LESSONS FOR THE POTENTIAL USE OF CONTRACT FARMING WITH SMALL LAND HOLDING FARMERS IN MYANMAR

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Introduction: "The goal of poverty alleviation is now seen as a high priority project for Myanmar?s new government. In public statements the new President, Thein Sein, has raised issues of poverty in Myanmar as a problem facing the country (as opposed to a previous failure to acknowledge any such problems.) Support for this goal was verbally reiterated in a May 2011 Poverty Alleviation Seminar headed by Dr. U Myint, and again, more broadly, at an August 2011 poverty alleviation seminar in Nyapidaw attended by President Thein Sein and democracy icon Daw Aung San Su Kyi. At both events speakers presented papers aimed at monetary reform, assessments of Myanmar?s industrial sectors, infrastructure, and agricultural development. Presenters overwhelmingly acknowledged the agricultural sector as one in which improvements could be made to actually meet goals of addressing poverty. With 70% of Myanmar?s population supported by agricultural related employment and incomes, policies to lower poverty levels in this sector could significantly impact a majority of the country?s residents. Currently, of these residents, an estimated 32.7% remain under the country?s poverty line, though critics have described this number as low (CIA World Fact Book, 2011). Myanmar is frequently referred to as the one time ?rice basket” of Asia, often highlighting how far the agricultural and economic systems of Myanmar have fallen. This renewed interest in the development of Myanmar?s agricultural sector has the potential to reengage that historical presence of agricultural vitality. Addressing the status of low income and small land holders will be a key part of this process as farmers with less then 1 and up to 5 acres of land represent 56% of Myanmar?s farming population (FSWG, 2011). The economic security of small land hold farmers offer one way to sustainably improve the agricultural system and financial lyempower a large population of Myanmar?s farmers. This paper will examine the possible use of contract farming with small land holding farmers as a tool to capitalize on the opportunity to improve the economic growth of Myanmar?s agricultural sector, as well as to sustainably improve the livelihood, capacity, and output of this demographic of farmers. It is important to highlight that contract farming is not a blanket tool and the positive circumstances of successful cases must be considered within Myanmar?s agricultural context. Critics of contract farming highlight the de-facto inequality farmers are often put in by a contract, along with the significant risk it can place on already fragile farming 2 environments in which farmers risk everything. Such risks could be exacerbated by Myanmar?s agricultural policy and political climate. Yet, contract farming has been used with increasing frequency to meet the needs of small land holding farmers, and companies that have specialist or niche farming needs. These contracts have led to a range of benefits for both farmers and contracting companies. The recent agreement on the part of the new government to make agricultural development and poverty reduction policy goals, offers a space in which contract farming opportunities could support the small land hold farming sector of Myanmar?s agricultural community. Based on this consideration, this paper will briefly explore the theoretical views of contract farming currently used. It will then examine the circumstances of previous commercial or large contract farming attempts in Myanmar that have been problematic, before presenting two cases of contract farming with small land holders, in Laos and Cambodia. From the analysis of these two successful cases originally documented by the Asia Development Bank (ADB), this paper will work to identify positive and negative lessons learned in ea ch circumstance. This paper will examine the opportunities for the application of these lessons to the context of Myanmar?s own small land hold farmers. It will then conclude with a brief examination of the larger policies that would have impacted contract farming implementation in Myanmar, compared to the policies from Laos and Cambodia which have given rise to successful contract farming programs with small land hold farmers."

Creator/author: 

Thomas A. Baker

Date of Publication: 

2011-10-00

Date of entry: 

2016-01-10

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  • Individual Documents

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Language: 

English

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pdf

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113.27 KB