Myanmar's agrochemical market has great potential for development

Myanmar's agrochemical market has great potential for development

date: 11/26/2013

from November 7 to 8, the International Trade Committee of China Pesticide Industry Association and China Chemical Industry Information Center jointly hosted the 2013 Myanmar International Agricultural Exhibition and Asian Agrochemical Summit Forum in Yangon, Myanmar. This is the first professional exhibition focusing on agrochemicals and agricultural supporting equipment held in Myanmar, which has aroused positive repercussions in the industry. Through this event, the participating companies have an intuitive impression of Myanmar's agrochemical market. At the same time, through on-site inspections and direct exchanges and communication with local farmers, they also learned more about Myanmar's crop planting and pesticide use. And farmers' procurement methods, etc., truly appreciate the potential space for the application of plant protection products in Myanmar. The event played a positive role in promoting trade exchanges and technical cooperation in the agricultural field between China, Myanmar and Asia.

The exchange event has achieved remarkable results.

The exhibition covers a total area of 1500 square meters. There are 74 exhibitors from China, Myanmar, India, Vietnam, Thailand, Malaysia, Germany, and the Netherlands. Among them, Chinese exhibitors account for 70%, attracting people from Myanmar, China, India, More than 1200 professional visitors from Malaysia, Singapore, Thailand, Vietnam, Indonesia, France, Chile, UAE, Germany, South Korea and other places visited. As the first agrochemical exhibition held in Myanmar, the government attaches great importance to this. The Minister of Agriculture of Myanmar and the Minister of Commerce of Myanmar not only visited the exhibition together, but also had extensive exchanges with the China Pesticide Industry Association and some exhibitors.

At the Asian Agrochemical Summit Forum held at the same time as the exhibition, government officials in charge of pesticide registration management from China, Vietnam, Myanmar, Thailand and other countries communicated with exhibitors on industry standard management experience. The parties also conducted full exchanges on issues of general concern in the field of Myanmar's agriculture and Asian plant protection, and jointly discussed hot topics for cooperation and development in the agricultural field. Officials from the Plant Protection Bureau of the Department of Agriculture of Myanmar introduced to the participants in detail the distribution of farmland, crop cultivation and pesticide use in Myanmar, the process of pesticide registration in Myanmar, relevant laws and regulations, as well as the types of pesticides prohibited and restricted in Myanmar, environmental protection and safety issues. Officials from the Ministry of Agriculture of China, Vietnam, and Thailand also elaborated on the management, registration, use, import and export of pesticides in their respective countries.

Plant protection products have unlimited potential

seventy per cent of Myanmar's population is rural and agricultural production accounts for 65 per cent of the gross national product. Whether it is horizontal or vertical comparison, Myanmar's crop production quantity and quality have growth potential, and the application and market development space of plant protection products in Myanmar cannot be underestimated. Horizontally, Myanmar's land area exceeds that of Vietnam and Thailand, while the planting area is equivalent to that of Vietnam, and the development potential of Myanmar's agricultural land is still great. If Myanmar's crop cultivation area can be increased to 35% of the total area, it will be doubled.

According to reports, at present, Myanmar farmers buy and use very little pesticides, and most of the products used come from Thailand, mainly pesticides, and no herbicides have been used. The use of plant protection products in Myanmar is only 8% ~ 10% of that in Vietnam. The backward plant protection technology and the lack of pesticide products and varieties are the main reasons for the low agricultural output in Myanmar. Taking the most basic rice production as an example, Myanmar's output per hectare is only 70% of Thailand's and 55% of Vietnam's, while the income gap is even greater, only 1/3 of Thailand and Vietnam.

Vertically, although Myanmar's agricultural production has achieved rapid development in recent years, and the use of pesticides is also increasing, pesticide sales still face many problems, such as insufficient funds for farmers to purchase and limited knowledge of plant protection.

The rapid development of agriculture in Myanmar has brought many business opportunities to plant protection products. With the improvement of people's living standards and the increase of population, as well as the growth of export demand, the fruit and vegetable industry has become a relatively rapid development in Myanmar in recent years. Good growth conditions and low-cost labor and other factors make the fruit and vegetable industry in Myanmar have considerable development potential. At present, there are about 70 kinds of fruits planted in Myanmar. Although it has superior and suitable growth climate and planting conditions, its quality and yield are still relatively low. Compared with neighboring countries, both of them lag behind.

Welcome Chinese enterprises to invest in Myanmar

the Minister of Agriculture of Myanmar encouraged Chinese companies to introduce more and faster pesticide products with good quality and excellent prices into the Myanmar market to meet the needs of Myanmar's agricultural economic development. At the same time, he also stressed that by giving full play to the management and control role of the governments and industry organizations of both sides, we can ensure the regularization and honest operation of pesticide products in all aspects of production, packaging and distribution.

Compared with some other countries, the current pace of Chinese agrochemical enterprises to invest in Myanmar is not fast enough. With the further stabilization of Myanmar society and the further strengthening of economic development, enterprises with strength and willingness to develop in the Myanmar market will certainly make a difference if they can continue to pay attention to the relevant agrochemical market and seize the opportunity in due course. The two ministers welcomed Chinese agrochemical enterprises to come to Myanmar to invest and build factories and operate for a long time according to their actual needs. They said that the Myanmar government is very willing to support the investment enterprises in all aspects and provide convenient conditions as far as possible.

Myanmar is rich in agricultural resources but relatively backward in technology. Agricultural production products such as chemical fertilizers, pesticides and agricultural machinery need to be imported. There is a large market space for the products of Chinese agrochemical enterprises to be exported to Myanmar. According to statistics, at present, China exports 119200 tons of pesticides to Thailand, with an export value of 0.32 billion US dollars; 78500 tons of pesticides to Vietnam, with an export value of 0.269 billion US dollars; and 68600 tons of pesticides to Indonesia, with an export value of 0.26 billion US dollars. In sharp contrast to the above three countries, China's annual export of pesticides to Myanmar is only 5670 tons, and the export value is only 21.36 million US dollars. Myanmar is a market waiting for Chinese agrochemical enterprises to expand. This exhibition will help introduce and promote Chinese agrochemical products in the Myanmar market, and also give them more confidence in developing and operating the Myanmar market.

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