Myanmar Policy Forum

Min Aung and Francesco Goletti

Developing a Competitive Seed Industry in Myanmar

26-27 August 2013, Nay Pyi Taw, Myanmar

Rationale• Agriculture contributes about 32% of Myanmar’s GDP

• Myanmar has a huge potential to become a credible global food supplier

• To attain this potential, Myanmar will need to intensify its agriculture and enhance farm productivity and competitiveness

• This will require higher production and use of quality seeds and the development of a competitive seed industry

Outline1. Trends2. Opportunities3. Constraints4. Policy Issues5. Road Map

1.TRENDS• How is the seed sector performing?• Hos is the seed sector changing?

Overall performance is weak but positive features

are emerging- Certified seeds for rice cover less than 10% of sown area - Yield gap still high - Declining trend in yield growth+ Hybrids growth (40% of vegetables area and 70% of corn area)+ Growing foreign and domestic private sector investment + Partnerships between private sector and public sector in rice seed+ Seed Law enacted in 2011 and come into force in 2013

Thail

and

India

Myanm

ar

Bangla

desh

Indon

esia

Vietna

mCh

ina01234567

Rice Yield (mt/ha) Gaps in 2008

+40%+31

%

+76%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

3.133.25

3.313.42 3.42

3.543.64

3.753.83

3.934.03 4.06 4.07

Rice Yield (MT/HA) 1998/99 - 2010/11

Average yield growth is declining

2.2% average 1998-20100.9% average 2007-2010

DARDepartment of

Agricultural Research

Breeder Seeds

Foundation Seeds

DoADepartment of

Agriculture

Registered Seeds

Private Seed Companies

Private Seed Growers

Certified Seeds and

Good Seeds

Seed Distribution

/ Seed Market

Farmers

Public Sector

Private Sector

Public/Private Sector

• Seed Associations?

• Seed Working Groups?

• Seed Task Force?• Seed

Commission?• Seed M&E?

Private Sector in the Seed Industry•Myanmar Rice Industry Association ( MRIA ) has been formed in 2007.•MRIA has been transformed into Myanmar Rice Federation ( MRF ) in 2011.•Under the organization and management of MRF, ( 57 ) Rice Specialized Companies ( MRSC ) have been formed.•MRSCs are implementing Contract Farming Programs.

Private Seed Companies

Company Main Seed Produced in Myanmar

CP Company Hybrid CornKnown You Seed Company

Melons, Cucumber

Malar Myaing Vegetables SeedsMyat Min RiceBayer Crop Science Hybrid Rice

2. OPPORTUNITIES

Leveraging private sector investment and fostering partnerships with private sector and communities to increase productivity and gain competitiveness. Investment • Increased private investment (both domestic and foreign) in the industryPartnerships• Promote Public Private Partnerships with private sector and communitiesCoordination• Between research and extension to create a demand-oriented research and

extension system• Stronger coordination mechanisms among farmers, private sector, and

public sector (seed associations, community-based seed production and seed banks, seed contracts, seed certification, seed information systems)

3. CONSTRAINTS

Low Use of Certified Seed

Awareness and

Knowledge

Price and Affordabilit

y

Access to Market

Quality Assuranc

e

Clear Benefits from UseD

EMAN

DUnder funded

ResearchUnder funded

Extension

Infrastructure

production, processing,

storage

Capacity growers, technicia

ns, research

ers

Incentives for

growers and

companiesSU

PPLY

4. CORE POLICY ISSUES

The combination of limited implementation of the Seed Law with underinvestment in the critical areas of research, extension, quality assurance, coordination, and information.•How to move from formulation to implementation (from Seed Law to Seed Industry Development)•How to provide incentives to farmers for use of certified seed and for private sector to invest•Underfunded research and extension (1-2% of MOAI budget)• Low capacity in quality assurance• Lack of coordination (private-public, center-local, domestic-international)• Lack of information about seed demand and distribution

5. ROADMAP• How to go from constraints to opportunities?• What needs to be done now and later?

RECOMMENDATIONSPOLICY INVESTMENT INSTITUTIONS

a.Seedb.Ricec.Trade

a.Extensionb.Researchc.Seed farm

infrastructured.Laboratoriese.Processing

a.Coordination mechanisms

b.Seed associationsc.Quality assuranced.Membership UPOVe.Market information

Policy RecommendationsSeed Policy• Ensure implementation of Seed Law• Provide mechanisms to support farmers growing seed, farmers adopting

seed, and companies investing in seed• Establish targets, plans and budgets for achieving those targetsRice Policy• Clarify targets, plans, and means to achieve those targets. Trade Policy• Review imports and exports of seed to protect IPR, biodiversity, and

plant varieties. • Strengthen seed border control, quarantine points, and SPS compliance.

Investment Recommendations

•Breeding program (research)• Inspection program•Demonstration program (extension)• Laboratories (research and inspection)•Processing equipment• Seed production farms infrastructure (irrigation, land preparation, storage, equipment)• Promote investment by private sector through an agreed program of initial support which gradually will be reduced over time

Institutions Recommendations

•Coordination mechanism (eg seed commission, task force, working groups, …)•Seed Associations (from community to national federation)•Quality Assurance (including certification of nurseries)•Adherence to principles and standards of UPOV• Information and M&E system (ensure data collection related to seed demand, supply, and distribution)

POLICY INVESTMENT INSTITUTIONS

Short Term (1-2 years)

a.Seed Policyb.Rice Policyc.Trade Policy

a.Seed farm infrastructure

b.Processing

a.Membership of UPOV

Medium Term (1-5 years)

a.Laboratories a.Seed associations

b.Quality assurance

Long Term (1-10 years)

a.Extensionb.Research

a.Coordination mechanisms

b.Market information

Activities Year 1 Year 2 Year 3 Year 4Year

5 Year 6 Year 7 Year 8 Year 9 Year 10

Rice Policy                    

Seed Policy                    

Trade Policy                    

 Seed Farm Infrastructure                     Processing Facilities                     Membership UPOV                    

 Laboratories                     Seed Associations                     Quality assurance system                    

 Extension and Research                    

 Coordination Mechanisms                     Market Information                    

Conclusions1. Although the seed industry overall performance is still weak, some

positive features are emerging, such as a regulatory framework and private sector investment.

2. The greatest opportunity for the development of a competitive seed industry is to leverage the experience and resources of the private sector and communities to assure that farmers have quality seed at the right time and at affordable terms.

3. To overcome the numerous supply and demand constraints, it will be necessary to formulate policies that facilitate the implementation of the Seed Law (seed policy, rice policy, and trade policy), provide incentives to private sector and farmers, and correct for the underinvestment in the critical areas of research, extension, quality assurance, coordination, and information.

Thank you