The Myanmar corn seed market is projected to grow at a CAGR of 3.1% during the forecast period (2021-2026). The COVID-19 crisis and the measures are taken to combat it has shown several impacts on corn seed production in the country. The pandemic has affected the mobility of labor for seed production field operations, such as land preparation, roguing, and disease and pest management, as well as post-harvest practices, seed processing, packaging, and storage, which has shown an impact on the corn seed production market on the whole in the country. The drivers identified in this market are favorable factors promoting the growth of hybrid corn production, DAR working in collaboration with CIMMYT, and increasing demand for corn from China. The restraints identified in this market are contract farming (a concept leading to debt and dispossession), high cost of transportation, and lack of transparency.
Key Market Trends
Increasing Demand for Corn from China is Driving the Market
According to government and trade sources, almost 92-93 per cent of all of Myanmar’s corn exports take place along the border between Myanmar, Thailand and China. The remaining balance is shipped to the Philippines, India, Sri Lanka and other countries by sea freight. Corn export supplies are normally delivered to Mandalay, the largest wholesale market in central Myanmar, and then subsequently transported for export to the northeastern border towns like Muse, Chin Shwe Haw, Lwejel and Kan Paiktee. Chareun Phokphand carries out contract farming in North and South Shan State. CP 888, which is produced and sold by the CP group of Thailand, is the most commonly cultivated hybrid corn variety, followed by Yezin 6 and CP 868 varieties. The majority of this high yielding hybrid (CP 888) is exported, with China occupying a majority share in the exports of corn from Myanmar.
Increasing Area Harvested under Corn in Myanmar
The main corn-producing areas in Myanmar are primarily found in the hilly and dry zones of the country with smaller production taking place in the delta and coastal regions. According to government sources, Shan State which is located in the central part of the country accounts for 52 % of Myanmar’s total corn production area while the Ayeyarwady (delta regions), Magwe, and Sagaing regions make up the balance. The main corn crop is sown during the rainy season from May through June and harvested in September-October, especially in the central dry zone and hilly regions. The dry-season corn crop is sown in November-December and harvested in February-March, mostly in the delta regions. About 90 % of Myanmar’s corn crop is grown in rain-fed areas. Corn is commonly cultivated during the monsoon season in rainfed conditions. The area under corn cultivation is increasing rapidly. According to FAO, the area harvested was 515,714 ha in 2019. In the country, 90% of farmers use hybrid seeds that are either purchased from commercial seed producers or the government.
Charoen Pokphand is the largest player in the corn seed market in Myanmar, with a market share of 70%. It has also been the most active player in the market. Joint ventures with local companies and other contract farmers are also being carried out by various seed companies, specifically, CP Seed Company. The government holds 8% share in the corn seed market, with Yezin hybrids. The government has a collaboration with International Maize and Wheat Improvement Centre (CIMMYT), which has been a main partner and source of germplasm, since 1972. Inbred line development program is carried out to develop commercial hybrids, which are suitable for agro climatic conditions.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support