INVESTING IN SUSTAINABLE AGRICULTURE IN MYANMAR

Organization of an agricultural value chain

Roland PouponYangon Myanmar

20 July 2014

Share of Agricultural Commodities in Food ProductsRice

Instant Noodles

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5%

50%

Agricultural Commodities and Food Trends

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Along with development, the weight of Agriculture

in the global economy is shrinking

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Service Suppliers

Technical assistanceBrokersTradersSurveyorsMarketingLogisticsFinanceInsuranceInternetCertification

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Today, Food is more about energy and documentation which get the added value

than about agriculture

Food Sales Channels Complexity

Broiler supply chain in Thailand Self-consumption

Pulse market in Myanmar

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Food supply chain becomes longer with complex integration

tendencies

Sellers and Buyers Needs

Volume guaranteeLogistics, transportation, storage, loss insurancePayment terms, advance and creditPricesOthers

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First and foremost, both parties are striving to prevent trading risks rather to focus on added

value, cash before profit!

Types of AgreementsCollectorsCooperativesState officeContract farmingMarket deals (auction)Third party channelsFuture marketsOther?

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There is a great diversity of types of deals – no standard how to

share the added value

Transnational CompaniesAgro industries Seeds Fertilizers & feed

PlantationFood processing First transformation Second transformation

Retailers Restaurants Hypermarkets Etc.

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New global players control agricultural commodities know-how, finance and market and as consequence centralize the added value always more downstream

Third Party Certification

HygieneAdministrationEthicsReligionFarming practicesLocalizationTechnologyEnvironmentVarieties/breedsEtc.

TPC

1) Standardization2) Accreditation3) Authentication

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A new way of managing the market between producers and end-consumers to better control the added value distribution

ConclusionFarmers’ empowerment

Financing systemWholesale marketMarketing Tool (OTOP, IGP)

Keep the added value In Myanmar

Maintain environmental assets Forest Know-how Water Soil

Local or Export Market?

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Thank you for your attention !

Roland PouponYangon Myanmar

20 July 2014