Grain and Feed Annual 2011

An Expert's View about Fiber Crops in Myanmar

Last updated: 12 May 2011

BM1009 In MY2010/2011, Beans and peas exports are estimated to increase 4.9 percent to 300,000 MT from MY 2009/2010 MT due to strong demand from China. In MY2011/2012, Burmese exports of beans and pulses will remain unchanged from MY2010/2011 at an estimated total of 1.0 MMT.

THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 5/6/2011 GAIN Report Number: BM1009 Burma - Union of Grain and Feed Annual 2011 Approved By: Orestes Vasquez Agricultural Attaché Prepared By: Tun Winn Agricultural Specialist Report Highlights: BM1009 In MY2010/2011, Beans and peas exports are estimated to increase 4.9 percent to 300,000 MT from MY 2009/2010 MT due to strong demand from China. In MY2011/2012, Burmese exports of beans and pulses will remain unchanged from MY2010/2011 at an estimated total of 1.0 MMT. Executive Summary: In MY2011/2012, Burma?s corn production is forecast at1.3 MMT, an increase of 4 percent from MY2010/2011 reflecting an increased growing area in response to demand from China. Exports are also expected to increase to 350 thousand metric tons (TMT) from 300 TMT in MY2010/2011. Burma produces a limited amount of wheat due to inadequate growing conditions, however due to its low consumption rate it?s able to furnish half of the country?s needs. In MY 2011/12, Burma is estimated to produce 185,000 MT an increase of 3 percent from 2010/2011 as yields are expected to increase as the new government will provide inputs to farmers. In 2011/2012, imports will increase by 3 percent to 185,000 MT from MY 2010/2011 and 96 percent of imported wheat will come from Australia. In MY 2011/2012, beans and pulses production is forecast at 3.9 MMT unchanged from MY 2010/2011. Commodities: Corn Rice, Milled Wheat Author Defined: 1. Corn Corn Burma 2009/2010 2010/2011 2011/2012 (Myanmar) Market Year Market Year Market Year Begin: Oct 2009 Begin: Oct 2010 Begin: Oct 2011 USDA New USDA New USDA New Official Post Official Post Official Post Area Harvested 360 360 375 375 380 Beginning Stocks 23 23 53 40 50 Production 1,180 1,200 1,250 1,250 1,300 MY Imports 0 0 TY Imports 0 0 TY Imp. from U.S. 0 0 Total Supply 1,203 1,223 1,303 1,250 1,350 MY Exports 350 283 400 300 350 TY Exports 350 286 400 300 350 Feed and Residual 700 800 750 800 850 FSI Consumption 100 100 100 100 100 Total Consumption 800 900 850 900 950 Ending Stocks 53 40 53 50 50 Total Distribution 1,203 1,223 1,303 1,250 1,350 Yield 3. 3.3333 3. 3.3333 3.4211 1.1 Production The area of corn production in Burma has increased with time especially as demand from China has augmented. This increase has been accentuated in the Shan State, which is strategically located along the Chinese border. Yields have also progressively increased due to an increase in the use of hybrid seeds which have been aggressively introduced into Burma by private companies such as Charoen Pokphand Group from Thailand. The current yield of traditional corn is just around 0.8MT/HA, however with hybrid corn farmers are readily able to attain 4.0 MT/HA as supported by yield surveys in the corn production areas. Thus the average yield for MY 2010/11 is estimated to be 3.3MT/HA. Since most of the hybrid corn area is rain fed, and the low use of inputs, yields remain lower than the potential yield of 5 MT/HA. In MY 2011/12 Burma?s corn production is forecast to increase from 3.3 MMT to 3.4 MMT as the growing area will increase 1.3 percent from 375,000 to 380,000 HA and productivity will increase 3.0 percent from 3.3 MT/HA to 3.4 MT/HA driven by high demand from China, and an increase use in technology especially as the new Minister of Agriculture, General Myint Lwin, who used to be the regional commander of North Eastern Shan State. During his time as commander, he was able to see up- closely the accrued benefits of technology, such as the use of hybrid seeds, and is driven to see hybrid rice, corn and sugarcane grown in his former command area. 1.2 Consumption In MY 2011/12, domestic consumption is forecast to grow by 6.0 percent to 850,000 MT from MY 2010/2011. The consumption for feed is estimated to be 70 percent of the total production. In some hill regions and some parts of the dry regions, corn is used as a staple food and also as a substitute for rice when it becomes too scarce or expensive. Most of the corn goes to commercial feed mills in Rangoon, Mandalay and Shan State where feed stuffs for fish, pork, cows, and chickens are produced for use in contract animal farming systems around the country. Charoen Pokphand Group has been doing contract farming in Burma for 20 years already. 1.3 Trade In 2010, 97 percent of the total export went to China due to strong Chinese demand, proximity and a healthier trading relationship for corn between China and Burma as compared to Thailand, which manifests itself in the continuing decrease of corn exports to Thailand. In MY 2010/11, corn exports will be 300,000 MT an increase of 6 percent from MY 2009/10. In MY 2011/12, Burma?s corn exports will increase 17 percent to 350,000 MT due to higher demand from domestic feed mills and from China. 2. Wheat Wheat Burma 2009/2010 2010/2011 2011/2012 (Myanmar) Market Year Market Year Market Year Begin: Jul 2009 Begin: Jul 2010 Begin: Jul 2011 USDA New USDA New USDA New Official Post Official Post Official Post Area Harvested 103 104 104 105 105 Beginning Stocks 0 0 0 0 0 Production 174 175 175 180 185 MY Imports 179 180 175 180 185 TY Imports 179 180 175 180 185 TY Imp. from U.S. 0 0 0 0 0 Total Supply 353 355 350 360 370 MY Exports 0 0 TY Exports 0 0 Feed and Residual 0 0 FSI Consumption 353 355 350 360 370 Total Consumption 353 355 350 360 370 Ending Stocks 0 0 0 0 Total Distribution 353 355 350 360 370 Yield 2. 1.6827 2. 1.7143 1.7619 2.1 Production Wheat production in Burma is done at a subsistence level in the Sagaing Division and the Shan State where farmers grow wheat using the seeds from the harvested grain. In addition, these regions have scarce rainfall, which is unpredictable and uncertain, thus the yields are marginal between 1.6 MT/HA to 1.7 MT/HA. In MY 2010/11, Burma will produce 180,000 MT of wheat from 105,000 HA. In MY 2011/2012 production will increase 2.8 percent to 185,000 MT due to an expected increase in yield due to the new government?s program to improve agricultural production through technological innovations. Since wheat production is limited by geographical conditions, production should remain stable in the foreseeable future. 2.2 Consumption Overall consumption of wheat flour in 2011/12 is forecast to increase 5.5 percent from 900 MT to 950 MT from 2010/11 by increasing yield due to increased population. 2.3 Trade In MY2009/ 2010, Burma imported e 180,000 MT of wheat out of which 96 percent came from Australia, 2.4 percent from Singapore, and 1.2 from Russia. The leading private companies who are the main importers are Diamond Star and OK Brothers, both in Rangoon. 3. Beans and Pulses 2009 2010 2011 Beans and Pulses 2009/2010 2010/2011 2011/2012 Burma ( Myanmar) New Post New Post Post Data Post Data Post Data Area Harvested 4398 3238 4400 3240 3245 Beginning Stocks 0 0 0 0 0 Production 5200 3886 5300 3888 3894 MY Imports 0 0 0 0 0 TY Imports 0 0 0 0 0 TY imp. From U.S. 0 0 0 0 0 Total Supply 5200 3886 5300 3888 3894 MY Exports 1700 973 1750 1000 1000 TY Exports 1950 1018 1950 1000 1100 Feed Consumption 3250 2867 3550 2888 2794 FSI Consumption 0 0 0 0 0 Total Consumption 3250 2867 3550 2888 2794 Ending Stocks 0 0 0 0 0 Total Distribution 5200 3886 5300 3888 3894 Yield 1.18 1.2 1.2 1.2 1.2 3.1 Production Beans and pulses production in Burma is mainly based on residual soil moisture left from the monsoon after the main rice crop has been harvested. , the yields are between 1.18 to 1.2 MT/HA. Likewise wheat production, farmers use the grain from their harvest as seeds, as such yield and quality of grain size is poor and Burmese exporters are usually penalized in the world market because of the grain?s shortcomings. In order to tackle this problem, traders are establishing beans and peas grader and grinder machines using Indian technology. The increase in the number of grinders increased from 328 in MY2009/2010 to 464 in MY 2010/-2011. Additionally, the number of graders increased from 115 in MY2009/10 to 211 in MY2010/11. In MY 2010/11, Burma produced 3.9MMT of beans and pulses up 0.5 percent from MY 2009/2010 due to increased cultivation area in the Shan State. Inconsistent rainfall during MY 2010/11 delayed the cultivation of beans and peas for one month due to the delay on the onset of the monsoon, in addition unexpected rains during the pods growing stages resulted in reduction in quality being harvested in the beans and peas major growing areas in Yangon, Bago and Ayarwady. Beans and pulses have provided to be an excellent second-crop alternative due to the scarce water availability during the dry period, poor soil water holding capacity, short supply of dams and reservoir and high fuel costs for irrigating rice. In addition, beans and pulses have been able to provide greater income revenues than summer rice. In spite of a delayed sowing period and unexpected rains during the growth stages in January and March, the production of beans and pulses in MY2010/11 will top a million tons. In MY 2011/2012, Burma?s bean and pulse production is estimated at 3.9 MMT up 0.15 percent from 3.8 MMT from MyY2010/11 due to an increase in production area of 1 percent. 3.2 Consumption In MY 2010/2011, the consumption of beans and pulses increased 0.73 percent for MY 2009/10 to 2.9 MMT due to increased feeds as they use very little soybean. 3.3 Trade Burma?s bean and pulse in 2009-10 primarily export to India with 77 percent and China 9 percent, UAE 2.8 percent and Pakistan 2.6 percent respectively. Almost all of the toor whole goes to India and 80 percent of the mung bean crosses the border into China. Matpe is exported to India with 50 percent and the left stock disperses to other south eastern countries. Among exported varieties, matpe accounts for 55 percent of the total export followed by mung bean 26 percent and toor whole 12 percent respectively. In MY 2010/11, India remains the largest buyer accounting for 80 percent of the total export. The border export of mung bean across the Chinese border will be expected to increase as well. In MY 2011/12 Burma?s bean and pulse exports are forecast to reach 1.0 million tons, still remain the same as in 2009/2010 due to one month late sowing and impact of unusual rain during the post harvest period of the bean and pulse in 2010. 3.4 Policy Since the new minister of Agriculture and Irrigation of the newly established GOB is from the president of Union of Myanmar Federation of Chamber of Commerce (UMFCCI), the trade and marketing prospects for in coming years is encouraging that he made an address that to improve the country economy, agricultural production and commercial trade with other country should be strengthen more. In addition, he is the one who found the ADCs for rice, and bean and pulse. A 63 ADCs provided loans to the 84,720 farmers worth kyats 319,908 (37.6 million dollars) this year with the 2 percent interest per a rice crop season. Besides, the GOB takes a free market policy for beans and pulses and doesn?t intervene the market as it does with rice. End of Report
Posted: 11 May 2011, last updated 12 May 2011

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