“VALUE CHAIN ANALYSIS OF AQUACULTURE DEVELOPMENT IN MYANMAR”

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CHAPTER (1)
INTRODUCTION
1.1 Rationale of the Study
Developing countries over the world trying to get economic development through
their potential growth sectors. In Myanmar, although agriculture is the main industry in the
country, agriculture sector growth rate was declining 2.2 in 2014-15. Meanwhile Livestock
and fishery sector growth rate is 7.2 in same year. Agriculture contribute 34% to National
GDP in 2000-01 but declining dramatically every year and only 21% in 2014-15. On the
other hand, livestock and fishery sector has increasing 8% contribution to National GDP in
2000-01 and 9% in 2014-15. To get the economic growth need to study on the potential
sectors and should be compared by their production possibility frontier. In the past,
Myanmar has been “Rice Bowl of Asia”, but currently Myanmar has less competitive
advantage than other rice production countries. Meanwhile, aquaculture has been replacing
and rapid developing within two decades especially in delta area where main rice growing
area.
Aquaculture Value Chain analysis is particularly useful for new producers entering
both domestic and global markets, to ensure sustainable income growth, through
understanding the aquaculture value chain; from the time fish spawning/ hatchery, till it
reaches the final customer. It also useful for government and development partners to
decide to promote which parts of value chain segment is weakening that need supporting
for development. Value chain thinking is a systematic way to plan the business, both from
a commercial and governmental perspective, improving benefits through better policies.
Value chains determine areas of comparative advantage in supplies and markets. It
considering the sequence of key activities and their attendant supporting economic
activities at the various levels of the chain, from inputs, production, processing/value
adding, distributive trade and international trade, linking producers to consumers.
Although declining the natural fish resources, demand for fish are increasing due to
increasing of the world population. To fill this gap, would aquaculture sector has being

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increased year by year. The natural fisheries resources in both marine and fresh water are
depleting and declining. In Rakhine area, the landing of the shrimp has reduced by 65%
between 1990 and 2010. In Ayeyarwaddy River, the overall catch rate of fishing vessels
has declined from 210 kg/hr in 1990 to 110 kg/hr in 2010. Myanmar aquaculture production
is increasing year by year to fulfil the demand for local consumption and export. Fisheries
products are important for people in Myanmar as a main source of animal protein. And it
accounts for about 12% of monthly expenditure of average household.
Myanmar stand 12th
position in aquaculture production all over the world in 2016.
Therefore, aquaculture is the potential sector for National Growth of Myanmar and
increasing in percentage of contribution to GDP. Average growth of aquaculture was over
22% from 2000-2001 to 2015-2016. Myanmar Fisheries sector is one of the main
contributors to the national GDP and rapid developing fast. In 2000-2001 value of fisheries
export was only US$ 218 million and 2015-2016 becoming to US$ 502 million.
The aquaculture landing are significantly increased nearly four times larger within
16 years. There were Area of Aquaculture ponds 131,312 (acre) in 2000-2001 but increased
as 478,002 (acre) in 2015-16. But on the other hand, production of aquaculture ponds
increased ten times larger within this 16 years. There were 116 (Thousand Metric Ton)
produced in 2000-2001 but 1,014 (Thousand Metric Ton) in 2015-2016. Total export value
of fish contribute to national GDP is US$ 274 million in 2015-2016. All the fish and prawn
and fisheries product export amount is US$ 502.63 million in 2015-2016.
Ayeyarwaddy Region and Yangon Region has 55% of aquaculture (fish and prawn)
ponds of the country and 90% of fresh water fish aquaculture ponds. There are 3,216,300
number of labours working in fisheries sector. There are 216,746 number of labours
working in aquaculture sector in 2015‐2016 fiscal year. Even it is only counted on
production segment and not counted yet for processing and market related segments
labours. If calculate fisheries related all labour force estimated nearly 4 million, it means
almost 8% of total population in Myanmar.
Therefore, this study intends to explore Rohu fish value chain development among
the different actors of aquaculture sector.
1.2 Objective of the Study
The objective of this thesis is to analyze the development of Rohu fish aquaculture
sector with different actors along the value chain.

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1.3 Method of Study
This thesis used descriptive method. The Primary data are collected from key
informant interviews (KII) with individuals as diversity and inclusion of different actors
that including Hatcheries, Nurseries, Fish pond owners, wholesalers, retailers, brokers,
processors, exporters, importers, labors, Department of Fisheries (DOF), Ministry of
Agriculture, Livestock and Irrigation (MOALI), and Myanmar Fisheries Federation (MFF),
My Fish, World Fish. One hundred respondents are used as survey sample who are chosen
random actors from different strata in each value chain segment. Therefore, one hundred
respondents include 24 actors in upstream, 27 actors in midstream, and 33 actors in
downstream and 16 actors from other related field.
The Secondary data are collected from the Fishery statistics 2011 to 2016, Central
Statistical Organization Year book CSO 2015 and 2016, and also from the published books
from different organizations such as DOF, United Nation Food and Agriculture
Organization (FAO), My Fish, World Fish, Centre for Economic and Social Development
(CESD), and internet websites. And also references from previous studied MPA thesis.
1.4 Scope and Limitation of the Study
This study focuses on the Rohu Fish Aquaculture Value Chain in Myanmar.
Depending upon the availability of data and time limit, the study only covered the period
from 2000-2001 to 2015-2016. The study not include some related actors in value chain
and minor actors in the aquaculture value-chain. Besides, survey sample size of 100 actors
cannot be represent for all aquaculture sector stakeholders of Myanmar.
1.5 Organization of the Study
This thesis is organized into five chapters. Chapter (1) forming with rationale of the
study, objective of the study, method of study, scope and limitation of the study and
organization of the study. Chapter (2) is Literature Review about Value Chain and
Aquaculture Development discuss about concept of value chain, concept of aquaculture
value chain and role of fisheries and aquaculture sector in global and review on previous
studies. Chapter (3) described about Aquaculture Sector Development in Myanmar
comprised with history of fisheries sector in Myanmar, fisheries policies and legal
framework, about Ministry of Agriculture, Livestock and Irrigation, Department of
Fisheries, and NGOs in Myanmar fisheries sector, yearly production, export quantity and

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value of fisheries in Myanmar. Chapter (4) discuss about the value chain analysis of Rohu
fish aquaculture development in Myanmar by survey findings by interviews of from
upstream actors, midstream actors, downstream actors and other related stakeholders. In
last Chapter (5), Survey findings are collected the main findings and highlights from the
result of interviews and secondary data collections by each segments in three streams of
value chain. Survey findings on each segment of upstream, midstream and downstream,
suggestions and recommendations are expressed.