Post on 11-Jul-2018
Sustainable Rice in Myanmara system approach for
Equitable Socio-Economic Development in Myanmar
SRP 6th Annual Plenary Meeting & General AssemblyDecember 7, 2016
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Investment Banking Asset Management
ARIS - PrimePartnersAsset Management
Pte Ltd
PrimePartnersCorporate Finance
Pte Ltd
Prime Energy Partners
Ltd
Prime Agri Ltd
PRIME GROUPBusiness Areas and Main BU’s
FINANCIAL SERVICES INDUSTRIAL OPERATIONS
PRIME HoldingsPte Ltd
Energy & InfrastructureAgri & Food
PRIME Founders Inc
licensed by The Monetary Authority of Singapore Developer, Investor, Operator
PRIME Farms Myanmar
PRIME Farms Myanmar• potato seed multiplication (client -PepsiCo)
• MM’s first drip-irrigated commercial farm• first GlobalG.A.P. certified farm in MM• Food safety & sustainability compliant
Myanmar’s Comparative AdvantagePost-Harvest & Logistics Infrastructure
TROPICSTROPICS
• State of the art technology• Dutch engineered system• Phase 1 – 850 MT Capacity• 3C, 97% Humidity, CO2
PRIME Internship & Certificate CourseIn cooperation with The Department of Agriculture
TROPICSTROPICS
State Agricultural Institutes (SAI)
41 SAI Graduates placed in PRIME Agri
operations
Plant Cane. 100 Ha @ 90 Mt/Ha
Average Yield 84Mt/Ha
Outgrower ProgramIrrigation & Training for Higher Value Crop Mixes
Rice-Centric Rice-Inclusive
Food Security & Tradition Commercially Drivenmarket forces
Low Profit, High Volume Economically Soundcomparative advantages
National Resource Burden Socially & Fiscally Responsiblesubsidy independent
Socio-Politically Unsustainable Politically Balancedequitable development
Future Policy Direction for Rice in MyanmarA System Approach
• Capitalize on Myanmar’s comparative advantages in factors of production: land, water, labour, agronomic zones
• Crop specialization and cropping systems • Aggregation of capital resources for economies of scale &
competitiveness to smallholders• Training and upskilling of smallholders to international standards for a
reliable commercial supply chain (“GlobalGAP”, FSSC22000, etc)• Investments in logistics and industrial infrastructure e.g. The PRIME
Heho Airport Agri & Food Industry Park• Partnering with Siemens for Rural Electrification (5MW -10MW modules)• Foreign Direct Investment (FDI) within rural communities for post-harvest
facilities and export-oriented food processing
The Rural Commercialization PlanThe Essentials
Crop Mix by Agronomic Zones(California 2012 Farm Gate Value)
Table grapes
$4.5bnLettuce $1.5bn
Tomatoes$1.2bn
Floriculture$1.0bn
Broccoli $650mn
Garlic $220mn
Chili Pepper$100mn
Carrots $500mn
Onions$205mn
1 2 3 4 5 6 7
1. Water Resource Management & Irrigation2. Soil Management & Land Preparation3. Planting material and sowing4. Crop Nutrition5. Crop Protection6. Harvesting7. Post-harvest management
GAP – Food Safety GAP – Sustainability & Social ComplianceSRP – Sustainable Rice Protocol
Spectrum of Primary Production process & training modules
GLOBALG.A.P.
The Worlds Most Accepted Farm Assurance Program
for Safe and Sustainable Agriculture
GLOBALG.A.P. CERTIFICATION WORLDWIDEA Steady Growth for Integrated Farm Assurance (IFA) Version 5
• 170,000 certified producers
• over 124 countries
Sou
rce:
GLO
BA
LG.A
.P.
31
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.15
GLOBALG.A.P. FRUIT & VEGETABLE STANDARD V5 + SRP for RICEThe First Choice for Retailers and Producers around the World
Holistic Approach Fruit & VegetablesTotal Number of Control Points: 218
Food Safety99
Environment(incl. Biodiversity)
69
Traceability22
Workers’ OccupationalHealth & Safety28
+ RICE with
INTEGRATED FARM ASSURANCE STANDARD (IFA) V5A Modular Approach to G.A.P. Certification
INTE
GR
ATED
FA
RM
ASS
UR
AN
CE
(IFA
)
ALL
FA
RM
BA
SE
CBCROPS BASE
ABAQUACULTURE STANDARD
LBLIVESTOCK BASE
FV FRUIT & VEGETABLES
FO FLOWERS & ORNAMENTALS
CC COMBINABLE CROPS
TE TEA
PPM PLANT PROPAGATION MATERIAL
FINFISH, CRUSTACEANS & MOLLUSCS
PG PIGS
PY POULTRY
TY TURKEY
CS CATTLE & SHEEPDY DAIRY
CYB CALF/YOUNG BEEF
RICE
SHARE OF PRODUCERS UNDER CERTIFICATION PER REGION IN %
GLOBALG.A.P. CERTIFICATION WORLDWIDEA Steady Growth for Integrated Farm Assurance (IFA) Version 5
North America
1.4%South
America11.7%
Europe65.4%
Africa11.2%
Asia9.3%
OCEANIA
0.9%
Sou
rce:
GLO
BA
LG.A
.P.
31
.12
.15
AGGREGATING SMALL FARMS for Economies of Scale & CompetitivenessMore than 70% of Certified Farms are Organized in Groups
Sou
rce:
GLO
BA
LG.A
.P.
31
.12
.15
AGGREGATING SMALL FARMS RAISES INCOMEThrough Group Certification
GROUP CERTIFICATIONMulti-Site Certification
• A group of producers with a shared mandatory Quality Management System (QMS)
• Random sample inspections of some of the producers by a GLOBALG.A.P. approved certification body
• One certificate for the entire group following a successful audit of the QMS
Assurance for the Whole Supply Chain
GLOBALG.A.P. FSSC22000, IFS, BRC
Pre-farm-gate Post-harvest & Processing End of Supply Chain
Rural Commercialization in Shan State
Thante-KyaukniCorridor
Region Total Acres
Thante-Kyaukni Corridor 29,192
Pindaya Township 161,180
Hopong Township 102,665
TOTAL 295,581
Thante-Kyaukni Corridor(S. Shan State)
Village Tract Acres Population
Than Te(11 villages)
8,653 5,793
Kyauk Ni(6 villages)
8,595 6,350
Mong Thaw East (13 Villages)
8,056 14,372
Mong Thaw West (4 Villages)
3,888 2,558
TOTAL 29,192 29,073
High Impact Area - Selection Criteria
CriteriaSike
KhaungPindaya Than Te Kyauk Ni
Agronomics + - + +
Farmer Attitude - + + +
Growing Experience + + + +
Impact Potential - - + +
Access & Logistics - + + +
High Impact Area - Demographics
DemographicsThan Te
(11 Villages)Kyauk Ni
(6 Villages)
Mong Thaw – East
(13 Villages)
Mong Thaw –West
(4 Villages)Totals
Households 1,240 1,436 3,083 574 6,333
Population 5,973 6,350 14,372 2,558 29,253
Male 2,821 3,108 7,146 1,294 14,369
Female 2,972 3,242 7,226 1,264 14,704
High Impact Village Tracts
Township VillageTract
# of Villages
Cultivated Acreage (Wet Season)
Cultivated Acreage (Dry Season)
Taunggyi Than Te 11 8,653 580
Taunggyi Kyauk Ni 6 8,595 790
TaunggyiMong Thaw
- East 13 8,056 892
TaunggyiMong Thaw
– West 4 3,888 550
Key Points:- Cultivated acreage drops to 9% during dry season due to lack of irrigation - Unable to capitalize on optimum agronomic dry season - Optimal dry season in S. Shan ideal for high value temperate crops- Year round irrigation unlocks key to better crop mix and increased income- Traditional monsoon crop marginalized due to increasingly unpredictable
weather patterns
Monsoon Season Winter Dry Summer Dry California 2014/2015 Farm GateValue
(USD '000)
June July August September October November December January February March April May
Veg
etab
les
Beans (Dry) $69,472
Beans (Fresh) $36,082
Broccoli $806,561
Cabbage $177,710
Carrots $574,304
Cauliflower $309,040
Celery $288,423
Corn (Sweet) $184,382
Cucumbers $16,553
Garlic $255,888
Lettuce $2,032,389
Onion $275,620
Peppers (all) $595,203
Potato $189,577
Pumpkin/Squash $37,027
Spinach $189,280
Tomato $1,607,985
Fru
its
Avocado $333,760
Citrus $2,030,068
Melons $330,161
Strawberries $2,481,496
Dry Season Irrigated
Greenhouse/Tunnels
Shan StateHigh Value Crop Cycles & Agri Sector Potential
• Based on USDA’s California Agriculture Report 2015• “Comparative Value” is farmgate sales value
Thante Village TractAchievable Short Term Impact – 2years
Parameter Current Via WFL
Cultivated Acreage (Wet) 8,653 8,653
Cultivated Acreage (Dry) 580 4,327 (50%)
Income/Acre/Year $500 $1,500
Total Income/Tract/Year $4,616,500 $8,943,000
Total Households 1,240 1,240
Income/Household/Year $3,723 $7,212
Total Population 5,793 5,793
Income per Capita/Year $797 $1,544
Item Current Via WFL
Cultivated Acreage (Wet) 8,595 8,595
Cultivated Acreage (Dry) 790 4,297 (50%)
Income/Acre/Year $500 $1,500
Total Income/Tract/Year $4,692,500 $8,990,000
Total Households 1,436 1,436
Income/Household/Year $3,268 $6,260
Total Population 6,350 6,350
Income per Capita/Year $739 $1,415
Kyauk Ni Village TractAchievable Short Term Impact – 2years
42
Thante Village TractAggregated Community Farm
Thante Village Tract Taunggyi Township
Shan State
Summary Info:365 Acres
79 Farmers124 Plots
43
Thande Aggregated Community Farm Community Irrigation Infrastructure Design
Thante Village Tract Taunggyi Township
Shan State
PRIME Heho DTRFGlobal G.A.P. Training for Group Certification
Global GAP classroom training at PRIME Heho office
Global GAP field training at PRIME Heho DTRF
Mong Thaw West Village TractGlobal G.A.P. Training for Group Certification
U Maung Sein, Thein Kone Village FarmerGrowing potatoes for export on 3 acres
U Maung Shwe, Thein Kone Village LeaderGrowing potatoes for export on 1 acre
Mong Thaw East Village TractGlobal G.A.P. Training for Group Certification
U Chan Mya, Heke Village FarmerGrowing potatoes for export on 1 acre
Global GAP field training at PRIME Heho DTRF
U Hla Thaw, Village Tract LeaderGrowing potatoes for export on 10 acres
Thante Village TractGlobal G.A.P. Training
U San Aye, Kindon Village FarmerGrowing potatoes for export on 4 acre
Global GAP field training at PRIME Heho DTRF
Daw Aye Mu, Thanloon Village FarmerGrowing potatoes for export on 30 acres