyat 1.9 trillion and 3.5 trillion (USD 2 billion to USD 3.7 billion). With
these volumes exceeding formal sources by a factor approaching five times, the regulated market
for credit would have to expand substantially in order to absorb unregulated credit clients
252. Institutional responsibilities in cross-cutting themes are summarised in Table 26 below.
Table 25: Institutional Environment in Cross-Cutting Themes
Marketing and
Trade Rural Finance Land Tenure Cooperatives
Union
Ministry
level
MOAI; MLFRD;
MOECF
Ministry of Finance and
Revenue; Ministry of
Cooperatives
MOAI;
Ministry of Home
Affairs (MOHA)
Ministry of
Cooperatives
Union
Department
level
Ministry of
Commerce:
Department of
Trade Promotion
(DTP)
MOFR: FRD
Central Bank of
Myanmar
MOAI: Myanmar
Agricultural Devt Bank
MOHA: General
Administration
Department (GAD)
MOAI: Settlement
Land Record
Department (SLRD)
MOECF
MOC: Cooperative
Dept.; Small Scale
Industries Dept.;
Cooperative Trade
Promotion Dept.
Education No specific body No specific body NA
2 Cooperative
Universities and 2
Cooperative
Colleges
Other No specific body
FRD (Financial
Regulatory Department)
for MFIs; and local
authorities;
Large number of NGO/
private institutions /
Cooperatives are also as
MFIs
Large number of
agencies No specific body
Rural
Employment Social and Gender Post-Harvest Coastal Areas
Union
Department
level
No specific body No specific body No specific body No specific body
Union
Department
level
No specific body No specific body No specific body No specific body
Education No specific body No specific body No specific body No specific body
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1.6 Legal Frameworks
253. The legal frameworks for each sector are undergoing various forms of review and update
to take account of new government policies. The technical studies highlighted some good
progress on legislation to take account of the new government and economic environment, but
recognise that more needs to be done, and that the environment remains dynamic. Table 26
shows the main legal instruments for each sector.
254. Crops. The Seed Law enacted in 2011 has come into force in 2013 and set the way for a
number of initiatives that could lead to a dramatic development of the seed industry. Core policy
issues need to be addressed, notably the combination of limited implementation of the Seed Law
with underinvestment in the critical areas of research, extension, quality assurance, coordination,
and information. Key issues in this respect: (a) how to move from formulation to implementation
(from Seed Law to Seed Industry Development); (b) how to provide incentives to farmers for use
of certified seed and for private sector to invest; (c) underfunded research and extension (1-2
percent of MOAI budget); (d) low capacity in quality assurance; (e) lack of coordination
(private-public, centre-local, domestic-international); and (e) lack of information about seed
demand and distribution
255. Livestock. While there are considerable official policies of a general nature in place,
there is a lack of strategies and frameworks to apply them practically in the field.
256. The major legislative instrument that defines the role of government in the livestock
sector is the Animal Health and Development Law (1993), and related regulations (e.g.
Veterinary Act). This law deals with a range of issues including infectious disease control,
animal treatments, the public-funded vaccination campaign, and animal movement management.
257. Weaknesses have been found in structuring frameworks to guide animal health services
for smallholders, for breed improvement or for structure of extension services. Whether, and how
these issues are addressed at a legal, regulatory, or policy and strategy level, remain to be seen.
258. A new law, the “Livestock Development Law” is reportedly being developed that will
include reference to animal breed improvement. FAO has clear global guidelines on genetic
improvement in livestock and the application of these guidelines to Myanmar is critical if
Myanmar is to begin to capture the opportunities it has for genetic improvement.
259. The governance of livestock trading has traditionally led to less than optimal competition
at the farm gate and high transaction costs. Restrictions on the slaughter of some kinds of
livestock have led to a culture of lack of transparency. Government has recently been examining
existing policies in the area of trading systems, including instruments that regulate the slaughter
of livestock of different species and age; that regulate the issue of licenses for traders and
slaughterers, especially those that affect competition at the farm-gate and that influence
transaction costs of trading.
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Table 26: Major Legislation for each Rural Sector
Crops, Soil and Water Livestock Fisheries Forestry and Environment
Seed Law (2011) Animal health and
development law
(1993) - (being
revised)
Law relating to the
fishing rights of foreign
fishing vessels (1989)
Aquaculture Law (1989)
1Myanmar Marine
Fisheries Law (1990);
Freshwater Fisheries
Law (1991); Law
amending the Myanmar
Marine Fisheries Law
(1993); Law amending
the law relating to the
fishing rights of foreign
fishing vessels (1993)
Forest Law (1992)
Protection of Wildlife and
Conservation of Natural
Areas Law (1994)
Environmental Conservation
Law (2012)
Marketing and Trade Rural Finance Land Tenure Cooperatives
Foreign Investment Law
(2012); Export/Import Rules
and Regulations (2008)
Microfinance Law
(2011); Financial
Institutions Law
(1990) – (being
revised)
Farmland Law (2012)
and the Vacant, Fallow
and Virgin Lands
Management Law
(2012); draft Land Use
Policy (2014); governed
by an estimated 70 laws
and regulations, creating
ambiguities and
overlaps
Cooperative Society Law
(1992)
Rural Employment Social and Gender Post-Harvest Coastal Areas
Labour Organization Law
(2011); Minimum Age for
Work Law; Social Security
Law (2012); Occupational
Safety and Health
legislation
(Under review with ILO
support)
Various marriage
laws;
Foreign Investment Law
(2012);
Myanmar Special Economic
Zone (SEZ) Law and the
Dawei SEZ Law
260. Forestry. Forest Policy, Forest Law, and associated Forest Rules are interconnected legal
instruments which are promulgated by the state to guide sustainable forest management.
Myanmar Forest Policy, 1995 is a comprehensive and progressive document. It stresses
significantly on community participation in forestry and emphasizes forestry for the people.
While the content of Myanmar Forest Policy, 1995 clearly provides for a substantive basis for
developing a workable legislative framework and rules, it is silent on following aspects : (a) the
policy does not recognize the lack of community participation as a constraint in the protection,
management and utilization of forest resources; (b) the traditional rights to use forest products by
the users, free of royalty, but under an agreed management plan is not highlighted; (c)
community management/joint management of forest resources, following the principles of
decentralization, should have been emphasized. The Forest Law 1992 is an improvement over
the previous legislations, but as it was enacted on an earlier date, therefore there is need to
suitably amend it in consonance with the Forest Policy 1995, and provision the CFI.
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261. Land. At end of 2014, the land sector is governed by an estimated 70 laws and
regulations, creating numerous ambiguities and overlaps. The persisting historical scars arising
out of land confiscations and forced acquisitions since 1990s have yet to be addressed, and the
enactment of the new laws in 2012 (Farmland Law and VFV Law) have added a new layer of
administrative mechanisms. The impact of this new land is not yet clear. In turn, tenure
uncertainty is affecting farmer views on these new laws.
262. Cooperatives. The Cooperative Society Law. The Cooperative Society Law is not
enabling for the sector. It does not provide sufficient guidelines regarding the role of the
Ministry as a regulator. It does give too much authority (such as immediate society liquidation)
to the Department of Cooperatives.
263. The Cooperative Society Rules do not cover all aspects of internal governance. For
instance, it permits fees for elected officials. It also limits the use of surpluses to purchasing
government securities and subscribing shares in other cooperatives. The Ministry, and not the
members, determines the cooperative flag and seal to be used by a primary society. It was noted
that the new (2013) Rules have provided improvements over the previous (1998). Institutional
Approach to Poverty Alleviation and Rural Development
6.7 Institutional Approach to Poverty Alleviation and Rural Development
264. The institutional environment in Myanmar is undergoing a period of change, although
this process is only at a preliminary stage. The new National Strategy on Poverty Alleviation
Rural and Development (NSPARD) is aimed at contributing to the national goal of decreasing
the rate of poverty by half from 32 percent in 2005 to 16 percent by 2015, and commits to taking
a people-centred approach to rural development. A Central Committee has been formed, chaired
by the President and Working Committee established at all administrative levels down to
township/village level. The Central Working Committee on Poverty Alleviation and Rural
Development is chaired by the Vice President, Deputy Minister of the Ministry of Livestock,
Fisheries, and Rural Development (MOLFRD). Rural Development and Poverty Alleviation
working groups have also been set up at State/Region level.
265. Different government organizations have committed to adopting NSPARD into
mainstream national plans including the Ministry of Commerce, the Ministry of Forestry, the
Ministry for Finance and Revenue, Ministry of Cooperatives, Ministry for Information and
Culture, Ministry for Industry and the Ministry for Home Affairs. Unfortunately, it has not been
possible to review these activities within the limited time available for this report.
266. Regarding the development of agricultural production sector, the Ministry for Agriculture
and Irrigation (MOAI) is distributing high-yielding paddy strains, disseminating knowledge on
scientific agricultural methods, establishing research farms, transforming conventional farms into
mechanized farm systems, providing money and capital, and emergence of small- and medium-
agro-industries and businesses, amongst other activities. Many of these activities have been
reviewed in the previous section.
267. MOLFRD is has expressed its support to ensuring all-inclusive stakeholder participation
in carrying out rural development activities for poverty alleviation. Following two national
consultations with civil society groups and international development organisations as well as
business groups, the national strategy presents priority working proposals including (in
summary): the organization of scattered expertise, technology, experience, capital, and funds;
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adopting decentralization approach for rural development; solving cases related to land tenure of
small farmers; the collaborative application of lessons from microfinance, ICT development,
renewable energy development, environment conservation, agriculture and livestock breeding
technology development; the development of SMEs in partnership with private sector; improving
human rights conditions for local people, adopting a rights-based approach; and strengthening
community-based organization.
268. Among the three departments under MOLFRD, the Department of Rural Development
(DRD) is responsible for the development of infrastructure such as roads, bridges, domestic
water supply and electricity connections and improving the socio-economic life of rural
populace. It is committed to a participatory approach working with rural communities and
households, village socio-economic and governance organisations, local government agencies at
the township and district levels, as well as national level governmental agencies including
ministries and departments. Other consulted groups include civil society organisations (CSOs),
non-government organisations (NGOs), the private sector, the international development
community (including multilateral and bilateral development agencies and international NGOs)
and philanthropic organisations. Senior officials are committed to adopting a gender-sensitive
approach.
269. The DRD’s Evergreen Village Development Project (in Myanmar language “Mya Sein
Yaung” (MSY) is being implemented in 1,350 villages in 130 townships, 47 districts of all states
and regions, during 2014-2015 providing USD 30,000 to each participating village, which in
most cases is being used as a revolving fund for micro-credit. It is aimed at increasing
employment opportunities and household income, ensuring food security through supporting
subsistence livestock farming, developing rural industries by improving basic rural
infrastructure, and improving the capacity of rural communities and developing resilient society
in case of natural disasters.
270. Funds are managed in a decentralised way, with communities given relative autonomy in
the priorities they choose to support, under the supervision of Township financial management
committee. Committees are formed that, in a departure from the prevailing leadership norms
discussed in the previous section, must include two or three women within a 5-9 person team,
elected by ballot at a community meeting. The inclusion of such rules within the design of the
scheme may be having a significant impact. Committee members interviewed in two locations
reported that without this gender-inclusive stipulation in the rules of the project, it is likely that
women would not have been elected to their posts, however women’s participation was seen as a
positive contribution. Since it is an ongoing project, impacts and lessons have yet to be
systematically evaluated.
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KEY OPPORTUNITIES AND CONSTRAINTS BY SECTOR
68. While the technical studies focused on specific technical areas, the studies alluded to the
important linkages and dependencies between the various technical areas. Based on this, this
report proposes to group the areas of importance to smallholders into the five following areas:
Natural Resource Access: Securing sustainable access of smallholders to the key
natural resources required for agricultural production: land, and water. For land, this
involves a system to enable smallholders to use, control, and transfer rights for private
land; and to sustainably utilise other land, such as community pasture or forest land. For
water, this involves flood control, access to water for aquaculture and fishing activities,
groundwater access, and irrigation where feasible;
Agriculture and Nutrition: Facilitating smallholder efforts to improve net income
and to improve nutrition. This includes farmers having the capacity and freedom to
choose the appropriate enterprise mix (e.g. cropping/livestock/fishery), and to increase
productivity where it leads to more income. This includes improving income through
crop, livestock and aquaculture production, as well as the through fishing and forestry-
related production, capture or collection on a sustainable basis. Improving farm-gate
prices and linkages to markets is also an important aspect of improving net income.
Extension services, as well as the availability of credit, are key factors in increasing
productivity and income, as farmers move from low-input-output systems to higher-
input-output systems. Nutrition is included since extension services that aim to provide
information and change behaviour with respect to agriculture production are well placed
to contribute to behaviour change in the area of nutrition, on the assumption that this is
linked to human health/nutrition support systems.
Financial Services: Enabling smallholders to both protect and expand the assets they
hold – in land, livestock, finances and other assets – and avoid depletion through, for
example, the need to sell off assets at low prices in emergencies. The availability of
financial services is a key factor in both expanding and protecting assets. It should be
noted that any expansion in land assets by farmers (who are stepping up) can generally
only be realised if other farmers (who are stepping out) sell their land or usage rights,
thereby decreasing their assets.
Rural Employment: Enabling smallholders and their families to gain off-farm
employment through the development of rural enterprises, and through such actions as
vocational education, support to microenterprise growth, local value-addition, improved
availability of rural finance, and the ability to sell land to provide capital for new
activities. Any interventions need to articulate the relative roles of public and private
sector investment. Commercial agriculture and agribusiness may play an important role
through providing employment opportunities, contract farming, demand for smallholder
production and even financing. The issue of fair and equitable dealings between small
holders and commercial agri-business/processing deserves careful attention. Since the
investment recommendations in the technical studies have been presented as lists of
individual recommendations, there is a need in Phase II of the formulation process to both
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examine the recommendations to determine their appropriateness to overall NAPA
objectives, and to consider how they can be configured into an overall framework.
Climate Change and Shocks: Management and mitigation of climate change, and
short-term shocks. Short-term shocks include floods, droughts, cyclones and disease
outbreaks. For such shocks, effective early warning systems are needed. In the cases of
climate change and shocks, realistic forward planning and readiness preparations can
significantly reduce negative impacts to producers and the national economy.
69. The development of smallholder cooperatives and groups is viewed as a cross-cutting
issue, since such groups that can contribute to one or more of the five areas outlined above
(Figure 5).
70. As noted under Finding 1, economic and rural infrastructure is also critical for
smallholder development, but this is considered as a contextual issue, not a core program under
NAPA.
Figure 9: Five Areas of Importance to Smallholders, and Relation to Cooperatives and
Groups
271. These approaches should be seen in the broad context of national economic development,
and the framework of livelihood strategies of smallholders, as shown in the figure below. This
framework recognises that a significant proportion of smallholders are below the so-called
“commercial threshold” and as such heavily rely on income other than their own farming-related
activities to provide a livelihood. For a significant proportion of these and for smallholders at
other levels, therefore, the fifth key option of working outside smallholder agriculture on a
temporary or permanent basis becomes important (see ‘stepping out’ in figure below). This
could involve off-farm activities or employment in commercial agriculture as either an
owner/manager or as a labourer.
272. The trend over time, as has been observed in many other countries, is that the proportion
of the total population involved in agriculture will decrease. The average area of land per
household and agricultural labour costs may rise. Greater productivity will be needed to pay for
the higher labour cost, and technologies that reduce labour requirements will come into play,
including mechanisation. The underlying assumption is that farming will be viewed more
consistently as a business. A steady, managed progression from an agriculture-driven economy
to one with an increasing proportion of manufacturing, industry (some of which may be
agriculture value-adding), and services is a public good. Increasing agricultural productivity is a
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key part of the process, as is the gradual transition of a significant portion of the rural population
from natural resource exploitation to employment, value addition and rural enterprises.
Figure 10: Differentiated Livelihood Strategies
Source: adapted from LIFT http://www.lift-fund.org/strategy
273. Achieving progress will require targeted interventions at policy, institutional and
value chain level (especially inputs and services, and production, and resource access) to
permit the maximization of production and income, while escape from poverty through off-
farm employment and rural enterprises will require the development and application of
policies that assists smallholders to ‘step out’, through such actions as vocational education,
support to microenterprise growth, the availability of rural finance, and the sale of land to
provide capital for new activities. Any interventions need to articulate the relative roles of public
and private sector investment and commercial agriculture and agribusiness may play an
important role in providing employment, demand for smallholder production and even financing.
274. Interventions will need to be a combination of investments that yield results in the short-,
medium- and long-term nature. As a general, but not fixed rule:
Short-term returns on investment can come from actions to influence aspects of the value-
chain in a given area, such as inputs and services, production and productivity;
Medium-term returns on investment are likely to arise from interventions in policy,
legislation and investment frameworks. In cases where specific policy or legislation is a
serious constraint to value-chain investments, addressing such issues should be a short-
term priority;
Long-term returns on investment come from institutional and human resource
improvements in extension system design and operation, education, and research.
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275. Social and gender inclusion is an important cross-cutting them in all interventions and it
is worth noting that, historically, the role and importance of women in agriculture tends to
increase as more and more men seek off-farm employment. Expanding rural employment
opportunities is a key element in the system. A full list of interventions recommended in the
technical studies is shown in Section 9. This section merely highlights some of the key points.
276. Smallholder-focused interventions need to take account an agro-ecological approach: the
approaches in the four zones: dry zone, coastal, delta, and upland are so distinct that strategies
need to be tailored to the systems in the zone.
277. Cropping. In cropping, key constraints to productivity are availability of inputs and
services, especially seed supply and fertilisers, as well as crop management. The institutional
issues are the establishment of effective and closely linked research and extension systems, and
improvements in education and training systems to support strengthened extension, research and
policy functions. The DOA has prioritized the following tasks to implement in the national
action plan.
(a) Increasing cultivation, producing, multiplication and distribution of high yielding
and good quality variety seeds of rice and other crops.
(b) Efficient management and utilization of irrigation water to get high yield, research
related to management of irrigation water and technology transfer of research
findings to farmers through extension services.
(c) Extending technology transfer training and extension services to states and remote
areas those national races reside.
(d) Promotion of research activities in seed multiplication farms, research farms and
SAI those are under supervision of DOA.
(e) Helping farmers to cultivate and produce profitable crops those are in high
demand of international markets and searching new markets for crop exports.
(f) Setting up appropriate policies to produce high market demanding crops.
(g) Developing and implementation of strategies based on agro-ecological zones such
as dry zone, coastal, delta and hilly region.
(h) Creation of rural employment opportunities for women in farm activities.
(j) Including long-term strategy for promotion of landless households’ lives and rural
development programmes.
278. The implications for NAPA of the tasks outlined above are broad and include
interventions on policy development (e.g. seeds, extension, research, market linkages, rural
employment, and targeting landless households), and investment in at the level of institutions
(including research and extension); at value chain level (inputs such as seeds and water; services
such as extension; creating market linkages), and in rural employment. The issue of strategy
development based on agro-ecological zones also has implications for NAPA.
279. Livestock. In livestock, animal health services are the first priority: animal health both
protects the livestock asset, and gives confidence to invest in more animals and higher
productivity. In terms of productivity, there is a need to improve reproduction, growth, survival
and off-take rates for livestock; and to match production patterns to market demand. Productivity
improvements will need improved feeding systems, and genetic resources. As for crops, the
institutional issues are the establishment of effective research and extension systems, and the
improvement of the education system to support strengthened extension, research and policy
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functions. Livestock marketing systems also need to be improved, for example the systems for
licensing of markets and traders.
280. Fisheries. The key issues for smallholders who act as part-time fishers in capture
fisheries resources is access to the water resources, and the social and regulatory arrangements
around utilisation of what are often common property resources. For those who raise fish it
includes extensive demonstration of small-scale aquaculture, access to land for pond
construction, access to fingerlings, improved feed supplies and an effective marketing system.
The institutional issues are the same as those outlined for crops and livestock.
281. Forestry. For the smallholder sector, management and utilization of community forests
and the use of forests in the context of shifting agriculture are key issues. Interventions are also
recommended in the areas of agro-forestry on private lands; establishment of bamboo based
enterprises and marketing. Afforestation in the dry zone, salvage logging, tending and restoration
of degraded moist deciduous forests, and the recovery of degraded forests are strategic issues
related to sustainability of natural resources.
282. Financial Services. A major expansion of financial services to smallholders, in both
quality and quantity, is a key factor in enabling smallholders to improve their livelihoods.
Appropriate finance also needs to be available to those without land (e.g. livestock, fishery and
forestry-based livelihoods). Links between effective inputs and services, extension services, and
credit systems are important and need to be considered in the process of rolling out such
services.
283. Land Tenure. The systems and functions that regulate the use, control, and transfer of
private agricultural land and that determine the use of State Land, virgin land and forest land, is
an issue that affects all smallholders. There are important links to access to credit; the
willingness of farmers to invest; and their ability to buy and sell land to enable them to configure
their assets.
POVERTY AND SOCIAL INCLUSIVENESS
284. Within the agriculture sector, smallholders must be the focus of efforts to reduce poverty
through public investment in agriculture. Consideration of the impact on poverty should be one
of the major criteria in determining which sectors, sub-sectors and areas should be invested in.
The technical studies include sections on how investment in the given sector or area can impact
on poverty and social inclusiveness.
285. The proposed interventions generally focus on developing systems-wide improvements
that can improve all smallholder livelihoods, rather than necessarily specifically targeting those
smallholders that are below the level of the “commercial threshold”. To obtain early poverty
reduction, the emphasis should be on actions aimed at inputs and services and productivity, but
these will only be sustainable in the long-term of the policy and institutional aspects are also
addressed. Of course, there are environmental and market risks with any intervention in
agriculture and long term environmental sustainability must be carefully considered.
286. Cropping improvements: Cropping improvements should yield results in the short-term
but there is always a risk that seasonal conditions will act to decrease benefits or result in losses
due to higher investments. Those farmers with larger areas of land will benefit more in an
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absolute sense than those with less land. Subsistence/landless farmers, will benefit little directly,
but can get the opportunity for more casual labour on cropping.
287. Livestock health: Livestock health improvements yield results in the short-term. Farmers
at all levels will be benefit from better livestock health. Subsistence/landless farmers often raise
livestock such as growing pigs that are highly susceptible to disease, and their survival is
important to the farmer. Larger farmers may have more growing pigs, and health is important for
them also. Health improvements will improve piglet survival which will be benefit the larger
farmers with sows. Better health will improve survival especially of calves and breeding cows.
Draft animals have relatively low death rates, but the survival of even on head is a major victory.
In general, a health program should be able to reduce death rates significantly.
288. Livestock productivity. Increases in reproductive rates, growth rates, turnoff rates and
weights will benefit those smallholders with breeding animals, which are mostly the successful
and medium-large farmers. However, since many subsistence/landless farmers raise breeder
animals for cash or on a share-basis, any intervention that increases productivity will also
increase their benefit. Increases in productivity of sheep and goats will benefit the poorer groups,
as they tend to raise them.
289. Livestock breed improvement programs yield short term benefits for pig breeders and
especially for cattle if artificial insemination is used. Medium-term benefits are felt if inbreeding
is reduced in sheep and goats, and long-term benefits if structured breed improvement programs
are in place.
290. Fisheries: Impacts will be felt if access to fishing grounds is managed through
appropriate social and regulatory systems.
291. Forestry: Forestry interventions tend to return investment in the medium-long term.
More sustainable income from forest product gathering and forest revenue can be achieved if
sustainable forest management can avoid depletion of the common forest resources. e.g.
mangroves, shifting cultivation. Community forestry is a long-term issue.
292. Financial services: Access to financial services underpins much of the advances in
technology, especially cropping and livestock productivity, but also in fisheries if credit is
required for equipment, or making ponds and buying fingerlings and feed. Credit is not a critical
precursor for improvements in animal health, nor is it a precursor for some of the forestry
interventions. Financial services may tend to benefit the wealthier farmers as they have
collateral.
293. Informal financial markets continue to meet credit needs of the rural poor and farmers,
however, their cost is much higher than formal sources of finance. To fully realize the poverty
reduction potential of financial services, substantial continuing resources are required to meet the
magnitude of demand. Efficient institutional and market support mechanisms are also needed
along with appropriately designed and priced services to enable the poor to profitably invest in
agriculture, livestock, micro enterprises and fisheries. Loan-linked insurance schemes (life,
illness, severe crop/livestock loss) would render credit much more accessible to lower-income
borrowers.
294. Land tenure. Improvements in land tenure systems will help all smallholders. For poorer
smallholders, the function of an effective land market with low transaction means it easier to
scale up, or sell up, if they want to change their investment mix, or “step out”, while for those
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households close to commercial potential, the ability to buy land from those exiting agriculture
would permit increased economies of scale and productivity.
295. Rural employment: Any strengthening of rural employment will potentially benefit the
poorer farmers. While there is no legal limitation to the participation of women in the labour
market, a major gender gap still exists. The majority of women still remain in lower skilled and
lower paid jobs. The double burden of women in rural areas with their responsibility to collect
firewood and water, participate in agricultural activities and take care of children is aggravated
by male outmigration. This situation leaves little time for women to engage in training (when
available), and income generating activities beyond daily jobs in road construction, stone
grinding, and small trade (e.g. going to the closest town to sell their produce in the market or
stores). Early marriage and low levels of education, as well as limited access to financial services
impede their full engagement in the labour market. In order to ensure women’s full participation,
support programmes need to include interventions that will reduce women’s burden and time
constraints e.g. child care services, water and sanitation infrastructure, biogas stoves.
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INTERVENTIONS AND INVESTMENTS
297. The thirteen technical studies included a total of 92 initial recommended interventions
and investments (Table 27). The Land Tenure study recommended the highest number of
interventions/investments, with 17 recommendations, while the Rural Finance Study
recommended only one. The recommendations as shown in this summary report, are shown as
presented in the 13 studies. Further analysis needs to be done in Phase II.
298. Due to logistical and operational necessities, the technical studies were carried out at
different times. As such, there is a need to, in Phase II, to examine the recommendations, look
for linkages amongst the recommendations. Most of the proposals have not yet been costed..
299. Despite the frequent assertion that there are few data on rural areas in Myanmar, there is
a staggering amount of figures presented. This in itself is a valuable resource – a compendium of
the sector. However, it must be remembered – as pointed out in almost all the WPs - that there
must be reservations about the reliability of much of the data. Figures from MOAI, the 2010
Agriculture Census, CSO and FAOStat have to be used cautiously.
Table 27: Summary of Interventions and Investments
No. Study
No. of
Recommended
Interventions/
Investments
Cost
Estimate
(US$ m)
1 Land Tenure 17 TBD
2 Fisheries 12 TBD
3 Coastal 11 TBD
4 Post-Harvest 8 TBD
5 Forests 7 TBD
6 Crops 6 440
7 Livestock 6 193
8 Marketing and Trade 6 TBD
9 Soils Water 6 229
10 Gender and Social
Inclusion 5 TBD
11 Rural Employment 4 TBD
12 Cooperatives 3 6.5
13 Rural Finance 1 TBD
Total 92 868.5
300. Of the 13 study areas, only three studies made specific suggestions as to cost of all the
recommended investments – crops, livestock and cooperatives – while the study on soils/water
estimated the cost of four of the six recommendations. The total estimated cost for investments,
where such estimates were made, was US$ 868.5 million.
301. While it would be expected that investments would include costs for technical assistance,
civil works, equipment and supplies, and operating costs, the balance would vary significantly
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between individual investments. Greater detail will be available at the conclusion of Phase II of
the study, following the development of investment plans and profiles.
302. Other issues related to the investments and other interventions include:
Prioritisation and coordination of investments between and within sectors, and the
development of systems and processes (including criteria) for such activities;
Systems and processes to monitor and evaluate investments, for example in terms of rates
of return, and their impact on poverty and rural development. The capability for financial
and economic analysis is currently weak and must be addressed in the final NAPA;
M&E systems within and between sectors. Important aspects of the M&E system would
include: (i) the ability to assess progress in government institutional capacity and
capability; (ii) the assessment of the accuracy of prior financial and economic returns
estimates, and; (c) identification and measurement of social and environmental impacts of
both investments as well as changes in policies, legislation and institutional roles;
Oversight and management arrangements with respect to the relative roles of the different
levels of government, for example township, State/Region and Union levels;
Management of investments that require the involvement of more than one department,
Ministry or State/Region, with respect to oversight, governance, planning and
implementation;
Arrangements for the involvement of the private sector and civil society organisations in
investment governance, planning and implementation;
The facilitation and promotion of a private sector role in investments;
The role of the Rural Development Department in the investment planning and
implementation process;
Whether interventions should be shaped around administrative areas; agro-ecological
zones; specific commodity value chains (e.g. rice); specific input or service (e.g. animal
health); held within one Ministerial or department line of management; or be multi-
sectoral (including more than one Ministerial or Departmental line of management); or
specific areas of natural resource access (e.g. watershed, irrigation scheme).
303. The commodity sector investments are most easily aligned with government agencies –
such as crops and soil/water with MOAI, livestock with LBVD of the MLFRD, fisheries with
DOF of the MLFRD, forestry with MOECF. However the cross-cutting themes are by nature less
readily aligned in such a manner.
304. Although some donor projects are referenced, more needs to be done in Phase II to
identify gaps in priority project areas or in financing. Potentially, NAPA can be used by
government to direct donor programmes into areas (thematic or regional) where there are gaps,
and to provide complementary funding.
1.1 Commodity Sector Recommended Interventions and Investments
305. Of the 92 recommended interventions/investments, 37 are in the five commodity-sector
areas – crops, soil/water, livestock, fisheries and forestry. The crops, soil/water and livestock
studies estimated the cost and duration of investments, but the fisheries and forestry studies left
the cost and duration as “to be determined”. Most of the investments were seen as long-term in
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nature (10-15 years). The livestock study recommended pilot phases of five years, followed by
expansion phases of 10 years for most investments.
306. Each of the individual interventions include various aspects that relate to policies,
strategy development, institutions, value chain investments and assessment of sector
performance. From an investment point of view, interventions on data and information include
investment M&E as well as strengthening the institutional aspects.
307. Engagement of public investment to expand private sector services should be based on a
coherent business plan of the private sector entity.
308. Figure 13 shows the conceptual framework for commodity sector investments and
interventions.
Figure 11: Conceptual Framework for Investments and Interventions
309. The list of interventions found in the individual commodity technical study reports is
shown in Table 28.
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Table 28: List of Interventions and Investments in Commodity Sectors
No. Study/
sector Intervention/ Investment
Estimated
Cost m
US$
Duration
1 Crops Improved agricultural extension and
research system 100 5-10 years (2015-2025)
2 Crops Development of the agriculture seed
sector 150 5-10 years (2015-2025)
3 Crops Climate smart agriculture and
conservation farming 30 5-10 years (2015-2025)
4 Crops Integrated area development planning
and rural development 50 5-10 years (2015-2025)
5 Crops Improved information technology and
communications 50 5-10 years (2015-2025)
6 Crops Crop diversification for improved
livelihoods and human nutrition 60 5-10 years (2015-2025)
7 Soils Water Monitoring of groundwater resources TBD Long term
8 Soils Water
Improving the capacity of MOAI for
irrigation and flood protection service
delivery
2 4-5 years
9 Soils Water Rehabilitation and extension of
existing MOAI irrigation systems 120 Long term
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10 Soils Water
Development of small-scale
community managed irrigation
schemes
4-Jan 10 years
11 Soils Water Upgrading of flood control structures
in the Ayeyarwady delta 103
Survey phase: 3-4
years for the survey;
Infrastructure: 10-20
years
12 Soils Water Participative, community based soil
and water conservation activities TBD 20 years
13 Livestock National Animal Health Programme 60
15 years. Pilot phase 5
years, expansion phase
10 years
14 Livestock National Forage/Fodder Programme 50
15 years. Pilot phase 5
years, expansion phase
10 years
15 Livestock National Livestock Breeding
Programme 40
15 years. Pilot phase 5
years, expansion phase
10 years
16 Livestock Education, Training and Research 20
15 years. First phase 5
years, expansion phase
10 years
17 Livestock Regional Livestock Development
Programme 20
15 years. First phase 5
years, expansion phase
10 years
18 Livestock Duck Sector Development Programme 3 5 years
19 Fisheries Formulation of a National Agriculture
and Food Policy TBD TBD
20 Fisheries Establishment of Tertiary Level
Institution for Fisheries TBD TBD
21 Fisheries Establishment of an Academy of
Fisheries and Aquaculture TBD TBD
22 Fisheries Establishment of Fisheries Extension
and Vocational Training Institutes TBD TBD
23 Fisheries Establishment of a Fisheries and
Aquaculture Research Institute TBD TBD
24 Fisheries
Restructuring Seed Production
Infrastructure For the Aquaculture
Industry
TBD TBD
25 Fisheries Restructuring the Functions of
Freshwater Hatcheries TBD TBD
26 Fisheries Establishment of Marine Finfish
Hatcheries TBD TBD
27 Fisheries
Establishment of a network of
Aquaculture Technology Centres in
the country
TBD TBD
28 Fisheries
Establishment of a Processing
Industry Development within the
Department of Fisheries
TBD TBD
29 Fisheries Promotion of Aquaculture
Optimization Initiatives TBD TBD
30 Fisheries Provide greater access to financial
capital for the sector TBD TBD
31 Forests Sustainable management of Shifting
Cultivation areas TBD TBD
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32 Forests Development of Agro forestry on
private lands TBD TBD
33 Forests Development of Community Forestry TBD TBD
34 Forests Establishment of Bamboo based
Enterprises and Marketing set up TBD TBD
35 Forests Afforestation in Dry Zone TBD TBD
36 Forests
Salvage Logging, Tending and
Restoration of Degraded Moist
Deciduous Forests
TBD TBD
37 Forests Restoration of Degraded Forest TBD TBD
1.2 Cross-Cutting Sector Recommended Interventions and Investments
310. Of the 92 recommended interventions/investments, 55 are in the cross-cutting themes
(Table 29). The complete list of recommended interventions and investments in these themes are
shown in the table below. The cooperative study was the only one to estimate costs. The coastal,
cooperative, rural employment, marketing, and gender and social inclusion studies estimated the
duration of the investment activities.
Table 29: List of Interventions in Cross-Cutting Themes
No. Study/ sector Intervention/ Investment
Estimated
Cost m
US$
Duration
1 Coastal Land Use Policy TBD Long term 5-10 years
(2015-2025)
2 Coastal Integrated Coastal Management
Authority TBD
Long duration 5-10 years
(2015-2025)
3 Coastal
Restoration of degraded mangroves
through Ecological Mangrove
Restoration (EMR) technique
TBD
Long duration 5-10 years
(2015-2025) and should
be continuous
4 Coastal Small scale entrepreneur development TBD Long duration 5-10 years
(2015-2025)
5 Coastal Developing fodder and wood fuel farms
using the native grasses and trees TBD
Long duration 5-10 years
(2015-2025)
6 Coastal Harvesting Rainwater TBD TBD
7 Coastal Alternative fuel and energy options TBD Long duration 5-10 years
(2015-2025)
8 Coastal Skills assessment and capacity building TBD Long duration 5-10 years
(2015-2025)
9 Coastal Natural Resource Mapping TBD Long duration 5-10 years
(2015-2025)
10 Coastal Economic valuation of the coastal and
marine ecosystems TBD
Long duration 5-10 years
(2015-2025)
11 Coastal Coastal Resources Management
Research and Extension TBD
Long duration 5-10 years
(2015-2025)
12 Coop Cooperative education and training 0.5 2 years
13 Coop Legal and regulatory framework 2 5-10 years
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14 Coop Institutional development of a national
cooperative system 4 4 years
15 Rural
Employment
Support policy and institutional change
to promote decent rural employment TBD
Short term < 5 years/
Long term-> 5 years
16 Rural
Employment
Integrate Decent Rural Employment in
Support Programmes for Smallholders
and Landless
TBD Short term < 5 years/
Long term-> 5 years
17 Rural
Employment
Design and Implement a Market-
Oriented Vocational Training and Rural
Youth Entrepreneurship Programme
TBD Short term < 5 years/
Long term-> 5 years
18 Rural
Employment
Design and Implement Social
Protection Schemes that Support Decent
Rural Employment
TBD TBD
19 Rural
Finance
Community Managed Financial
Services TBD TBD
20 Land Tenure Support on-going policy dialogue at
national and local levels TBD Long-term (10-15 years)
21 Land Tenure Disseminating Good Practices on
Strengthening Tenure Security TBD Long-term (10-15 years)
22 Land Tenure Support Theme-based Land Governance
Assessment Studies (L-GAS) TBD
Medium-term (5-10
years)
23 Land Tenure
Support protection and recognition of
(a) customary tenure, and (b) shifting
cultivation areas (through policy
development and implementation of
pilots)
TBD Medium-term (5-10
years)
24 Land Tenure Encourage local resolution of land
disputes TBD Long-term (10-15 years)
25 Land Tenure Promote Projects to Rehabilitate
Degraded Land Areas TBD
Medium-term (5-10
years)
26 Land Tenure Support programs to increase soil
quality and provide wage-labour TBD
Medium-term (5-10
years)
27 Land Tenure Promote Social Land Concessions TBD Long-term (10-15 years)
28 Land Tenure Establish a “Green Village” Program
and Support National Support Facility TBD Long-term (10-15 years)
29 Land Tenure Rehabilitation and maintenance of
community water bodies TBD Long-term (10-15 years)
30 Land Tenure Adopt Territorial Approach to Land
Development Programs TBD
Medium-term (5-10
years)
31 Land Tenure
periodic and transparent public
consultations that elicit people’s views
on land use for the area
TBD Medium-term (5-10
years)
32 Land Tenure Support preparation and enforcement of
guidelines for private sector TBD
Medium-term (5-10
years)
33 Land Tenure
Strengthen the bargaining power of the
farmers by forming economically
stronger and viable local entities
TBD Medium-term (5-10
years)
34 Land Tenure
Support an education program for
smallholder farms on merits and
demerits of contract farming
TBD Medium-term (5-10
years)
35 Land Tenure
Support an operation for the
establishment of a National Land Parcel
Inventory (forest and non-forest land)
TBD Long-term (10-15 years)
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36 Land Tenure
Support the government to benchmark
priority land governance indicators for
monitoring
TBD Long-term (10-15 years)
37 Marketing
and Trade Policy Review TBD one year
38 Marketing
and Trade
Build capacities of government
institutions TBD 3-5 years
39 Marketing
and Trade Business Model Development TBD 3-5 years
40 Marketing
and Trade
Empowering producer organization
(POs) on collective actions TBD
At least 2 cropping
seasons
41 Marketing
and Trade Support system/ Infrastructure TBD 1 to 2 years
42 Marketing
and Trade Research and Development TBD
3 years preparing the
roadmap for the said
project but each
assessment activity could
be for 6 months
43
Gender and
Social
Inclusion
Reorientation of agricultural
programmes TBD
2 years initially, to be
funded in the following
years under a more
permanent process within
regular budgets
44
Gender and
Social
Inclusion
Participatory research and extension
support programme TBD 10 years
45
Gender and
Social
Inclusion
Small-scale socially-inclusive agri-
businesses TBD
5 years, providing support
for pilot projects in
townships around the
country
46
Gender and
Social
Inclusion
Develop equitable market access for the
resource-poor TBD 5 years
47
Gender and
Social
Inclusion
Training and forums for improved
cooperation and mutual learning
between sectors
TBD 5 years
48 Post-Harvest Training on post harvest and agro-
processing TBD TBD
49 Post-Harvest Capital for post harvest and agro-
processing TBD TBD
50 Post-Harvest Farmer group formation TBD TBD
51 Post-Harvest Market information TBD TBD
52 Post-Harvest Product inspection and certification for
quality and safety TBD TBD
53 Post-Harvest Training of rural artisans TBD TBD
54 Post-Harvest Infrastructure facilities TBD TBD
55 Post-Harvest Strengthening of research activities TBD TBD
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1.3 Configuration of Investments in an Overall Framework
312. Since the investment recommendations in the technical studies have been presented as
lists of individual recommendations, there is a need in Phase 2 to both examine the
recommendations and consider how they can be configured into an overall framework.
313. This report proposes a conceptual framework for the configuration of investments as
shown in the figure below. As such, an “appropriately-configured investment” is one that is
appropriately positioned within an overall framework.
Figure 12: Conceptual Framework for the Configuration of Investments
314. In this framework, investments can flow in at program level, project level or sub-project
level. Options for program level investment include
a. regional-based program, such as the LIFT regional programs in the Central Dry
Zone, and Delta, with funds flowing through a series of projects.
b. sector-based, for example “Crops Program”, “Livestock Program”, “Fisheries
Program” or Forestry Program”
c. Commodity-based, for example “Rice Program”, or “Dairy Program”.
d. Theme area or cross sectoral - based programme, such as extension, cooperatives,
financial services, etc.
315. If investments flow to the project level, then in order for the project to be considered
“appropriately configured” it would need to be embedded in a broader program structure that
could provide strategic oversight and assist the project in coordinating with the external
environment, including other relevant projects.
316. In order for a project to be considered as “appropriately configured”, it would need to
include a provision for sub-projects to enable co-investment during implementation. This is an
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especially useful mechanism for developing joint public-private investment into business plans
that can benefit smallholders, and avoids the challenge of attracting private sector investment at
the project level.
317. The portfolio level is the highest level of strategic oversight that would coordinate
programs to reach the agreed strategic objectives. At the portfolio level, broad long-term
strategic objectives would be laid out, and sector priority-setting and indicative budgets and
time-lines can be established, but detailed investment planning would occur at the lower levels.
318. A potential program structure based on five thematic areas (see Chapter 7) is shown
below. Several issues remain outstanding in terms of this program structure. including:
Climate Change and Shocks: There has as yet been no technical study into how climate
change and shocks will be integrated into the NAPA. The decision as to whether climate
change and shocks is considered as a program, or integrated into other programs as a
cross cutting issue, is an issue which will be addressed under the technical study
scheduled for Phase II.
Cooperatives and Farmer Groups: Since farmer and cooperatives are considered to be
a cross-cutting issue, each program area can potentially include actions on cooperatives.
It is an issue for Phase II as to whether cooperatives and farmer groups could be placed at
program level, to support the policy and institution building level interventions.
Figure 13: Potential NAPA Program Structure based on Five Thematic Areas
319. A proposed strategic directions framework, which synthesizes the program areas with the
strategic directions encompassing smallholders, commercial and agribusiness sectors is shown
below.
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Figure 14: NAPA Strategic Directions
320. This framework represents a people-centred approach and recognises the role of
commercial farmers/fishers and agribusiness in the sector.
321. The framework also recognises that progress in the five areas occurs in the context of
general rural development (e.g. economic and rural infrastructure) and that Phase II of NAPA
needs to consider how linkages with such development is managed.
322. The issue of NAPA institutional arrangements will be considered in Phase II of NAPA
formulation and should take into account the possibility of Working Groups at the level of the
four strategic directions as well as Working Groups at the program level. The M&E system that
captures program and project performance, will also need to be adapted to support information
collection at the strategic direction level.
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CROSS-LINKAGES BETWEEN SECTORS
323. The technical reports describe cross-linkages between the commodity sectors in terms of
inputs, supplies and services, production systems, and marketing; and in institutional and policy
is shown in Table 30.
Table 30: Technical Cross Linkages between Sectors
Crops-Livestock Cattle and buffalo provide draft power for soil preparation, harvesting and materials
transport. Livestock make up part of the investment and cash flow mix on
smallholder farms.
Cattle provide draft for transporting products to market.
Mechanization will lead to a decrease in the use of draft animals, and either a drop in
the draft cattle/buffalo population or a change in structure to breeding cattle. This
will also have implications for breed improvement, as the market demand changes
from a demand for draft cattle to beef cattle. Significant decrease of draft animals
incidental to farm mechanization has also resulted in significant depletion of organic
carbon level in many parts of the region thus negatively affecting soil micro-flora
and fertility. Mechanization trends need to be tracked and farmer’s responses
determined.
Crops, e.g. maize, soybean provide the ingredients for feeds for commercial poultry
and pigs. Rice bran and broken rice is a source of feed for backyard pigs. Cattle and
buffalo manure is a fertiliser for crop fields. Crop by-products provide feeds for
smallholder pigs and cattle. Rice bran and broken rice is a source of feed for pigs,
and rice straw and stubble is a source of feed for cattle and buffalo. Ducks graze on
rice fields post-harvest.
Private sector shops in rural areas often sell both crop and livestock inputs, such as
fertiliser, chemicals, animal feeds and medicines
Crops-Fish Rice bran and deoiled cakes are widely used feed for aquaculture
Many freshwater pond aquaculture farms have chicken pens over fish ponds. Fish
by-products are a source of feed for ducks. Discards from leafy vegetables are also
feed for fish. On the other hand pond humus is a good manure for horticulture and
other crops
Livestock-Fish Fishmeal is an ingredient in commercial feeds for pigs and chickens. Fishmea isalso
a source of feed for ducks. Pig, duck and chicken maure are extensively used to
fertilise ponds for production of natural fish feed organisms.
Chickens are often raised over aquaculture ponds. Rice bran can be used for feeding
either fish or pigs.
Fish and livestock products compete in the market as a protein source.
Livestock-
Environment
Grazing management of sheep and goats in the dry zone has an impact on the
environment. Studies are needed on the overall impact of agriculture and land use
policy on the dry zone environment.
Forestry-Livestock Community Forestry can include forage species for livestock feeding
Forestry-Fish Marine and fresh water ecosystems are the habitat of the fishes and the crustaceans.
More prominently in coastal environments the mangroves are an excellent nursery
habitat for fishes. Forests play an important role in providing sustainability to these
ecosystems, biodiversity and habitats.
Forest-crops Forests produce soil and hold and release water over a period of time to provide
perennial status to rivers and other water bodies
Forest-health There are more than 800 medicinal plants and other products which are used by the
forest dwellers and rural people for their health care in various parts of Myanmar.
Forest-climate Role of forests in environmental conservation is in protection of water resources, soil
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change protection, influence on the local climate and reduction of gas emission impacts,
conservation of the natural habitat and biological diversity, recreational and other
social functions of forests and protecting the cultural dimension of forests.
Land tenure Land tenure issues affect all development sectors, and deters landholders’ confidence
to invest. Insecure tenure results in landlessness.
Rural Finance Rural finance affects all sectors in terms of credit availability and savings functions
Gender Each line agency in the rural sector should develop a policy and programme
assessment to identify what needs to be done to improve the women’s
empowerment.
Rural employment Crop production: Opportunity: support to farm enterprises and value chains, e.g.
kitchen gardening, horticulture, and livestock production especially for small and
marginal farmers and landless; introduce cash-for-work programme to provide rural
employment; upgrade of extension agents’ skills, ICT for rural development
planning, and village information centres.
Water and Soils: Participative, community based soil and water conservation
activities present opportunities for paid work. Preference should be given to poorer
and vulnerable people where cash-for-work is used. A significant proportion of
participants should be women (possibly introducing a minimum quota of 40-50%)
Work schedules should be set by the communities, flexible enough to allow
labourers to participate without compromising on harvest work or daily housework.
Guidelines for labour practices and checklist for regular monitoring of working
conditions should be used throughout implementation. Labour practices should
include a zero-tolerance policy on harassment.
Livestock: Cattle, sheep and goat, chicken, pigs; access to credit to buy livestock,
share-farming livestock, hired labour in commercial livestock raising. Self-
employment potential in raising animals, providing inputs and services, trading,
transport, slaughtering, processing, and sales. Challenge: children may take care of
livestock and not go to school.
Forestry: The activities of salvage logging, tending and regeneration of degraded
forests can provide employment to the people (BagoYoma, Shan Plateau, Dry zone
and Delta)
Fishery: The sector provided livelihood to nearly 1,268,000 fishermen and 216,284
fish farmers. This excludes the large numbers employed in trading, transportation
and processing industries. Employment potential of crab farms is significant.
324. In addition to technical linkages, institutional and potential investment cross-linkages
have also been highlighted in the technical studies. These issues include:
The structure of extension services – should extension services for smallholders in
livestock, crops, fisheries, forestry be combined fully, partially, or managed separately;
The structure of education and training – how should cropping, livestock, fishery and
forestry issues be taught in various line educational institutes; what is the structure for
education and training in agribusiness, land administration; post-harvest and agro-
processing;
The structure of research – how to capture the integrated nature of smallholder farming in
sectoral research and link priorities and outputs effectively to the extension system;
To what extent should there be a multi-sectoral approach in specific investment projects
and programs;
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IMPLEMENTATION RISKS
Clearly, developing and implementing a multi-sectoral approach to rural development carries
with it risks arising from the inter-related nature of the interventions proposed (see Section 7).
This arises because failures in one intervention can then impact upon performance and results in
other sectors or thematic area. These risks can be grouped into several categories:
Risks arising at participant level. This category of risks focus upon the unwillingness or
inability of intended beneficiaries to respond adequately to opportunities ‘offered’ by NAPA
investments, and may occur, for example, due to: (i) a lack of access to financing for required
capital investments; (ii) the limited capacity of intended beneficiaries to bear the additional
risks that are perceived to accompany changes in production patterns; (iii) skepticism of
intended beneficiaries concerning the actual benefits of participation, or; (iv) inability of
extension and other outreach services to convey to the intended beneficiaries the type and
scale of benefits that are anticipated from the proposed changes. To address these risks, it is
critical that the type of response sought from the intended beneficiaries in each case is clearly
understood and attention given to ensuring that appropriate measures are taken as part of the
activity to make such response on the part of smallholders, fishers, etc. feasible.
Risks arising at the policy or legislative level. A considerable number of the investments
and other interventions likely to emerge from the NAPA process are expected to require
some form of change to existing legislation and GoRUM policies. If such changes are not
made, they may render the investments or interventions futile, as the structures or
authorization will not be in place to permit the investments to succeed. It is thus essential that
all proposed investments clearly identify required (and recommended) policy or legislative
changes and that these be a precondition for any investment.
Risks arising at the institutional level. This document has placed considerable emphasis
on the importance of an effective and functioning extension system as a mechanism for
communicating with smallholder producers – both in terms of communicating new
technologies, diversification opportunities and other opportunities, and as a means of
informing the extension and research system as to the concerns, priorities and attitudes of
potential beneficiaries of NAPA. If the communication does not occur, or the research and
extension system fail to develop the required capacity to undertake these roles, the chances of
successful investments being undertaken declines significantly. Nor does this only apply to
extension and research, but is also relevant for rural finance institutions, water resource
development and maintenance institutions, animal health services, etc. It is therefore
important that once the structure and scope of the NAPA is widely and formally accepted,
attention be turned rapidly to undertaking the necessary changes within critical institutions,
including institutional mandates, lines of command, resource availability, terms of service for
institution staff and similar aspects be addressed before individual investment are launched.
Risks arising from limited or absent private sector and NGO participation. If the NAPA
process is completed as anticipated, and includes substantial consultation with the private
sector and civil society organizations, this risk should be minimized. However, it is critical
that the consultation process does not terminate with the completion of the NAPA and that
each individual investment arising from it be carefully and fully discussed with potential
partners before the design and parameters of the investment are finalized.
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Risks arising from climate change or natural disasters. This category of risk can never be
completely eliminated, but it can be reduced through the consideration of potential climatic
impacts and the precautionary measures that can be taken to limit the damage that such
events can have.
Many of these risks will be addressed through the studies to be undertaken as part of the second
phase of the NAPA formulation process, including considering required legislative and policy
changes, institutional reform and change and assessing the risks of climate change. It is also
proposed that a more detailed study be undertaken of the overall extension system, although the
decision on that will depend upon the decision of the National Consultative Conference.
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FINDINGS OF REGIONAL STUDY TOURS AND VERIFICATION
WORKSHOPS
Regional Study Tour
325. Fourteen senior government officials undertook a regional study tour to Vietnam (10-16
November 2014) and to Malaysia (16-22 November 2014) in order to observe the status of
agriculture and rural development, and bring back lessons learnt to contribute to the NAPA. The
findings and recommendations of the regional study tours included:
Promotion of family farming which are on business mode and integrated with diversified
farming components, technology, value addition and agri-business have shown strong
positive impact on poverty alleviation and rural development in Vietnam. In view of its
potential this model has been strongly recommended for Myanmar.
Improvement in farming practices are to be supported by the in-built provision of
technology, training, strong extension services and farm mechanization in the package.
Farmers’ training need to include aspects of technical, financial and managerial skills as
in Vietnam.
Participants realized that easily accessible and affordable credit is critical for
transforming subsistence farming to technology driven business mode farming. Farmers’
organizations / cooperatives can play important role in operation of institutional credit
services. Vietnam Women’s Union role in operating small / micro-credit programme was
highly impressive and may be a lesson for Myanmar.
The participants observed that the size and capacity of women’s organizations in rural
areas and the pace of development of income generating and other development activities
have direct relationship Promotion and capacity building of rural women organizations
have been recommended to be taken up on priority basis. Quality of implementation of
field based development projects depends also on periodical review including objective
evaluation. Provision for comprehensive annual review be incorporated in projects
recommended under NAPA. The dual monitoring of rural development projects is even
more useful to ensure quality of implementation. In Vietnam rural development projects
are monitored by both, Party and the Provincial Government.
The unified but extensive and integrated extension services system network was found
highly effective in the promotion of agriculture mediated rural development in Vietnam.
Extension services system to be built / strengthened on this line.
Institutions of farmers, farm women, youth are quite strong and take active part in
planning and implementation of policies and programmes. The institutions related to
farmers and farming have been systematically formed. Government agencies are
providing technical and financial assistance to build the capacity of these organizations.
Farmers’ organizations also take active part in planning and implementation of
development projects including preparation of Natural Disaster Mitigating plans.
Farmers, women and youth organizations are actively participating with their units at
local, district, province and national levels.
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Brining sub-sectors like crops, horticulture, livestock, fisheries, forestry, etc., under one
domain would ensure better coordination for the promotion of agriculture mediated rural
development as it is done in Vietnam.
Scholarship to support education for children of underprivileged rural communities as
under implementation in Malaysia, may be incorporated under social protection
programme of Myanmar.
Coherence between of agriculture and rural development policies are critically important
for agriculture mediated rural development. In Vietnam the Institute of Policy and
Strategy for Agriculture and Rural Development (IPSARD) is a policy advice institution
of the government created to provide such support.
NGOs has also potential role to play hand in hand with the government. NGOs may be
involved in rural development by providing a range of services like extension, training,
micro-credit operation, marketing support, etc.
Rural infrastructure support such as road communication, reliable power supply and
dependable irrigation are critical ingredients for the development of agriculture based
rural economy. Vietnam is giving high priority to this sector. They have introduced a
programme entitled “Building a new Countryside” (2010-2020) which can provide
certain useful insights to NAPA.
326. Findings and Recommendations from Verification workshops included the following:
There was general agreement with respect to the five major findings and
recommendations of the Draft Interim NAPA Report as reflected in the executive
summary. The participants also viewed the workshop as an opportunity to raise their
concerns and needs. As a result local issues and problems were prominently raised and
discussed.
Maximising earning, and not the production and productivity, was expressed as the core
objective of small-holder farmers. Intensification, diversification, integration and earning
from other sources are the strategies they usually apply for enhancing their family
income. They need support in the form of improved technology, increased diversification
options, and know-how on various integration possibilities to harness the synergy among
various components of farming system.
Extension Services: A dedicated, responsive and integrated extension service which can
help the farmers by facilitating access to technologies, affordable credit, markets and
market information, development and welfare schemes of the government and NGOs, in
addition to providing support in areas such as training and group/cooperative formation
and management, etc,. was strongly demanded.
Assistance in the form of technology and linkage with agro-industries for further
processing / packaging, value addition and marketing was repeatedly raised.
Leverage through marketing – Market access and information and facilitation including
necessary support to group based marketing were repeatedly raised.
Transition from subsistence to technology driven business mode agriculture essentially
requires enhanced investment. However, the current portfolio is too small to cover the
cost of required inputs for improved farming technologies. The amount be revised to
cover full cost of inputs and for all types of farming. Further, the credit facility should be
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easily accessible with affordable rate of interest. The current repayment period needs to
be extended by at least 3 months. Assistance and authorization to self-help
groups/associations/ cooperatives operated micro-credit services may be more
appropriate and effective. Coherence between policies of agriculture and its allied sub-
sectors deserves immediate attention as conformity between agricultural and rural
development policies is critical to sustainable development of agriculture led rural
development. Similarly, infrastructure development in rural areas need to be aligned with
investments in agriculture
Promotion of Public-Private and Producers’ Partnerships was repeatedly highlighted for
enhancing private sector investment in agriculture. However, paoints were also raised to
ensure – for fair and equitable profit sharing between farmers and private sector
investors
Land titles for secured access, control and use of land with freedom of choice for the crop
or combination of crops / livestock / aquaculture to be practiced.
Social protection – crop insurance and compensation / relief when inflicted by natural
disaster including flood, cyclone, drought, outbreak of diseases, etc.
Allocation of areas for community based activities, especially pasture land and
community water bodies / dams /ponds for promotion of livestock, fisheries, aquaculture
for resource poor communities.
Promotion of family based integrated farming with flexibility in use of land for
aquaculture, livestock and crops varieties
327. Livestock sub-sector:
Need for quality fodder seeds and production technologies
Private sector investment in animal feed industry and liquid nitrogen production for
expanding AI programme.
Distribution of genetically improved breeds and matching support services encompassing
production technology, training, technical advice and periodical monitoring
Conservation and improvement of indigenous breeds of animals
Strengthening of institutions/ programmes on livestock research, training and extension
Unrestricted movement of livestock
328. Fisheries / forestry / aquaculture
Fisheries - Stock depletion and deterioration of aquatic environment resulting in loss of
livelihoods – seen as threat to local livelihoods. Participants stressed the need for the
increased involvement of resource-user communities in the management of natural
resources such as fisheries and forestry. Sustainability of resources was seen as critical to
provide sustainable livelihoods to such communities.
Community participated management of natural resources like forest and fisheries
resources including enforcement of existing acts and regulations.
Integration of small-scale aquaculture with family farming activities through
demonstration of its techno-economic feasibility
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Encouragement for reforestation and systematic logging for sustainable management of
forestry - demarcation of separate area for cultivation of fuel wood crops
Establishment of rubber and other forest produce based industries
329. Crops
Short duration rice varieties
Salt tolerant rice varieties for coastal region
Mechanization - Small farm machineries– subsidy, facility for payment in installment,
community based common facilities
Farming to be remunerative – minimum support price
Provision of township level soil testing laboratory and service facilities
330. Infrastructure:
Investment in irrigation – including implementation of water conservation, renovation
and maintenance of irrigation canals
Dredging in selected stretches of rivers and lakes
Creation of community/public food grain and seed storage facilities
Reliable power supply and roads
Development and renovation of drainage systems
Cold storage capacity near to fish landing sites
Laboratories for plant protection and soil / water quality analysis
331. Research and Development Institutions
Need for Research institute focusing on fisheries and aquaculture
Regional level research laboratories to address problems relating to soil and water
conditions, pest and disease of animals, crops and fish
332. Information / Agriculture/rural livelihood database
Comprehensive agriculture and rural development database for collection, compilation,
analysis and sharing of relevant information
Small-holder focused information centres to include weather reports, market prices and
availability for important inputs and outputs, available new technologies, etc.,
Regular livelihood census
333. Supplementing family income- Additional / alternative sources of income:
Skilled non-farm jobs and agri-based enterprise / small business. These call for Skills
development / vocational training in prospective areas, entrepreneurship training,
management of small business, etc.
Agriculture based enterprise development: Recommended for entrepreneurship
development / financial and managerial skills training for rural youth.
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ANNEX 1: INVESTMENT AND INTERVENTION BRIEFS
The following are brief descriptions of the individual recommended investments/interventions.
Full descriptions can be found in the individual working papers.
Cropping
Cropping 1: Improved agricultural and rural extension and
research system
Objective Smallholder farmers have increased profit from cropping
Interventions and Investments
Policy Develop Cropping Research, Extension and Education Policy
Develop crop marketing strategy for all major crop commodities
Institutions Establish National Agricultural Research and Development Council to
coordinate MOAI research and extension functions; Establish
coordination mechanism for government, donor, NGO and private sector
entities; Engage private sector in research and extension
Link with MLFRD on livestock
Strengthen research capability: physical, human, financial resources
Strengthen linkages with international organisations.
Facilitate community-based farmer associations;
Value Chain Fund operating costs of extension activities: extension staff travel, inputs
for field demonstrations;
Data and
Information
Establish a system to produce reliable statistics and marketing
information.
Cost/Duration US$ 100m; 5-10 years
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Cropping 2: Development of the agriculture seed sector
Objective Smallholder farmers have increased profit from cropping through having
access to quality seeds at an acceptable price
Interventions and Investments
Policy Develop seed policy to implement the Seed Law
Develop seed sector development/marketing strategy
Develop rice sector development policy
Develop roadmap to strengthen the competitiveness and productivity of
the local seed industry
Adhere to the principles and standards of the International Union for the
Protection of New Varieties of Plants (IUPOV)
Institutions Change institution culture from current top-down structure to one based
on a bottom-up/stakeholder participation approach
Establish stakeholder coordination mechanism: government, donor,
NGO and private sector entities;
Strengthen seed research/testing/production/assurance/border
control/monitoring systems capability: physical, human, financial
resources
Strengthen seed-related associations; establish a “National Seed Industry
Association”
Promote the emergence of private seed companies and the adoption of
certified seeds
Strengthen linkages with international research institutes to establish
seed standards
Value Chain Fund operating costs of extension activities: extension staff travel, inputs
for field demonstrations; support private-sector retail seed outlets
Data and
Information
Establish a system to produce reliable statistics and marketing
information related to seed supply, distribution, and seed demand by
farmers. Elaborate a clear marketing strategy based on accurate and
updated information base.
Cost/Duration US$ 150 m; 5-10 years
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Cropping 3: Climate smart agriculture and conservation farming
Objective Smallholder farmer protect their land asset values and adapt farm
practices in response to climate change.
Interventions and Investments
Policy Produce position paper on the impact of climate change on crop
production, utilising Sustainable Crop Production Intensification (SCPI)
concept and drawing on the FAO publication “Save and Grow: a guide
and toolkit of sustainable technologies and practices”.
Review the existing land tenure policy with a view to promulgating
changes to the legal framework to better address the issue of long term
and sustainable changes to land use in villages lands
Develop Climate-smart Agriculture (CSA) strategy.
Institutions Establish a Unit on CSA/farming within the MOAI which has the
mandate to coordinate and manage R&D and extension activities in
agricultural livestock, fisheries and forestry sectors;
Shift from the current top-down structure to one based on a bottom-up
approach, able to incorporate grassroots and public sector views; being
essential for the integrated village planning required under this
intervention
Strengthen capability of research centres in human, physical, financial
resources; and in linkages with international institutes and agencies
Develop human resources of research and extension agencies on CSA
including support to study CSA technologies in suitable institutions in
other countries
Value Chain Fund village land use planning
Fund operating costs of extension activities on CSA: Integrated
approaches – such as crop-livestock – aquaculture systems, rice-fish
systems and agroforestry; integrated village watershed planning;
extension staff travel, inputs for field demonstrations; communication and
awareness program; village land use development planning. Focus mainly
on CDZ, but also involve the whole country.
Data and
Information
Establish a system to produce reliable statistics and information on
climate change and monitor the impact of climate change.
Cost/Duration US$ 30 m/5-10 years
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Cropping 4: Integrated area development planning and rural
development
Objective Village development plans and agro-ecological zone analyses are
available to guide development interventions
Interventions and Investments
Policy Policy development on agro-ecological zones definition process and
village development plans
Changes to the Land Law to accommodate land use and land tenure
issues that will be identified during the village planning process
Institutions Create Land Use and Rural Development Planning Unit within MOAI
based on the DOA LUD, with strong links to DAR.
Strengthen capability of DOA Land Use Division to conduct detailed
mapping of agro-ecological zones (AEZ) and farming systems, with
emphasis on areas susceptible to climate change (the CDZ): physical,
human and financial resources.
Strengthen linkages with MLFRD and MOECF on AEZ mapping.
Strengthen capability of village development comittees capability in
developing village development plans, including plans for shared
community land, reforestation, agroforestry and grazing areas: physical,
human and financial resources.
Financing of the village development plans through the GOM rural
development fund administered by MLFRD.
Value Chain Support to development of village development plans. Focus on CDZ,
but applicable to the whole country.
Data and
Information
AEZ maps and village development plans are available for development
planning.
Cost/Duration US$ 50 m/5-10 years
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Cropping 5: Improved information technology and communications
Objective Farmers have improved access to agricultural information through ICT
using the internet and through the new generation of smart phones.
Interventions and Investments
Policy Develop policy to expand on the mandate of the DOA to be better able to
handle the new demands as regards to ICT,; which will link closely with
DAR and other R&D entities in the NR sector;
Institutions Create an ICT Unit within MOAI based in the DOA, with strong links to
DAR, DOF, DOLB, DOF and other concerned R&D and extension
entities in the other sector Ministries. Strengthen capability of the unit:
physical, human and financial resources.
Linkages with private sector.
Build on the existence of community ICT centres
Value Chain Raise awareness amongst farmers of the ICT services and information
available
Data and
Information
Establish system to monitor access of smallholder farmers to agricultural
information through ICT
Cost/Duration US$ 50 m; 5-10 years
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Cropping 6: Crop diversification for improved livelihoods and
human nutrition
Objective Smallholder farmers have increased profits from diversification of types
of crops grown.
Interventions and Investments
Policy Develop policy on diversification to guide research and extension
Institutions Strengthen capability on extension and research on crop diversification:
physical, human and financial resources.
Strengthen linkages between DOA and ACIAR; ICRAF, ICRISAT,
IRRI, CYMMIT, FAO.
Value Chain Fund operating costs of extension activities on diversification of
cropping.
Support to improved supply of important inputs, more especially
improved seed and rhizobia.
Data and
Information
Collect and manage data and information related to crop diversification
options and uptake.
Cost/Duration US$ 50 m; 5-10 years
Expected
duration
Long duration 5-10 years (2015-2025)
Cost Estimate USD 60 mn
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Livestock
Livestock 1: National Animal Health Programme
Objective Smallholder farmers have more profit from livestock raising through
improved survival and growth of livestock
Interventions and Investments
Policy Policy development on disease control strategies; vaccine production and
distribution; animal health information system; National Surveillance
Plan; statistic strengthening; CAHW establishment and management;
policies to target poor households; continuing education policy for
veterinarians; contingency planning for emerging disease threats
Institutions Strengthening capability (physical, human and financial resources) of
LBVD: laboratory; epidemiology; township animal health planning;
surveillance and response; contingency planning; vaccination production
and distribution; cold chain.
Strengthen linkages to UVS for under- and post-graduate practical
experience; to medical services on zoonoses and emerging infectious
diseases
Strengthen MVA, MVC role in governance and continuing education;
Strengthen CAHW associations
Value Chain Training and technical support to CAHWs; animal health extension;
communication to farmers
Private sector input supplier (vaccines, medicines, equipment)
strengthening
Animal health epidemiological studies, surveys, outbreak investigations
and emergency response
Data and
Information
Strengthened animal health information systems
Investment M&E system
Cost/Duration Pilot USD 10 m, expansion USD 50m; Pilot phase 5 years, expansion
phase 10 years
Expected
duration
15 years. Pilot phase 5 years, expansion phase 10 years
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Livestock 2: National Forage/Fodder Programme
Objective Smallholder farmers have more profit from cattle, buffalo, sheep, goats
due to access to better feeds and improved feeding practices
Interventions and Investments
Policy Develop policies on national forage development policy and strategy;
national inventory and database of animal feeds and local feeding
systems; and national information system on animal nutrition; policies to
target poor households
Institutions Strengthen LBVD capability (physical, human and financial resources) in
laboratory feed testing; strengthening
feed and nutrition information system management;
Strengthen linkages to UVS for under- and post-graduate practical
experience on forage and animal feeding
Value Chain Import of high-quality planting material.
Extension system of demonstration plots on forage and feeding. Establish
forage/fodder production plots
Data and
Information
National inventory and database of animal feeds and local feeding
systems; and National Information System on Animal Nutrition
Investment M&E system
Cost/Duration Pilot phase USD 10 m, expansion phase USD 30m; Pilot phase 5 years,
expansion phase 10 years
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Livestock 3: National Livestock Breeding Programme
Objective Smallholder farmers have improved profits from livestock, due to
improved access to improved breeds of cattle, sheep, goats and pigs
Interventions and Investments
Policy Develop a National Strategy and Action Plan for Animal Genetic
Resources (AnGR); Legislation, regulations, guidelines for AnGR.
Guided by FAO global guidelines.
Institutions Strengthen LBVD capability (physical, human and financial resources)
in breed improvement: applied research; AI centers; liquid nitrogen
production; breed improvement program coordination;
Strengthen linkages to UVS for under- and post-graduate practical
experience on animal breeding
Value Chain Training for AI technicians and breeding service providers to manage
breed improvement programs; import of breeding material
Data and
Information
Develop animal genetic resources information system
Investment M&E system
Cost/Duration Pilot phase USD 10 m, expansion phase USD 30m; Pilot phase 5 years,
expansion phase 10 years
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Livestock 4: National Education, Training and Research
Objective Sufficient quality and quantity of human resources for livestock sector
development, with emphasis on requirements for smallholder livestock
development
Interventions and Investments
Policy Develop formal livestock sector education policy, including graduate,
post-graduate, certificate and diploma.
Develop livestock sector research policy, linked to education and
extension
Develop policies on professional and other association accreditation and
continuing education system
Develop policies on in-service continuing education/training in LBVD,
UVS.
Institutions At UVS:
strengthen (human, financial, physical resources) for: student practical
work: develop on-campus practical livestock production units at UVS;
support practical field work by undergraduate and post-graduate students;
Support professional training for UVS staff; develop infrastructure at
UVS, including student accommodation, laboratories, lecture rooms, and
access to educational materials;
Support curriculum development in the courses at UVS, including the
newly developed Diploma in Livestock Production, in line with domestic,
regional and international standards
In LBVD: develop LBVD in-service training and human resource
standards and support implementation
CAHWS: develop training standards and
Value Chain Training programs for CAHWs; fund on-farm research
Data and
Information
Develop livestock sector human resource information system
Investment M&E system
Cost/Duration First phase USD 5 m, expansion phase USD 15m
First phase 5 years, Second Phase phase 10 years
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Livestock 5: Regional Livestock Development Programme
Objective
To sustainably increase livelihood of smallholders through improved
livestock health, productivity, and marketing
Interventions and Investments
Policy Develop policies on: CAHWs and animal health services; extension
system and links to education and research; bottom-up, demand driven
systems development; breed improvement; forage/fodder development
Institutions Strengthen (human, financial, physical resources) township-level LBVD
to plan and coordinate livestock health and extension programs
Strengthen rural development/poverty alleviation planning function at
township level; establish township level Livestock Productivity
Committees to channel rural development funds into the livestock sector
Strengthen CAHWs and expand role to livestock productivity service
providers/extension agents
Value Chain CAHW strengthening; extension to smallholders on animal health,
feeding, improved breeding; establishment of forage/fodder plots
Improve marketing systems, including systems of slaughterhouse, market
and trading licensing
Data and
Information
Investment M&E system
Cost/Duration Pilot phase USD 5 m, expansion phase USD 30 m
Pilot phase 5 years in Central Dry zone; expansion phase 10 years in
CDZ, Upland Shan, Upland Chin, Delta, Coastal
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Livestock 6: Duck Sector Development Programme
Objective
Smallholder commercial duck farmers have improved livelihoods from
improved breeds, feeding, health, and marketing
Interventions and Investments
Policy Policy development on: duck sector development strategy; duck sector
governance strengthening, including MLF strengthening; engagement of
poor people in duck sector; breed improvement; marketing improvement
accreditation of duck sector service and input providers
Institutions
Value Chain Breeds: breed characterisation and performance; establish breeding
objectives;
establishment of breed improvement program, including nucleus flocks
and import of new genetic material
Demonstrations on improved feeding, husbandry, breeds
business planning; hatchery technology improvement
communication programs; improved supply chain linkages
Data and
Information
Establish duck sector information system
Investment M&E system
Cost/Duration USD 3m; 4 years
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Soil and Water
Soil and Water 1: Monitoring of groundwater resources
Objective
Improved planning, policy development and management of groundwater
resources, through access to information on groundwater resources.
Interventions and Investments
Policy A legal, regulatory, institutional and technical framework that allows for
sustainable management and protection of groundwater resources.
Institutions Analysis of the institutional setting, including (i) an inventory of the
institutions involved in groundwater exploitation, management and
protection; and (ii) analysis of their roles, mandates, tasks and related
budgets and manpower.
Value Chain Preliminary assessment of the groundwater situation.
Analysis of the groundwater system and development of a conceptual
model.
Collection and analysis of data from existing wells. Drill specially drilled
monitoring wells to produce more accurate data.
Data and
Information
Establish groundwater monitoring and data management system
Investment M&E
Cost/Duration TBD
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Soil and Water 2 Improving the capacity of MOAI for irrigation
and flood protection service delivery
Objective
Irrigation and flood protection service delivery is improved, in both the
construction and operation phases, through addressing the institutional
constraints within the MOAI.
Interventions and Investments
Policy
Institutions Amalgamate the Irrigation Department (ID) and Water Resources
Utilization Department (WRUD) into one department, perhaps called the
Irrigation and Flood Control Department.
Strengthen new body in terms of: irrigation agronomy, irrigation water
management (including water use efficiency), participatory irrigation
management and development, and environmental protection and
management.
Provide support to the Irrigation Technology Centre (ITC) to improve
their capacity for training ID/WRUD staff in these topics.
Provide capacity building for ID/WRUD staff to improve scheme designs,
water use efficiency, farmer participation, irrigation agronomy, on-farm
water management, etc.
Value Chain Irrigation schemes that are being rehabilitated and upgraded can be used
for practical training exercises.
Data and
Information
Investment M&E
Cost/Duration USD 2m; 4-5 years
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Soil and Water 3 Rehabilitation and extension of existing MOAI
irrigation systems
Objective
Smallholders have improved incomes from increased crop yields and
cropping intensity from access to irrigation in rehabilitated and extension
of existing schemes
Interventions and Investments
Policy
Institutions Linkages in the short term with major WB, ADB, JICA and IFAD
irrigation projects
Value Chain A review of irrigation activities and lessons learned
A rapid appraisal of MOAI irrigation schemes in the CDZ; the selection
and prioritization of irrigation schemes for rehabilitation, upgrading and
extension.
Improvement and rehabilitation of existing dams, reservoirs, weirs and
other structures serving the irrigation system; Rehabilitation/upgrading of
the irrigation canal system and structures to tertiary level; where
electricity becomes available, replacement of diesel engines powering
pumps with electric motors that have much lower running costs; where
adequate water is available, extension of the canal system to irrigate
additional land.
Upgrading or provision of drainage systems, especially in saline areas;
provision or improvement of farm roads;
Land levelling;
Strengthening Water User Groups, Water Management Committees and
participatory operation and maintenance of the irrigation system.
Provision of water management and irrigation agronomy training to both
irrigation staff and farmers.
Reviewing and improving crops, cropping patterns and agricultural
techniques through improved extension and inputs such as good quality
seed and fertilizer.
Data and
Information
Investment M&E
Cost/Duration USD 120m; long term
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Soil and Water 4 Development of small-scale community managed
irrigation schemes
Objective
Smallholders have improved livelihoods through access to water from
small-scale community managed irrigation systems and irrigation.
Interventions and Investments
Policy Policy to drive more attention to development of small-scale community
run schemes
Institutions Align government to increase attention to providing support for small-
scale community run schemes, or to assisting individual farmers to
develop irrigation in addition to concentrating on developing large
irrigation systems
Value Chain Preparation of proposals for a small-scale irrigation development
programme;
Development of models for small-scale irrigation
Encourage private sector involvement and investment in small scale
irrigation systems
Support for loans to groups and individuals for development of irrigation
Capacity building for farmers including study tours
Support for construction of the irrigation system
Assistance with access to good quality seed and inputs;
Provision of irrigation agronomy advice
Assistance with market linkages.
Data and
Information
Investment M&E
Cost/Duration USD 3-5m, 4-5 years
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Soil and Water 5 Upgrading of flood control structures in the
Ayeyarwady delta
Objective
Smallholders have improved livelihoods through more secure crop
production from improved flood control and drainage infrastructure
Interventions and Investments
Policy Policies are already in place to implement
Institutions Institutions are already in place to implement
Value Chain Survey to determine the condition of existing flood control infrastructure
Rehabilitation and improvement of existing infrastructure and provision
of additional structures where needed.
Data and
Information
Investment M&E
Cost/Duration Survey: USD 3 m 3-4 years
Works: USD 100 m 10-20 years
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Soil and Water 6 Participative, community based soil and water
conservation activities
Objective
Smallholders have improved security of their land and water resources,
through protection from soil erosion and land degradation.
Interventions and Investments
Policy Policy development and government commitment to implement soil
and water conservation measures and to reclaim degraded land.
Institutions Strengthening the capacity of the Land Use Division of MOAI, and the
Environmental Conservation and Dry Zone Greening Departments of
MOECF in soil and conservation techniques and community
mobilization;
Identification of priority watersheds for activities in cooperation with
Land Use Division of MOAI, and the Environmental Conservation and
Dry Zone Greening Departments of MOECF and preparation of a long
term watershed protection programme
Value Chain Focus on CDZ and uplands
Identification of priority watersheds
Soil and water conservation activities on a watershed basis;
Training of agricultural extension staff in soil and conservation
techniques, particularly Conservation Agriculture.
Promote biological conservation and moisture retention techniques.
Physical methods may be needed to help plants to become established
and cover the ground quickly. Cash-for-work programmes may be
needed
A regulatory approach to conservation is generally ineffective
Data and
Information
Investment M&E
Cost/Duration TBD/ up to 20 years
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Fisheries
Fisheries 1 Formulation of a National Agriculture and Food
Policy
Objective
Set a cohesive platform for the sustainable development of agriculture,
fisheries and livestock on a sustainable and integrated basis for the
nation as whole through facilitated access to land resources, technology,
finance and markets.
Interventions and Investments
Policy Formulation of a National Agriculture and Food Policy
Institutions Depend on policy development
Value Chain No specific investments
Data and
Information
No specific data and information
Cost/Duration TBD
Fisheries 2 Establishment of Tertiary Level Institution for
Fisheries
Objective
Provide professional level manpower for both the private as well as to
undertake basic research in all facets of the fisheries activities in the
country.
Interventions and Investments
Policy Policy on human resources for the fisheries sector
Institutions The institution can take the form of a college or faculty within an
existing institution. Its mandate would be to plan, undertake, aid,
promote and co-ordinate education, research and extension in fisheries
science, Aquaculture, Fishery Microbiology, Fish Processing
Technology, Fisheries Resources and Management and Fisheries
Environment and Ecology among others, and offer B.Sc., M.Sc and Ph.
D. degrees in these subjects.
Value Chain No specific investments
Data and
Information
No specific data and information
Cost/Duration TBD
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Fisheries 3 Establishment of an Academy of Fisheries and
Aquaculture
Objective
Certificate level training for existing and new staff within the
Department of Fisheries as well as other departments whose functions
cover activities within the sector.
Interventions and Investments
Policy Policy on training for existing staff of DoF
Institutions Academy of Fisheries and Aquaculture is recommended
Technical training to the staff of management agencies with the various
ministries on specific areas such as fish identification, disease and health
management, post-harvest and processing techniques, new technologies
in aquaculture production and other areas.
Value Chain No specific investments
Data and
Information
No specific data and information
Cost/Duration TBD
Fisheries 4 Establishment of Fisheries Extension and Vocational
Training Institutes
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Objective
Fishery producers (fishermen or farmers, traders and staff of fish
processing establishments) have improved capability in technical,
business and management areas.
Interventions and Investments
Policy Human resource development policy among private sector fishery actors.
Institutions Establishment of Fisheries Extension and Vocational Training Institutes
Value Chain Extension training would be directed at existing operatives within the
sector: short term residential courses (a week at most) or even non-
residential in-situ training; strengthening skills among target operatives
so that they can undertake their particularly activity more efficiently.
Vocational training would be those who wish to acquire hands-off skills
in various aspects of fisheries. Vocation training is largely directed
towards those who are new to the industry, though there may be those
who are sponsored by existing operators. The training here would be
longer (a month or more) depending on the type of training and the level
of skills desired.
Data and
Information
Human Resource Development Information System; Investment M&E
Cost/Duration TBD
Fisheries 5 Establishment of a Fisheries and Aquaculture
Research Institute
Objective
The technological gaps facing the fisheries industry in Myanmar will be
addressed.
Interventions and Investments
Policy Policy development on fisheries research system
Institutions Fisheries and Aquaculture Research Institute would work on research
relating those findings with the industries needs and exigencies
Value Chain Support for research activities on value chain functions
Data and
Information
Research system information system
Investment M&E
Cost/Duration TBD
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Fisheries 6 Restructuring Seed Production Infrastructure for
the Aquaculture Industry
Objective
There is adequate and timely supply of quality seed for the fisheries
sector, from freshwater hatcheries and marine finfish hatcheries
Interventions and Investments
Policy Policy development on seed supply for the fishery sector
Institutions Restructuring the Functions of Freshwater Hatcheries:
Government hatcheries should withdraw on a phased basis from most the
Chinese and Indian Major Carps hand over the role to the private sector.
A limited number may need to remain in operation only Establishment of
Marine Finfish Hatcheries:
The culture of marine finfish has a huge potential in the country but has
been seriously constrained by the lack of seed stock.
Value Chain Freshwater Hatcheries:
Establish to cater for identified poor farmers, and focus on species of high
value that current private hatcheries are unable to produce. These would
largely be high-value indigenous species such as the Giant Catfish,
Featherback and others, whose populations in natural waters appear to be
declining. The seed production of these species can be used to support
their farming as well as to increase recruitment to natural stocks through
public stocking programmes.
Marine Finfish Hatcheries:
Investment in seed production infrastructure for marine finfish seed,
particularly for groupers, but also for other species, is central to the ability
of Myanmar to become a major player in the region marine aquaculture
sector.
Data and
Information
Seed supply information system
Investment M&E
Cost/Duration TBD
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Fisheries 7 Establishment of a network of Aquaculture
Technology Centres
Objective
Technologies developed at research levels are verified in particular agro-
climatic environments.
Fisheries operations have access to laboratory system for diagnostic
services and water quality measurements.
Interventions and Investments
Policy Policy development on technical support services for the fishery sector
Institutions Establish a network of Aquaculture Technology Centres and Laboratories
centres throughout the country that would reflect the agro-climatic zones,
if not the regions and states.
Value Chain Demonstrations to local operatives and entrepreneurs interested in the
particular technology.
Processing of samples through the laboratory system and feedback.
Data and
Information
Information systems on available technologies, demonstration, exposure,
uptake, and impact.
Laboratory information system
Cost/Duration TBD
Fisheries 8 Establishment of a Processing Industry
Development within the Department of Fisheries
Objective
Fisheries processing industry as a major facet of sectoral development.
Interventions and Investments
Policy Policy development on fisheries processing and value adding industry.
Institutions Establishment of a Processing Industry Development within the
Department of Fisheries
Value Chain Survey of fish processing and value-adding constraints and opportunities
Data and
Information
Fisheries processing industry information system
Cost/Duration TBD
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Fisheries 9 Promotion of Aquaculture Optimization Initiatives
Objective
There is more land available for aquaculture development.
There is expanded cage and pen culture to enhance existing inland water
production.
Interventions and Investments
Policy Policy support for more and for aquaculture and expanded cage and pen
culture
Institutions No specific recommendation
Value Chain No specific recommendation
Data and
Information
No specific recommendation
Cost/Duration TBD
Fisheries 10 Provide greater access to financial capital for the
sector
Objective
Fishery sector actors have better access to capital
Interventions and Investments
Policy
Institutions Financial services aligned to support current small-scale industries, and
larger scale investors
Value Chain Small scale and microfinancing needs to support current small-scale
industries that need funds for replace degraded productive assets (nets,
fishing lines, etc) or make small investment in upgrading production (e.g.
procuring a grinder for fish meat for processing).
Financing for larger scale investors, either within the industry, or
intending to get into it.
Investment Promotion to attract investors to bring capital into the
fisheries sector.
Data and
Information
Information on demand and supply of capital to the fishery sector
Cost/Duration TBD
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Forestry
Forestry 1 Sustainable management of Shifting Cultivation areas
Objective
Smallholders in upland areas have improved livelihoods from a variety of
agricultural and agro-forestry interventions
Interventions and Investments
Policy No specific recommendations
Institutions No specific recommendations
Value Chain introducing appropriate crop varieties
people can be educated to produce bio-fertilizers
fodder, green manure or cash crops can be introduced, both for support to
agriculture and livestock
take up soil and water conservation measures by use of appropriate
species in the Shifting Cultivation areas and also by stabilizing the slopes
with vegetation and crops
Data and
Information
No specific recommendations
Cost/Duration No specific recommendations
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Forestry 2 Development of Agro forestry on private lands
Objective
Farmers benefit from a range of agro-forestry interventions: soil has
additional organic matter in the soil; enhanced agricultural productivity
from shelter belts; more green manure, fodder, fruits, fuel wood, small
timber, poles and posts for use by the farmers; better soil and moisture
conservation.
Interventions and Investments
Policy No specific recommendations
Institutions No specific recommendations
Value Chain Extension activities on agroforestry.
Agroforestry on permanent agricultural lands.
Agroforestry on shifting cultivation lands.
Agroforestry on saline lands.
Data and
Information
Agroforestry information system (technologies, exposure, uptake, impact)
Investment M&E
Cost/Duration TBD
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Forestry 3 Development of Community Forestry
Objective
Smallholders have improved livelihoods from harvesting forest products.
Forest resource is protected.
Interventions and Investments
Policy Need clear legal provisions wherein people are empowered to get into an
arrangement with the government of Myanmar through the Forest
Department, by signing a legally enforceable document. This document
should clearly define the duties and responsibilities of the Forest
Department, Community Forest User Groups (CFUG) and other
government departments which are active at the village level, besides it
should also outline the role of NGOs and CBOs.
Strengthening CFUG on technical and management.
Institutions Technological support and back stopping from FD is absolutely essential
on continuous basis. FD can also often play a conflict resolution role
between CFUGs and within the CFUG.
Value Chain Initial planning process and preparation of Management Plans
FD and the CFUGs should jointly prepare a Management plan
The focus of CF should be to address livelihoods.
Linkage of CF to agriculture and livestock is essential.
FD should meet the initial cost of planting and maintenance for 3 years.
Develop mechanism for proper distribution of the forest products.
Capacity building of the people not only on technical and management.
Provision of economic incentives for conservation of forest areas and also
for cottage industry level products.
Data and
Information
CF information system
Cost/Duration TBD
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Forestry 4 Establishment of Bamboo based enterprises and bamboo
marketing
Objective
Smallholders make income from the harvesting and processing of
bamboo, based on a scale up of current manufacturing, and a scaled up of
the marketing system.
Interventions and Investments
Policy
Institutions Provide institutional credit facilities to the home and cottage
entrepreneurs, at preferably subsidized rate so that they are not compelled
to sell their products at rock bottom prices.
Support home and cottage entrepreneurs to form cooperatives or
federation at appropriate levels where they are able to pool their products
and bring it to the market place wherefrom it can be sold on regular basis
in established shops.
Value Chain Extension of appropriate technology for processing of bamboo shoots,
proper packaging.
Create a market channel.
Data and
Information
Bamboo information system: technologies, supply chain and markets;
demonstrations; uptake and impact.
Cost/Duration TBD
Forestry 5 Afforestation in Dry Zone
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Objective
Smallholder livelihood is improved through improved soil productivity
resulting from reclamation of soils, and availability of fodder, and green
manure from afforestation.
Interventions and Investments
Policy No specific recommendations
Institutions No specific recommendations
Value Chain Investments in the soil preparation and planting of different species in
various zone:
Species for afforestation in dry zone and upland areas.
Species for reclamation of saline and sodic soils.
Species for plantations in coastal zone.
Data and
Information
Afforestation information system: technologies, species; demonstrations;
uptake and impact.
Cost/Duration TBD
Forestry 6 Salvage Logging, Tending and Restoration of Degraded
Moist Deciduous
Objective
Smallholders improve livelihoods through involvement in salvage and
sale of timber small lying scattered in the forests.
Reduced fire risk in degraded forests.
Interventions and Investments
Policy No specific recommendation
Institutions No specific recommendation
Value Chain No specific recommendation
Data and
Information
No specific recommendation
Cost/Duration No specific recommendation
Forestry 7 Restoration of Degraded Forest
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Objective
Smallholders benefit from employment on programs to restore degraded
forests.
Interventions and Investments
Policy No specific recommendation
Institutions No specific recommendation
Value Chain Planting with suitable species, providing tending to the existing natural
regeneration and coppice shoots and also by taking up appropriate soil
and moisture conservation measures.
Close and fence off areas off from grazing fire and removal of any kind
for at least 5 years.
Weed growth should be cleared; patch burning should be done.
Planting and fertilising. Soil working to capture rain water. Rigid fire
protection.
The choice of species for the areas would vary depending upon the
quantum of rainfall, extent of openness and the type of soil.
Data and
Information
No specific recommendation
Cost/Duration No specific recommendation
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Coastal
Coastal 1 Land Use Policy
Objective
Smallholders will benefit from their land assets being secured in the
context of a clear land use policy.
Interventions and Investments
Policy Develop a Land Use policy for the coastal zones
Institutions Multi-sectoral institutions need to be involved in the land use policy.
Value Chain No specific recommendation
Data and
Information
Designate an agency to facilitate and manage a central land and resource
information system that is accessible by all stakeholders
Cost/Duration 5-10 years
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Coastal 2 Integrated Coastal Management Authority
Objective
Smallholders will benefit from coastal area management being
effectively coordinated.
Interventions and Investments
Policy Policy and legislation are needed to fix the current situation:
Policy frameworks and existing legislation for management of coastal
resources are fragmented, ineffectively implemented and only provide
limited mandate to regulate or control activities that may impact upon
the coastal zone; there is poor implementation and enforcement of
management regimes within the coastal zone; there is lack of clarity of
existing mandates and delineation of responsibility between agencies and
ministries related to coastal zone management
Institutions Establishment of an Integrated Coastal Management Authority. This will
decide the management strategies for:
Protecting natural resources;
Managing development in high hazard areas;
Giving development priority to coastal-dependent uses;
Providing public access for recreation;
Prioritizing water-dependent uses; and
Coordinating state and federal actions.
Value Chain No specific recommendation
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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Coastal 3 Restoration of degraded mangroves through Ecological
Mangrove Restoration (EMR) technique
Objective
Smallholders will benefit from cash for work, and from improved flood
control resulting from restoration of degraded mangroves.
Interventions and Investments
Policy No specific recommendation
Institutions Educate and train stakeholders including local Forest Department and
line agency staff to increase awareness of the need for forest protection
and conservation.
Provide training in mangrove restoration to organisations working in
different mangrove areas in Myanmar.
Value Chain Assess the ecology, especially reproduction and distribution patterns, of
the mangrove species at the disturbed site;
Map the topographical elevations and hydrological patterns that
determine how seedlings should establish themselves at the site;
Assess the changes made to the site that currently prevent the site from
recovering by itself;
Design a restoration plan that begins by restoring the normal range of
elevations and tidal hydrology at the site; and
Monitor the site to determine if the restoration has been successful in
light of the original objectives
No Nursery development required for this technique; it depends on
hydrology restoration and natural recruitment
Encroached areas are restored to mangrove cover
Data and
Information
Mangrove information system
Cost/Duration 5-10 years
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Coastal 4 Small scale entrepreneur development
Objective
Smallholders will benefit from becoming small entrepreneurs or gaining
employment in entrepreneurial activities.
Interventions and Investments
Policy No specific recommendation
Institutions Establish an apex body for assisting the Government in formulating and
overseeing the implementation of its policies and
programmes/projects/schemes.
The apex body may be developed with a view to give a new orientation
and strength to the development of Small Scale Industries in the coastal
states of Myanmar. The main objective should aid, counsel, assist,
finance, protect and promote the interests of Small Industries.
May play a vital role in revival, development and growth of traditional
skills of Myanmar by responding to the diversified need s of
entrepreneurs and marketing their products in Myanmar as well as
abroad.
Value Chain Small entrepreneurs cover a wide range of business activities. The range
of products manufactured by small-scale industries is very wide:
manufacturing industries; village and cottage industries; handlooms and
handicrafts; modern small entrepreneurs; personal services e.g. fashion
shops, dry cleaning restaurants, etc.
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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127
Coastal 5 Developing fodder and wood fuel farms using the native
grasses and trees
Objective
Smallholders will benefit from improved income from livestock through
better feeding, and income from fuel woods, stakes, poles and bee forage,
as well as helping in soil fertility improvement and soil erosion control,
and serving as an ornament tree.
Interventions and Investments
Policy No specific recommendation
Institutions No specific recommendation
Value Chain Fodder crops may be planted specifically to provide feed for cattle farms.
Plenty of native fodder, palatable grass and wood fuel species are
available in the coastal regions
A well maintained fodder tree plots can continuously produce fodder for
10 – 20 years. It is important to keep it free of weeds and fill the gaps in
the early stages.
Other uses include fuel woods, stakes, poles and bee forage, as well as
helping in soil fertility improvement and soil erosion control, and serving
as an ornament tree.
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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Coastal 6 Harvesting Rainwater
Objective
Smallholders will benefit from access to water for potable and farming
water demands by harvesting rainwater and restoring water bodies and
catchments.
Interventions and Investments
Policy No specific recommendation
Institutions Collaboration among several government agencies. Central Water Board
or committee, Information System for both surface and groundwater
Comprehensive Laws and Acts for Water (Drinking and Irrigation water
supply)
Infrastructure improvement & Management improvement; Appropriate
National Standard for drinking water and waste water; Restriction on
import of toxic pesticides and chemical fertilizers; Encouragement of
utilization of natural fertilizers; Reforestation
Although the conservation of natural water resources is taken into
account in the government policies, the comprehensive legal mechanism
for governance of groundwater is still needed.
Value Chain Application of water saving devices (eg. Sprinkler, drip); Reuse of water
Public Awareness on Water Use and Efficiency and Conservation:
Role of education sector
Technical measure for water conservation
Media campaign
Community Base to Community Manage System
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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129
Coastal 7 Alternative fuel and energy options
Objective
Smallholders will benefit from alternative fuel and energy options to
reduce dependency and pressure on the coastal forest
Interventions and Investments
Policy Review the present system of wood fuel production, distribution and
marketing, demand supply chain in Myanmar
Recommendations on appropriate policies and strategies to improve the
wood fuel plantation situation in the country
Institutions Developing strategies by which small- and medium-scale charcoal
production controlled and regulated by local communities to make the
charcoal trade more sustainable
Certification of wood fuel Forest Management in the coastal region
Value Chain Using fast-growing native plantation species rather than slow-growing
hardwoods, increasing efficiencies of charcoal kilns and stoves, and
finding alternative sources of energy can reduce the impact of charcoal
production.
To implement programs for use of wood fuel saving device the extension
arms of some projects have introduced the use of new fuel-efficient
stoves.
Rural communities are also encouraged to overcome fuel wood scarcity
through the use of crop residues.
Rice husk gasifiers and rice husk / sawdust briquettes are being produced
and distributed
Mechanisms to distribute proportions of Oil and Gas from the local fields
for the local utility
Wave and tidal energy, Solar energy harnessing
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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130
Coastal 8 Skills assessment and capacity building
Objective
Smallholders will benefit from institutions and agencies having better
skilled staff; and from access to training.
Interventions and Investments
Policy Specific laws and regulations for skill development of the populace
Institutions Capacity building of institutions for planning, quality assurance and
involvement of stakeholders.
Creating institutional mechanism for research development quality
assurance, examinations & certification, affiliations and accreditation.
Increasing participation of stakeholders, mobilizing adequate investment
for financing skill development, attaining sustainability by strengthening
physical and intellectual resources.
Coordinating with the existing agencies and government to identify
locations and strategies for skill and capacity building with all
stakeholders
Introducing both the structural streams formal and informal of technical
education to cater the small to medium technology-based enterprises;
Value Chain Promoting life long learning, maintaining quality and relevance,
according to changing requirement particularly of emerging knowledge
economy.
Creating effective convergence between school education, various skill
development efforts of government and between government and Private
Sector initiative.
Vocational trainings and technical education and main stream education
with life skills
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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131
Coastal 9 Natural Resource Mapping
Objective
Smallholders will benefit from participation in awareness and
conservation initiatives through the community.
Interventions and Investments
Policy no specific recommendations
Institutions Strengthen analytical power of RS-GIS mapping of natural resource
managers, policy planers, administrators, biologists, botanists, ecologists,
environmental regulators, hydrologists, planners, miners, petroleum
engineers, foresters, and farmers.
Form Project teams including stakeholders multi faculties and community
Obtain necessary land parcel data set
Determine base map content and layout
Modify ranking system
Produce draft base maps for review
Survey standards, forms, calibration baselines, permanent survey marks
and other resources
Revise ranking system as necessary
Zones and Community wise Soil resource development plan, Water
resource development plan, Vegetation resource development plan, Land
use and Land cover plan can be developed
Contact key landowners and provide land protection
Plan and conduct outreach to town boards, citizens and landowners
Value Chain Awareness and training programs with stipulated objectives of
conservation and sustainable utilization
Data and
Information
Generation of Geo-database
Cost/Duration 5-10 years
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Coastal 10 Economic valuation of the coastal and marine ecosystems
Objective
Smallholders will benefit from long-term investments in the coastal zone
based on economic valuations.
Interventions and Investments
Policy Economic evaluation will contribute to policy development
Institutions Build capacity of institutions in the economic valuation for important
ecosystem goods and services under five future land-use scenarios using
varying levels of costs, prices and discount rates.
Economic evaluations can be undertaken at the individual level (e.g.
individual farmer), sectoral level (e.g. farming sector) or societal level
(e.g. single country)
Cost/Benefit Analysis - CBA
Cost-effectiveness analysis – CEA
Valuing the benefits of interventions
Value Chain No specific recommendation
Data and
Information
The importance of both the data and the understanding is underscored by
the potentially large amount of economic activity and value that may be
tied to the health of the Myanmar coastal ecosystem and by the potentially
large economic benefits of improved management.
Cost/Duration 5-10 years
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Coastal 11 Coastal Resources Management Research and Extension
Objective
Smallholders will benefit in the long-term from research and extension
based on scientific information.
Interventions and Investments
Policy
Institutions The research and monitoring program should include (1) ensuring a
stable environment for research through long-term protection of coastal
resources; (2) addressing coastal management issues through coordinated
coastal and estuarine research within the System; and (3) collecting
information necessary for improved understanding and management of
marine, coast and estuarine areas, and making the information available
to stakeholders.
Understand how estuaries function and change over time, to predict
how coastal systems respond to changes in climate and human-induced
disturbances
Provide up-to-date scientific information and skill-building opportunities
to the people who are responsible for making decisions affecting coastal
lands and waters
Establish Research Centers and Institutes with different faculty and
academic units.
Centers/Institutes could serve as a focus of scholarly activity and
intellectual creativity, focal points for interaction with research sponsors,
and serve to amplify competitiveness in obtaining research funding in the
designated areas
Value Chain Organize regular Coastal Training Programs to stakeholders to provide
up-to-date scientific information and skill-building opportunities to
individuals who are responsible for making decisions that affect coastal
resources
Data and
Information
No specific recommendation
Cost/Duration 5-10 years
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134
Cooperatives
Cooperatives 1 Review and revision of the cooperative legal and
regulatory framework
Objective
Smallholders will benefit in the long-term from a quality legal and
regulatory framework.
Interventions and Investments
Policy The cooperative legal and regulatory framework must be revised to
comply with international standards. At present, the main document (the
Law) is from 1992 and represents the legal environment of the military
government of that time. In that context the cooperative sector was,
effectively, an extension of the government and used as a mechanism to
carry out government activities.
In order to allow the cooperative sector to develop independently from
government, this framework must be reviewed and revised.
The outputs would be a new law, model bylaws, and new regulations
which are properly supervised by the Department of Cooperatives.
Institutions National, regional and township round tables will be held, as facilitated by
the International Expert. These will be attended by cooperative members
and leaders, Department of Cooperatives staff, and members of
Parliament. Based on the results of these stakeholder meetings, a final
national roundtable will be held at which a proposed law will be presented
to Parliament. Model bylaws will also be developed for adaptation by
each society and regulations, drafted by the roundtable, will be presented
to and approved by the Ministry of Cooperatives.
Value Chain No specific recommendation
Data and
Information
No specific recommendation
Cost/Duration USD 0.5 m / 2 years
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135
Cooperatives 2 Development of a cooperative education and
training system
Objective
Smallholders will benefit in the long term from better skills of the people
in the cooperative system.
Interventions and Investments
Policy Develop policy on cooperative system human resources.
Institutions A national cooperative education and training system which is owned by
the cooperative system. This will eventually (hopefully within 5 years) be
housed at the cooperative training institutes which will, by that time be
fully owned by the cooperative system.
The sequence of activities would be: a national needs assessment of the
cooperative system.
Appropriate training modules will be designed.
A mobile member education program will begin.
Staff training will take place, in cooperation with the training institutes;
study tours to other countries in the region will take place. This will
include both cooperative and Ministry of Cooperatives staff. Finally, at
the end of each year, education and training programs will be assessed
and a new needs assessment will take place, diving the next cycle of
activities.
Value Chain No specific recommendation
Data and
Information
Investment M&E
Cost/Duration USD 2 m; 5-10 years
NAPA Interim Report
136
Cooperatives 3 Institutional development of a national cooperative
system
Objective
Smallholders will benefit in the long term from a functional national
cooperative system.
Interventions and Investments
Policy Develop policy on Institutional development of a national cooperative
system
Institutions The cooperative system as a whole needs to be rationalized, based on
current verifiable data, as well as best cooperative management and
governance systems.
Cooperative organization and development is required. Additionally,
computer hardware and software should be adapted and installed in all
Unions and federations.
Transparent hiring procedures at all levels of the cooperative system, a
representative elective and governance process within all cooperative
structures, and gender equity measures will be implemented. NGOs
which have been registered as cooperatives out of convenience will be re-
registered as NGOs or associations. Financial functions will be separated
from multipurpose cooperatives and all will become single purpose
cooperatives. NGO initiatives in village association development which
are of a pre-cooperative nature will be officially encouraged, financially
and technically. As appropriate such initiatives will result in rural
cooperatives.
Establishment of a data collection system, registered in an MIS housed
within CCS; revised and standard hiring procedures, elective systems
which guarantee representation of all, and gender equity measures.
Cooperative census will take place.
Special fund will be dedicated to assisting NGOs in the development of
village community associations.
Value Chain
Investments
No specific recommendation
Data and
Information
Cooperative management information systems (MIS); a data collection
system which will be monitored on a monthly basis.
Cost/Duration USD 4m/ four years
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Rural Employment
Rural Employment 1 Support policy and institutional change to
promote decent rural employment
Objective
Smallholders will benefit in the long-term from temporary or permanent
rural employment in the context of an enabling policy environment.
Interventions and Investments
Policy Provide policy and institutional support to key national stakeholders
(mainly agricultural and rural development line-ministries, and
representatives of producers’ cooperatives, federations and unions) in
order to improve the national enabling environment for decent rural
employment.
Review legislation: Occupational Safety and Health, national list of
hazardous work, social protection (to include agriculture sub-sectors,
smallholders, casual workers and migrants’ rights)
Elaboration of a national employment/rural employment strategy
Capacity building of line ministries to include DRE aspects into
agricultural policies, strategies and programmes
Institutions Raise awareness and integrate principles of Voluntary Guidelines in
agriculture- related policies and NAPA.
Provide technical inputs to include social and labour aspects into codes of
conduct and certification schemes
Based on results of the labour survey 2015, develop analysis on decent
rural employment (DRE) and identify data and research gaps
Develop a ‘roadmap’ for the elaboration of a national employment
strategy, in partnership with ILO and other key stakeholders
Value Chain
Investments
No specific recommendation
Data and
Information Capacity building of line ministries to include DRE aspects into relevant
M&E and statistical systems.
Provide technical inputs to improve Myanmar statistical capabilities on
decent rural employment issues (e.g. strengthen statistical capabilities in
the design of a module on rural labour including age and gender-specific
data)
Cost/Duration TBD/Short term < 5 years/ Long term-> 5 years
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Rural Employment 2 Integrate Decent Rural Employment in
Support Programmes for Smallholders and Landless
Objective
Smallholders will benefit from additional skills that could increase their
employment opportunities, gained from involvement in support
programmes focused on agriculture
Interventions and Investments
Policy Mainstreaming rural employment issues into agriculture support
programs.
Institutions Develop and disseminate adapted guidance materials on specific DRE
aspects of agriculture sub-sectors
Design and implement adapted trainings in agriculture-specific
occupational safety and health practices for extension agents with a
priority focus on farming and fisheries.
Make OSH/safe working practices issues mandatory components of
extension workers’ capacity development plans.
Value Chain
Investments Support the integration of OSH in trainings planned in the different sub-
sectors with a priority focus on farming and fisheries.
Ensure that vocational education and training programmes combine not
only technical skills with business and entrepreneurial skills, but
additional skills related to specific needs of target groups e.g.
literacy/numeracy.
Sensitization activities on child labour in farming / fisheries in
collaboration with ILO in regions where child labour has been identified.
Organize a capacity development workshop on child labour prevention in
agriculture in collaboration with ILO.
Data and
Information No specific recommendation
Cost/Duration TBD/Short term < 5 years/ Long term-> 5 years
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Rural Employment 3 Design and Implement a Market-
Oriented Vocational Training and Rural Youth Entrepreneurship
Programme
Objective
Improve livelihood for youth in rural areas by creating decent rural
employment for young women and men along area-based priority
agricultural value chains.
Interventions and Investments
Policy Develop a ‘roadmap’ for the elaboration of a national youth employment
strategy, engaging agriculture and labour stakeholders, youth groups’
representatives, and in partnership with ILO. Develop a national youth
employment strategy
Institutions Identify mechanisms to increase the uptake of rural youth employment
activities into national policies, programmes and strategies
Value Chain
Investments Contextualize the Junior Farmer Field and Life Schools (JFFLS)
methodology. It combines support to vocational educational training
opportunities (merging agricultural, business and life skills) with business
development support, group cooperation and access to markets.
Train trainers on youth employment for ministries of agriculture and
labour, local government authorities and farmer’s organizations.
Carry out JFFLS with selected youth beneficiaries
Engage public sector, private sector (farmers’ associations, federation,
unions, MFI)
Support the inclusion of youth in Farmers’ Organizations so they can
benefit from their services.
Support youth to design/apply affordable certification schemes.
Increase public awareness on “youth employment in agriculture”
Data and
Information No specific recommendation
Cost/Duration TBD/Short term < 5 years/ Long term-> 5 years
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Rural Employment 4 Design and Implement Social Protection
Schemes that Support Decent Rural Employment
Objective
Smallholders, fishermen, and agriculture wageworkers have access to
social protection systems.
Interventions and Investments
Policy Contribute to the national dialogue on social protection floor.
Institutions Workshop to raise awareness on the linkages between social protection
and DRE and to share successful experiences from other countries;
Targeted public work programmes that:
Include skills development and access to health care
Integrate OSH components to improve working conditions
Ensure adequate level of wages (and equal pay for men and women)
Targeted conditional cash transfer programmes to support children’s
education, or provision of inputs or livestock in combination with skills
development activities;
Establishment of micro-insurance schemes with MFI against sickness,
injury, unemployment, natural disasters/loss of harvest,
Direct
Investments No specific recommendation
Data and
Information No specific recommendation
Cost/Duration TBD/Short term < 5 years/ Long term-> 5 years
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Rural Finance
Rural Finance 1 Community Managed Financial Services
(CFMS)
Objective
Smallholders have improved access to financial services through
community managed schemes.
Interventions and Investments
Policy no specific recommendation
Institutions Capacity building of Village Organizations.
Direct
Investments Community groups under this model require strong technical support in
financial service management. Provide seed capital grant to resource poor
rural communities especially women.
CMFS will initially be operated by MFI/INGO; gradual to being managed
solely by each Village Organization.
The CMFS mechanism inherently includes an exit strategy.
In case of breach of contract, the VO would return the seed capital grant
to MFI/INGO which will be distributed to other communities.
Data and
Information Develop CFMS information system
Cost/Duration Long term
Land Tenure
Land Tenure 1-17
1 Support on-going policy dialogue at national and local levels
This support should also emphasize on strengthening good land governance
from the perspective of agriculture and rural development. This support should
be anchored around government’s ongoing work on NLUP, drafting of the land
law and other policy and regulatory instruments.
Long-term (10-15 years)
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2 Disseminating Good Practices on Strengthening Tenure Security
NAPA should consider to establish itself as a platform for disseminating good
practices in smallholder tenure security in the region and globally.
Donors and development partners should consider supporting
government/DRD/NAPA to disseminate Voluntary Guidelines on the
Responsible Governance of Tenure of Land, Fisheries and Forests in the
Context of National Food Security (VGGT) Principles on Land Tenure through
a series of stakeholder workshops and forums.
Long term 10-15 years
3 Support Theme-based Land Governance Assessment Studies (L-GAS)
Conduct a series of theme-specific L-GAS that should contribute to building
knowledge and support policy-making and program implementation. The policy
dialogue should be guided to be cross-sectoral with high-level engagement for
successful implementation of reforms. In building food security and livelihoods
for the farming communities, it should also encourage discussion on tenure
linkages in water (e.g., fisheries, access to irrigation facilities and collective
community water bodies) and forests
Medium-term (5-10 years)
4
Support protection and recognition of (a) customary tenure, and (b)
shifting cultivation areas (through policy development and
implementation of pilots)
Practical experimentation which involves the rural and farming communities
in the search for appropriate solutions.
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Give government recognition to the various customary rights and usages, and
existing land tenure transactions and agreements; the second is to gradually
formalize these rights, usages, transactions and agreements, in response to
requests from the people concerned. Adopt and implement the law on the
Recognition and Protection of Customary Tenure. The law should clarify
certain aspects of the scope of the rights of customary tenure based on local
traditions and practices.
The law should include a clause on resolution of disputes and underscores the
importance of Indigenous Courts. Disputes over customary land rights
between local communities and outside parties to be settled through a
customary institution only. The decision of the customary institution may be
appealed to the judiciary.
Medium-term (5-10 years)
5 Encourage local resolution of land disputes
Legal, financial and institutional support for local resolution of land disputes
should be provided. The draft of the new land related legislations should
include support for the development of locally based dispute resolution
mechanisms to address the land conflict. These mechanisms should be made
as legally enforceable and realistic.
Long-term (10-15 years)
6 Promote Projects to Rehabilitate Degraded Land Areas
Identify degraded land areas to map out current use and landholders.
Prepare local land development plan
Financial support and technical advice for designing and implementing area-
specific programs to ‘distribute degraded land’ to various poorer community
members
Formal government assurance of post-recovery tenure security for the local
landless or near landless families (to prevent expropriation by influential local
leaders).
Medium-term (5-10 years)
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7 Support programs to increase soil quality and provide wage-labour
Identify eligible set of landholders, who are poor and whose land requires
improvement.
Define conditions of land rehabilitation.
Undertake large-scale initiatives to restore soil fertility.
Assign responsibility for land rehabilitation programs to local committees.
A package of support services and technical assistance for farming should
also be provided to enable recipients.
Medium-term (5-10 years)
8 Promote Social Land Concessions
Develop a clear policy for land distribution (in the context of National Land
Use Policy and other instruments)
Develop a land database (starting with a local land use planning)
Develop a clear set of criteria for land distribution and disseminate it widely
Ensure provision of support services to land recipients (beneficiaries).
Long-term (10-15 years)
9 Establish a “Green Village” Program and Support National Support
Facility
This will be a village/community development program based on sustainable
use of land and natural resources.
Establish a National Support Facility to enhance tenure security of small and
marginal landholders through incentives for land-based activities either at
household or community level.
This Facility should consider “open menu” approach to provide flexibility
required for communities and respond to different tenurial needs.
Long-term (10-15 years)
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10 Rehabilitation and maintenance of community water bodies
Promote fish ponds for diversifying small-scale farms with fruit crops or
seasonal vegetables.
Educate farmers on the benefits of producing crops and feeding fish directly
or for livestock or livestock manure being used as pond inputs.
Long-term (10-15 years)
11 Adopt Territorial Approach to Land Development Programs
Government should develop criteria for creating village administrative
boundaries based on community perceptions of boundary rather than
statistical standards.
Medium-term (5-10 years)
12 Periodic and transparent public consultations that elicit people’s views
on land use for the area
The government, prior to granting a large-scale land lease, should engage in
periodic and transparent public consultations that elicit people’s views on
land use for the area for policy-making and investment decisions,
Medium-term (5-10 years)
13 Support preparation and enforcement of guidelines for private sector
The private sector and those investing through contract farming should
engage with small and marginal farmers in a way that minimizes the risk to
the farmer and maximizes benefit.
Provision of model contracts, information such as market prices, and an
independent facility to test compliance with agreed and tightly specified
standards can also support farmers’ bargaining powers.
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Develop, document and disseminate best practices in contract farming and
private sector investment which maximize benefit for both farmers and
economy in general, and explore other mechanisms which allow conditions
under which private sector investments and contract farming are beneficial,
and how the government and private sector can work together to establish
these conditions.
Dissemination of good practices and the Principles of Responsible
Investments in Agriculture should be supported.
Medium-term (5-10 years)
14 Strengthen the bargaining power of the farmers by forming
economically stronger and viable local entities
Strengthen the bargaining power of the farmers by forming economically
stronger and viable local entities.
Bring private sector and those investing in contract farming in line with
comprehensive land use planning, encourage accountability, equity, and
transparency.
Clear regulations for such investments in land allocation and use might
benefit both farmers and the investors, as would guidelines on how to engage
with smallholder farmers, and codes of conduct.
Medium-term (5-10 years)
15 Support an education program for smallholder farms on merits and
demerits of contract farming
Educate farmers on contract farming: include elements of contract
negotiation, cultivation practices, and management.
Public policy is critical in the establishment and maintenance of contract
farming, particularly when it involves small and marginal landholders.
Establish a clear legal framework for the contracts and allowing accredited
extension agents to provide technical assistance.
Medium-term (5-10 years)
334.
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16 Support an operation for the establishment of a National Land Parcel
Inventory (forest and non-forest land)
Develop a nationally complete, geo-referenced land parcel inventory database
and procedures for sustainability and information access.
Preceded by quick government measures to reign or or at least slow down
land grabbing and compulsory evictions.
Empower communities to protect land and natural resources within their
village and neighborhood.
Support a comprehensive and complete fundamental geo-referenced database
to improve transparency of all decision making about land – including land
allocation, land concessions, land acquisition, land use planning and so forth.
Long-term (10-15 years)
17 Support the government to benchmark priority land governance
indicators for monitoring
Conduct a quick land governance assessment to assess and prioritize the
indicators for national level monitoring.
Efforts to benchmark governance indicator should also include a capacity
building and awareness raising component on good land governance.
Conduct a series of thematic Land Governance Assessment Studies
immediately covering: (a) a policy dialogue for land and forestry sector
reforms; and (b) assist the government and other stakeholders to identify
immediate, medium and long-term priorities.
Disseminate VGGT Principles on Land Tenure widely within the government
and among civil society so that policy discussions and public consultations
are anchored around a standardized reference point.
Medium-term (5-10 years)
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Marketing
Marketing 1 Policy Review
Objective
Smallholders will benefit in the long-term from a coherent agricultural
marketing policy.
Interventions and Investments
Policy Policies may be in place but are implemented at varying levels by
different agencies while coordination among and between them are
expected, this may not be functioning well.
Priority areas are on: agricultural research that focuses on production,
marketing, processing and packaging; on border trade; on trade
promotion.
Institutions No specific recommendation
Value Chain No specific recommendation
Data and
Information No specific recommendation
Cost/Duration Minimal/one year
Marketing 2 Build capacities of government institutions
Objective
Smallholders will benefit in the long-term from improved marketing
systems
Interventions and Investments
Policy No specific recommendation
Institutions Capacity building on basic agricultural trade and marketing within the
value chain context will entail series of training/ workshops of frontline
technical and marketing staff of the MOA, MOLFRD, MOF, and MOC.
Value Chain No specific recommendation
Data and
Information Investment M&E
Cost/Duration TBD
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Marketing 3 Business Model Development
Objective To develop a model of business development.
Interventions and Investments
Policy No specific recommendation
Institutions No specific recommendation
Value Chain Production, processing enterprise centers are initial areas where
documentation and actual piloting may be undertaken.
Develop business models as examples.
Example: Eucalyptus processing
Research and development; Pilot testing of the enterprise; Conduct
feasibility studies; Technical Market; Organization and Management;
Financial; Documentation
Scaling up of pilot models if proven viable (technical, market and
financial aspects)
Similar process could be applied to other promising commodities
Data and
Information Model documentation
Cost/Duration TBD/ 3-5 years
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Marketing 4 Empowering producer organization (POs) on
collective actions
Objective
Smallholders can benefit from engagement in producer organizations to
improve product marketing.
Interventions and Investments
Policy No specific recommendation
Institutions The PO‘s of prioritized commodities to undertake capacity building
through Farm Business Schools (FBS)
Direct
Investments Field based learning venue on raw material sourcing identifying market
opportunities, researching and following up on how markets are accessed.
Set objectives; Identify the institution involved (MOAI, DRD); Design
the FBS curriculum (with pre testing); Formulate selection criteria for
PO‘s to be included and extension workers/facilitators; Orient both the
PO‘s and the extension workers who will be involved in the process; Pre-
test the curriculum or an actual field activity involving the facilitators;
Enhanced/ finalized FBS curriculum and implementation of schedule.
Evaluate results.
Document and scale up when FBS are proven effective, if not
adjustments (approach, content, etc).
Data and
Information No specific recommendation
Cost/Duration At least 2 cropping seasons
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Marketing 5 Support system/ Infrastructure
Objective
Smallholders may benefit from improved marketing facilities at Muse
Border Trade Zone.
Interventions and Investments
Policy No specific recommendation
Institutions Review of the Muse Border Trade Zone (MBTZ) with the end of view of
expanding its facilities and services to Myanmar Farmers/ Traders set up
farmer/ trader post-harvest facilities (storage, cold chains, etc.)
MBTZ is said to house wholesale centers, warehouses, showrooms, weigh
budges, cold storages, trade fair pavilions, and other facilities. However,
farmer traders still claim during the field activities, that most of the time
they are at the mercy of Chinese (other) traders for lack of option
(storage, cold chain packages) at a price they can afford.
Direct
Investments
Review systems, operations and facilities of MBTZ. Identify barriers to a
successful marketing transaction for an ordinary producer/trader and how
best to address them.
Develop and institutionalize a system towards the objectives and if
needed build additional post-harvest facilities (sorting, storage and
packaging areas) for use of marginalizing producer/ trade.
Data and
Information No specific recommendation
Cost/Duration 1-2 years
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Marketing 6 Research and Development
Objective
A Value Chain analysis which can target interventions to benefit
smallholders.
Interventions and Investments
Policy No specific recommendation
Institutions Development of partnership modalities with academic institutions and or
producer groups or private sector to advance trade and market research in
Myanmar.
Value Chain Conduct of commodity specific market research and value chain analysis
at township, regional or national level.
Identify markets and commodities having difficulty accessing the
identified market.
Follow the value chain (production to consumption) and identify where
the gaps are (barriers to entry) and potentials by level in the value chain.
Identify areas for action plan for their implementation and evaluate
results.
Input results to planning process of institutions/ POs.
Data and
Information Value Chain analysis report
Cost/Duration 3 years preparing the roadmap for the said project but each assessment
activity could be for 6 months.
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Gender and Social Inclusion
Gender and Social Inclusion 1 Reorientation of agricultural
programmes
Objective
Gender and social inclusion issues are mainstreamed in agricultural
programmes
Interventions and Investments
Policy Policy support for mainstreaming gender and social inclusion into
agricultural programs
Institutions Preparation of a series of short concise briefing documents assessing each
of the government’s policies/programmes in agriculture, land tenure, rural
development.
Activities Hold consultations nationwide to develop participatory problem analyses
of the priority policy issues from the perspective of farmers and landless
agricultural labourers (needs, concerns, and constraints) in each region
that need to be addressed.
Summarise the results of the consultations highlighting regional and local
differences, the different perspectives of specific sectoral groups, as well
as major issues emerging.
Continuing iterative process providing regular opportunities for
landholding and landless farmers, technicians and policy makers to
discuss and analyse activities together, such as an annual policy forum, to
ensure local needs and constraints are addressed in annual programming.
Data and
Information Investment M&E
Cost/Duration 2 years initially, to be funded in the following years under a more
permanent process within regular budgets
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Gender and Social Inclusion 2 Participatory research and extension
support programme
Objective
Gender and social inclusion issues are mainstreamed in agricultural
research and extension
Interventions and Investments
Policy No specific recommendation
Institutions Re-vision the staff and programs of the DAR and DOA to include gender
and social inclusion into research and extension programs.
Activities Research facilities to be expanded where necessary to accommodate and
facilitate new research projects that respond to locally identified
priorities.
Outreach programme should specifically be accessible to women
Participatory research projects designed in collaboration with groups of
men and women farmers.
Specific attention and budgets should be given to ensure the access of
women to training sessions
Systematic evaluations to determine impact on beneficiaries and their
communities in particular.
Data and
Information no specific recommendation
Cost/Duration 10 years
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Gender and Social Inclusion 3 Small-scale socially-inclusive agri-
businesses
Objective
Create market access for community produce but also to generate off-
farm employment particularly for the younger generation (women and
men).
Interventions and Investments
Policy Develop policy initiatives to address the lack of rural employment
Institutions no specific recommendation
Activities Training in managing small-scale enterprise development, in particular
amongst youth.
Promoted businesses should be socially inclusive, and should encourage
the participation of women.
Focus on socially inclusive business development within the cooperative
sector.
Invest in women’s business initiatives, remove gender-based barriers for
accessing formal investment credit.
Once functioning community businesses are established, the focus should
turn in following years to the establishment of networks and clusters of
communities can begin to grow and work together to present
opportunities for bulk supply of community produce. Develop linkages
with other community based businesses from larger networks or
cooperative enterprises.
Data and
Information Investment M&E
Cost/Duration 5 years
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Gender and Social Inclusion 4 Develop equitable market access for
the resource-poor
Objective Resource poor smallholders have better market access
Interventions and Investments
Policy no specific recommendation
Institutions no specific recommendation
Activities Pilot interventions in each state/region, gradually increasing to
interventions in each district and township.
Development of community marketing enterprises.
Establishment of transparent market spaces where prices are publicly
declared and transactions are monitored, based on the experience of
commodity exchange centres.
Promote mandatory spaces within existing fresh markets or market halls
for products from validated community enterprises.
Data and
Information Investment M&E
Cost/Duration 5 years
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Gender and Social Inclusion 5 Training and forums for improved
cooperation and mutual learning between sectors
Objective
Ministry staff and others in Myanmar have experience and knowledge
from international sources.
Interventions and Investments
Policy no specific recommendation
Institutions Build institutional capacity through conferences, study tours, and visits.
Activities Annual agricultural sector conference with international inputs from
ASEAN countries. Study visits for small groups of mid-level staff and
field staff to other ASEAN countries. Study visits/internships for young
farmers and graduates to learn about rural employment opportunities in
farming communities in ASEAN countries.
Data and
Information no specific recommendation
Cost/Duration 5 years; 1 forum annually. 2 study visits annually. 2 study visits and 6
internships annually.
Post Harvest
Post-Harvest 1-8
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1 Training on post harvest and agro-processing
Staff from public and producer organisations can be enagaged as trainers.
Training of all the stake holders in the post harvest supply chain.
Include improved post harvest and agro- processing technologies as well as good
agricultural practices (GAP) and good manufacturing practices (GMP) that would
ensure food hygiene and safety.
Establishment field demonstration sites in the 15 Regions to enhance effectiveness
of technology transfer to farmers and other stakeholders in the post harvest chain.
2 Capital for post harvest and agro-processing
The Rural Development Fund provided by the Department of Rural Development to
Regions is extended to develop rural sector post-harvest and agro- processing
activities.
Concessionary credit is given by the Agriculture Development Bank to post harvest
and agro-processing activities.
Loan packages for post harvest and agro-processing
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3 Farmer group formation
Registered farmer groups have easy access to credit and sharing of information on
good practices in post-harvest and agro-processing management.
Engage with Agriculture Cooperatives, Village level Women’s Organizations,
Farmer Organizations and non-governmental Organizations (NGO’s)
Capacity building activities on group formation
4 Market information
Since farmers rely mostly on collectors and traders to get information on prevailing
and future market demands and prices for agricultural commodities, which can be
inaccurate, it is important to impart knowledge to them on the current and future
market situations for agro/food products through mass media such as TV, radio etc.
In this context, utilizing further the Farmer TV Channel run by the Department of
Agriculture to cover the post-harvest and agro-industries sector assumes
importance.
3 Farmer group formation
Registered farmer groups have easy access to credit and sharing of information on
good practices in post-harvest and agro-processing management.
Engage with Agriculture Cooperatives, Village level Women’s Organizations,
Farmer Organizations and non-governmental Organizations (NGO’s)
Capacity building activities on group formation
4 Market information
Since farmers rely mostly on collectors and traders to get information on prevailing
and future market demands and prices for agricultural commodities, which can be
inaccurate, it is important to impart knowledge to them on the current and future
market situations for agro/food products through mass media such as TV, radio etc.
In this context, utilizing further the Farmer TV Channel run by the Department of
Agriculture to cover the post-harvest and agro-industries sector assumes
importance.
5 Product inspection and certification for quality and safety
Inspection and certification of agricultural and food commodities produced by the
rural sector by an accredited institution is an essential requirement to enter attractive
domestic as well as export markets. In this context, the Food and Drugs
Administration (FDA) of the Ministry of Health needs to extend services to the
rural sector to provide certification for GAP, GMP, and HACCP etc. Further, it is
important that private sector accredited institutions are established for product
inspection and certification.
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6 Training of rural artisans
Upgrading of technology in rural workshops by provision of training, credit and
other support services will encourage local manufacture of necessary machinery and
equipment for improvement of rural level post harvest and agro-processing
industries.
7 Infrastructure facilities
Upgrade the wholesale markets by provision of scientifically designed premises
with adequate space and facilities for temporary storage and to perform
packinghouse operations such as cleaning, sorting and grading. There should be
adequate space for storing empty containers and for proper loading and unloading
from transportation vehicles. Proper waste disposal facilities should be made
available in the markets to minimize contamination of the produce.
The public retail markets too should be improved to minimize physical, chemical
and microbial contamination of the commodities and to perform marketing under
hygienic conditions.
Since initiation of viable post-harvest and agro-processing industries require
electricity, it is necessary to provide adequate electricity to rural areas.
8 Strengthening of research activities
Even though adequate research is being carried out in agricultural production and
pre-harvest operations, sufficient research is not carried out to solve technological
problems confronting the post-harvest and agro-processing sector. Hence there is an
urgent need to strengthen the manpower and material resources of the present
research and development organizations to undertake both pure and applied
research in post-harvest and agro-processing technology.
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ANNEX 2: POLICY AND INSTITUTIONAL CONSTRAINTS IDENTIFIED
IN EACH COMMODITY SECTOR
A summary of the major issues identified and described in the crops, livestock, fisheries and
forestry sectors for smallholders, in more detail in the Technical Working Papers, is shown in the
following table:
Policies and
legislation
Education and
Training Research
Line Government
capability
Value Chain
Governance
Cropping
Lack of policy on
agricultural R&D
and extension
system. Policy and
legislation on land
tenure issues. Lack
of coherent
development
strategy to guide
water resources
investment
Lack of
agricultural
education
investment to
support the
research and
extension system
Inadequate
investment in
agricultural
research services;
no mechanism for
coordination within
research, and
between research,
extension and
education
Need to realign
MOAI with
respect to
priorities,
approaches,
decision-making,
transparency; lack
of qualified staff;
inadequate water
sector statistics
and data
Agriculture
value chains
are inefficient
Livestock
Lack of policy on
smallholder animal
health services,
breed
improvement,
animal genetic
resources, forage
development and
extension system
Weak capability
of veterinary and
livestock under-
graduate and
post-graduate
education;
inadequate
training system to
support
smallholder
animal health
service, and
expand to
breeding,
feeding,
productivity
extension system
Lack of livestock
applied research
system, and poor
linkages to
education and
extension
LBVD capability
is concentrated on
animal health with
little capability in
breed
improvement,
forage/feeding and
extension;
laboratory and
epidemiology
functions need
strengthening;
Statistics and data
collection is poor
Lack of value
adding
strategy to
define public
and private
sector roles
Fisheries
- Lack of an
overarching policy
for the food
production sector;
- A comprehensive
policy for fisheries
and aquaculture
that encompasses,
among others,
extension and R &
D is lacking
Human resource
development
infrastructure for
fisheries in
Myanmar at all
level is absent or
rudimentary
Lack of a research
and development
function
DOF is focused on
management
rather than
development;
absence of field
laboratories; poor
collection of
statistics and data
Institutional
fragmentation at
Union level and at
State/Regional
levels
No dedicated
Government
support for
expanding
and growing
the industry
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Forestry
Lack of policy and
statutory support is
required to support
Community
Forestry. Lack of
enabling policy
environment for
growing of trees
on farm lands, its
harvesting,
marketing, and
sale, and of the
products. Lack of
security of tenure
of shifting
cultivators
Several training
centres have been
established with a
specific mandate
to produce
competent
foresters, trained
forest technicians
and carry out
research activities
Lack of a research
function
FD concentrates
on harvest of
timber, with lack
of effort in
research, natural
regeneration,
restoration,
afforestation,
reforestation and
agro forestry;
Township Forest
Officers are not in
a position to
control illegal
logging
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ANNEX 3: CONSTRAINTS IN COMMODITY SECTOR VALUE CHAINS
Access to Inputs
and Services
Natural Resource
Management Productivity
Marketing
and Markets
Value
Addition
Cropping
Weak extension
system/ services;
Lack of inputs
including land,
irrigation, draught
power, equipment,
fertilizer and
improved HYV
seed;; Lack of access
to capital
Insecurity of land
tenure and user rights;
need for increase in
cultivated areas;
Lack of effective
water harvesting and
management
practices. Minimal
maintenance of flood
defences.
Low level of crop
diversification;
Post-harvest crop
losses are high in
some cases; need
for improved
small-scale
community
managed
irrigation
schemes; climate
change
adaptation
measures.
Lack of
market
oriented
production in
rice
production;
Lack of
producer
organization
(POs) on
collective
actions; lack
of market
information
Lack of
access
markets,
marketing
information,
trading skills
Agriculture
value chains
are
inefficient.
Livestock
Weak animal health
services; lack of
improved animal
breeds; lack of
improved feeds; low
access to capital; lack
of extension system/
services
Lack of grazing
management systems
could lead to
overgrazing and low
productivity of cattle,
sheep, goats in the dry
zone could lead to
degradation
Need to
improved
reproductive,
growth and
survival and turn-
off rates of
livestock; need to
match livestock
to market
demand. Threat
of emerging and
new diseases
Need better
farm gate
trader
competition;
need better
live animal
market
infrastructure
and
slaughterhous
e facilities
Low level of
value adding
and
processing.
Value adding
limited
largely to
dairy sector.
Fisheries
Access to capital;
seed production for
the aquaculture;
freshwater
hatcheries; marine
finfish Hatcheries;
weak extension
system
Current off-take rate
will deplete natural
resource.
Uncontrolled
expansion of fishing
effort and illegal
fishing in inland
fisheries
Increased exotics,
decline in
indigenous fish in
leasable fisheries
Poor handling
and storage
infrastructure
at smaller
landing points,
including ice
availability.
Scope for the
development
of value
added
fisheries
products
beyond
freezing and
chilling.
Forestry
Encroachment,
shifting cultivation,
illegal logging,
unsystematic or over
exploitation of forest
products. Lack of
Investment in Forest
Regeneration and
Development
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164
ANNEX 4: CONSTRAINTS IN COOPERATIVES AND RURAL FINANCE
Cooperatives Rural Finance
Constraints Opportunities Constraints Opportunities
Lack of autonomy National coverage Current interest rate
caps
Significant demand
for credit and other
financial services
Lack of trust by the population Strong government
support
high level of
informality
Large room for
expansion of
services
No other options Provision of services Constrained product
offerings
Largest priority
market is farmers
No participation by members Potential to
empower
current regulatory
environment
No incentive for landless Potential market
linkages
Limited MFI
capacities
No knowledge of the roles and
responsibilities of members
Under developed
micro savings
No staff/board distinction at the
village and township levels
Inappropriate and
inefficient products
and services
Inappropriate promotion role of
the Ministry of Cooperatives
Lack of funding to
meet demand
Gender Inequity Lack of electronic
infrastructure
External subsidized loans
Small farmers
cannot provide right
of use documents
The Cooperative Society Law Informal credit is
expensive
The Cooperative Society Rules
Shares
Lack of member education
Lack of focus at the training
institutions
No evident open hiring practices
Lack of data
Inadequate representation
NGOs registered as cooperatives
Multipurpose cooperatives
Adoption of Rules (Bylaws)
National policy of a cooperative
in every village
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165
ANNEX 5: RURAL EMPLOYMENT AND GENDER AND SOCIAL
INCLUSION
Rural Employment Gender and Social Inclusion
Constraints Opportunities Constraints Opportunities
Concerns on land reform affect
investment in farming; Small size
of land plots due in part to the
inheritance practices
Good opportunities
for development of
the agribusiness
sector
Women’s role
within agriculture
sectors have not yet
been fully
understood
Poverty reduction
has been placed at
the heart of the rural
development
policies
Climate vulnerability, soil
erosion and reduced yield; Lack
or absence of infrastructures,
especially roads, water for
consumption and for irrigation,
and electricity
Increased demand
for food and new
products, and
employment due to
demand from
tourists and urban
population
Women face barriers
in attending training;
Lack of off-farm
rural employment
opportunities
Mandatory quota of
at least 2-3 women
within the village
level project
management
committees
Lack of technical, organizational
or managerial human capital
Increased mobility
(especially with
motorbikes) and
access to cell phones
Lack of appropriate
business regulatory
frameworks
New policy
environment
represents a key
opportunity; Many
interesting pilot
initiatives have been
developed
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166
ANNEX 6: MARKETING, TRADE, POST-HARVEST AND AGRO-
INDUSTRY
Marketing and Trade Post-Harvest and Agro-Industry
Constraints Opportunities Constraints Opportunities
Inadequate investment in
physical infrastructure,
processing facilities and
equipment are barriers to
access better markets
Strategic location
(proximity to major
trading partners, China,
India and Thailand).
Farmer and other
stakeholders in the
supply chain lack
basic knowledge and
awareness
Good opportunity to improve dairy
and pulse, oilseed, and fish
processing, and to reduce post-
harvest losses in rice, pulses,
oilseeds, vegetables, fruits, and
fish
Lack of market
information coupled
with poor statistical
systems
High production
capacity (rice, pulses,
fishery, rubber and
maize)
Inadequate capital
for adoption of
improved post
harvest and agro-
processing
technologies
Training, credit and other support
services will encourage local
manufacture of necessary
machinery and equipment
Limited credit facilities High export standing
(pulses)
Lack of adequate
market knowledge
Upgrading wholesale markets will
increase efficiency
Lack of regulatory
process and standards as
well as laboratory
facilities has delimited
the potentials of meat
processing in the
country
Available markets
domestic and export
Huge Export Potential -
rice, pulses, fruits,
vegetables,
pulses(China, India,
ASEAN)
Rural farmers and
processors have
inadequate
awareness on the
importance of
product certification
for GAP, GMP,
HACCP
Proper waste disposal facilities
will minimize contamination of
produce; Improving public retail
markets will improve hygiene
Lack of commercial
breeds that will pave the
way for the entry to the
discerning export market
Potential for:
Agricultural expansion
(large area available
plantation crops -
rubber, sugarcane,
timber, etc)
Insufficient
availability of
electricity in the
rural areas
Improving access to electricity in
rural areas will promote more
processing; Expanding
communication channels can bring
market and product information to
farmers
Lack of sustainable
agriculture investment;
low Institutional
capacity
Opportunities in live
cattle and meat exports;
sheep and goat live
animal and meat
exports
Strengthening applied research in
post-harvest and agro-processing
technology can lead to more value
adding
Import and commercial
taxes on medicine and
feed supplement
additives
Foreign companies are now
seeking opportunities in feasible
areas of Myanmar agri-business
High incidence of
livestock diseases
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167
ANNEX 7: CONSTRAINTS AND OPPORTUNITIES IN LAND TENURE
Land Tenure
Constraints Opportunities
Customary
tenure and
community
forestry
Large areas of land are maintained as fallow.
These are recorded as “wastelands” in village
records and under the provisions of Wasteland
Act 1991, they become available for allocation
to entrepreneurs or commercial ventures
Constitution of 2008 recognized taungya as
a land-use practice
1948 Constitution of Myanmar recognizes the
existence of culturally diverse communities
but not their institutions, organizations, laws,
and rights on land matters
Family farming remains the backbone of
rural livelihoods and has been shown to be
dynamic, responsive to change, and an
important source of agricultural investment
but confronting numerous challenges
Customary institutions and arrangements are
weak or co-opted
Credit for smallholders has become costlier
and difficult to access
Individual shifting cultivation holdings are not
formally registered or surveyed
Farmland Law of 2012 is considered
indicative of the government intention to
reform land sector and improve land
governance
Rule 116 of the Farmland Rules under the
Farmland Law, 2012 seeks to abolish shifting
cultivation
A modernized land-information system
needs to be in place for Myanmar to secure
full benefits from the LUCs issued so far
Land
Administration
Land administration in Myanmar is
characterized by multiple and overlapping
institutional mandates, laws, and regulatory
frameworks, and weak land classification
Recent policies suggest government intent to
pursue reforms in a phased manner
Indeterminate entitlements to land; lack of a
comprehensive land registry and related
geospatial information; lack of formal
methods to protect and recognize customary
rights to land; lack of processes allowing
Free, Prior, and Informed Consent; excessive
application of the State’s power of eminent
domain; and a policy for the allocation of land
concessions that ignores or overrides the
customary rights and interests of other rights
holders.
Consider undertaking a land governance
analysis to establish a baseline against best
practice, and monitor progress in tenure
security of farm households over a period of
time
Reliable and updated land information is
limited
CSOs have taken on an active role to
facilitate dialogue on pro-poor and impartial
land reforms; government has been willing
to create mechanisms to include CSOs in its
work to understand grassroots issues
Geographical Information System (GIS)
capacity within SLRD is used only for
cartography
Increased public awareness and community
participation in land governance is critical
land administration is characterized by
overlapping laws and weak land classification
Advocacy and awareness-raising sessions
should be organized
Unfavourable government policies deter
investments in land particularly among small
and medium-scale land holders
Consider the establishment of a single land-
agency for administration (including
registration) of public forest and non-forest
lands.
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168
Need to support the GoRUM’s current
process of law harmonization
Land development is disorderly and land-use
planning is weak, triggering an uninformed
land market that relies on unregistered
transactions and speculative deals
Access and use modern technology and
mobilize geospatial information through:
- Access and use of modern technology for
managing integrated land information
system.
- Use of appropriate technology to promote
participatory land use planning with the
communities.
- Progressive move towards e-governance
in land administration.
Land confiscation, land acquisition, and land
concessions
Numerous examples of landholders pursuing
good and sustainable practices in land
transactions at the local level
Government’s policies and regulations
classifying land areas as ‘fallow’ and for
acquiring land from current holders are rather
vague
Draw on available knowledge along with
best global practices and experiences
The Governments needs technical assistance
and support to develop fair compensation,
resettlement and restitution where
appropriate – and access to recourse
measures
Obstacles to women’s access to land and
property rights
Public awareness raising programs; build up
awareness and capacities of land agencies
and local authorities and gender-land issues;
encourage enhanced participation of women
in land registration programs
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169
ANNEX 8: REGIONAL STUDY TOUR PARTICIPANTS
No Nominated Person Position Department Ministry
1 Mr. Zaw Min Htut Director Livestock Breeding & Veterinary
Dept. Ministry of
Livestock, Fisheries
and Rural
Development
2 Ms. Yin Yin May Assistant Director Dept. of Rural Development
3 Mr. Naing Win Staff Officer Minister’s office
4 Mr. Aung Nyi Toe Deputy Director Dept. of Fisheries, Mon State
5 Mr. Thura Soe Deputy Director Dept. of Agriculture Ministry of
Agriculture and
Irrigation 6 Mr. Htay Oo Director Dept. of Irrigation
7 Mr. Lwin Oo Deputy Director Dept. of Social Welfare Ministry of Social
Welfare, Relief and
Resettlement
8 Mr. Sai Tun Nyo Director Union Minister Office Ministry of Border
Affairs
9 Mr. Myint Wai Director Dept. of Trade Promotion Ministry of
Commerce
10 Mr. Oo Tin Thein Deputy Director
General
Co-operative Trade Promotion
Dept.
Ministry of
Cooperative
11 Mr. Nyo Htay Deputy Director Financial Regulatory Department Ministry of Finance
and Revenue
12 Ms. Swe Swe Naing Director General Administration Dept. Ministry of Home
Affairs
13 Mr. Aung Khine Director Planning Department Ministry of
National Planning
and Economic
Development
14 Mr. Soe Tint Assistant Director Forest Department Ministry of
Environmental
Conservation and
Forestry
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170
ANNEX 9 TOWNSHIP AND REGIONAL WORKSHOPS
The location, date, and participation in the four township workshops and four regional
workshops are shown below.
Township Workshops
No. Township Region Date Participants
1 Monywa Dry zone April 27, 2015 122
2 Pyinoolwin Hilly April 30, 2015 96
3 Myeik Coastal May 7, 2015 92
4 Kungyangone Delta May 11, 2015 121
Total 431
Regional Workshops
No. Township Region Date Participants
1 Mandalay Dry zone April 29, 2015 120
2 Taunggyi Hilly April 5, 2015 100
3 Pathein Delta May 13, 2015 131
4 Mawlamyine Coastal May 15, 2015 129
Total 480
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171
APPENDIX
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172
National Consultation on Direction and Guidance for Future Course of NAPA
Objectives
The National Consultation was organized with one principal objective:
To provide an overview of NAPA including the outputs of Phase-I and to seek guidance of the new
government for the implementation of Phase-II of NAPA.
Outputs
I. As expected the following outputs were produced from the consultation:
II. Direction and guidance for the future course of NAPA through address of the H.E. Minister
of Agriculture, Livestock and Irrigation, deliberations of Focus Group Discussions and views
expressed by panel members; and
III. The consultation significantly enhanced the understanding about NAPA among union and
state/region level government officers, members of Parliament and other relevant
stakeholders who are expected to play important role in the implementation of NAPA Phase
II.
Participants
A total of 127 persons from various agencies participated in this national consultation including:
Policy makers and senior level government officers of the NAPA line ministries including PSC
members and NAPA Focal Points representing various ministries / departments; Minister of
Agriculture or top official from each of the 15 States / Regions of the country; Chairmen of
Parliamentary Committees related to agriculture and rural development; Selected development
practitioners drawn from various government and non-government agencies and other relevant
stakeholders / advisors; and Representatives of selected UN agencies (UNICEF, WFP), and
international development agencies like USAID, EU, etc.
Conclusions derived
• NAPA is relevant to the development priorities of the government and the findings and
recommendations of Phase-I of NAPA are useful for the development of a strategic,
comprehensive and integrated poverty alleviation and rural development policy framework
for Myanmar.
• Phase-II of NAPA to be developed as an overarching strategy for the development of
equitable, inclusive and pro-poor growth leading to mitigation of pervasive rural poverty in
Myanmar.
• Reorganization of the MOALI by merging agriculture, livestock, fishery, cooperatives and
rural development ministries/departments is now better suited for the development of NAPA
Phase-II and to facilitate and accelerate poverty alleviation and rural development through
wider farming system perspective, reducing internal barriers and enhancing interdepartmental
coordination.
• Phase-II focus need to be on small-holder farmers and their empowerment by making it
easier for them to get organised into groups in order to gain collective power and better
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173
access to information, knowledge, services, technology and markets and cope with risk and
shocks.
• Strengthening livelihoods of smallholder farming households requires support to both
farming and non-farming activities such as crops, livestock, fisheries, forest resources,
wages, other non-farm activities and remittances.
• There is potential for further crop yield and income enhancement through improved
efficiencies in the R&D and extension delivery systems. Development and transfer of
technologies which are better suited to small holder farmers including resilient agriculture,
nutrition sensitive agriculture, conservation agriculture, integrated farming, etc., are
important for the farmers to intensify, diversify and integrate their farming practices for
enhanced productivity and profit. However, Agricultural Research, Extension and Education
institutions are weak and so the coordination mechanism among them.
• Farmers need multidimensional services at the village level encompassing agriculture,
livestock, fishery, cooperative, forestry, etc., that calls for higher public investment in
extension so that it can cover the entire rural supply chain. There is also need to develop an
appropriate institutional and operational setup to ensure effectiveness and efficiency of the
unified extension system. .
• Institutional, policy & legislative measures need to be in place at National, Regional, and
Local level.
• Private sector investment is equally important in agriculture and, hence, measures are
required to encourage private sector investment that benefits smallholders.
• Easily accessible and affordable institutional credit with extended terms of repayment is a
critical need for small holder farmers. Private sector investment needs to be encouraged in
this area.
• Common property natural resources such as forest, fisheries, water areas and pasture land
need to be best used for developing sustainable livelihoods for rural poor communities
through community participated management approaches with due consideration to
conservation of aquatic and terrestrial biodiversity and protection of habitat deserves
attention.
• Application of ICT to increase access of smallholders, marginal farmers, and poor
households to good agricultural practices, technologies, and information in order to diversify
and improve income of smallholders, marginal farmers, and poor households.
• A reliable and comprehensive statistical system is essential to support formulation and
periodical assessment of policy and strategies in the agriculture and rural development
sectors.
• In order for Myanmar’s agriculture to be globally competitive, productivity of water, land,
labour and product quality has to be improved. Quality and food safety aspects need to be
promoted among smallholder farmers too. Small farming households also suffer from high
rate of malnutrition resulting in low productivity.
• Policy changes to the Land Law will be needed to address the issue of changes to land use,
land tenure and land management system, that will be identified during the village planning
process.
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174
• Interventions are needed in relation to securing sustainable access to natural resources,
expanding the number and value of assets, increasing net income and improving nutrition,
strengthening capacity to manage and cope with shocks and developing rural enterprises and
other employment as key to poverty alleviation through agriculture.
• Investment plans need to be clear, concrete and comprehensive covering short, medium, and
long term interventions. Prioritization of interventions should take into account government
policies, political sensitiveness, technical feasibilities and environmental sustainability.
• Sharing ideas, energy and resources between farming communities, public and private sector
and civil societies need to be utilized in a cooperative and collaborative manner.
Coordination among various departments and line ministries of the government is equally
important.