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Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar

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Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar International Journal of Agricultural Marketing Vol. 6(2), pp. 215-224, July, 2019. © www.premierpublishers.org. ISSN: 0521-9965 Research Article Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar *Theingi Myint1, Ei Mon Thida Kyaw2 1Professor, Department of Agricultural Economics, Yezin Agricultural University, Nay Pyi Taw, Myanmar 2Ph.D Candidate, The University of New England, 8/152, Markham St., Armidale, NSW, 2350, Australia. 2Lecturer, Department of Agricultural Economics, Yezin Agriculture University, Nay Pyi Taw, Myanmar This study was carried out to examine the market performance of stakeholders along the sesame seed supply chain. The primary data were collected from 89 sesame farmers from four villages in Pakokku Township by using simple random sampling method and 11 traders or wholesalers at the crop exchange center in Pakokku, 5 sesame oil millers in Pakokku, 3 Mandalay wholesalers and 4 Yangon exporters were purposively selected in 2016-2017. Benefit and cost ratios in Pakokku were 1.22, it means that if the famer invest one MMK in sesame seed production, they will gain 0.22 MMK. Wholesalers and Chinese commission agents in Mandalay sell raw sesame products directly through the Muse exchange center, which is located on the border of Myanmar and China. Exporters in Yangon sell raw sesame products to Japan, Taiwan, and roasted sesame powder to Korea via Yangon port. The wholesalers/traders derive the greatest marketing margin and profit from the Sahmon Nat variety sold in Pakokku and Mandalay. The sesame supply chain was very weak in the study areas because of the profit by transacting the sesame without value adding and without any negotiating power by farmers. Key words: Supply chain, sesame, benefit and cost ratio, price, marketing margin INTRODUCTION Oilseed crops play a vital role in Myanmar’s high the Asian production (FAO, 2013). However, the amount consumption of cooking oil compared to neighboring of sesame seed exporting declined in 2017 because countries. There are numerous kinds of oilseed crops such Myanmar possessed just 6.5% of the sesame world as groundnut, sesame, and sunflower, mustard and niger market that was the fourth position among top sesame seed. Among them, sesame occupies the largest sown seed exporting countries in 2017 based on the data of area (approximately 46.62% of total oilseed crop areas), USAID (2019). According to the oil seed crop organization, followed by groundnuts, (26.76%) (MOAI,2014). Sesame Union of Myanmar Federation of Chambers of Commerce is economically important not only for producing edible oil, and Industry (UMFCCI), the amount of Myanmar – which is used in Myanmar for cooking but also for export. produced sesame exported via normal official trade In Myanmar, there are three main types of sesame seed: channel was 96.621 MT in 2015-2016 (UMFCCI, 2017). (1)white sesame seed which is famous for making snacks Therefore, sesame production constitutes a major part not and cooking, (2) red sesame which is best for oil extraction only of farmers’ livelihood development but also of and is cheaper than white, and (3) black sesame which is Myanmar’s economic development through its exports. a major oil seed crops for export and is grown mainly in Aunglan Township and the Magway Township of Myanmar (Linn, 2013). Worldwide, India occupies the greatest Corresponding Author: Theingi Myint, Professor, sesame harvested area (186,0000 ha), followed by Department of Agricultural Economics, Yezin Agricultural Myanmar (1590,000 ha); however, in 2013 Myanmar’s University, Nay Pyi Taw, Myanmar. Tel: 95-9-250108681 sesame seed production was the highest (890,000 tones) E-mail: [email protected] (Grimay, 2018). In terms of sesame production, Myanmar Co-Author Email: [email protected], produces 21.05% of total world production and 36.37% of [email protected]; Tel: 61-452544728 Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar Myint and Kyaw 216 An efficient marketing system for both domestic with a different set of structured questionnaires to obtain a consumption and the export market, that transfers clear understanding of the current sesame marketing commodities from the production side to the demand side channels. with the right quality and, quantity, on time and at low cost, plays an important role in the world’s market economy The primary data were collected from 89 sesame farmers system. Aysheshm (2007) argued that a scientific analysis from four villages in Pakokku Township by using simple of that identifies the strengths and weaknesses of the random sampling method and 11 traders or wholesalers at market structure of a particular commodity and sector is the crop exchange center in Pakokku, 5 sesame oil millers important to achieve the efficient market system and in Pakokku, 3 Mandalay wholesalers and 4 Yangon sustainable market demand essential for economic exporters were purposively selected in 2016-2017. Data development. Linn’s 2013 research into the sesame were collected to investigate of marketing costs, the supply chain in Magway region found that the major marketing margin of various stakeholders, marketing problems of the oilseed crops and edible oil sector in channels constraints and challenges, and possible Myanmar were price uncertainty, low productivity and solution for sesame production. Secondary data were quality of sesame, and a lack of marketing laws and taken from published and official records of the Ministry of regulations. Based on the value chain analysis of Sonar et Agricultural, Livestock and Irrigation (MOAI), various al (2012), the major constraints such as lack of agricultural government organizations related to agriculture, the Food knowledge and technology, crop price fluctuation, pest and and Agricultural Organization (FAO), the Central Statistical disease problem, inadequate market information and poor Organization (CSO) and other publications. linkage within marketing activities. Method and technique of data analysis Based on Linn (2013), more research should be done to explore more deeply Myanmar’s sesame supply chain The data collected from various stakeholders were because of sesame’s great export potential for Myanmar. analyzed using the descriptive statistics method and the Pakokku Township is located in the Magway region, which statistical software package SPSS Version 16. Enterprise is one of the largest sesame producers in Myanmar, and budget analysis was used to evaluate the economic and its productivity is lower than its potential capacity. Linkages technical performance of each farm enterprise. Marketing and relationships among actors in the supply chain of margin analysis is the first and foremost economic analysis sesame are fragmented. Farmers in this region face unfair to determine the efficiency of the market. The higher prices, as there is a huge gap between the farm gate price marketing margin reflects fewer share of producers and and the consumer price in Yangon and Mandalay because more benefits to marketing middlemen and vice-versa ( of the higher transaction costs. Moreover, farmers have no Htun, 2013). To calculate the marketing costs and margins roles or responsibility in production quality and standards at different levels along the supply chain, a total gross to meet the standardization of markets especially for marketing margin analysis was performed. The following export market. Benefit sharing distribution among actors is indicators were used in the analysis also not clear and the number of vulnerable farmers integrated in the supply chain of sesame production is a) Total Gross Marketing Margin (TGMM) unrecorded. TGMM = (Consumer Price−Farmer’s Price) (1) Consumer Price ×100 This study was carried out Margin of wholesaler = (Consumer Price−Wholesaler’s Price) (2) Consumer Price×100 (1) to analyze the various stakeholders’ activities along Margin of Miller = (Consumer Price−Miller’s Price) (3) the sesame supply chain in order to investigate the Consumer Price×100 marketing costs and margins of various stakeholders Margin of processor = (Consumer Price−Retailer’s Price) (4) along the sesame marketing channel and Consumer Price×100 (2) to assess the major constraints of sesame production and marketing in order to improve the supply chain Margin of exporter = (Consumer Price−exporter’s Price) (5) Consumer Price×100 management. (b) Farmer’s Portion of Producer’s Gross Marketing Margin (PGMM) MATERIAL AND METHOD PGMM = (Consumer Price−Marketing Gross Margin) (6) To access the current performance of the sesame market, Consumer Price×100 field surveys for primary data collection were conducted in (c) Gross Marketing Margin (GMM) Pakokku Township and market surveys were conducted in Pakokku, Mandalay and Yangon in 2016 and 2017. The GMM= Average Selling price – Average Buying price (7) study was designed to analyze the entire sesame supply chain from farm level to consumer. For this study, farmers, (d) Profit wholesalers, traders, millers, processors and exporters along the supply chain were interviewed, each category Profit = Gross Marketing margin − Total Marketing cost (8) Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar Int. J. Agric. Mark. 217 RESULT AND DISCUSSION roasted sesame powder is also sold from here to Korea. Although the China market accepts normal quality sesame Sesame Supply Chain Mapping seed, the Japan, Taiwan and Korea markets accept only the highest quality sesame seed. The sesame supply The structure of the sesame marketing system normally chain in Pakokku Township is shown in Figure 1. start with the farmers and there are many stakeholders along the sesame supply chain in Pakokku Township. The The key market functions of farmers in Pakokku are shown common channel is the flow of raw sesame from farmer to in Figure 2. According to the sesame farmer survey in township wholesaler. Most township wholesalers and Pakokku Township, Sahmon Nat is the most popular traders exchanged their commodities in the exchange variety among the sample farmers because of its high price centre and millers sometimes double as the and market demand.
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