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Maize market paper-final

Conference Paper

Maize market paper-final

Abstract

In Myanmar, Maize is the second most important cereal after rice, and is grown in the whole country except in Mon State. Maize is important for animal feed for domestic livestock farms, and export. This study tried to assess potential production of Myanmar and analyze the export potential for maize grain to International market and domestic feed market, to identify the constraints for export and domestic market in Myanmar. This study draws ITC data, customized methodologies for product and market prioritization by using export potential map, reports from USDA, data from TPD-MoC and DoA-MoALI, desk research, and consultations with local stakeholders to identify products that could help Myanmar to achieve market potential. Maize production in Myanmar is increasing due to increased demand for domestic feed production and replacement of pulses such as pigeon pea and black gram production for less favorable prices because of Indian market restrictions. Most domestic corn goes to feed mills in Yangon, Mandalay and Shan State. Estimated total feed production capacity of the 12 feed mills in Myanmar is 100,000 tons per month. There are currently 5 international feed companies operating feed mills: CP (Thailand), Japfa (Indonesia), Sunjin (Korea), New Hope (China), and Deheus (Netherlands). Green Feed (VN), Betagro (Thailand) and Cargill (US) are planning investments. Domestic usage and production is expected to grow steadily in line with the growth of Myanmar’s Livestock industries, especially poultry and swine. The export market with greatest potential for Myanmar maize is Japan, Thailand and China according to ITC trade data and calculations. Japan shows the largest absolute difference between potential and actual exports in value terms. There are still many constraints to enter to the export market through normal trade because of less competitiveness in terms of price and quality. There are many quality concerns in corn trading, especially due to moisture content and poor postharvest managements. There is a need for drying and proper storage to improve the quality and avoid Aflatoxin. Myanmar Livestock feed demand is estimated at 2.5 MMT in 2018. About 70% of raw Livestock feed demand comes from the poultry sector and 25% from the Swine Sector. Myanmar domestic maize demand is expected to increase due to the establishment of new feed mills in line with continued development of poultry sector. Instead of exporting raw products, investment in value-added downstream industries such as feed mills, snacks and semi- processed food products will create higher and stable prices for the maize producers. It will also create more employment opportunities, attracting the legal and illegal migrants, externally and internally displaced people to settle back at homeland. Foreign Direct Investment in feed and meat industry will push the domestic consumption as well as export, which will dramatically increase the demand for maize in the near future. Key words: Maize export, Market potential, Domestic, International
Export, Market Potential and Maize Production in Myanmar
Khaing Khaing Htwe1
Abstract
In Myanmar, Maize is the second most important cereal after rice, and is grown in the whole country
except in Mon State. Maize is important for animal feed for domestic livestock farms, and export. This study
tried to assess potential production of Myanmar and analyze the export potential for maize grain to
International market and domestic feed market, to identify the constraints for export and domestic market in
Myanmar. This study draws ITC data, customized methodologies for product and market prioritization by using
export potential map, reports from USDA, data from TPD-MoC and DoA-MoALI, desk research, and
consultations with local stakeholders to identify products that could help Myanmar to achieve market potential.
Maize production in Myanmar is increasing due to increased demand for domestic feed production and
replacement of pulses such as pigeon pea and black gram production for less favorable prices because of Indian
market restrictions. Most domestic corn goes to feed mills in Yangon, Mandalay and Shan State. Estimated total
feed production capacity of the 12 feed mills in Myanmar is 100,000 tons per month. There are currently 5
international feed companies operating feed mills: CP (Thailand), Japfa (Indonesia), Sunjin (Korea), New Hope
(China), and Deheus (Netherlands). Green Feed (VN), Betagro (Thailand) and Cargill (US) are planning
investments. Domestic usage and production is expected to grow steadily in line with the growth of Myanmar’s
Livestock industries, especially poultry and swine. The export market with greatest potential for Myanmar
maize is Japan, Thailand and China according to ITC trade data and calculations. Japan shows the largest
absolute difference between potential and actual exports in value terms. There are still many constraints to
enter to the export market through normal trade because of less competitiveness in terms of price and quality.
There are many quality concerns in corn trading, especially due to moisture content and poor postharvest
managements. There is a need for drying and proper storage to improve the quality and avoid Aflatoxin.
Myanmar Livestock feed demand is estimated at 2.5 MMT in 2018. About 70% of raw Livestock feed demand
comes from the poultry sector and 25% from the Swine Sector. Myanmar domestic maize demand is expected to
increase due to the establishment of new feed mills in line with continued development of poultry sector. Instead
of exporting raw products, investment in value-added downstream industries such as feed mills, snacks and
semi- processed food products will create higher and stable prices for the maize producers. It will also create
more employment opportunities, attracting the legal and illegal migrants, externally and internally displaced
people to settle back at homeland. Foreign Direct Investment in feed and meat industry will push the domestic
consumption as well as export, which will dramatically increase the demand for maize in the near future.
Key words: Maize export, Market potential, Domestic, International
Introduction
In Myanmar, Maize is the second most important cereal after rice, and is grown in the whole
country except in Mon State. It is important for animal feed for domestic livestock farms, and for export.
In 2017-2018, about 1,437 thousand metric tons of maize was exported to China and the Philippines. As
demand for maize has increased annually since 2009, the maize growing area has expanded and also
hybrid maize varieties have been utilized (Myanmar Agriculture Sector in Brief, 2018). About 50 % of
Myanmar maize production is exported. Lower demand from China over past year has caused maize export
to decline. Nearly all of Northern Shan’s production and much of Southern Shan’s supply is exported to
China through the border town of Muse.
About 40% of annual maize production goes to domestic use. This percentage has grown in recent
years. Most domestic corn goes to feed mills in Yangon, Mandalay and Shan State. Estimated total feed
production capacity of the 12 feed mills in Myanmar is 100,000 tons per month. There are currently 5
international feed companies operating feed mills: CP (Thailand), Japfa (Indonesia), Sunjin (Korea), New
1Senior Research Officer, Department of Agricultural Research
1
Hope (China), and Deheus (Netherlands). Green Feed (VN), Betagro (Thailand) and Cargill (US) are
reported to be planning investments. Domestic usage and production is expected to grow steadily in line
with the growth of Myanmar’s Livestock industries, especially poultry and swine (MBI Myanmar Corn
Value Chain, 2017).
Asian feed corn demand was hit by the African Swine Fever in 2019, which decreased the hog
population, especially in China. It has spread to seven Asian Countries including Mongolia, North Korea,
China, Laos, Cambodia, Vietnam and most recently, Myanmar, according to the Worlds Organization for
Animal Health. The virus has resulted in mass culling and reduced feed corn demand (S & P global Platts,
2019). Maize is expected to be a preferred crop by farmers due to strong demand from the domestic feed
market and from China (Mainland). Some concerns exist due to localized damages caused by Fall
Armyworm (FAW). According to the latest information from Myanmar’s Plant Protection Division, so far,
the FAW affected only 5200 hectares (or) about 1% of the 2019 main crop, mostly in Shan State and Bago
and Sagaing regions. (http:// www.fao.org/giews......). Maize production in Myanmar is forecasted to
increase to 2.3 million metric ton in 2018-19 due to expansion of the monsoon season crop, as a
replacement for pigeon peas especially in Shan State. Myanmar typically plants maize in two seasons,
starting with the main crop in the monsoon season, which accounts for 90 percent of total production and
the second crop in the dry season. The largest maize production areas are Shan State in the eastern part of
the country which accounts for 50% and Sagaing region in the central part of the Country, which accounts
for 14% of total production (USDA,2019).
So, this study tried to assess potential production of Myanmar and analyze the export potential for
maize grainto International market and domestic feed market in Myanmar and to identify the constraints
for export and domestic market in Myanmar.
Research Methods
This study draws ITC2 data, customized methodologies for product and market prioritization by
using export potential map, reports from USDA3, data from TPD-MoC4and DoA-MoALI5, desk research,
and consultations with local stakeholders to identify products that could help Myanmar to achieve market
potential. The Export Potential Map is a free online tool that turns economic analysis into practical trade
information using the ITC export potential and diversification assessment methodology. Export potential
assessments consist of two indicators: the EPI6 indicates potential export values of existing export products
in a given target market. The PDI7 indicates relative ranks of product diversification opportunities in a
given target market. The two indicators differ in the way supply capacities are captured. Demand and
market access conditions are the same.
The methodology to estimate export potential is inspired by a gravity model specified at the
product level. The starting point is the assumption that in a world without frictions, trade flows could be
described by a combination of exporter × product, importer × product and exporter × importer factors,
Where corresponds to exports from exporter of product to market . The parameter  describes
exporter ’s performance in exporting product , market reflects ’s demand for product and  the
easiness to export any good from to .
2Trade and Market Intelligence section, International Trade Center
3 United States Department of Agriculture
4Trade Promotion Department, Ministry of Commerce, Myanmar
5 Department of Agriculture, Ministry of Agriculture, Livestock and Irrigation
6 The Export Potential Indicator
7 The Product Diversification Indicator
2
Results and Discussion
Sown area, yield and production of maize in Myanmar
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2013-2014
2014-2015
2015-2016
2016-2017
2017-2018
2018-2019
0
500
1000
1500
2000
2500
Sown Area (000' ha)
Yield (Mt/ha)
Production (000' Mt)
Figure 1. Maize sown area, yield and production in Myanmar(2008-2019)
Source: Myanmar Agriculture Sector in Brief and DoA, 2019
Maize sown area and production from 2008 to 2019 is increasing. In 2008, the maize sown area is
355,000 hectares and production is 1.2 MMT8 and increased to 521,000 hectares and 2 MMT in 2019. But
the yield in metric ton per hectare is not much changed from 3.39 MT/ha 9. Maize production in Myanmar
is increasing due to increased demand for domestic feed production and replacement of pulses such as
pigeon pea and black gram production for less favorable prices because of Indian market restrictions.
In Myanmar, highest maize sown area and production is found at Shan state and second highest is
in Sagaing region as per table 1.Maize is grown not for direct consumption but for the production of the
processed food and feed product. Domestically maize is mainly used as a feed grain in the poultry industry,
which is rapidly growing in Myanmar and in the Asian region because a surge in middle income groups,
urbanization and an increase in the number of tourists have resulted in rising demand for poultry products
in domestics market. Some hill regions like Chin State and drier parts of the country, corn is used as a
staple food and a substitute for rice when it became too scarce for rice.
8 Million metric ton
9 Metric ton per hectare
3
Table 1. Maize production by state and region in Myanmar (2018-19)
State/Region Sown area (ha) Production (MT)
Shan 283180 1132670
Sagaing 83413 269639
Ayeyarwaddy 22849 116832
Kayin 21592 114753
Kachin 28760 103642
Kayah 23956 95781
Mandalay 15641 59895
Magway 11552 39128
Chin 16279 30657
NayPyiTaw 7323 30307
Bago 5296 23776
Yangon 913 2976
Thaninthayi 89 144
Rakhine 4 17
Total 520847 2020218
(Source: DoA, 2019)
CP 888
CP 808
NK 621
Local varieties
CP-868
SA 333
China hybrid
TF 222
CP 222
GT 722
SUPER 981
CP 201
GT 029
Seed Asia
CP 301
LG 769
Shwe W
ar
Thai hybrid
LG 282
CP 801
Y
ezin hybrid
0
100000
200000
300000
400000
500000
600000
Sown area (ha)
Production
(MT)
Figure 2. Maize sown area and production by varieties in Myanmar(2008-2019)
Source: DoA, 2019
4
The most sown maize varieties are CP (ChoernPakard ) hybrids and NK hybrids. Most common
varieties are CP-888, CP-808, NK-621, Local varieties and China hybrids as in Figure 2.
Export and market potential of Myanmar Maize
Figure3. Export Potential map for Myanmar maize
Source: ITC calculations, based on data from the ITC Trade Map, 2019
The export markets with greatest potential for Myanmar maize are Japan, Thailand and China
according to ITC trade data and calculations. Japan shows the largest absolute difference between potential
and actual exports in value terms.
The highest maize importing countries in the world are Japan, Mexico, Korea, Iran, Spain, Egypt,
Netherlands, Italy, Columbia and Germany according to the ITC data in 2018.
5
Table 2. Top ten maize importing countries (2018)
Rank Importing country Quantity (MT) Value ('000 US$) % of world
total
World
37,490,798 100%
1 Japan 15,816,643
3,370,813 9.0%
2 Mexico 17,095,147
3,289,454 8.8%
3 Korea 10,166,337
2,132,566 5.7%
4 Iran 8,983,174
2,115,338 5.6%
5 Spain 9,497,302
1,965,635 5.2%
6 Egypt 8,589,723
1,848,675 4.9%
7 Netherlands 5,994,990
1,318,765 3.5%
8 Italy 5,744,462
1,201,471 3.2%
9 Columbia 5,409,553
1,049,966 2.8%
10 Germany 3,528,920 987,941 2.6%
Source: ITC Data (HS code:100590)
The highest maize exporting countries in Asia are India, Indonesia, Myanmar, Thailand, Laos,
Vietnam, Saudi Arabia, Cambodia, Turkey and Omen according to the ITC data in 2018. Myanmar ranked
third in Asia maize exporting countries and valued 63.8 Million USD.
Table 3. Top ten maize exporting countries in Asia (2018)
Rank Exporting country Quantity (MT) Value ('000
US$)
% of world
total
World 171,495,874 30,984,060 100%
Asia 592,696 1.9%
1 India 894,431 193,660 0.6%
2 Indonesia 272,362 72,933 0.2%
3 Myanmar 49,390 63,827 0.2%
4 Thailand 209,660 60,560 0.2%
5 Laos 197,143 48,979 0.2%
6 Vietnam 39,975 0.1%
7 Saudia Arabia 36,960 20,763 0.1%
8 Cambodia 97,262 20,440 0.1%
9 Turkey 47,982 18,150 0.1%
10 Oman 58,268 15,150 0.0%
Source: ITC Data(HS code:100590)
The latter table shows the amount of Myanmar maize export in thousand ton and exporting
countries from Myanmar. The data described that China is the biggest exporting country for Myanmar
from 2011 until now.
6
Table 4.Myanmar maize Export Volume and Country of Destination
Year Export (000'MT) Country
2011-2012 166.5 China
2012-2013 566.2 China
2013-2014 933.6 China
2014-2015 1356.2 China, Thailand
2015-2016 1188.6 China, Singapore, Malaysia
2016-2017 1288.7
China, UAE, Hong Kong, India, Malyasia, the
Philippines, Singapore, Thailand, Vietnam
2017-2018 1437.0 China, the Philippines
2018-19 1531.1 China, Thailand, Philippines, India, Vietnam, Srilanka,
Taiwan, Kong Kong, Singapore, Malaysia
Source: Myanmar Agriculture Sector in Brief, 2018,MoC,2019
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
0
50
100
150
200
250
300
350
Maize Market Price-USD/MT (World, 2019)
India
China
Pakist a
n
Japan
Figure 4. Maize market price in Domestic and world (2019)
Source: MOC10 data, 2019
Maize domestic market price in 2019 was observed in figure 4 and can be observed as better price
in Yangon for high demand by feed mills and lower price was observed in Lasio because of unfavorable
China border export in 2019. In International market, higher price was observed in India and Japan. In
China, 301 USD/MT was observed in Jan 2019 and decreased up to 156 USD/MT in Aug then increased to
286 USD/MT in Nov 2019. This was affected by the African Swine Fever in 2019, which decreased the
hog population, especially in China and Asian feed corn demand in 2019.
Constraints in International and Domestic market situation
10 Ministry of Commerce, Myanmar
7
0
10
20
30
40
50
60
70
80
Percent
Figure 5. Constraints in maize marketing in Myanmar
Source: survey data, 2019
According to the survey data in 2019, the identified constraints in maize marketing are investment
shortage, need improved dryer and grader in maize drying to improve quality, improved storage facility for
improve quality and reduce losses, labor scarcity, high transportation cost, uncertain market as fluctuated,
price fluctuation and need standardization and certification for better prices.
There are still many constraints to enter to the export market through normal trade because of less
competitiveness in terms of price and quality. There are many quality concerns in corn trading, especially
due to moisture content and poor postharvest managements. There is a need for drying and proper storage
to improve the quality and avoid Aflatoxin. Due to strong demand from China, domestic maize prices
increased in 2018, causing local feed millers to face a supply Shortage and high prices. For this reason and
because if the existence of Aflatoxin in local maize, feed millers tried to import maize from other countries
likes U.S. However, the Ministry of Commerce banned maize imports, forcing local feed millers to attempt
forward contracting with local growers and traders by offering a guaranteed minimum price.
Standards for maize marketing
Table 5. Standards for Myanmar maize
Source: Ministry of Commerce, Myanmar
8
Domestic market situation
Myanmar livestock feed demand is estimated at 2.5 MMT in 2018, including 1.2 million metric
tons of commercial livestock feed. About 70 percent of raw livestock feed demand comes from the poultry
sector, and 25 percent from the swine sector (Source: Myanmar Livestock Federation (MLF)). Burma’s
domestic corn demand in MY 2018/19 and in MY 2019/20 is expected to increase due the establishment of
new feed mills in line with continued development of the poultry sector, which is likely to increase 13-15
percent annually. De Heus Myanmar opened a second feed mill in Mandalay with a capacity of 280,000
MT/yr in May 2018. A Korean backed company, CJ Feed Myanmar Co., Ltd, opened a new feed mill in
Yangon, December 2018. Domestic corn fills an estimated 35-40 percent of total feed demand, but varies
according to age of poultry, nutrition formula by feed mills, feeding methods and the domestic prices.
Burma’s livestock feed demand is forecast to increase to 3.0 million metric tons in 2020.
Due to strong demand from China, domestic yellow corn prices increased in 2018, causing local
feed millers to face a supply shortage and high prices. For this reason, and because of the existence of
Aflatoxin in local yellow corn, feed millers tried to import yellow corn from other countries like the United
States as an alternative. However, the Ministry of Commerce banned corn imports, forcing local feed
millers to attempt forward contracting with local growers and traders by offering a guaranteed minimum
price. (USDA,2019)
International market situation
Maize is the third largest planted crop after wheat and rice. It is mostly used and traded as a
leading feed crop but is also an important food staple. In addition to food and feed, maize has wide range
of industrial applications as well; from food processing to manufacturing of ethanol.
Most important ones active in global maize markets are listed below:
Cargill (United States) is a privately-owned agricultural trading and processing firm headquartered in the
United States, playing a major role in world markets for grain and oilseeds processing and trading, for
livestock and poultry, for cotton, and active in a range of other commodities. The company is the world’s
largest food trader, with a volume of over 50 million tonnes of cereals and oilseeds/oils traded. It is,
among other things, the world’s largest maize trader, accounts for 20 percent share of United States wheat
exports, and a quarter of Argentina’s exports of wheat, maize and soybeans. In the late 1990s, Cargill took
over Continental Grains, the world’s second largest firm.
• Archer Daniels Midland Company (United States) is a major agricultural processing and trading firm. It
is the largest biofuels producer and the world’s second biggest grain trader after Cargill. In 2002, Archer
Daniels Midland, known as ADM, became 80 percent holder of the German-based (and leading European)
firm Alfred C. Toepfer International. Toepfer alone trades over 40 million tonnes of grains, oilseeds and
oils a year. ADM is the largest crusher of soybeans in the United States, with a 31 percent market share
(about one sixth of world production), and a 30-40 percent market share in Europe (another 4-5 percent of
world production).
• Bunge Group (Argentina) formerly known as Bunge y Born, annually trades some 30 million tonnes of
soybeans, wheat, maize and other grains. It is responsible for about a fifth of world trade in oilseeds and
oils, and is a major grains and soybean exporter from Argentina and Brazil. The group operates one of the
world’s largest flour milling operations. Bunge is the largest soybean processor in the western hemisphere
with substantial business in Brazil and Argentina (through an alliance with Aceitera General Deheza S.A.).
• Louis Dreyfus (France) is a family firm specialized in agricultural trade. It accounts for some 15 percent
of world market trade in grains and oilseeds.
Nidera (The Netherlands) is a family firm with its headquarters in the Netherlands. It has its major
trading operations in Latin America and annually trades some 18 million tonnes of soybeans, wheat,
maize, rice and other grains.
Noble (Hong-Kong based) is a large, diversified commodity trading company, with, among other
commodities, operations in a range of grains and oilseeds.
9
ZenNoh (Japan) the National Federation of Agricultural Cooperative Associations, is the third largest
exporter of maize from the United States and the third largest soybean and oil exporter. The federation
represents over 1 000 cooperatives bringing together most of Japan's 4.7 million farming households.
ZenNoh also procures soybeans and oil from Canada and Australia, and is active in the rice and livestock
markets in Japan.
According to Mordor Intelligence research, the industrial agriculture in Myanmar is witnessing
promising growth over the past decade. It can be attributed to China’s global economic rise and the
subsequent rise in demand for agricultural commodities. With many regional and global companies
investing in the hybrid corn segment, huge opportunities lie for the smallholders, who dominate the region
and various entrepreneurs. After rice, corn is the second important cereal crop in Myanmar, with the
primary use being in poultry and livestock feed industries. A very minimal amount of maize is used for
domestic consumption while the majority is exported for foreign exchange earnings.
According to the S&P Global research, in 2018-2019, Brazil and Argentina were the top suppliers
of corn to Asia as US corn was handicapped by climate challenges and strong output from South America.
Brazil's National Supply Company reported that production of the second crop corn in 2018-2019
increased 35.6% to a record 73.07 million MT. In Argentina, the situation was similar with output up
59.4% to 51 million MT from 32 million MT a year ago, USDA WASDE11 reports showed. US corn
production, on the other hand, 1.3% lower, forcing frustrated sellers to store their grains and losing market
share to South American suppliers. Flooding in the Midwestern US since mid-March created logistics
problems, which propelled corn prices on the Chicago Board of Traders sharply higher, resulting in record
delivered corn prices in Asia.
In 2019-20, global corn production is raised 0.8 million tons, with increases for South Africa,
Moldova, and Ukraine more than offsetting a reduction for Vietnam. For South Africa, production is higher
as timely rainfall during the month of January improves yield prospects.
Major global trade changes for 2019/20 include higher projected corn exports for South Africa,
Ukraine, and the EU, with a largely offsetting reduction for the United States. Corn imports are raised for
Turkey and Brazil, with the latter reflecting larger-than-expected shipments to livestock production areas in
the southern part of the country. Foreign corn ending stocks are down from last month, mostly reflecting
reductions for Vietnam, Brazil, Paraguay, and the EU. Global corn ending stocks, at 296.8 million tons, are
down 1.0 million from last month.
Suggestion and Recommendations
Domestic usage and production is expected to grow steadily in line with the growth of Myanmar’s
Livestock industries, especially poultry and swine. The export market with greatest potential for Myanmar
maize is Japan, Thailand and China according to ITC trade data and calculations. Japan shows the largest
absolute difference between potential and actual exports in value terms. There are still many constraints to
enter to the export market through normal trade because of less competitiveness in terms of price and
quality. There are many quality concerns in corn trading, especially due to moisture content and poor
postharvest managements. There is a need for drying and proper storage to improve the quality and avoid
Aflatoxin. Myanmar Livestock feed demand is estimated at 2.5 MMT in 2018. About 70% of raw
Livestock feed demand comes from the poultry sector and 25% from the Swine Sector. Myanmar domestic
maize demand is expected to increase due to the establishment of new feed mills in line with continued
development of poultry sector. Instead of exporting raw products, investment in value-added downstream
industries such as feed mills, snacks and semi- processed food products will create higher and stable prices
for the maize producers. It will also create more employment opportunities, attracting the legal and illegal
migrants, externally and internally displaced people to settle back at homeland. Foreign Direct Investment
in feed and meat industry will push the domestic consumption as well as export, which will dramatically
increase the demand for maize in the near future.
11 United States-World Agricultural Supply and Demand Estimates
10
References
Abdolreza Abbassian. 2008. Maize International Market Profile.
DOP (Department of Planning). 2018. Myanmar Agriculture Sector in Brief.
Golden Paddy, 2018. Myanmar Maize Market Report
MBI (Mekong Business Institute). 2017. Myanmar Corn Value Chain.
S&P Global Platts. 2019. Strong growth in Asian feed industry as US, Brazil compete for market
dominance.
ThandarKyi and War War Kyaw. 2019. Contract Farming Potential: Case Study on Improvement of Maize
Value Chain and Farmers’ Livelihood
USDA (United States Department of Agriculture). 2019. Grain and Feed Annual
USDA(United States Department of Agriculture). 2020. World Agricultural Supply and Demand Estimates
https://exportpotential.intracen.org/en/#/markets/gap-chart?fromMarker
11
... Corn is utilized as animal feed in Myanmar, both for domestic and export purposes. About half of Myanmar's corn production is shipped to China via Muse, while the remaining 40% is consumed domestically (Htwe, 2020). Around 30-35% of Myanmar's corn output goes to animal feed, with the remaining 5-6 % going to seeds, food processing, and alcohol production. ...
Article
Full-text available
Myanmar's second most significant cereal crop after rice is corn, and it is farmed all around the country. Corn is used for both export and country consumption (animal feed and food processing). However, there is a scarcity of study on the cost and profitability of sweet corn production in Myanmar. Therefore, the purpose of this study is to look into the profitability of sweet corn production and the benefits and drawbacks of growing sweet corn in the Nay Pyi Taw Region. In May 2018, 50 farmers from Nweyit village and 51 farmers from other villages were randomly sampled for a field survey utilizing structured questionnaires. Based on the findings of the study, the majority of the total respondents learned primary school. Farmers were the most common occupation among total respondents in both study locations-Nweyit and other villages-while secondary jobs such as broker, merchant, and agricultural labor were plentiful. Sweet corn is grown by 40.98% of total farmers in Nweyit, compared to 34% of total farmers in other villages. According to the cost and return calculations for sweet corn production, sweet corn farmers in Nweyit had a benefit-cost ratio of 2.02, which was greater than farmers in other villages who had 1.79. As a result, it can be stated that by planting sweet corn in the research regions, farmers in Nweyit made more profit than farmers in other villages. In Nweyit village, there were no harvesting costs because all farmers sold their whole field yield to brokers who came directly to the field. But, farmers in other villages have had to pay for harvesting costs since they did not have access to a broker who came directly to their farms. Regarding the opportunity and constraint of sweet corn production, the majority of the farmers in both villages said they could grow the crop every season and they obtained poor output prices and demand while selling sweet corn. Therefore, the government should link sweet corn production and marketing channels to get the good prices for sweet corn farmers and to maintain the good quality of sweet corn for consumers. Moreover, the government should educate sweet corn growers about alternative cropping patterns and the crops that can be cultivated with sweet corn. As a result, farmers will be able to get their extra income and transition to sustainable agriculture without depleting the soil's nutrients.
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