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MMRD BULLETIN
January 22, 2020

NEWS
PRODUCTION

ActionAid to help spur seed production in several areas

Related imageThe Agriculture, Livestock and Irrigation Ministry has linked up with ActionAid Myanmar to carry out seed production and help businesses in central plain tropical zone and Ayeyarwady Deltaadapt and ensure climate change.”We will mainly carry out seed production and agricultural techniques in Ayeyarwady Delta and tropical zone by inviting experts from ActionAid and exchanging technology with them”, ” said U Ye Tint Tun, director general of the ministry’s Department of Agricultural.

The aim is to receive pedigree seeds for the farmers in the project region and to be able to run the businesses that endure climate change.ActionAid will provide $2.537million and the operations will be implemented in tropical regions such as Meikhitla, Tharsi, Myaing-Kamma, Pakokku and in delta regions such as Phyapon, Pathein and Ngaputaw.

Although Myanmar is an agricultural country, it still requires good quality seeds. While seeds are being produced at the ministry’s farms they do not meet the needs of farmers. Moreover, participation by the private sector is still weak and that is why most farmers still face difficulties in getting pedigree seeds.In reality, they should enable farmers to be able to produce seeds themselves. If so, every farmer would easily get the seeds.

Source: Myanmar Times

ChaungU Township supplies 40 trucks of muskmelons to Muse market daily

Image result for Muskmelon In Myanmar ChaungU Township supplies 40 trucks of muskmelons to the Muse market every day, stated U Soe Lwin, chairperson of Sagaing Region Watermelon, Muskmelon Growers and Producers Association.Last year, muskmelon growers faced losses due to the low price. The price rose slightly in the second week of December 2019.

Some muskmelons were damaged by the poor rainfall. The growers had to use irrigation water to maintain their operations. Muskmelon prices currently range from K400 to K850 per kilogram. Because of the high input cost, the growers can cover their cultivation costs only if they charge K850 per kilogram. They can earn a profit only if each acre produces about 10 tons of crops.

There are more than 30,000 acres of muskmelons in the Sagaing Region and over 10,000 of them are managed by the ChaungU Township.Watermelons and muskmelons top the list of fruits being exported to China, and the export volume has increased significantly year-over-year. If growers follow GAP guidelines, they can charge higher prices. But most of them are still using pesticides. Myanmar’s watermelons and muskmelons have grabbed a large market share in China.

Source: Global New Light of Myanmar

Myanmar’s corn exports halve in 2019-2020FY

Image result for Myanmar CornMyanmar shipped over 100,000 tons of corn to other countries during October-November in the current financial year compared to 200,000 tons in the year-ago period .As China is the major purchaser of Myanmar corn, the price is positively related to demand from the neighboring country.
At present, corn prices are ranging around K340-380 per viss.

China sometimes allows traders to directly purchase corn up to a certain limit as a substitute for opium.If the export volume exceeds the quota, corn is confiscated as it is considered an illegal good. Laos traders have proposed purchasing rice and corn produced in Shan State and re-exporting them to China.Besides China, Myanmar also exports corn to India, Viet Nam, Malaysia, Singapore, the Philippines, and Thailand. But, the volume of exports to those markets is low.

There are more than 1.9 million acres of corn plantations in Myanmar, primarily in Sagaing and Magway regions, and Chin, Kayin, Shan, and Kayah states.Myanmar exported 1.5 million tons of corn, worth US$270 million, in the 2018-2019FY; 1.4 million tons of corn, worth over $290 million, in the 2017-2018FY; 1.2 million tons of corn, worth $250 million, in the 2016-2017FY; and, 1.1 million tons of corn, worth $300 million, in the 2015-2016FY.

Source: Global New Light of Myanmar

Agriculture as an economic driver

Image result for shan state agricultureIt’s common to see roads in Shan State full of trucks loaded with vegetables. The state produces 60 percent of all vegetables consumed within the country.Some of the crops are even exported to neighbouring countries.The state government now says that it is making moves to place more emphasis on developing agriculture over tourism as Shan has the potential to become an agricultural powerhouse in Myanmar and the region.

There are huge economic prospects in Shan State’s agriculture. If investors tap this potential sustainably, there will be good outcomes for both the state and investors. Many farmers in the state still use traditional methods.The State produces and reaps abundant harvests, there are still insufficient supporting services. Germany-based international retais and wholesale company METRO Wholesale has expanded in Shan State to get products directly from farmers and livestock breeders to distribute in other parts of the country. The government of Shan State is planning to carry out a short-term project to develop agriculture, and a long-term investment project to increase investment in the state.One of the issues is the market, which is hardest to achieve.

The produce of Shan State such as avocado, mango, others is exported to Asian countries, and coffee and tea is exported even to America and European countries.Although Shan State has good potential for sustainable agricultural development, it still has many challenges to overcome, from production to market development.Considerable effort will have to be made to see even more trucks carrying agricultural goods running along Shan State’s roads to regional and global markets.

Source: Myanmar Times 

 

Sugar production to be delayed this year, insiders say

Image result for sugarcane plantationSugarcane crushing, which normally starts every November in sugar mills in Myanmar, will be postponed to December this year, an industry insider has revealed. Sugar prices have been dropping over the last year even uncommon weather conditions have delayed the harvesting of sugarcane. This has led to the postponement of the crushing process by a month.

Nawaday Sugar Mill has announced that it will offer K45000 per tonne of sugarcane while Great Wall, another miller, is offering K40000 per tonne. Other sugar mills have yet to announce their prices. The current price per tonne of sugarcane is K4000 to K5000 lower than it was last year. Nawaday and Great Wall are expected to be the first sugar mills to start operating in early December.

Last season mills processed more sugarcane, leading to a surplus of sugar building up at the mills. This is said to be the leading cause of the anticipated contraction in cane purchases this year. In 2015, a tonne of sugarcane was priced K50,000 then it became K45,000. However, this year, sugar prices dropped and the price for a tonne of sugarcane depends on sugar prices. Although the price of sugar has stabilized somewhat, the drop in prices are expected to impact the incomes of farmers and farm workers.

Source: Myanmar Times 

Work on urgently needed gas pipeline might only start next year

Image result for Zawtika natural gas fieldAlthough a new pipeline for the Zawtika natural gas field is urgently needed, work on the project is expected to only begin next year 2020, due to negotiations over the cost of the project, officials say. The cost for the new pipeline is supposed to come from revenue generated for the Myanmar Oil and Gas Enterprise (MOGE) by the current Kanpauk-Myaing Kalay pipeline that transfers natural gas from the Zawtika field for local use. The Zawtika M9 block is being worked as a 80/20 joint venture by Thailand’s PTT Exploration and Production Public Co Ltd and MOGE.

A total of 9.7 cubic metres (345 million cubic feet) of natural gas is produced daily from the Zawtika Field. Some 2.8 million cubic metres for daily domestic consumption is channelled from the offshore field in the Gulf of Moattama to the Zawtika Operation Centre (ZOC) in Kanpauk Township, Tanintharyi Region. The natural gas is then transferred to Myaing Kalay, Kayin State, via the 200km,6 metre wide Kanpauk-Myaing Kalay pipeline. The rest of the gas is sent to Thailand.

Although the Field is producing natural gas at a good rate, the existing pipeline is not efficient enough to handle the full 2.8 mil cbm of natural gas meant for Myanmar. At present, it can handle only between 1.69 mil and 2.26 mil cbm a day, said PTTEP Myanmar. PTTEP,  responsible for upgrading the pipeline, made a proposal for the project to MOGE in 2018 and is waiting for the decision to start work. Once approved, MOGE is expected to call a tender for the project which is expected to take around two years to complete. The field is 230 km off the coast of Myanmar.

Source: Myanmar Times

Gas from block A6 to commercially viable in 2023

Image result for Gas from block A6 to commercially viable in 2023Commercial gas production will commence at the A6 block Shwe Yee Htun-2 discovery, offshore Myanmar, in 2023. The development comes after the MOEE on September 22, 2019 said gas could be produced at Shwe Yee Htun-2 well. Further drilling has shown gas extraction at depth of 2,325 meters possible at the well at block A6, about 100 km away from Pathein in Ayeyarwady Region.

MPRL E & P Company will undertake production activities at the first-ever commercial offshore oil and gas production project once it is approved. A total of five wells have been drilled at block A-6 since 40 meters of net gas pay was first discovered at a depth of 4,820 meters at the Shwe Yee Htun-2 in 2018. Gas has been found in all five subsequent wells.

MPRL E & P holds a 20 percent stake in block A6, while Woodside Energy from Australia and French energy giant Total hold stakes of 40pc each. Under an existing agreement, Total is to take over operations at the block during the development phase. The State will receive 25pc of all gas produced from Shwe Yee Htun-2. The Shwe Yee Htun-2 discovery adds to the Shwe Yee Htun-1 and Pyi Thit-1 gas discoveries made in 2016 and 2017, respectively, at the block.

Source: Myanmar Times 

MADB expands loans for 8 strong demand crops

Image result for beans and pulses plantationTHE Myanmar Agriculture Development Bank under the Ministry of Planning and Finance will give loans for the strong demand crops under eight categories in 2019-2020 FY, in addition to the existing 14 items of agricultural produce.

The new scheme will cover four beans (haricot bean, lablab bean, rice bean and green bean); two crops edible oil (flaxseeds and sunflower seeds), and two kitchen crops (onion and chili). The loans for these crops will be given commencing this winter at K 100,000 per acre like other crops.

To support the small-scaled farmers, the government increased to this amount from K20,000 per acre in 2017- 2018 FY and K50,000 per acre in 2018-2019 FY respectively, while the loan for paddy was increased to K150,000 per acre from K100,000 per acre in 2016-2017 FY.

Source: Global New Light of Myanmar

Peanut oil fetching high price in central regions due to low crop yield

Image result for Myanmar peanut oilPeanut oil is being sold at a high price in the central regions — Kyaukpadaung and Yenangyoung townships — due to low production of peanut, according to some oil shops and peanut brokers.

Currently, only old peanuts are being sold in the market because the new crop has not been harvested yet. Additionally, peanut oil is also being exported to China, therefore, the price is not likely to fall, said Ko Kyi Khine, a broker. The prevailing market price of peanuts is K 3,000 per viss (1 viss is equivalent to 1.6 kg), while peanut oil is being sold for K 6,600 per viss. The price has remained on the high side, while the supply has been low in the market. Peanuts are mainly cultivated in the central regions of Myanmar. Last year, the price of peanuts had reached K 14,000 per basket, while the wholesale price of peanut oil was in the range of K6,000 per viss.

Last year’s high price encouraged growers to cultivate peanuts this year, said U Tin Yun, a farmer from Yenangyoung Township. A total of 36,093 acres of monsoon peanut is planned to be cultivated during the rainy season in Yenangyoung Township, according to the Township Agriculture Department.

Source: Global New Light of Myanmar 

Home Local News PTTEP raises sales volume to 8.5% this year

Related imagePTT Exploration and Production Public Company Ltd has raised its sales volume of 318,000 barrels of oil equivalent per day (BOED) to 345,000 barrels, or 8.5 per cent, for 2019 from its natural gas and oil exploration blocks in Thailand and other countries. After the PTTEP revised its five-year investment plan, it decided to increase the earlier target sales volume for the five years from 2019 to 2023.

Now, the PTTEP targets to raise its daily sales volume of 345,000 barrels for 2019, 365,000 barrels for 2020, 380,000 barrels for 2021, 409,000 barrels for 2022 and 437,000 barrels for 2023. According to the company’s announcement, the PTTEP completed the acquisition of Murphy Oil Corporation in Malaysia in early July, resulting in an increase in petroleum sales by approximately 48,000 BOED for the second half of 2019. This will significantly contribute to the 2019 target sales volume of 345,000 BOED.

Phongsthom Thavisin, Chief Executive Officer of the PTTEP, said the company has had success, not only in Thailand but in other countries, thanks to its business expansion strategy, which includes a plan to accelerate exploration of oil and gas in Myanmar, covering the Zawtika project. Also, the PTTEP has revised the higher capital expenditure for the five-year period to US$21.354 billion from $16.105 billion.

Source: Global New Light of Myanmar 

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