Industry Trend Analysis - Myanmar Agribusiness: Bright Spot Within Frontier South East Asia - MAY 2017

BMI View: Myanmar's agricultural production prospects are bright over the long term , based on the country's resource endowment, strategic location and encouraging foreign investment regulation. Production and exports of rice and corn will remain on an ascent in the coming years , but the country also enjoys a diversified agricultural sector with varied sub-segment s that may prosper should investment in the sector rise . At the moment, agricultural production growth will remain constrained by low yields, the lack of clear land regulation, the lack of infrastructure as well as the weakness of the food supply chain.

Myanmar's agricultural potential has been attracting interest since the liberalisation of the country's political system in 2011, in spite of the uncertainty surrounding the country's future political landscape. Thus far, foreign commodity producers, trading companies and chemical makers mainly coming from South East Asia and Japan have inked agreements with local partners or public organisations in order to invest in the country.

We believe that the commercial interest in the sector is underpinned by several factors. First ly, Myanmar has strong potential to increase its agricultural production. The country boasts interesting characteristics for agribusiness production, such as relatively cheap and abundant agricultural land and labour. It also enjoys a strategic location at the crossroads between South East Asia, India and especially China, where we forecast strong import demand growth in the coming years.

Rising Surpluses In Myanmar An Exception Within Asia
Select Countries - Rice & Corn Production Balance ('000 tonnes)
f = BMI forecast. Source: USDA, FAO, Local Statistics, BMI

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