Agriculture and Food SecurityAgriculture and Food Securityin Myanmar

Gary C. Jahn Agriculture Development Officer

USAID

The contents do not necessarily reflect the views of USAID or the United States Government.

Sources

• Michigan State University / MDRI Agriculture and Food Security Diagnostic for Myanmar (USAID 2013)

• USAID 2013 Land Tenure and Property Rights Assessment of Myanmar

• ASH Center Studies 2009-2012• ADB Agriculture Sector Assessment, Myanmar 2012-

2014• Discussion Paper No. 63. Agricultural Policies and

Development of Myanmar’s Agriculture Sector (IDE 2006)

Asia

Source: http://wwp.greenwichmeantime.com/time-zone/asia/_derived/index.htm_txt_map-of-asia.gif

Potential of Myanmar for Agriculture

High Potential• Exceptional resources (water, land, location, climate)

– Water: 10 times as much per capita as China and India; 2 times as much as Vietnam, Thailand and Bangladesh

– Land: 14 million acres virgin and fallow; 83 million acres of forest– Strategic location: near major regional markets

• Diverse ecosystems diversification potential• Relatively low population pressure• High potential for increased land use

Population Densities

Country PopulationLand area (sq

mi)Density per sq

mi

Myanmar (Burma) 47,382,633 253,954 187

Cambodia 13,881,427 68,154 204

Thailand 64,631,595 197,595 327

China 1,313,973,713 3,600,927 365

Vietnam 84,402,966 125,622 672

India 1,095,351,995 1,147,949 954

Bangladesh 147,365,352 51,703 2,850

Source: http://www.infoplease.com/ipa/A0934666.html

How crowded is Myanmar?

How crowded is Myanmar?

How big is Myanmar?

Source: http://www.infoplease.com/ipa/A0934666.html

Percentage of land used for agriculture by each country

Source: http://data.worldbank.org/indicator/AG.LND.AGRI.ZS

So how does Myanmar compare to the region?

• GDP per capita?• Farm income?• % in poverty?• Food security: affordability, availability,

safety?• Malnutrition?

Low incomes, high poverty

Agricultural income per

worker

Poverty (%<

$1.25/day)South Korea $19,807Malaysia $6,680 4Indonesia $730 3Thailand $706 8Bangladesh $507 11Cambodia $434 5Vietnam $367 4Myanmar $194 26

Status of Myanmar in Region

Source: CIA World Factbook - accurate as of January 1, 2012 http://www.indexmundi.com/g/r.aspx?v=67

Food Security in Region

Cambodia

Bangladesh

Nepal

Myanmar

Pakistan

India

Sri Lanka

Vietnam

Thailand

Malaysia

Malnutrition: Deaths per 100,000

Source: WHO, World Bank, UNESCO, CIA , country databases for global health and causes of death. http://www.worldlifeexpectancy.com/cause-of-death/malnutrition/by-country/

High levels of food insecurity: Stunting by state/region

Lowest % of agricultural products imported (2010)

1 Equatorial Guinea

2.40 %

2 American Samoa 2.87 %3 Singapore 2.94 %4 Argentina 2.95 %5 India 2.97 %

6 China, Hong Kong SAR

3.85 %

7 Thailand 4.06 %8 Republic of Korea 4.42 %9 Australia 4.53 %

10 United States of America

4.53 %

11 Zambia 4.63 %12 Brazil 4.82 %13 China 4.95 %

Source: http://faostat.fao.org/site/342/default.aspx; http://www.english.globalarabnetwork.com/200908302449/Related-news-from-Saudi/saudi-arabia-food-a-agricultural-imports-to-grow-by-25-in-2009.html

Highest % of agricultural products imported (2010)

11 Haiti 30.11 %12

Sao Tome and Principe 28.85 %

13 Tonga 28.22 %14 Cape Verde 27.54 %15 Tuvalu 27.44 %16 Yemen 27.15 %17 Samoa 26.50 %18 Myanmar 25.54 %19

Solomon Islands 25.41 %

20 Senegal 24.94 %Source: http://faostat.fao.org/site/342/default.aspx; http://www.caribbean360.com/index.php/news/barbados_news/182495.html; http://www.presstv.ir/detail/37413.html

Poverty & food security indicators

In Southeast Asia, Myanmar has: • Lowest GDP per capita, • Low food affordability and availability • High malnutrition, • Lowest farm incomes• High import of agricultural products

Historical Agricultural Performance

• Example: rice & bean exports

http://www.myspace.com/123945320/photos/11106187#%7B%22ImageId%22%3A11106187%7D

World’s Top Rice Exporters 1961

Source: http://faostat.fao.org/site/342/default.aspx

World’s Top Rice Exporters Today

Source: http://faostat.fao.org/site/342/default.aspx

World’s top Bean Exporters 1961

World’s Top Bean Exporters Today

Source: http://faostat.fao.org/site/342/default.aspx

Myanmar rice production

Rice production (millions of tons)

~5 million ha paddy

~8 million ha paddy

Why did beans out-perform rice in Myanmar?

Fujita & Okamoto (2006) found:• After 1988, sluggish growth in all crops

covered by policy constraints• But a self-sustaining increase in output of

crops outside the remit of agricultural policy• Today pulses and beans are Myanmar’s

largest export item

What were these policies?

In the socialist period:• Farmers required to sell rice to government at

below market prices • A system of rationing cheap rice to

consumers through shops and cooperatives• Subsidized transport for rice – lowering price

in boader areas• Government monopoly on rice exports

What was the result?

• Link between supply & demand broken• Domestic rice prices & farm income kept

artificially low• Farmers had no incentive (or means) to increase

production; • Remote areas lacked incentive to produce

cheap rice• No market driven demand for improved

technology

What about beans?

• No compulsory sales to government at below market price.

• No rationing • No government export monopoly• Bean prices rose in response to increased

demand inside AND outside Myanmar • Production rose in response to increase

demand for beans; demand for technology

Why is agricultural productivity low?

• Poor policies• Poor water control • High transport and transaction costs• Conflict• Land access, ownership, use• Limited budgets for key supporting ministries• Structure of agricultural support institutions• Traders well-organized, farmers not• Weak data

Let’s discuss current agricultural policies

and how they are affecting

agricultural development and food security.