Myanmar rice processing

Context

Agriculture remains a driving force of Myanmar’s economy, and the sector employs just over 70% of the country’s labour force. However, Myanmar’s agricultural productivity is low, and farm practices are still largely labour intensive. According to the World Bank, Myanmar has the lowest profits from rice production compared to those achieved by farmers in Asia’s other rice bowls. /Project Description/Jan2017_V2_MyanmarRiceProcessingAt the same time, there has been tremendous growth in the demand for Rice Vermicelli in the Asia Pacific (APAC) region and in Europe.

More specifically, the demand for rice vermicelli in Myanmar is forecasted to increase from 20,000 to 32,210 metric tons per year from 2017 to 2020. This trend has reportedly been largely due to factors associated with the increasing rate of socio-economic development in the developing countries in the region. The increased urbanization, development of the retail sectors and distribution infrastructure have combined to provide more opportunities for purchasing packaged goods at affordable prices, thus presenting an attractive opportunity for investment.

The Project

InfraCo Asia’s Myanmar developer team Infra Capital Myanmar, proposes the development of a Rice Processing Plant. The project will increase the value of broken rice that currently results from the rice milling process. This project will increase agricultural income sustainably by processing these broken rice grains into high-value products such as rice vermicelli, all of this while generating a fair return for investors.

The processing facility will also decrease Myanmar’s requirements for foreign imports from Vietnam and Thailand for processed rice products. More broadly, by developing Myanmar’s processing capabilities, the agriculture sector will attract further investments, promote employment in higher value agriculture processing related jobs and increase the value of rice products sold in Myanmar.