INVESTING IN SUSTAINABLE AGRICULTURE IN MYANMAR Organization of an agricultural value chain Roland Poupon Yangon Myanmar 20 July 2014

Share of Agricultural Commodities in Food Products Rice Instant Noodles 20-Jul-142 5% 50%

Agricultural Commodities and Food Trends ` Along with development, the weight of Agriculture in the global economy is shrinking 20-Jul-143

Service Suppliers Technical assistance Brokers Traders Surveyors Marketing Logistics Finance Insurance Internet Certification 20-Jul-144 Today, Food is more about energy and documentation which get the added value than about agriculture

Food Sales Channels Complexity Broiler supply chain in ThailandSelf-consumption Pulse market in Myanmar 20-Jul-145 Food supply chain becomes longer with complex integration tendencies

Sellers and Buyers Needs Volume guarantee Logistics, transportation, storage, loss insurance Payment terms, advance and credit Prices Others 20-Jul-146 First and foremost, both parties are striving to prevent trading risks rather to focus on added value, cash before profit!

Types of Agreements Collectors Cooperatives State office Contract farming Market deals (auction) Third party channels Future markets Other? 20-Jul-147 There is a great diversity of types of deals – no standard how to share the added value

Transnational Companies Agro industries  Seeds  Fertilizers & feed Plantation Food processing  First transformation  Second transformation Retailers  Restaurants  Hypermarkets  Etc. 20-Jul-148 New global players control agricultural commodities know-how, finance and market and as consequence centralize the added value always more downstream

Third Party Certification Hygiene Administration Ethics Religion Farming practices Localization Technology Environment Varieties/breeds Etc. TPC 1)Standardization 2)Accreditation 3)Authentication 20-Jul-149 A new way of managing the market between producers and end-consumers to better control the added value distribution

Conclusion Farmers’ empowerment Financing system Wholesale market Marketing Tool (OTOP, IGP) Keep the added value In Myanmar Maintain environmental assets  Forest  Know-how  Water  Soil Local or Export Market? 20-Jul-1410

Thank you for your attention ! Roland Poupon Yangon Myanmar 20 July 2014