Agribusiness Models for Inclusive Growth in Myanmar: Diagnosis and Ways Forward

Myanmar is at a crossroad. Given high levels of landlessness and land inequality and low productivity of most small and medium-scale farmers (SMFs), the country is searching for effective, inclusive agribusiness development strategy. Meanwhile a growing share of land estimated at over nearly 2 M ha has been allocated to large land concessions with little evidence of growth impacts and significant evidence of social and environmental risks. This paper evaluates seven value chains in Myanmar, and contrasts them with similar efforts in neighboring countries, in order to evaluate viable alternative business models that can tap agribusiness for wider economic and social benefits. The analysis concludes that large land concessions have failed in the case of oil palm and cassava because investors appear to have none of any prior experience, weak in physical infrastructure, etc. However, in the case of rubber, widespread smallholder production can potentially benefit from quality improvements linked to contracts with ABC rubber mills, thus stimulating smallholder growth. All cases point to the central importance of improved land governance to protect the rights of traditional users and ensure compliance by large concessionaires with stated terms of their investment agreements.