Myanmar Pesticide Market, a Gold Holy Land or a Gold Dreamland

Date:11-05-2019

Author: Thantsin, Executive Director of Myanmar Max Agro Service Co., Ltd. Thantsin graduated from Yezin University with 5-year bachelor’s degree, he has nearly 3 decades work experience in agriculture, focusing on new product experiment and market analysis.

In recent years, many foreign agrochemical companies have started a “gold-rush” spree in Myanmar. Some foreign companies, especially some Chinese companies have already had their own companies and formed their own distribution channels in Myanmar, some are preparing pesticide registrations and looking for customers everywhere and some are hesitating. Facing such a craze, we might wonder whether it is worth to catch this “gold rush”. Rational or blind? 

In this article, I will make an analysis of this pesticide market from several aspects.

Pesticide Import from China from 2016-2018

China is the biggest pesticide manufacturer in the world and it accounts for 80% of our total pesticide import. So we can refer to their pesticide export data to Myanmar for a more specific analysis.

 

Based on above charts, if we check carefully, we might find some knowledge about Myanmar pesticide market.

1. Pesticide usage currently is still in the primary level, which cannot match their farming land.

2. This market is still dominated by some conventional pesticides, such as Glyphosate, Paraquat, Chlorpyrifos etc. Some novel and effectively pesticides are still rarely used by farmers.  I think our government already deeply realized this problem and that’s why PPD doesn’t allow to register those 13 conventional active ingredients up till now.

http://news.agropages.com/News/NewsDetail---29542.htm?tdsourcetag=s_pctim_aiomsg&from=timeline

3. Its annual growth seems strenuous. Here our farmers are poor.  For example, if the monsoon climate is not good this year, they will give up their planting. If the bean purchase price lower, farmers will not use pesticides in the field. To solve this problem, we need more jobs for farmers and more support from our government.

 

After reading this, we can see its great potential in the near future, but we must also see its challenges. Any foreign agrochemical company, who has the interest in this market, must focus on our farmers and change their mind. If we blindly follow the existing products, most likely, our investment cannot live up to our profit. 

What’s happened to Myanmar Pesticide Companies in the past year?

In recent years, more and more foreign companies “wash gold” in Myanmar, firstly started by Zibo NAB, then followed by Jiangxi Zhengbang, Noposion, Byter, Rainbow and Ningbo Generic. Surely, other companies are still on the way. In order to compete in the market, some companies even started price war to make profit of some products less and less.

In response to this fierce competition, AWBA, the biggest pesticide company in Myanmar, which accounts for over 60% of the market share, cannot sit still any more. In the earlier days of this year, it started to reduce pesticide price from 15% to 60% to fight back those foreign companies. Armo, Golden lion restructure itself and integrated its 3 distribution companies into 2 companies. Also downsize is a trend for local companies. AWBA cut off 200 staff, Golden Dragon 250 staff and Golden Lion 100-150 staff. All agricultural company try to get market through their own way, but whatever it needed to design own style and strategy to achieve.

Besides, Myanma Awba Group, Myanmar’s largest manufacturer and distributor of agricultural technology, launched Myanmar’s first private agrochemical production complex in Yangon Region on August 19,2018. The US$35 million Hmawbi Agricultural Input Complex (HAIC) is located near Wa Nat Kyaung Village in Hmawbi Township, occupying 126 acres of land. HAIC is aiming to manufacture 3.3 million-－10.3 million liters of insecticides, fungicides and herbicides in concentrate form within the next four years. It will also manufacture 1.7 million-－5 million kilograms in powder form.HAIC will manufacture more than 200 proprietary agrochemical blends which it will distribute at an affordable price to local farmers. This will reduce the cost of production per acre for each farmer, U Aung Thu, union minister of Ministry of Agriculture, Livestock and Irrigation, said at the opening ceremony.Based on his estimates, a local production plant can help to reduce farmers’ costs up to 20 percent and raise competitiveness. 


Price-reduction is not the only way out. There are still some companies silently deep ploughing the market, studying the farmer need and focusing on quality and novel products. Maybe in the near future, they will be the dark horses in the market.

Market Surveillance

PPD is responsible for pesticide market surveillance in Myanmar. Since the year 2017, PPD have launched serious and periodical inspections of the pesticide supply chain from imports to end users. Up till now, from time to time, we can see some penalty notices posting out. Without any notice in advance, they will check distributors’ warehouse. Once illegal products found, their distribution certification will be suspended. Here illegal products mean pesticides without registrations, products after analysis checking not conforming to the registration and products without legal package. For those cases of gross violation, PPD will file criminal proceedings and the related person will be put into jail for some years.

Thanks to the strict regulations. Now the smuggled products from the borders of China and Thai are becoming less and less. Most distributors and dealers dare not to take the risk and do business legally.  Hence, farmers can enjoy quality products.

Chinese Contribution to Pepper Planting in Mandalay 

Here in the winter season of Mandalay, we never planted peppers due to the serious disease caused by dew. But Chinese people came here and successfully planted pepper in winter. Our farmers were so excited that local television interviewed them several times. After the interview, we know our problems. We have no too much effective pesticide against the blight disease and our farmers don’t use enough fertilizers. Thanks to efforts of Chinese people, now we can plant pepper in winter season.

Overview

From the brief profile, we can clearly see the cons an pros of Myanmar pesticide market.

There is vast potential to develop based on their current pesticide usage and this market is currently in great demand of new products. Also our government encourage legal products and novel products. On the other hand, we can see the fierce competition and price war showing in the market, very strenuous growth in the past 3 years and our poor economy.

Anyway, i strongly believe opportunities are for those prepared minds and success will belong to them. 

If you have any problem or interest in Myanmar pesticide market, please don’t hesitate contacting me.

Email: thantsintop@gmail.com.
Address:  Kan Yeik Thar Lane (1), FMI City, FL-22 Hlaing Tharyar Township, Yangon, Myanmar.