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Value Chain Transformation, Fish and Food Security in Myanmar

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Value Chain Transformation, Fish and Food Security in Myanmar RESEARCH REPORT #4 AQUACULTURE IN TRANSITION: VALUE CHAIN TRANSFORMATION, FISH AND FOOD SECURITY IN MYANMAR INTERNATIONAL DEVELOPMENT WORKING PAPER 139. December 2015 Prepared for USAID/Burma and the Livelihoods and Food Security Trust Fund1 by Michigan State University (MSU), Myanmar Development Resource Institute - Center for Economic and Social Development (MDRI-CESD), and the International Food Policy Research Institute (IFPRI) Authors: Ben Belton1, Aung Hein2, Kyan Htoo2, L. Seng Kham2, Ulrike Nischan3, Thomas Reardon1, Duncan Boughton1 1MSU, 2MDRI-CESD, 3IFPRI 1This study was made possible by the generous support of the American people through the United States Agency for International Development (USAID). The contents are the responsibility of Michigan State University, the Myanmar Development Resource Institute – Center for Economic and Social Development, and the International Food Policy Research Institute, and do not necessarily reflect the views of USAID or the United States Government. This document is also supported with financial assistance from the Livelihoods and Food Security Trust Fund, supported by Australia, DenmarK, the European Union, France, Ireland, Italy, Luxembourg, the Netherlands, New Zealand, Sweden, Switzerland, the United Kingdom, the United States of America, and the Mitsubishi Corporation. We thanK these donors for their Kind contributions to improving the livelihoods and food security of rural people in Myanmar. The views expressed herein should in no way be taKen to reflect the official opinion of any of the LIFT donors. The Michigan State University (MSU) International Development Paper series is designed to further the comparative analysis of international development activities. The papers report research findings on historical, as well as contemporary, international development problems. The series includes papers on a wide range of topics, such as alternative rural development strategies; nonfarm employment and small-scale industry; housing and construction; farming and marketing systems; food and nutrition policy analysis; economics of rice production in West Africa; technological change, employment, and income distribution; computer techniques for farm and marketing surveys; farming systems and food security research. The papers are aimed at teachers, researchers, policy makers, donor agencies, and international development practitioners. Selected papers will be translated into French, Spanish, or other languages. Copies of all MSU International Development Papers, Working Papers, and Policy Syntheses are freely downloadable in pdf format from the following Web sites: MSU International Development Papers http://fsg.afre.msu.edu/papers/idp.htm http://ideas.repec.org/s/ags/mididp.html MSU International Development Working Papers http://fsg.afre.msu.edu/papers/idwp.htm http://ideas.repec.org/s/ags/midiwp.html MSU International Development Policy Syntheses http://fsg.afre.msu.edu/psynindx.htm http://ideas.repec.org/s/ags/midips.html Copies of all MSU International Development publications are also submitted to the USAID Development Experience Clearing House (DEC) at: http://dec.usaid.gov/ I ISSN 0731-3483 © All rights reserved by Michigan State University, 2015 Michigan State University agrees to and does hereby grant to the United States Government a royalty-free, non-exclusive and irrevocable license throughout the world to use, duplicate, disclose, or dispose of this publication in any manner and for any purposes and to permit others to do so. Published by the Department of Agricultural, Food, and Resource Economics and the Department of Economics, Michigan State University, East Lansing, Michigan 48824-1039, U.S.A. II Contents Executive Summary ...................................................................................................................................................................... 3 1 Introduction ............................................................................................................................................................................ 8 2 Methods ................................................................................................................................................................................. 10 3 Aquaculture and Food Security in Myanmar: A Review of Existing Evidence..................................... 13 3.1 Literature Review: The Conventional Wisdom on Myanmar’s Aquaculture ..................................... 13 3.2 Production Statistics ..................................................................................................................................................... 15 3.3 International Trade ....................................................................................................................................................... 18 3.4 Fish Consumption .......................................................................................................................................................... 20 3.5 Fish Prices .......................................................................................................................................................................... 27 3.6 Geospatial Analysis ........................................................................................................................................................ 30 3.7 Synthesis: An Emerging Picture of Aquaculture and Food Security ...................................................... 36 4 Aquaculture Value Chains in Myanmar: Evidence from the Field ............................................................. 40 4.1 Overview of Sectoral Structure ................................................................................................................................ 40 4.2 Upstream: Input Supply .............................................................................................................................................. 41 4.2.1 Hatcheries ................................................................................................................................................................. 41 4.2.2 Nurseries ................................................................................................................................................................... 45 4.2.3 Feed .............................................................................................................................................................................. 48 4.2.4 Other inputs ............................................................................................................................................................. 53 4.3 Midstream: The Farm Sector .................................................................................................................................... 56 4.3.1 Origins and development of the farm sector ............................................................................................ 56 4.3.2 Farm size .................................................................................................................................................................... 58 4.3.3 Land access and tenure....................................................................................................................................... 61 4.3.4 Water ........................................................................................................................................................................... 70 4.3.5 Labor ............................................................................................................................................................................ 70 4.3.6 Credit/capital .......................................................................................................................................................... 74 4.3.7 Technology................................................................................................................................................................ 78 4.4 Downstream: Postharvest Activities ..................................................................................................................... 80 4.4.1 Market structure and actor behavior ........................................................................................................... 80 4.4.2 Transport and distribution ............................................................................................................................... 88 4.5 Synthesis: Transformation in Myanmar’s Inland Aquaculture Value Chain .............................. 90 4.5.1 Upstream transformation .................................................................................................................................. 90 4.5.2 Midstream transformation................................................................................................................................ 92 1 4.5.3 Downstream transformation ........................................................................................................................... 95 5 Policy Implications and Recommendations ............................................................................................................... 97 5.1 Rationale for Policy Recommendations............................................................................................................... 97 5.2 Policy Recommendations ..........................................................................................................................................
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