Thailand’s Kasikorn Research Center (KRC) said the Thai private
sector should invest in rice businesses in Myanmar after the country has
sped up intensive rice production both in terms of quantity and
quality.
Myanmar has conducted research and development on rice breeds,
agricultural technology and irrigation systems, prompting the country to
have continued growth of rice production from 2.35 tonnes/hectare in
2011 to an expected 2.67 tonne/hectare this year, according to the US
Agriculture Department. Such figures therefore could result in a boost
in rice exports, encouraging Myanmar to possibly become the world’s
leading rice exporter.
Thus far, Japan, China, and Singapore are already investing in the
rice business in Myanmar, while the United States is conducting a survey
for investment on rice breeding research there.
According to the KRC, Myanmar could easily produce two million tonnes
of rice for export as targeted this year by Myanmar authorities and
three million tonnes in 2015, in the absence of serious natural
disasters.
The leading economic think-tank also viewed that Myanmar could become
one of the world’s top-five rice exporters, with export quantity of at
least five million tonnes, in the next ten years.
Potential Thai rice entrepreneurs wishing to invest in such
businesses in Myanmar are advised to invest in rice production lines by
applying a reverse integration strategy, such as cooperating with local
entrepreneurs to develop and open a modern rice mill and then using
Myanmar as a base for exporting rice.
Kasikorn Research Center indicated that over 80 percent of rice mills
in Myanmar are still small and utilizing low technology, causing lower
rice quality and broken rice grains.
Opportunities for other rice-related businesses include becoming a
rice trader in Myanmar for export or selling fertilizer and agricultural
machinery and motors.
Consideration on the investment expansion in Myanmar as the Thai rice
business is losing its ability to compete on a price basis is another
option for Thai entrepreneurs who are ready.
However, obstacles to be faced include, for example, legal processes
to set up a rice mill, lack of infrastructure, and power shortages.
source: Pattaya Mail
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