Myanmar Corn Association Offers Financing Program


Feb 15, 2023 | Agricultural Markets News

Reading time: 2 minutes

The USDA forecasts Burma’s Corn production to lower in MY 2022/23 due to a smaller area, especially in conflict areas such as Sagaing Region, Kayah State, and Chin State, and unfavorable weather conditions. Shan State experienced less rainfall in the early stages of the production season, resulting in a smaller crop. Conflicts in the Sagaing Region and Kayah State forced farmers to leave their farmland and prevented them from farming. The Department of Agriculture (DOA) reported that the monsoon season Corn production area in MY 2022/23 dropped by 32 percent in Kayah State and 25 percent in Sagaing region.

In addition, some Corn farmers in the Ayeyarwady region switched from Corn production to chili, beans, and pulse production due to high production costs during the winter season, resulting in a 25 percent reduction in winter season Corn production in Ayeyarwady in MY 2022/23. The terrain in Ayeyarwady is suitable for other crops, making it easier for farmers to adjust based on market conditions. Farmers in Shan State, however, increased their planting area in MY 2022/23 as the price of Corn has risen. Shan State’s terrain is not suitable for other crops. Farmers had harvested most of the main Corn crop by the end of December 2022.

The DOA and farmers are forecasting the yield for monsoon crop lower by 10-15 percent. Burma’s Corn yield has been increasing since MY 2020/21 due to better seed qualities and more utilization of fertilizers. Farmers reported that the primary monsoon Corn crop yield was 2.5-4.0 metric tons per hectare (MT/Ha), and the yield for the second winter crop was 4.5-5.5 MT/Ha on average between 2019 and 2020. However, farmers anticipate smaller yields per unit area of Corn in MY 2022/23 from reduced fertilizer utilization from higher prices and unfavorable weather.

The cost of Urea doubled in August 2022, forcing many farmers to use less in their fields. Large farmers are continuing to use Urea but have reduced the application rate per acre, while the price of Urea forced small farmers to switch to cheaper alternatives that are not as effective. The DOA encouraged farmers to use EM bokashi compost. A trail using EM bokashi compost showed positive results with yield in Southern Shan State (SSS). Farmers also reported that there was low rainfall during the early stages of growth, limiting the Corn’s growth in some places in SSS and Naung Cho, Northern Shan State.

Yellow Corn prices increased since 2020 and reached a record high in 2022 as there is high demand for Corn from Burma’s trading partners. Domestic prices for yellow Corn tend to be higher in June, July, and August but then drop in October with the arrival of new supplies. Domestic prices, however, continued increasing in October, November, and December 2022, even during harvest time.

Corn Seed in Myanmar

The Myanmar Corn Industrial Association is offering a production financing program with the support of private banks and traders to help farmers with the higher production costs. Private banks will provide farmers with loans with a 12 percent interest rate, and traders will promise to buy the Corn after harvest. Burma’s hybrid Corn seed demand is 8,000-10,000 MT annually. Seed prices increased in MY 2022/23 due to difficulties importing seed. Almost all farmers use hybrid Corn seeds imported from Thailand with good yields.

Most of the seed companies in the country are owned by foreign investors from Thailand and China. Major players in the Corn seed market are Charoen Pokphand (CP Group), Ayeyarwady seed, Aventine Limited, Seven Tiger Group, Syngenta, and Corteva. The hybrid seeds commonly grown in Burma are CP 808, CP 111, Cp 112, GT 722, GT 822, P 4546, 137,339. Farmers usually plant 5-10 kilograms of seed per acre.

Other sources: USDA

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