Department of Agricultural, Food, and Resource Economics Food Security Group

IDWP 133. Derek Byerlee, Dolly Kyaw, U San Thein, and L Seng Kham. 2014. Agribusiness Models for Inclusive Growth in Myanmar: Diagnosis and Ways Forward

INTRODUCTION:
This study is being undertaken by Michigan State University, (MSU) and the Myanmar
Development Resources Institute- Centre for Economic and Social Development (MDRICESD)
with support from USAID to identify potential agribusiness models for enhancing
inclusive growth particularly through partnerships with small and medium-scale farmers
(SMFs). Successful development experiences in Asia and elsewhere have amply
demonstrated the greater efficiency and equity achieved with a growth strategy based on
SMFs. Therefore, an important premise of this report is that Myanmar needs to build on its
most important asset base of its millions of SMFs to jump start economic growth, increase
food security, capture export markets, and reduce poverty. The challenge for Myanmar is
how to tap the assets of agribusiness in terms of access to technology, capital, and markets to
complement the assets of SMFs in terms of their labor, land, entrepreneurship, and local
knowledge.

Private investment by agribusiness, both small and medium enterprises (SMEs) and larger
agribusiness companies (ABCs) is critical to the realization of these goals (for definitions of
SMEs and ABCs see Box S.1). However, how that investment translates into jobs and
poverty reduction matters greatly to future prosperity and peace. Myanmar is at a crossroad in
terms of developing an inclusive agribusiness strategy. The agricultural sector is
characterized by already high land inequality and landlessness, and low productivity of most
SMFs. Meanwhile a growing share of land estimated at over nearly 2 M hectares (ha) has
been allocated to large land concessions with little evidence of growth impacts and
significant evidence of social and environmental risks. Viable alternative business models are
available to tap agribusiness for wider economic and social benefits.