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Transforming Myanmar’s AquacultureReforming the law to give farmers the right to cultivate ......

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KEY MESSAGES Aquaculture in Myanmar has massive potential to raise rural incomes and meet domestic and global demand. A competitive aquaculture sector led by small farmers and small and medium-sized enterprises (SMEs) can best generate employment and stimulate rural growth. MYANMAR FISHERIES PARTNERSHIP 4 Transforming Myanmar’s Aquaculture Unlocking the potential for inclusive rural growth, improved livelihoods, and food security SUMMARY Fish is an extremely important component of the Myanmar diet, and demand is growing quickly as the country urbanizes and incomes rise. Aquaculture is ideally placed to meet this demand, while also raising farm incomes and creating employment. This brief identifies three sets of policy options that could help to unlock the full potential of aquaculture’s contributions to rural growth and national food supply. These are: regulatory reforms that allow small farmers to use their agricultural land for aquaculture; improved access to farm inputs and technologies; and greater access to the knowledge and services needed to support sectoral modernization. SECTOR SNAPSHOT Aquaculture refers to the farming of aquatic organisms such as fish, crustaceans, and molluscs. Aquaculture has been growing quickly in Myanmar, at a rate of around 9% per year since 2004, and contributes 21% of the fish consumed nationally. Farming fish generates average profits five to ten times higher than rice and other agricultural crops, and more than twice as much employment per acre as paddy farming. Aquaculture is very concentrated geographically, with 90% of inland fish ponds located in the Ayeyarwady Delta, close to Yangon. A single species (rohu), accounts for around 70% of the fish produced in Myanmar. Shrimp, a high value crop grown mainly for export, contributes just 5.6% of production. Worker harvesting carp from a fish pond in Ayeyarwady Region. Photo by Ben Belton • Allowing farmers to choose how to use their agricultural land is key to unlocking the sector’s potential. Farmers need the support of responsive input suppliers as well as knowledge and information service providers to diversify and modernize production. Government action is needed to improve regulatory frameworks. AQUACULTURE
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Page 1: Transforming Myanmar’s AquacultureReforming the law to give farmers the right to cultivate ... competition within the fish feed sector would drive down prices ... Myanmar aquaculture

KEY MESSAGES

• Aquaculture inMyanmarhasmassivepotentialtoraiseruralincomesandmeetdomesticandglobaldemand.

• Acompetitiveaquaculturesector ledbysmallfarmersandsmallandmedium-sizedenterprises(SMEs)canbestgenerateemploymentandstimulateruralgrowth.

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Transforming Myanmar’s Aquaculture Unlocking the potential for inclusive rural growth,

improved livelihoods, and food security

SUMMARY

FishisanextremelyimportantcomponentoftheMyanmardiet,anddemand

isgrowingquicklyasthecountryurbanizesandincomesrise.Aquaculture

isideallyplacedtomeetthisdemand,whilealsoraisingfarmincomesand

creatingemployment.Thisbrief identifiesthreesetsofpolicyoptions

thatcouldhelptounlockthefullpotentialofaquaculture’scontributions

toruralgrowthandnationalfoodsupply.Theseare:regulatoryreforms

thatallowsmallfarmerstousetheiragricultural landforaquaculture;

improvedaccesstofarminputsandtechnologies;andgreateraccessto

theknowledgeandservicesneededtosupportsectoralmodernization.

SECTOR SNAPSHOT

Aquaculturereferstothefarmingofaquaticorganismssuchasfish,

crustaceans,andmolluscs.

• Aquaculturehasbeengrowingquickly inMyanmar,ata rateof

around9%peryearsince2004,andcontributes21%ofthefish

consumednationally.

• Farmingfishgeneratesaverageprofitsfivetotentimeshigherthanrice

andotheragriculturalcrops,andmorethantwiceasmuchemployment

peracreaspaddyfarming.

• Aquacultureisveryconcentratedgeographically,with90%ofinland

fishpondslocatedintheAyeyarwadyDelta,closetoYangon.

• Asinglespecies(rohu),accountsforaround70%ofthefishproduced

inMyanmar.Shrimp,ahighvaluecropgrownmainlyforexport,

contributesjust5.6%ofproduction.

WorkerharvestingcarpfromafishpondinAyeyarwadyRegion.PhotobyBenBelton

• Allowingfarmerstochoosehowtousetheiragriculturallandiskeytounlockingthesector’spotential.

• Farmersneedthesupportofresponsiveinputsuppliersaswellasknowledgeandinformationserviceproviderstodiversifyandmodernizeproduction.

• Governmentaction isneeded to improve regulatoryframeworks.

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Page 2: Transforming Myanmar’s AquacultureReforming the law to give farmers the right to cultivate ... competition within the fish feed sector would drive down prices ... Myanmar aquaculture

1. ENACT REGULATORY REFORMS

Aquacultureiscapableofgeneratinghigherfarmincomesthanalmostany

otherformofagriculture.Thismakesitanextremelyattractiveoptionfor

ruralfarmhouseholds.Unfortunately,landuseregulationsinMyanmar

prohibitfarmersfromconvertinglandfrompaddyfieldsintopondslegally.

Theserestrictionshavebeenappliedunevenly,allowingsmallfarmsto

developincertainareas,butresultinginhightransactioncostsforfamers

andcreatingariskyinvestmentclimate.Inotherareas,pondconstruction

remainsimpossible.Reformingthelawtogivefarmerstherighttocultivate

whatevercroptheychoosecouldtransformtheaquaculturesector,allowing

formoreefficientutilizationofland,supportinglivelihooddiversification

amongfarmhouseholds,andcreatingmuchlargereconomicspillovers

andemploymentmultipliersthanexistatpresent.

Lackofclear regulationsandcompetingadministrative jurisdictions

governingtheuseofMyanmar’snumerousreservoirsandirrigationcanals

preventtheutilizationofthesewaterbodiesforaquaculture.Thishas

inhibitedthedevelopmentofcage-basedfishfarming,whichiscommon

incountriesintheregion.Licensingaccesstotheseresourcesforusein

aquaculturecouldgeneratenewrevenuestreamsforgovernmentwhile

INTRODUCTION

FishisthesecondmostimportantfoodafterriceinMyanmar.Demandforfishisgrowingfast,asdietschangewithrapidurbanizationandrisingincomes.

Thesupplyoffishfromcapturefisheriesisunlikelytogrowanyfurther,andintegrationintotheASEANeconomiccommunityandtheopeningupof

accesstomarketsintheEUandUnitedStatesiscreatingnewopportunitiesforgrowingexports.Thesefactorscreatea“perfectstorm”ofdemandfor

aquacultureproductsthatwillonlyintensifyasMyanmar’seconomictransitioncontinues.

Myanmar’srecentaquaculturegrowthhasbeendrivenmainlybylargeenterprises,whichhavehistoricallybeenfavoredbygovernment,whilepolicies

prohibitingtheconversionofpaddylandtootheruseshavelimitedtheabilityofsmallerfarmerstoparticipateinthesector.Together,thesepolicies

haveworkedtocreateanunbalancedsectorthatfallsshortofitspotentialtostimulateinclusiveruralgrowth,generatejobs,anddeliverfoodsecurity.

Limitedaccesstoinputs,credit,productivetechnologiesandhumancapitalalsoinhibitoptimalperformance.Thisbriefpresentsaseriesofpossible

optionsforaddressingtheseissues.

2. IMPROVE ACCESS TO FARM INPUTS AND TECHNOLOGIES

ManufacturedfishfeedpricesinMyanmararethehighestAsia.Greater

competition within the fish feed sector would drive down prices

and improvefeedquality, leadingtowideradoptionofhigh-quality

feedsbyfarmersand large increases infarmproductivity.Thiscould

besupportedbyencouraginggreaterdomesticandforeigninvestmentin

fishfeedproduction.

Myanmaraquaculture iscurrentlydominatedbyasinglefishspecies

(rohu).Yieldincreasesachievedbyadoptingmanufacturedfeedscould

beleveragedfurtherbyfarmingsomeofthemanyotherfishspeciesthat

areproducedprofitablyelsewhereinAsia.Thiswoulddiversifythesector

andincreasetheoptionsavailabletofarmersandconsumers.Public-led

investmentsindevelopinganddisseminatinghatcherytechnologyhave

provensuccessfulinthepastinMyanmarforfishessuchasrohu,andthese

successescouldbereplicatedforanewgenerationofspecies.

Inadequate hatchery technology currently represents the biggest

challengetotheproductionofshrimp,ahighvaluecropwithexcellent

exportpotential.Withopportunitiespresentedbythe liftingoftrade

restrictions,nowistheperfecttimetomakeinvestmentstorebuildthe

sectorinanenvironmentallysustainable,sociallyresponsible,andorganized

manner,throughtheimplementationofinternationallyrecognizedbest

managementpractices.

Noformalfinancialinstitutionsupportslendingtosmallerfishfarmers,and

theratesofinterestpaidoninformalloansareextremelyhigh.Increasing

accesstoformalsourcesofcreditforfishfarmersandSMEs inthe

aquaculturesupplychaincanbeaccomplishedthroughthedevelopment

ofspeciallytailoredlendinginstruments.Increasingthesupplyofcreditto

thesectorwouldresultinalessriskyinvestmentclimate,increasesinfarm

productivity,andgreatervolumesofinvestmentalongthesupplychain.

3. STRENGTHEN HUMAN AND INSTITUTIONAL CAPACITY FOR IMPROVED SERVICE DELIVERY

Awelltrainedworkforce isacornerstoneofsustainableaquaculture

development.Thepublicandprivatesectorscanplayimportantsupporting

rolesthroughtheprovisionofeffectiveveterinaryandextensionservices

tofarmers.TheDepartmentofFisheries(DoF)cancontributetosectoral

modernizationandsustainabilitybyregulatingtheuseofchemicalsanddrugs

andensuringtheimplementationofsafefarmpractices.TheDoFcanalso

enablebetterdecisionmakingbycollectingmoredetailedandaccuratefarm

statistics.Developinghumanresourcesandinstitutionalcapacityisthusakey

priorityforMyanmar’saquaculturesectorifitistomodernize,orienttoward

exportmarkets,andcompeteeffectivelywithothercountriesintheregion.

Accesstoaskilledworkforcewithappliedexperienceofworking in

aquaculturewillbeessential if thepublicandprivatesectorsareto

providesupportingserviceseffectively.Unfortunately,Myanmarpresently

suffersfromanacuteshortageofskilledhumanresourcesinthisarea,in

additiontoalackofbasicfacilitiesforaquacultureeducationandresearch.

Universitiescurrentlyofferfewaquaculturerelatedcourses,andthese

providelittlepracticaltrainingandarenotlinkedcloselytotheneedsof

thesector.Theseshortcomingscouldbeaddressedthroughastructured

approachtoeducationalcurriculumdevelopmentandcapacitybuilding,

coordinatedamonguniversities,theprivatesector,theDepartmentof

Fisheriesandcivilsociety,andcombiningalltheelementsrequiredto

meettheindustry’sfutureneeds.

CONCLUSIONS

AquaculturehastremendousscopeforfutureexpansioninMyanmar.Regulatoryreformswouldcreatealevelplayingfieldforproducersofallsizes,

actingasanengineformoreinclusivegrowthbyraisingincomesforsmallfarmersandcreatingemploymentinSMEsinthesupplychain.Betteraccess

toinputs,includingcredit,andnewproductivetechnologieswouldimprovetheprofitabilityanddiversityoffarmingsystemsandnon-farmenterprises,

createnewexportmarketopportunitiesandmakefarmedfishmorecheaplyandwidelyavailabletoconsumers.Buildinghumanandinstitutionalcapacity

cansupportthesector’smodernizationbyimprovingtheeffectivenessofserviceprovisionandgovernance.

enablingthemoreefficientutilizationofwaterresourcesandencouraging

privatesectorinvestmentinruralareas.

Harvestedfishcannotlegallybetransportedinterstatewithoutwritten

consentandcanonlybelegallydistributedtomarketsoutsideofYangon

bya limitedpoolof licensedtraders.Moreover,expressbusservices,

whichareextremely importantfortransportingfishthroughoutthe

country,facearbitraryrestrictionsonuseforthispurpose.Removingall

restrictionsonthetransportofharvestedfishbetweenstatesandregions

wouldencouragedomestictradeandminimizeunnecessarycoststhatare

currentlypassedontoconsumers.

Workerspackingharvestedfishinicefordeliverytomarket.PhotobyBenBelton

21%Aquaculture1millionMT

Tota

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Aquaculture Specifics

OVERVIEW OF MYANMAR AQUACULTURE SUBSECTOR

Area

450,000ha

Spatial 90%ofponds

Production70%Rohu6%Shrimp

“Theauthoritiesdonotallowpondstobebuiltonlandsuitableforricecultivation.”Edwards,2005

“Aquacultureisthefastest-growingfoodsector...aquacultureintensificationhasthepotentialtoproducethefishneededtomeetthedemandforsafeandhighlynutritiousfoodbyagrowingpopulation.”FAO,2016

Growth8.7%

Page 3: Transforming Myanmar’s AquacultureReforming the law to give farmers the right to cultivate ... competition within the fish feed sector would drive down prices ... Myanmar aquaculture

DONORS OTHER SPONSORS MYANMAR FISHERIES PARTNERSHIP

AQUACULTURE

ACKNOWLEDGEMENTS

• BenBelton,MichiganStateUniversity• ManjurulKarim,WorldFish• KevinFitzsimmons,UniversityofArizona• AyeAyeLwin,WorldFish• MichaelPhillips,WorldFish• NilarShein,DepartmentofFisheries• MaxTroell,StockholmResilienceCenter• SoeTun,MyanmarFisheriesFederation

KEY REFERENCES

• Belton,B.,Hein,A.,Htoo,K.,Kham,L.S.,Nischan,U.,Reardon,T.,Boughton,D.AquacultureinTransition:ValueChainTransformation,FishandFoodSecurityinMyanmar(2015)

• DepartmentofFisheries.MyanmarFisheriesStatistics(2015)• Edwards,P.RuralaquacultureinMyanmar(2005)• FoodandAgricultureOrganization (FAO).FAOand the17Sustainable

DevelopmentGoals(2016)

Disclaimer: The recommendations and opinions expressed in the policy brief are entirely those of the participants and not necessarily those of the parent organization.

Reducepoverty,stimulateemploymentandcontributetosustainableeconomicgrowth

DECENT WORK AND ECONOMIC GROWTH

Createopportunitiesforwomen’sempowerment

throughemploymentwithinthefishvaluechain

GENDEREQUALITY Improvehealthand

well-beingthroughincreasedfishconsumption

GOOD HEALTHAND WELL-BEING

Endhungerandincreasefoodsecuritybymakingfishmorewidelyavailableandaffordable

ZEROHUNGER

Reducepoverty,stimulateemploymentandcontributetosustainableeconomicgrowth

NO POVERTYSUSTAINABLE DEVELOPMENT GOALS

(SDGs)

PURPOSES

Thisbriefpresentsoptionsforenhancingthecontributionsthataquaculturecanmaketoinclusivegrowth,ruraldevelopmentandfoodsecurity.Itprovidesinformationabout:

1.ThestatusandsignificanceofMyanmar’saquaculture;and2.Optionsforunlockingthehugepotentialofaquaculturetoraiserural incomes,createjobsandsupportnationalfoodsecurity.


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