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August 19, 2019

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Myanmar to ship 10 tons of tea leaves to Germany

Image result for tea leavesAs Myanmar is seeking foreign markets for its tea leaves, about 10 tons of green and dry tea leaves will be exported to Germany soon, said Chairwoman Daw Nyo Nyo Sein of Myanmar Tea Procedures Association. Majority of tea leaves are grown in northern and southern Shan State, and distinguished into various categories based on taste and quality for local markets, while organic tea leaves are aimed for foreign buyers.

Germany has agreed to purchase 10 tons of tea leaves, and the delivery is expected near future. Myanmar has exported organic raw tea leaves to the United States from 17 to 20 tons every year. The price for Myanmar tea leaves ranges from US$6 to $10 per kilogram based on the quality.

Daw Ru Par, director of Yathar Wady Company in Mandalay, said “We received positive feedback on tea leaves from foreign customers. We are informing at the foreign trade shows that green tea leaves can also be consumed in addition to drinking. As 90 per cent components in tea leaves benefit for health, we have to guarantee for its quality along the supply change from raw to finished products.

Source: Global New Light of Myanmar 

First overland barter-trade agreement signed

Image result for Rice export MuseAn agreement for overland barter trade has been signed on July 25, between Mandalay Rice Development Company (MRDC) and Kunming Green Color Trade Co., Ltd from China’s Yunnan province. Under this, the former will trade 100,000 tonnes of rice – stored in Muse or newly harvested rice – to the latter for an equivalent in other trade goods starting next month. Myanmar long-grain rice, which is very hard to sell due to high tariffs in European countries, will be prioritised.

MRDC managing director U Sai Kyaw said both companies would be the intermediaries for goods to be traded under the barter system. “Chemical fertilisers, construction material, electric appliances and agricultural machinery manufactured from Yunnan province can be imported with a 5 percent discount on the market price,” he said, adding that both sides were now awaiting the green light from their respective governments to start trading.

He said interested companies can import goods from China in partnership with MRDC while any company interested in selling their rice produce can also partner it. The barter arrangement is expected to benefit local traders and balance trade. Due to volatile import tariffs imposed on Myanmar goods by the Chinese authorities, traders often resort to smuggling goods across the border. This, in turn, leads to frequent border checks and trade bans, which disrupts trade and results in losses.

Source: Myanmar Times 

Rubber export earnings increase by over 61 million USD

Related imageDuring over nine months of this fiscal year, Myanmar earned over 220 million US dollars from the exports of over 0.17 million tons of rubber, according to an official of the Commerce Ministry. From October 1 to July 5 of 2018-2019 fiscal year, the rubber export earnings hit 225.189 million US dollars. Last year, the export earnings from exports of 135,982 tons of rubber reached 163.777 million USD. This year, the rubber export earnings increased by over 61.412 million USD and the rubber export volume, by over 40,582 tons.

Rubber is mainly grown in Mon and Kayin State. It is also grown in Yangon, Bago and Tanintharyi Regions. There are nearly 500,000 acres of rubber plantations in Mon State and nearly 270,000 acres in Kayin State. The country produces about 200,000 tons of rubber a year. More than 90 per cent of rubber are exported and the remaining eight per cent, are for domestic use. Myanmar mainly exports rubber to China, according to the Myanmar Rubber Growers and Producers Association. Myanmar also exports rubber to Malaysia, Singapore, Indonesia, South Korea, Japan, Taiwan and India.

Source: Eleven Media 

Rice trading center in Shwebo to go public

Image result for rice fieldsAfter opening its fifth outlet in Sagaing Region, Shwebo Rice Trading Center is planning to change its corporate status to public to be on par with other trading centers in Myanmar. It is planned to go public by next year and ensure all our rice mills are in line with regulations by the rice trading season next year. This will help elevate the center’s presence in the international market and make it easier to conduct export activities.

Public companies are required to obtain permission from both the Directorate of Investment and Company Administration and the Securities Exchange Commission of Myanmar before they are officially allowed to sell their shares over the counter. Unlike a private company, which has a shareholder limitation of not more than 50, there is no shareholder limit for public companies.

Currently, 70pc of rice from Shwebo, Sagaing, is exported to China via the border however there are strict quotas in place to limit illegal trade. To export via the maritime route, Shwebo is trying to conform to the rice import regulations set by China.

Source: Myanmar Times 

 

Myanmar-Thailand border trade reaches over $3.14 bln in 2018-2019 FY

Image result for fish market MyanmarBorder trade between Myanmar and neighboring Thailand reached over US$ 3.14 billion as of 28 June in 2018-2019 fiscal year (FY) which started in October, according to the official weekly statistical report of the Ministry of Commerce.

The value of export between two countries hit $2.25 billion, while its import reached $ 889 million as of 28 June in this FY. The country mainly conducts border trade with Thailand through seven border checkpoints, Tachilek, Myawady, Kawthoung, Myeik, Hteekhee, Mawtaung and Maese gates.

From 1 October to 28 June this year, Hteekhee border gate topped with most bilateral border trade value of $ 1.97 billion, followed by Myawady with $ 708 million and Myeik with $194 million. Myanmar primarily exports fishery products such as crab, fish and shrimp, as well as onions, sesame, dry tea leaves, coconut and turmeric, while consumer goods, cosmetic machinery, food products, while agricultural equipment and track cars are imported into the country from Thailand.

Source: Global New Light of Myanmar 

Chinese cattle breeder invests in Myanmar, plans to export

Related imageThe Myanmar Invest Commission (MIC) last month permitted China’s Kangrui Agriculture & Livestock Development Company to invest in the raising of cattle in Myanmar. The investment will involve an injection of US$37 million in funds. A breeding facility will be established in Mahlaing Township, Mandalay Region. Kangrui, which is 90 percent owned by Shanghai Penghe Supply Chain Management and 10pc by Dehong Penghe Agriculture Development, will be the first wholly-owned Chinese outfit to invest in breeding cattle in Myanmar.

The cattle will be bred domestically and mainly exported to China. Investors are starting to take interest in the cattle business after the Ministry of Commerce in October 2017 officially permitted breeders to export Myanmar-bred cattle in an effort to control illegal exports. Myanmar cattle are mainly exported to China via the Muse border trade gate, as well as to Thailand. Of the 261 companies that applied for export permits from the government since late 2017, 94 that met requirements set out by the authorities have been selected. The country has since exported nearly 500,000 cattle from December 2017 through April 2019.

According to the animal census conducted in May 2018, there were 1.8 million buffaloes and 9.7 million dairy and beef cattle in Myanmar. The MIC has also permitted Thailand’s wholly-owned CP Livestock to invest in three cattle businesses worth over US$78 million. These include investments in a pullet farm and pig breeding farm in Yangon as well as an animal feed facility in Mandalay. So far, foreign investors in the livestock and fisheries sector have channeled funds totaling US$600 million towards expansion in Myanmar, according to DICA.

Source: Myanmar Times 

MRF and COFCO to study rice types for China export

Related imageMyanmar and China will cooperate in classifying rice types suitable for export to China following an agreement that up to 100,000 tonnes of rice can be exported to the country. The Myanmar Rice Federation (MRF) and the China National Cereals, Oils and Foodstuffs Corporation (COFCO) will cooperate in classifying these rice types.

MRF general secretary U Ye Min Aung said both sides will study what types of rice grown in Myanmar can meet China’s market demand. “There is rice such as Tunpu, Kayinma and Ngasein available in the local market that can be sold to China,” he added. Besides providing information, MRF would also assist COFCO in purchasing the rice. China, which imports commodities based on a quota system, had set an official quota of 100,000 tonnes of rice from Myanmar in 2016, but traders have been lobbying for the quota to be raised to 400,000 tonnes.

Under the MRF-COFCO agreement, selected companies that have been inspected by a board formed from officials from the Ministry of Commerce, MRF, experts from the relevant fields as well as other government officials would be allowed to export their rice to China. According to an earlier statement by the MRF, a report would be sent to China from the Department of Agriculture after the inspection process has been completed. A total of 103 rice mills owned by 42 companies that have applied for rice-export permission to China has been inspected.

Source: Myanmar Times 

Yangon Region in talks with Yunnan, Shanghai to boost fishery exports

Related imageNegotiations are underway between the Yangon Region Government and the provincial governments of Yunnan and Shanghai for promoting fishery exports to China, said Chief Minister U Phyo Min Thein. “We are discussing improving fish farming and the fishery production sector with the Yunnan provincial government. We are also discussing the matter with the Shanghai provincial government. We are trying to create a Yangon-based fish market,” said U Phyo Min Thein.

At present, the Yangon Region Government is negotiating with all the stakeholders in the supply chain, including the Myanmar Fisheries Federation and inshore and offshore fishing businesses. He made the remarks at the 28th regular meeting of Vice President 1 with private entrepreneurs, held at the Union of Myanmar Federation of Chambers of Commerce and Industry last Saturday.

MFF Vice President Dr. Toe Nandar Tin said the federation has asked the government to tackle problems faced in export of farm-raised fish and prawns through G2G pacts and ensure smooth freight movement between countries to bolster exports. According to the MFF, integrated poultry and fish farming cannot ensure food safety, which is a requirement for export. Therefore, the federation has asked for the formulation of a law to restrict that kind of mixed farming. Fish farming must be conducted as a large-scale project to get access to Project Bank loans, according to the MFF.

Source: Global New Light of Myanmar

Green peas, chick peas to be temporarily imported

Related imageGreen peas and chick peas, which cannot be grown to meet the local demand, are to be temporarily imported from other countries, according to Dr Than Myint, the Union Minister for Commerce. He made this statement at the 28th regular meeting held on 29 June at the Office of The Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

“We will grow more beans, which are in high demand by India, Japan, Korea and China. We have the market. At that time, the prices of the locally consumed beans, such as green peas and chick peas, will decline and local farmers will only grow those beans in high demand. So, we could not grow enough green peas and chick peas to meet the market demand. Therefore, we are planning to temporarily import green peas and chick peas from other countries. We are holding discussions with local farmers, traders and the government,” said Union Minister Dr Than Myint.

With the growing of beans in high demand by foreign countries, such as Mung beans, Pigeon peas and Green grams, local companies have applied for licenses to import green peas and chick peas for local consumption. The Ministry of Commerce has also been planning to import locally demanded beans from other countries. Currently, Myanmar is mainly growing beans, such as Mung beans, pigeon peas and green grams. Mung beans are mainly purchased by India, while green gram is chiefly purchased by China and European countries.

Source: Global New Light of Myanmar 

Export revenue from Muse border trade drops

Related image

Myanmar recently launched its updated National Export Strategy for 2020-2025. The Ministry of Commerce will be adding fruits and vegetables, gems and jewellery, handicrafts, processed food products and digital businesses as potential export sectors.

 Muse-China border trade, which is one of the biggest overland trading routes in Myanmar, has declined this year. Chinese imports decreased about US$ 600 million to just over $3 billion, according to the Ministry of Commerce.

Exports to China via Muse were just under US $2 billion, whilst imports represent half that volume at US$ 1.04 billion.  Both of these figures are down from last year, with the export number sitting at US$ 2.6 billion and imports at US$ 0.98 billion.

Source: Myanmar Times

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