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CHAPTER (4)
VALUE CHAIN ANALYSIS OF
ROHU FISH AQUACULTURE DEVELOPMENT IN MYANMAR
In this chapter discuss about the value chain analysis of aquaculture development
in Myanmar by survey findings by interviews of from upstream actors, midstream actors,
downstream actors and other related stakeholders.
4.1 Survey Profile
The study is based on the filed survey conducted during the period of November
2016 to June 2017. Mainly focus to the value chain stakeholders in aquaculture sector.
According to the secondary data and satellite image from Google Earth, Ayeyarwaddy
Region and Yangon Region are the largest contribution to Aquaculture sector of Myanmar
that 90% of aquaculture ponds are exist in there. Survey was conducted in Kayan, Thone
Khwa, Mingalardon, Hlegu, Twan Tay, Htan Ta Bin Townships in Yangon Region,
Nyaung Done and Maubin Townships in Ayeyarwaddy Region.
Moreover, survey conducted at the Baho Sanpya Fish Market (Central Fish
Market), where is essential place of aquaculture value chain in Myanmar and also Shwe
Padauk Fish Market, some wet markets in Yangon, Bayintnaung Trading and warehouse
area, feed factories, DOF, MFF, WorldFish and related organizations. Table 4.1 shows the
summary of interview by value chain segment, type of actor and number of interviews
conducted. The survey focused only on freshwater aquaculture fish farming, which is
responsible for 95% of Myanmar’s reported aquaculture and especially focus on Rohu
species which is the top the fish export for every year since before 2000. It started by
identifying, measuring, and cataloguing inland fish ponds in the Delta where 90% of
Myanmar’s aquaculture takes place. Then travelled to seven townships in Yangon and
Ayeyarwaddy Regions and to San Pya market– the main fish wholesale market in Yangon
which receives most of the fish produced in the Delta and some wet markets in Yangon.
39
Table (4.1) Summary of Interviews; by Value Chain Segment, Actor Type and
Number of Interviews Conducted
Upstream No. Midstream No. Downstream No. Other related No.
Nursery 2 Fish farm 20 Wholesaler 7 Local official 2
Hatchery 3 Pond Labour 5
Wet market fish
seller 6
Government
Official 2
Nursery,
fingerling 3
Labour
broker 2 Fish processor 4
Fishing boat
(marine) 2
Fingerling
intermediary 2
Ice manufacture/
intermediary 2 DOF 2
Rice mill 3
Transport
services 4 MFF 3
Chemical
supplier 2 Boat rental 3 World Fish 2
Labour
@fingerling 2 Net rental 1
Other
organizations 3
Boat
@fingerling 2 Labour 4
Feed trader 2 Boat Labor 2
Feed mill 2
Pump maker 1
Total: 100 24 27 33 16
Source: Survey Data
In each location, keep an inventory of all the segments of the value chain, with
numbers of fish farms, rural traders, hatcheries and nurseries, feed mills and feed traders,
fish wholesalers and linked services like transport and ice suppliers. In this study, used
income method and output method to indicate the Rohu fish aquaculture value chain
development and analyzed by the yearly development of the different actors in different
segments along the value chain.
4.2 Upstream: Input Sectors
In the upstream or input sectors including seed supply and hatcheries, nurseries and
fingerling production, feed supply, transportation for inputs, natural resources, equipment
and machineries, other inputs and related goods and services.
40
4.2.1 Seed supply and Hatcheries
Hatchery production specifically refers to production of seed from indoor or
outdoor hatchery/nursery facilities and is usually reported in numbers. The sources of
seeds, fingerling and fry are producing from the government hatcheries and private
hatcheries. Seeds has been nursed to larger sizes before sale to pond owners and release to
culture based and leasable fisheries. The mandates of these stations cum hatcheries are to
produce quality seeds, to provide fish seeds to fish farmers, stock replenishing programs
and culture based fisheries, to impart technical knowledge on aquaculture and expertise to
the fish farmers through extension and demonstration services and to conduct appropriate
research related to aquaculture.
Induced breeding of Rohu (Nga Myit Chin) has been catering for almost the entire
seed requirement in all the countries where it is cultured, although riverine collection still
forms the seed source in certain small areas. While induced breeding through
hypophysation has been the common practice. This type of hatchery possesses three
principal components, viz., spawning/breeding tank, incubation/hatching tank, and water
storage and supply system. The depth of water in the breeding tank is maintained at up to
1.5 m, based on the brood stock density; 3-5 kg brood stock/m³ is usually recommended.
The female: male ratio is normally maintained at 1:1 by weight (1:2 by number). The size
and number of hatching tanks vary, based on the production requirements and size of the
breeding tank. The optimum egg density for incubation is 0.7-0.8 million/m³. In general,
0.15-0.2 million eggs/kg of female are obtained. The seed rearing normally involves a two-
tier system, i.e. a 15-20 days nursery phase for raising fry, followed by a two-three months
phase for fingerling production. Survival ranges from 30 to 50 percent in nursery phase
and 60 to 80 percent in fingerling phase. Breading season for Rohu (Nga Myit Chin),
Mrigal (Nga Gyin Phyu) and Pacu (Nga Mote) in June-August and breading season for
Pangasius (Nga Dan) is June-September.
(A)Public Hatcheries
The government hatcheries produce seeds for stocking out in aquaculture and sale
to leasable fisheries. According to table (4.2), there were 28 government fish hatcheries
(and 6 shrimps and prawn hatcheries) in Myanmar. There were 14 main species of fish
seeds production from 25 hatcheries produced seeds in 2015-2016. The first hatcheries in
Myanmar were established by the Department of Fisheries (DOF) in 1966.
41
Since 2003-04, Department of Fisheries has initiated stocking of quality fish seed
into paddy fields in order to sustain subsidized fish production. The result shows that
stocking of fish seeds into paddy fields substantiate better livelihood of the paddy farmers.
The Department has increased the momentum in stocking fish seeds into paddy fields.
Department of Fisheries has taken continuous measure to maintain and enhance the inland
fishery resource by stocking of quality fish seeds into open waters, rivers, man-made
reservoirs and natural lakes.
Table (4.2) Seed Production (million pcs) from Fish Hatcheries under DOF by
States and Regions, 2006-2016
Source: DOF Fish Statistic 2006- 2016
The data shows, government hatcheries has been not too much different amount of
seed production within 10 years. According to DOF statistic data, DOF produced Nga Myit
Chin (Rohu) seeds produced 420 million (69 % of total seed production) which is top one
in 2015-16. Nga Khone Ma (Tarpian) is second 100 million seeds which 17% of total seed
production and Shwe War Nga Gyin (Common Carp) 36 million and Tilapia 11 million,
Pacu (Yecho Ngarmont) and Nga Dan (Pangasius sutchi/ Stripped Catfish) are about 8
million only. Other 18 species are very few amount about thousand and some are not
produce for many years. These minor species seed production look like research.
According to survey result, most of the commercial ponds mostly buy from the private
hatcheries and nurseries and rarely buy from government stations because government
hatchery station fingerlings are more focus to distribute to the natural water resources such
as lakes, inn and rivers to sustain the biodiversity and natural fisheries resources.
2006 -
07
2007 -
08
2008 -
09
2009 -
10
2010 -
11
2011 -
12
2012 -
13
2013 -
14
2014 -
15
2015 -
16
Yangon 3 23 23 28 21 24 24 23 19 20 22
Mandalay 4 35 36 37 38 45 28 38 25 21 23
Ayeyarwaddy 5 20 16 8 15 13 17 17 10 11 11
Bago 3 8 10 8 12 9 9 10 10 28 9
Nay Pyi Taw 1 0 0 0 0 0 13 7 3 7 7
Sagaing 4 3 4 2 4 4 3 3 3 3 3
Kachin 2 1 1 1 1 2 2 2 2 1 1
Magway 2 4 1 1 1 1 1 1 1 1 1
Shan 2 4 0 1 0 0 0 1 0 1 1
Mon 1 1 1 1 0 1 1 1 0 0 0
Kayin 1 0 0 0 0 0 0 0 0 0 0
Total Number 28 758 706 660 715 767 750 790 551 717 609
State/ Region
No.of Fish
Hatcheries
% of Total Seed Production (Million Pcs)
42
This pattern is similar that found in other countries in the region, where the private
sector overwhelmingly dominates fish seed supply for aquaculture. It is likely that the role
of public hatcheries in supplying seed for aquaculture is more significant in states and
regions which are distant from the main centers of seed production in the delta, but the
overall contribution to national seed supply for aquaculture is small.
(B) Private Hatcheries
According to survey data, private sector seed production is increasing year by year.
Individual or private 42 hatcheries are also found in almost all locations with large
concentrations of ponds in Yangon, Ayeyarwady and Bago regions in 2016. The first
private hatchery was established in Kayan around 1985, through collaboration between a
fish farmer from the area and a DOF officer. Members of the extended family of the first
hatchery operator subsequently established hatcheries of their own in the area, leading to
the development of Myanmar’s first hatchery cluster in Kayan.
The earliest fish farmers in Kayan, the east of Yangon (who were already raising
wild fish in enclosed deep water rice fields) began to purchase seed produced at DOF
stations close to Yangon. Since that time the number of commercial hatcheries has grown
steadily. Many of the more recent hatcheries were established by, in partnership with, or
with support from, technicians who learned their trade in early hatcheries in Kayan and
elsewhere. At present, there are five hatcheries in Kayan. Kamarhmat village is the largest
hatcheries in Khayan Township since 20 years ago. Number of production increased over
10 years. Rohu (Nga Myit Chin) and Pangasius (Nga Dan) are main product and other
small amount of Mrigal (Nga Gyin Phyu), Catla (Nga Gaung Pwa), Pacu (Nga Mont) and
Pangasius (Nga Dan) are also available. There are five hatcheries in Twanty. Myanmar’s
second hatchery cluster developed in Twantay after 1990, when the owner of a large farm
began to produce seed on an experimental basis, also using knowledge acquired from staff
at a local DOF station.
In Maubin, hatchery cluster that emerged after 2000 especially in Latkyargyi
village tract. Some private hatcheries also increasing after 2000 in Nyaung Done, after
2005 Htantabin, Mingalardon and Hlegu as aquaculture farms developing. Some hatcheries
operate as standalone businesses, while others have been established by the operators of
large grow out farms primarily for the purpose of providing seed for own use, with the
excess sold commercially. This may explain what appears to be a rather low total number
43
of commercial hatcheries relative to the size of the farm sector. The most common reported,
the hatchlings normally receive a supplementary feed of a 1:1 mixture of rice bran and
groundnut oil cake. Mixture ratio are different area by area and some said that depend on
the size of hatch. Usually 1:1, 1:3, 1:4, 1:5 etc increasingly by the age and growth rate of
fish.
4.2.2 Nurseries/ Fingerling production
Hatchlings, measuring about 6 mm (1/4”) (Nga Hmone), are reared up to fry of 20-
25 mm (3/4”-1”) (Nga Than) in small nursery ponds. In certain areas, brick-lined or cement
tanks are also used as nurseries. Pre-stocking nursery pond preparation should include the
removal of aquatic weeds and predatory fish, followed by liming and fertilization with
organic manures and inorganic fertilizers. Midsteam fish ponds are very rarely breeding
Nga Hmone fry, mostly breeding by the hatcheries and nurseries. The nursery-raised fry
are further reared for two-three months to 80-100 mm (3”-4”) (Nga Than) fingerlings in
earthen ponds of ¼ acre to 2 or 3 acre. Rohu (Nga Myit Chin) are grown together with
other carp species at combined about 30-40 percent of the total densities of 30,000 fry/acre
approximately. Pond fertilization with both organic and inorganic fertilizers, and
supplementary feeding with the conventional mixture of rice bran and oil cake are the
norm; however, the dosage and form of application vary with the farming intensity and
inherent pond productivity.
Figure (4.1) Public and Private Hatcheries and Nurseries Developing Trend in
Surveyed Townships
Source: Survey data
0
10
20
30
40
50
60
1966 1985 1990 1995 2000 2005 2005 2005
DOF
(Khayan)
Khayan Twantay Maubin Nyaung Don Htan Ta Bin Mingalardon Hlegu
YearsofExperience
Name of Surveyed Township
44
Figure 4.1 shows the public and private hatcheries and nurseries developing trend
in surveyed townships. Most of the Fish firms/ ponds owners in survey area used to buy
fingerlings from private nursery/ hatcheries rather than government hatcheries. The reason
for prefer to buy from private because private include delivery up to the pond that reduce
the risk of fingerlings died in the transportation. Private fingerling traders and nurseries are
mostly in Pandaing, Twan Tay, Maubin, Nyaung Don, Kha Yan Thone Khwa and Htauk
Kyant areas.
Most fingerlings produced by commercial nurseries are sold to local grow out
farms, and transactions are often direct from nursery to farm without an intermediary. In
larger hatchery and nursery clusters, distributed through traders. Some nursery operators
will accept delayed payment from traders, but mostly in cash. Fingerling fish are harvested
at monthly intervals and graded by size during each harvest and stocked accordingly to
ensure that each pond contains fish of uniform size. The process of regularly grading fish
by hand is labor intensive. Fingerlings are fed mainly with rice bran and peanut oilcake.
The non-availability of commercial feed, forcing the farmers to resort to the conventional
bran-oilcake mixture, is another limiting factor for the growth and survival of fry.
Fingerlings can be sold at any size from 1 inch or bigger.
Usually, small holder Fish firms/ ponds owners start to buy fingerlings (Nga Pyann)
size from 3” to 7” inches that varies price by size. At the end of 2016, the average
fingerlings/ Nga Than price (delivered to ponds) are 3”-27 kyats, 4”-47kyats, 5”-85 kyats,
6”-120 kyats and 7” -150 kyats. The farming practice of the most of nurseries firms: start
to nurse about 50,000 pcs of fingerlings (about < 3” Nga Than) in small pond about 2
months. It used to feed 1:1 of Peanut oil cake and rice bran, 3 times per day. After that
increase to 1:2 ratio, 1:3 ratio. It is enough 1 pyi of peanut oil cake and 3 pyi of rice bran
for about 30,000 to 50,000 fry. After one month old, 2 pyi of peanut oil cake and 6 pyi of
rice bran. After 2 months, 30 to 40 thousands (80% to 60% of fry) are survived, moved to
middle size pond for 10 months or 1 year to become the size 7”to 10”. In this stage, only
feeding rice bran 12 pyi increasing up to 20 pyi until 10 months/ 1 year. The problem in
this middle stage is mostly too much feeding and crowded the fishes that not enough space
of pond size for fingerlings.
The reason of rapid growth of nurseries are:
(1) Nurseries are more profitable than agriculture, 5-10 times more income than paddy;
(2) Nurseries have a more rapid production cycle and revenue turnover than alternative
types of agriculture or aquaculture, return within two months;
45
(3) Production is less risky than agriculture or grow out farming aquaculture and rare to
lose money;
(4) Increase in demand for fingerlings due to growth in the area of grow out ponds, and the
market price of fingerlings is high; due to changing production technologies, grow out
farmers preference for stocking larger sizes fingerlings,
(5) The investment requirement to establish and operate a nursery is much lower than grow
out ponds, easy to enter production;
(6) Many banana and mango orchards destroyed during Cyclone Nargis 2008 were
replaced with nurseries.
Most commercial nurseries range from 1-5 acres in size. Hatcheries, nurseries and
grow out farms tend to co-locate in clusters due to agglomeration economies. As a result
of clustering,
- costs of transporting seed between enterprises are minimized;
- laborers perform functions required by all types of enterprise (e.g. fish harvesting,
pond construction, and specialized services (e.g. fingerling transport boats) are available;
- information can share between enterprises; small individual nurseries, hatcheries
producers can easily find customers such as seed traders, nurseries, grow out farms;
- traders can easily assemble bulk orders for distant markets from multiple small
differentiated suppliers such as nurseries, offering a range of choices in terms of species
and sizes of fingerlings.
Many commercial grow out farms buy fingerlings from nurseries, typically sized
between 1- 6 inches, and nurse them for several months before stocking in grow out ponds
at large sizes (6-12 inches) to ensure higher survival rates and reduce the duration of
production cycles. The main advantages gained by farms from nursing seed themselves
rather than buying fingerlings at the desired size are reduced production costs, and the
ability to ensure that seed of the desired quantity and size is available in a timely manner.
There are many variations in on-farm nursing practice depending on the number of nursery
ponds available and the production strategy of the farm. Commercial nurseries are usually
comprised of at least two ponds or more. Hatchlings are usually purchased directly from
nearby hatcheries during early-mid monsoon, and stocked at high density. The typical areal
ratio of nursery ponds to grow out ponds on farm was reported to be 1:5.
46
4.2.3 Aqua Feed
Traditional or Conventional aquaculture feeding by about 6 types such as rice bran,
peanut oil cake, sesame cake, cotton cake, coconut cake and wastes from pulses and
cassava, and waste from breweries and noodle or vermicelli factories. Most of smallholder
firm feed mainly rice bran and peanut cake. Due to the encouragement of the government
of State Law and Order Restoration Council (SLORC), aquaculture sector has been grown
rapidly since after 1989. Myanmar aquaculture feed sector has developed by after
establishment of 5 tons per hour productivity pelleted feeds factory which guideline by
Ministry of Livestock, Fisheries and Rural Development in 2003. But, according to the key
informant answers, the Ministry of Agriculture, Livestock and Irrigation has three feed
mills, all of which were said to be inactive now. This apparent lack of co-development in
fish and livestock feed manufacturing is rather unusual when compared to other countries
in the region.
Table (4.3) Feeding System of the Surveyed Aquaculture Ponds
Pallet 10% Mixed
20%Rice Bran and Groundnut Oil Cake 20%
Mixed
30%Wastes from Breweries, Noddle,
vermicelli factories etc
5%
Own food (RB+GOC+fishmeal) 10%
Conventional 5%
Source: Survey data
Nutritious feeding is the most important role in the aquaculture because 70% to
80% of total production cost spent by fish/ prawn feed. The type, quantity and quality of
feeds used, and the efficiency with which they are applied are key factors influencing fish
growth rates, duration of production cycle, water quality in ponds, yields and profitability.
In the production of scientific pelleted feed, nutrient and effectiveness of feed to the fishes
and reduce the requirement of raw materials for feed, reduce the feed cost, reduce the feed
waste, can be protected the pond pollution and sustain water quality due to less fish manure
and finally increase fish productivity. Pellets feed produced systematically formulated
based on the size/age of fish/prawn’s requirement of nutrients. It used quality control and
not adding any other unwanted byproducts. When producing scientific pelleted feed,
ingredients are including about 20 types. It was mixing by systematically ratio of rice bran,
47
dry rice bran, wheat bran, peanut cake, sesame cake, soya-bean cake, cotton cake, corn,
rape seed cake, mustard cake, sunflower cake, coconut cake, pulses and cassava, fish meal
powder, dried fish, Prawn Shell Bran, Oyster shell powder, dried shrimp etc.
There were two types of pelleted feed as floating pellets feed and sinking pellets
feeds. Floating pellets feeds is more expensive than sinking pellets feed. Manufactured
pelleted fish feeds in Myanmar are expensive that commercially manufactured floating
feeds with comparable characteristics are 10% to 30% higher than other neighboring
countries and ASEAN. Seventy percent of the feed produced by Htoo Thit is floating feed,
and it is the only producer of floating feed in Myanmar at present. The company was
reported to produce an 18% and 25% crude protein (CP) in sinking feed, and a 25% and
28% CP in floating feed, and to manufacture a number of other specialist feeds to order
(e.g. frog feed, sea bass feed, soft shelled crab feed). Three other domestically owned
private companies were confirmed as producing and distributing pelleted feeds, but their
market shares appear rather small.
MFF estimated that greater than 85% of aquaculture production in Myanmar is
reliant on the use of agricultural byproducts, wastes as feeds and the remainder using
commercially manufactured pelleted feeds. But as survey result shows in Table 4.3, 10%
fed the pallet and 20% fed rice bran and groundnut oil cake, 5% fed wastes from breweries,
noddle, vermicelli factories etc, 5% fed own food (rice bran+ groundnut oil cake +
fishmeal), 5% answered conventional all available food and agriculture byproducts. 20%
mixed pellet and rice bran and groundnut oil cake, 30% mixed rice bran, groundnut oil
cake and wastes from breweries factories.
Figure (4.2) Feed Type Using Percentage of the Surveyed Aquaculture Ponds
Source: Survey data
Pallet
20%
Rice Bran and
Groundnut Oil
Cake
45%
Breweries wastes
20%
Own food
(RB+GOC+fishmeal)
10%
Conventional
5%
48
This data seems not clear to describe but it is based on survey answer because
some used to feed mix type of feed. If analyzed as percentage per type of feed, the result
can be shown as in figure (4.2) Some informant answered, Pallet feed used especially at
two or three months before harvesting to quick growth of the fish. The reasons not feeding
the pallet are higher feed costs, fish died in last year due to pallet feed, fish do not like
pallet feed, higher transportation cost or do not want to go to town/ Yangon to buy pallet.
Rice bran is much cheaper than peanut oilcake. Approximately 1 bag (24 pyi) of
Rice bran is 6,000MMK/4USD and peanut is 20,000MMK/15USD in 2016. However,
peanut oilcake has a much higher protein content than rice bran - 42% and 10-15%
respectively (Favre and Myint, 2009). Peanut oilcake is thus converted to fish biomass
more efficiently, resulting in faster rates of growth than feeding rice bran alone. Farmers
combine the two inputs in the attempt to optimize fish growth whilst minimizing
production costs.
Large farms source bulk orders of rice bran direct from rice mills (mainly in
Ayeyarwady, Yangon and Bago, oilcakes from oilseed mills mainly from Central Dry
Zone, brewery, pulse, and other processing wastes from factories located in the industrial
zones around Yangon. Depending on circumstances, farmers may pay advances to mills to
guarantee large orders, and mills may extend credit to farms on a short term basis, and bank
transfer or in cash. Large farms will sometimes also act as brokers, selling agricultural
byproducts to neighboring farms at a markup.
Modern large and medium-scale rice mills produce higher yields of better quality
rice bran than small village based milling operations. Large traders interviewed at
Bayintnaung Commodity Exchange Center purchased a wide variety of feed ingredients
direct from mills for resale to fish and animal feed factories and farms. About 15 small
shops feed traders in Twantay town. Rice bran traders are more numerous and more
geographically dispersed than traders of oilcake, perhaps reflecting the larger numbers of
rice mills as compared to oil mills, and their wider geographical distribution.
4.2.4 Transportation for Inputs
Many large farms own transport (boats and/or trucks) which can be used for
collecting feed. Only small and medium farms used boat/truck rental services to collect or
deliveries feeds, or accept from mills, traders and feed dealerships. If the farmer organizes
transport, need to arrange labor for unloading using their own permanent workers or hire
49
casual laborers. Many of smallholder farms have access to hire boat/truck rental services
in their location.
Fingerlings are transported using boats that have been specially modified so that
the hull becomes a ‘live well’, and covered with netting to prevent fingerlings jumping out.
Water is sprayed into the hull from suspended pipes to maintain high levels of oxygenation,
and excess water is discharged automatically. The largest fingerling boats can carry
300,000 three inch fingerlings, but most have a smaller capacity. Most boats are owned by
fingerling traders or hatcheries, but rental services also exist. About 10 to 50 boats in each
cluster. In all these locations, numbers of fingerling transport boats were reported to have
increased two to three times over the last 10 years. Fingerlings can be transported by boat
over long distances because the delta is well connected by a system of waterways that serve
as an alternative to the road network. Small trucks and motorbikes are used to transport
fingerlings packed in oxygenated bags.
Transportation of fish, although stressful, is an inevitable procedure in aquaculture
practices. In a study (FAO: Aquaculture Reports 2/2015, Stress responses in rohu),
investigated the changes in biochemical and haematological indices in advanced
fingerlings of rohu, in order to optimize the packing density as is imperative to avoid
transportation stress and associated mortality. Optimizing the packing density for a
specified period of transportation is needed to reduce stress related mortality both during
and/or after transportation. The results of the study suggested that the optimum packing
density for rohu fingerlings for 2–3 h duration of transport would be 134 g L−1
as it kept
the stress at low levels and caused no mortality subsequently as against 201 g L.−1
4.2.5 Equipment and Machineries
There were lack of proper equipment and machineries in majority of the farms in
all cluster. Mechanical excavators for pond construction first appeared after 2009. There
were 3 excavators available for rental in Twantay in surveyed time. Other clusters only
relied to labours to digging the ponds.
4.2.6 Other Inputs and Related Goods and Services
There were many direct or indirect related inputs along the aquaculture value chain
in studied area. Key informant interviews mentioned these direct and indirect commodities
and services are increasing as develop as aquaculture sector development. A wide range of
other inputs and services are required to facilitate fish production. These include a variety
50
of fixed or quasi-fixed inputs (e.g. buildings, poultry houses, pumps, generators, trucks and
boats, fishing net), variable inputs (e.g. lime, salt, vet medicines, ice), transport (truck and
boat rentals) and other specialized services (e.g. mechanical repairs, earth moving
equipment rentals). The number of businesses providing these goods and services has
grown 2 to 3 times as long as the aquaculture growth in their area.
4.3 Midstream: Farm Sector
Studied in the midstream or farm sectors, include pond owners’ experiences by size
of farming, their farming practices, land access and tenure, other natural resources, labor
and access to finance.
4.3.1 Size of Farming
According to Department of Fisheries, aquaculture ponds can be categorized by
size of pond such as (a) household farming, (b) small scale, (c) medium scale and (d) large-
scale farming.
Table (4.4) No. of Fish Farmers and Fish Ponds in Ayeyarwaddy and Yangon Region
(2010-2011)
Source: EMPA 9th Batch, 2013, Wine Wai Wai Win, Large scale and small scale fish
farming in aquaculture sector in Myanmar
According to table (4.4), no. of fish farmers and fish pond acres in Ayeyarwaddy
and Yangon Region shows that small farmers who 53% of total farmers are shared only
17% of aquaculture land in Ayeyarwaddy. Similarly, small farmers who 53% of total
farmers shared only 17% of aquaculture land in Yangon Region. Meanwhile, over 50 acre
land owned large scale who 21% of farmers occupied 50% of aquaculture land in
Small Medium Large Total Small Medium Large Total
Ayeyarwaddy 2,679 1,331 1,086 5,096 18,820 37,637 56,452 112,909
53% 26% 21% 17% 33% 50%
Yangon 2,750 1,662 576 4,988 9,979 19,957 29,934 59,870
55% 33% 12% 17% 33% 50%
Other States/
Regions 9,183 776 124 10,083 26,608 12,908 6,451 45,967
Total 14,612 3,769 1,786 20,167 55,407 70,502 92,837 218,746
72% 19% 9% 25% 32% 42%
States/
Regions
No.of Fish Farmers Fish Pond Acres
51
Ayeyarwaddy. Majority of farmers are small scale farmers in those area but large portion
of land owned by large scale farming.
(A)Household Farming
The household farming means extensive culture in small or homestead backyard
pond not more than one acre and harvest occasionally for family consumption. This kinds
of ponds are not rear systematically and feed rice bran or kitchen waste and mostly seeds
from wild and small capture fishes. Normally, this homestead backyard ponds no need to
pay any tax. 10% of surveyed respondents are small or homestead backyard pond owned
household farming. They started their household farming after 2005 by adopting practice
from neighboring commercial ponds in their area. In this group of informants, difficult to
measure their development as the area expansion or by increasing production but they
answers their benefit by household farming as;
- More saving by reduce kitchen expenditure
- Health and nutrition impact for family members.
(B) Small-Scale Farming
If stand as main or major family livelihood operated by family members is called
Small-scale aquaculture. Generally the fish ponds areas are not more than ten acres in total
comprising a good number of half to one to two acre fish ponds and sometimes integrating
with other business such as poultry farming or plantation. 30% of surveyed respondents
are small-scale farming. 53% of small scale farming are increasing the pond acre within
2000-2016.
(C) Medium Scale Farming
Medium scale fishery is between 11 acre and 50 acres. 40% of surveyed
respondents are Medium-scale farming. 39% of small scale farming are increasing the pond
acre within 2000-2016.
(D)Large-Scale Farming
In terms of the volume of fish produced, it seems clear that aquaculture is
dominated by large-scale operations. A small number of very large vertically integrated
farms operated by companies, a few of these have achieved almost complete vertical
integration; including hatchery, nursery, feed mill, grow out, transport (boats and trucks),
ice plants, and cold storage/export. At least two companies also market feed, and buy back
52
harvested fish from customers for onward sale, on a contractual or quasi-contractual basis.
Some of these companies have investments in other agro-industrial enterprises, including
marine fishing, brewing, rubber, rice mills, food processing and dairy farming. The largest
of these farms is reportedly 7000 acres in size, and another is more than 3000 acres. Some
very large, partially vertically integrated farms of around 1000 acres are operated by
individuals or families, often from among the earliest investors in the sector. Large farms
at the next ‘tier’ down the scale are sized in the low hundreds of acres. Although they are
also relatively few in terms of absolute numbers, farms of this size are found in most
locations with significant concentrations of ponds, and represent a large share of total pond
area. Some of these farms operate hatcheries for their own use, and some also sell feeds
such as rice bran to smaller farmers in the vicinity. 20% of surveyed respondents are
Medium-scale farming. 50% to 80% and large scale farms are expend 200% to 500% more
of their initial acreage.
(E) Integrated Farming (Poultry-Fish& Paddy-Fish)
Integrated poultry-fish production poultry, chicken houses over fish ponds, much
of the growth in to the north of Yangon has been fueled by the inflow of capital from ethnic
Chinese investors from Shan State with trading, mining and agricultural businesses,
seeking to diversify their asset portfolios. Broiler and eggs poultry farming are found in
this area. According to informant answer, poultry fish are lower price than normal fish farm
because fish are a little bit smelly or different odor.
Since 2003-04, Department of Fisheries has initiated stocking of quality fish seed
into paddy fields in order to sustain subsidized fish production. The result shows that
stocking of fish seeds into paddy fields substantiate better livelihood of the paddy farmers.
But paddy fish farming are other small fish species not include Rohu.
4.3.2 Experience of Pond owner
Myanmar freshwater aquaculture farming can be classified as small scale and large
scale aquaculture enterprises. Pond aquaculture in Myanmar is set against a Buddhist
tradition of non-culture of fish, religious avoidance of cruelty to fish and unwillingness or
preference not to kill animals. It is apparent though that freshwater aquaculture is
increasing and is growing fastest where ethnic Chinese are becoming involved since they
do not have this cultural avoidance. The ethnic Chinese are also able to raise the input
53
capital for aquaculture development more readily and also have access to information and
technologies from China. As aquaculture area expanded, the land availability in pioneering
areas become limitation and high price. Therefore, farmers from early aquaculture clusters
began to extend their pond construction in new areas with adequate water supply and
transport links. Former residents near from new area began construct ponds and start the
aquaculture that reasons for increasing numbers, leading to the formation of new pond
clusters. Total pond acreage has increased rapidly over the last decade through the
conversion of paddy and uncultivated wetlands in pond clusters.
Figure (4.3) Pond Area Expansion of Pond Owners
Source: Survey Data
Usually, a business might be expend and re-investment their incomes when this
business is high return and benefit for them. To be measured the development of surveyed
aquaculture farms, as figure (4.3) shows years of pond area expansion of pond owners.
According to result, pond owners are expend their pond acreage 3% are before 2000, 53%
are between 2000-2005 and 32% are between 2006-2010. It can be say that fish aquaculture
has high return of profit and developing business. Only 9% did not expend their pond
acreage due to late entry to this business or invested in other business or land not available
nearby area. Except from the household farming under one acre, majority of small and
medium are expend their pond area about 50% to 80% and Large scale farms are expend
200% to 500% more of their initial acreage within those years.
4%
55%
33%
3%
6%
Before 2000
2000-05
2006-10
2011-16
No expend
0% 10% 20% 30% 40% 50% 60%
PondAreaExpensionyears
% of Respondant Pond Owners
54
4.3.3 Farming Practice (Production Technology)
The farming practice in midstream can be categorized by on-growing practices,
harvesting practices. Moreover, technical extension and production cost are discussed
under this topic.
(A) Grow-Out Practices
Aquaculture production specifically refers to output from aquaculture activities,
which are designated for final harvest for consumption, output is reported in weight. The
farm designs are based on topography, water level and flow, rainfall, soil types. The slice
gate, inlet-outlet cannel, dykes are constructed accordingly. To get more oxygen into water
and to reduce the water temperature, making shower by pumping into the air is normal
practice. The regular exchange of water by pumping or through slice gate. Water refilled
and maintaining the depth of water between four to six feet to compensate water loss due
to seepage and evaporation.
After three to four years, in the summer season, drained out the pond and dried
completely till the bottom soil are cracked. And then, removed the upper layer of pond
bottom and utilized in plantation as organic fertilizers. Treated with lime to eradicate fish
predators and their eggs. When water pumping into the pond, screened and filtered
thoroughly to prevent unwanted fish. Different farming practices in Myanmar accordance
with environment conditions, infrastructure, land and water, markets demand, buyer
choice, farmer’s investment capacity.
In surveyed area of delta, use the rearing as low stocking density for grow-out
farms. The grow out pond started moving to large pond, after raring finagling size reach
up to 4”-7” used to grow about 1500-2000 fishes/ acre. It will take about 8 months to reach
the marketable size about 1 viss (1.63kg) in average. If some farm want to grow out in
short term and non-crowded system, size start from the size 8”-10” used to grow only 1000-
1200 fishes/acre. It will take about 7 months to reach the marketable size about 1 viss
(1.63kg) in average. If grow up to 10 months, may reach to 1.5 viss (2.45kg). Generally,
marketable size of export and some local market is above 2 kilogram (1.25viss).
According to survey data, the grow-out ponds starting fingerling size, growing duration
and harvesting time are variance and depend on the pond owners’ strategy.
Normally, in grow-out ponds, combination of feeds was 1 sack of peanut oilcake
(unit weight 32 kg) to 10 sacks of rice bran (unit weight 27 kg). In large scale farming,
while the adoption of scientific carp culture in recent years has been realizing production
55
levels of 3-5 tonnes/ ha/ yr ((1800-3000 viss/acre/yr), such practices are limited to only a
few small areas. Small and medium farms are average 2-3.5 ton/ha/yr (1200-2400
viss/acre/yr).
The pond fertilization with organic manures like cattle dung or poultry droppings
and inorganic fertilizers; the provision of a mixture of rice bran/wheat bran and
groundnut/mustard oil cake as supplementary feed, fish health monitoring and water
management. The usual harvestable size of rohu is over 0.8 -1.5 viss (1.3-2.5 kg) and is
achieved within a culture period of 12-18 months (if not include nursery phase, only 10-12
months). Production levels of 6-8 tonnes/ha are recorded in other country. But according
to survey data, only 2-5 tonnes/ ha (1200-3000 viss/acre).
The higher price of commercial feeds has been forcing farmers to resort to the
conventional bran-oil cake mixture, usually supplied in dough form, thus leading to
wastage and deterioration of water quality. Judicious feed management, therefore, requires
attention in order to enhance the profit margin. In grow out, especially at higher stocking
densities, carp lice, has been a major problem for Rohu, causing reduction in growth and
sometimes mortalities.
(B) Harvesting Practices
Manually operated dragnets are the most convenient gear used for harvesting. The
length of these nets depends on the width of the pond. In most cases fish are harvested at
the end of the culture period through repeated netting. However, in some cases, this is
followed by total draining of the ponds. In water bodies where multiple stocking and
multiple harvesting are practiced, the harvesting of larger sizes (300-500 g) is usually
initiated after six-seven months of culture, and the smaller ones are returned to the pond
for further growth. Multiple stocking and multiple harvesting is the most common practice
in sewage-fed carp culture system.
(C) Technical Extension and Veterinary Services
According to survey, majority of pond owners answers no technical extension
received. Most of them relied on their experience and getting advice from neighboring
firms and sharing experience each other. Very few pond owner have water quality test kits
(eg.pH level, Oxygen level test kits). Some large firm have access to fishery specialist or
veterinarians and field visit regularly or when fish disease occur in their ponds. Majority
of farms not received veterinarian service. They are relied on traditional or folk medicine
56
and peer education method for their fish health. For example, water pump in and out,
aeration, using herbal medicine like lime, tobacco, salt etc. Over 90% of small farm did not
know or did not access to DOF provided technical extension or trainings. But some large
farm owners and association members who have contact and familiar with the DOF or MFF
are received opportunities of trainings, workshops, and forum in both local and abroad.
(D) Production costs
In general, Rohu is fetching market prices of approximately in 2016, USD 1.7/kg
(2, 800MMK/Viss) at the producers' level; therefore, the use of major inputs such as seed,
fertilizers and supplementary feed, besides labour costs, is kept to a minimum.
Supplementary feed constitutes about 60-80 percent of the total input cost in Rohu fish
aquaculture. Therefore, judicious feed management is of prime importance for enhancing
profits. In surveyed ponds, average production level are 2.5 ton/ ha (1500viss/acre). In
extensive systems, with a targeted production level of 3-5 tones/ha (1800-3000 viss/ acre).
The cost of production is about USD 0.80/kg (1800 MMK/viss) for small and medium
farmers who are not used the pelleted feed. And cost of production who used the pelleted
feed is about USD 1.12 /kg (2400 MMK/viss). Some informant answered that it seems high
production cost but high productivity by more weight and less health problem due to
pelleted feed. But majority of small and medium farms are still not using the pelleted feed.
They answered that they already tried one or two times but not different too much and only
high costing.
4.3.4 Land Access and Tenure
The Aquaculture Law 1989, which promoted the conversion of uncultivated
“wasteland” to fish ponds. Small and medium-sized commercial farms are more numerous
than is generally recognized. In certain areas these farmers, attracted by the high returns
possible from fish production, have circumvented regulations about conversion of paddy
land to fish ponds. Fish farmers rarely rent privately owned land to construct fish ponds. .
However, farmers have had freedom to choose which crops they plant since 1993, with the
exception of rice, which must be cultivated on all designated paddy land (UN-
Habitat/UNHRC, 2010).
There are three types of land title related to aquaculture. Form 7 is title for
agriculture land, Form 105 is temporary license to change the land title use. Form “LaNa
39” is long term license land title that to use the land for aquaculture purpose. Aquaculture
is not legally designated as a form of agriculture, it need to conversion of agricultural land
57
to ponds. All aquaculture farmers/ pond owners want to hold La Na (39), the reason why
to answer it, needs to refer page 1, 2nd
paragraph (Ga) of Aquaculture Regulation (appendix
of 1989 Aquaculture Law); Land hold La Na (39) means “a Land can be used for
aquaculture which has exemption from the nationalization of the agriculture land of 1953
Farm Land Law”. Moreover, in this law acted an aquaculture farm without license would
be fine or sentence for 1 year prison and/or grabbing all the land and materials on this land.
According to key informant responds, the land or pond value/ price are differences
but depend on the location. For example, supposed if Form 105 own price become three to
six time more than whilst only have Form 7. If Form 39 hold, it worthy more than 20-40
times of Form 7 holder price. Here is example calculation by respondent,
-if hold only Form-7, land price let says 10 lakh/acre.
-When holding Form-105, it became about 40 or 50 lakh.
- If occupied From-39, Lend worth as 200 to 300 lakh. But in the reality, nobody
resell it after getting Form 39.
Table (4.5) La Na (39) occupied pond in States and Regions (until 31.10.2016)
State/ Region
(Fish/Prawn/ Crab) Ponds Occupied La Na (39)
Ponds (owners) Acre Ponds (owners) Acre
Ayeyarwaddy 6,403 177,961 2,146 48,767
Yangon 4,428 84,457 1,775 35,937
Other states &
Region 21,783 218,495 1,083 23,811
Total 32,614 480,913 5,004 108,515
Source: Myanmar Fisheries Federation, (U Win Kyaing, 2017, ppt)
According to table (4.5), La Na (39) occupied ponds and area acre in states and
regions (until 31 October 2016), there were only 5,004 pond owners/ farms hold the La Na
(39) among the 32,614 pond owners/ farms the whole country. In term of area acre only
108,515 acre have this La Na (39) out of 480,913 total acre. It shows that only 15% of pond
owners/ aqua farmers and 23% of ponds acre only hold the La Na (39).
To change land title, the process is complex. It needs initiated at the village tract
level and must go through successive tiers in the state structure, eventually to be endorsed
or approved at the union (national) level, after undergoing factual verification by the
Settlement and Land Records Department (SLRD), within the Ministry of Agriculture,
Livestock and Irrigation, at the township and district levels. The township-level General
58
Administrative Department (GAD), within the Ministry of Home Affairs, is responsible
for processing such applications. Informants reported that navigating this complex process
entails the payment of substantial “unofficial” fees. The full costs of obtaining La Na 39
could be as much as one hundred times greater than the official fees for doing so.
As a result, few of the farmers interviewed who operated an area of ponds of less
than 10-15 acres had chosen to apply for La Na 39. A pond license, issued by DOF, is a
legal requirement for the cultivation of fish, it’s granted as possession of a pond and
evidence of land use rights (Form 105, etc.), and irrespective of whether they have applied
for or possess La Na 39. Having a pond license entails payment of a small annual fee to
DOF, which is one of the means by which the department generates revenues. According
to survey result, fees/ tax is about 25,000 MMK/ acre/ year. Some informant said that some
dug the new pond even not received yet the form 105. The reason said that nobody check
at the village level. If a good relationship with village tract level authority and township
level authority, they made new ponds.
As reported by informants, permission to convert paddy land to aquaculture can
only be granted legally if the land is of very poor quality (i.e. producing extremely low
yields, usually as a result of being deeply flooded). Paddy land of this type is referred to as
category ‘R3’. Having paddy land officially recognized as of R3 quality is thus usually part
of the La Na 39 application process. Informants suggested that it was sometimes, possible
for farmers to have the better quality paddy land downgraded to R3 status by providing
financial incentives to officials, making it possible to convert it to ponds either with or
without La Na 39.
The village administrator was sufficient to allow a person wishing to convert a
small area of agricultural land into ponds to do so. Village administrators act as
‘gatekeepers’ as their consent is required before ponds can be constructed and benefit
financially from giving permission to convert land, they are frequently involved in
aquaculture themselves. This local political economy accounts for part of the reason why
widespread breaches of the procedural laws on land use are apparently possible. From the
perspective of most farmers, the only discernible benefit of obtaining La Na 39 is that it
affords the bearer some protection in the case of disputes over land use rights, and provides
entitlement to compensation in the event that the land is confiscated by the state. Thus,
most pond operators have little incentive to apply unless their farm is sufficiently large that
their lack of La Na 39 might come to the attention of the authorities, subjecting them to the
59
possibility of fines, other penalties, or rent seeking behavior, or if they have reason to fear
that their land use rights might be challenged.
The current land use regulations do not act as a break on the expansion of
aquaculture. Effective policy safeguards are thus required to avoid unintended
consequences arising from initiatives aimed at ensuring greater transparency and
accountability with respect to land use. The majority of pond operators had initiated
aquaculture on land to which they or their family members already possessed permanent
use rights (Form 105/Form 7), usually as a result of inheritance, marriage or, in some cases,
having cleared and registered uncultivated land. Large producers often stated that they had
applied for La Na 39 for only part of the area farmed in order to minimize the costs entailed,
while others reported having begun the application process.
However, policies strictly regulated paddy production targets, sales and prices,
leaving many farm households deeply indebted and they are the most likely cause of
distress sales of land. In addition, land prices are reported to have risen sharply in all pond
clusters, as suitable land for aquaculture has become less available, providing incentives
for indebted farmers to dispose of unprofitable agricultural land. Some wealthy pond
farmers were reported to have acquired land from paddy farmers who defaulted on private
loans. Members of households having sold land to aquaculture producers tended either to
become labor on fish farm or to invest in non-farm businesses.
Migrating to take up work in the non-farm sector, usually in Yangon, appeared to
be the most common livelihood strategy among the adult children of newly landless
households. Thus, large scale forms of aquaculture appear to have been implicated in the
concentration of access to land and associated processes of ‘crowd out for peasants’. Pond
farmers had amassed financial losses too great for them to bear subsequent operating costs,
but not so large as to necessitate sale of the land on which their ponds were constructed.
The leasing in land for aquaculture from state institutions, including various government
departments, prisons and the military, all of which own large tracts of agricultural land and
also engage in aquaculture directly (Belton, B and Thilsted S.H. 2014). The limited
development of a private land rental markets is linked to the continuing ambiguity
pertaining to private property rights, although it is also likely that purchasing land use rights
is seen as a better investment than renting.
60
4.3.5 Other Natural Resources (Water, Weather etc)
Water is a key input for aquaculture, and must be available in sufficient volumes,
and be of sufficient quality, for production to take place successfully. Optimal
environments for pond based aquaculture are usually low lying lands located close to
permanent water sources (e.g. irrigation canals, rivers or other water bodies), allowing for
filling, ‘topping up’, or exchange of water to be achieved without heavy expense on fuel
for pumping. Heavy soils that retain water well and minimize nutrient leaching are ideal.
Although most of the commonly farmed freshwater fish can tolerate low levels of salinity,
growth is best in areas that are not severely affected by saline intrusion. Ideally, ponds
should also be located in areas protected from frequent heavy flooding that could allow
fish to escape. Ideal environmental conditions for pond based aquaculture are thus almost
identical to those optimal for the production of lowland rice. The development of
aquaculture has therefore been closely linked to the development of flood control and
irrigation schemes designed to support agricultural expansion in the delta. Water control
schemes have also proven important role in the development of aquaculture because they
provide access routes to and from farms in the form of canal networks and roads
constructed on embankment such as the main road linking Twantay and Maubin, along
which feed and seed can enter and harvested fish can leave. Weather condition of the Delta
area is suitable for Rohu Fish aquaculture temperature is never under 14˚C and
approximately not over 37˚C. According to the informant answers, the highest risk in
aquaculture pond is flood. It can be lose all or some of fish out to nearby stream or river.
Second risk of the fish ponds owner is hot weather especially in summer when over 35˚C
but it can be treat by water pumping in and out.
4.3.6 Labor
Demand for labor and productivity of labor are important for future agricultural
development and rural development. In 2015‐2016 fiscal year, there are 3,216,300 number
of labors working in fisheries sector and 216,746 are working in aquaculture sector. Even
it is only counted on production segment and not including for processing and market
related segments labor. If calculate fisheries related all labor force estimated nearly 4
million, it means about 8% of Myanmar total population.
Farm labor in aquaculture can be recruited on a temporary or permanent basis.
Temporary labor is required mainly for harvesting fish, grading fingerlings, unloading feed
delivered to the farm, and pond construction/repair. Teams of temporary workers are
61
usually hired through local labor brokers, and large groups of loosely organized casual
laborers were found in all pond clusters visited. Average labor requirement as 2 full time
labors/ 10-30 acre of ponds. Harvesting requires large teams of workers to net ponds, weigh
fish, transfer them to boats or trucks and ice them prior to transport. Netting ponds is
reported to be dangerous work, as large, fast moving fish jumping at head or chest height
sometimes collide with workers, causing injuries and, in some cases, death. Netting,
grading and restocking fingerlings in nursery ponds on grow out farms is also labor
intensive work. Teams, usually numbering around 10 individuals, are employed to unload
feed from boats or trucks and carry it to the pond side.
A number of farms reported experiencing labor shortages. Larger farms may also
employ supervisors or managers to oversee the work of permanent laborers, employed for
activities such as feeding fish, day-to-day maintenance and guarding, as well as that of
casual workers. Operators of small and medium scale commercial farms tend to play more
actives role in daily on site management, but medium sized farms usually also employ
additional permanent labor to carry out manual work.
Family management and labor inputs are supplied by both men and women
household members in small and medium sized operations, although it appears to be the
norm for male household heads to assume a leading role in farm management in most cases.
Residents of pond clusters, rarely choose to engage in permanent farm work, preferring the
greater relative freedom and better remuneration of daily labor. As a result, the majority of
permanent workers on fish farms originated from outside pond clusters, mostly from
remote townships in Ayeyarwady and Bago regions, where there were reported to be few
employment opportunities other than occasional causal agricultural work. In the past, all
ponds were constructed using manual labor. Manual workers continue to perform this
function, but are increasingly being replaced by mechanical earthmoving equipment that
is considerably cheaper. The cost of pond excavation using a mechanical backhoe was
reported at 300,000 MMK/acre, as opposed to 600,000 MMK/acre using human labor.
Rental services for mechanical earthmovers were reported to have developed rapidly in all
clusters visited within the last three years.
62
Table (4.6) Changes in Labour Cost and Requirement (MMK)
Type of labour
Before
2000
2000-
2005
2006-
2010
2011-
2016
Requirement
(depend on
farm size)
Permanent Labour
cost/ month
20,000-
40,000
40,000-
60,000
50,000-
100,000
80,000-
150,000 2 to 20
Temporary or
Casual Labour
Cost/ day 500-1,000
1,500-
2,500
2,500-
4,000
4,000-
7,000
10 to 60 for a
week in
harvesting
time
Source: Survey Data
Table (4.6) shows the changes in labor cost and labor requirement. Harvesting fish
for transport to market is a labor intensive process. For harvesting time, 10-20 acre ponds
need 40 labor for 3 days. Labor charges are variance between the clusters and average
about 4000 MMK-7000 MMK per day. A 30 acre pond will take a team of 30 day laborers
10 days to harvest completely; equivalent to 10 person days of labor per acre. A medium
size pond requires the fulltime labor of one to two people to manage it, plus additional
temporary workers for grading and restocking fish during on-farm nursing, and unloading
and feed porter. In most cases, temporary laborers are long term residents of the pond
clusters where they work, not inward migrants. Women and men were engage in all kinds
of day labor associated with the farm segment of the aquaculture value chain buy greater
numbers of men to be employed in pond harvesting. Wage rates for temporary workers are
usually gender differentiated, falling in the region of 4000-7000 MMK/day for men and
3500-4500 MMK/day women.
Permanent workers are usually provided with on-site accommodation, and the most
common arrangement is to hire husband and wife teams. One family is usually employed
to manage each grow out pond (or, in the case of integrated poultry-fish farms, each
chicken house). Very large ponds may require more workers. Wages for a single permanent
male fish farm worker are estimated at approximately 3,000MMK/day. Members of
families hired as permanent workers are not paid individually, and the male household head
generally receives a lump sum of around 80,000 MMK/month to 150,000 MMK/month,
with additional bonuses paid as an incentive for meeting production targets in some cases.
This arrangement effectively undervalues women’s work. Widespread outmigration was
reported from pond clusters in Twantay and Maubin, particularly among landless residents,
including members of families who had sold agricultural land to fish pond operators. The
63
main destination for these migrants was the industrial zones around Yangon city.
Informants linked this outflow of labor to rising wage rates and occasional labor shortages
within pond clusters. Outmigration for employment in the urban industrial sector resulting
in a tightening of the labor market in the dynamic agricultural zones surrounding Yangon.
This in turn has created opportunities for in-migration among landless workers from more
remote areas, where more limited off-farm employment opportunities exist. If this flow of
migrants occurs on a sufficiently large scale it should eventually begin to drive up wages
in more distant hinterland areas.
4.3.7 Access to Finance
Aquaculture farming is high investment in operation cost. Approximately 60% to
80% of operation costs by feed, average feed cost reach MMK 2 million to 2.5 million per
acre/year. Estimate about 20 acre pond owner need to invest about 50 million MMK and
about 10-15 million MMK for labour and other operation costs. When harvesting, totally
return about 80 million MMK and might be received net profit about 15 to 30 million
MMK/year. If calculate the Return on Investment (ROI) of this aquaculture farming
business 18% to 35% net profit. Noted that it is not counted on fixed cost of land and only
calculated on variable costs. However, it has comparative advantage than rice/paddy or
other crop agriculture. As key informant estimates, aquaculture net profit is 5 to 10 times
of rice/paddy or other crop agriculture but it need high investment.
Fixed or quasi-fixed inputs may include land purchase or rental, pond construction,
housing for workers, poultry sheds, boats, trucks or other means of transport, water pumps,
generators and transformers. Variable inputs include labor, feed, seed, chemicals, fuel, and
ice. The ease and terms with which start up and operating capital for aquaculture can be
accessed thus have important implications for the sector’s inclusiveness. Small farms and
nurseries are usually financed from a combination of own savings, informal loans from
relatives and informal moneylenders (at between 5-10% interest per month) or advance
loan from fish market whole sellers/ brokers. In the case of credit from fish market whole
sellers/ brokers, interest rate is 3% to 5% depend on the amount and duration of the credit.
On the other hand, they have to sell fish to lenders when harvested. It is a kind of contract
farming/ mutual understanding. When harvesting, return the original amount plus interest.
Some informant answered, who have paddy land also, using agricultural loans
disbursed by the Myanmar Agriculture Development Bank (MADB). This behavior
indicates that these farmers prioritized fish production, but had it not been for the
64
complementary timing of agricultural loan dispersal they might have been prevented from
stocking fish by a lack of funds. The larger farmers was output tied loans provided by large
fish traders based at San Pya wholesale market. These loans are used to fund both the
expansion of operations (buying land and constructing ponds), and operating costs (feed),
and obligate the farmer to sell fish through the trader who provided the loan. The trader
deducts a commission of 3-4% for brokering the sale of the farmer’s fish, along with
monthly interest ranging from 3-5% depending on the anticipated duration of the loan and
whether or not it is secured. Loans which are secured usually use land ownership
documents belonging to the farmer as collateral. Farms tend to borrow regular monthly
basis in order to minimize interest payments, taking only as much as is needed to pay for
their feed requirements for each month. Long-term borrowing to fund feed purchases is
rare, but may occur when big farms stockpile large quantities of agricultural byproducts
when their market value is low. Other sources of credit used by large farms include gold
shops, which serve as pawn brokers and other informal private moneylenders. Access to
loans for aquaculture from the Global Treasure Bank (GTB), Former name as Myanmar
Livestock and Fisheries Development Bank (MLFDB), is more limited, as indicated by
informants who ranked banks as the least important source of credit after fish traders,
informal moneylenders, relatives, and feed traders. Although GTB/MLFDB provides
credit at low rates of interest (13% per annum), it was said by informants only to issue
loans to farmers with more than 50 acres of ponds. These loans must be secured with land,
and informants reported that it was only possible to borrow up to one third of the value of
the land owned, and that the bank tended to value land at below market rates. Borrowers
required to possess La Na 39/ Form (105) and License for ponds used as collateral.
Feed traders and mills selling rice bran, peanut oilcake and other agricultural
byproducts usually extend credit to farmers on a very short term basis only. Myanmar’s
largest manufacturer of pelleted feed, Htoo Thit, operates a quasi-contract farming system,
under which customers who have obtained feed on credit (2% monthly interest rate) are
obliged to sell harvested fish through the company’s trading arm. Htoo Thit operates a
quasi-contract farming system, under which farmers receiving feed on credit from the
company’s dealerships are required to sell through wholesalers trading fish for the
company, with outstanding feed costs deducted at the time of sale. Land use certificates
must be provided as collateral for these loans. Farmers who buy feed from the company
without taking credit are not bound to sell their products back to it. This arrangement makes
pelleted feed available to smaller and medium sized farms, as well as to some larger
65
operations, but reportedly places restrictions upon the management decisions that can be
made by the farmer, as the company stipulates that alternative sources of feed cannot be
used by its customers (Integrated Farming: poultry houses over fish ponds). This sanction
can be enforced because the company is able to withhold payment after fish are harvested.
Another informant reported that foreign fish feed companies were wary of investing
in Myanmar dues to fears over their ability to recover credit extended to farmers. This may
suggest that development of a more competitive feed sector is constrained by foreign
investors’ access to capital and concerns over the strength of the legal frameworks in place.
Although loans from fish traders are often secured with land use certificates (e.g., La Na
39 or Form 105), meaning that land can be foreclosed in the face of a serious default, the
conditions are flexible (allowing for regular borrowing to cover monthly feed costs,
repayment upon harvest, and rescheduling of payments in case of unforeseen
circumstances) and beneficial to both lender and borrower. In addition to the interest they
charge, fish traders benefit from the commission that they take from brokering sales of fish.
Table (4.7) Comparison of 3% Interest Rate and 5% of Interest Rate of
Pond Owner Credit (MMK lakh)
Month
Loan(10%
more than
Previous
month)
3% interest rate 5% interest rate
Debt until
last month
loan+
interest
Total Debt
Debt until
last month
loan+
interest
Total Debt
June 25 28 30
July 28 28 57 30 60
August 30 57 90 60 95
September 33 90 127 95 135
October 37 127 169 135 180
November 40 169 215 180 231
December 44 215 267 231 289
January 49 267 325 289 355
February 54 325 390 355 429
March 59 390 463 429 512
April 65 463 543 512 606
May 71 543 633 606 711
Total
535 99 16% 177 25%
Annual Loan
amount
Annual
Interest
amount (for
3%)
Annual
Interest
Rate (for
3%)
Annual
Interest
amount (for
5%)
Annual
Interest Rate
(for 5%)
Source: Own calculation based on survey feedback
66
Large fish farmers do not generally appear credit constrained, it is likely that many
small and medium sized farms are, to varying degrees. Some of the smallest commercial
pond operators interviewed reported being unable to access credit from any source, and
being averse to the risk of doing so even in the event that it were available, for fear of
losing their remaining assets in case of default. Stocking and feeding practices and financial
returns on these farms were found to be suboptimal as a result. The high cost of credit
increases the risk of productive investments and lowers potential rates of return, and may
thus act as a disincentive to investment in the sector by smaller producers and SMEs.
Suppose that a medium size pond owner (about 15 acre) needs the loan for investment,
currently have to pay 3% to 5% interest rate. Assume that 2,500,000 MMK in 1st
month
and increasing 10 % more due to feed requirement increasing month by month. Table (4.7)
calculate the pond owner have to share his/her profit to money lender about 10 million if
3% monthly interest rate that is equivalence to 16% annual interest rate. If 5% monthly
interest rate, it can says 25% annual interest rate. 18 million have to share his/ her profit
to money lender.
Table (4.8) Profit sharing of Money Lender and Pond Owner (MMK lakh)
Particular MMK (Lakh) %
Total Sale 800 100
Capital/ Loan 535 67
Net Return (Profit) 265 33
Interest Rate Unit
Net Profit for
Pond Owner
Interest to money
Lender
3%
MMK (Lakh) 166.5 95.5
% of profit 63% 37%
Profit sharing ratio 1 0.59
5%
MMK (Lakh) 88 176.7
% of profit 33% 67%
Profit sharing ratio 1 2
Source: Own calculation based on survey feedback
As informant answer in survey, this pond might be get about 800 million approximately
and estimate production cost (variable cost, feed and labour) is about 535 lakh (67% of
total sale). Net return is about 265 lakh (33% of total sale). According to this calculation,
33% of Return on Investment (ROI) is high that can be conclusion as aquaculture is a good
business for investor in Economic point of view. Table 4.8, explain about profit sharing
of Money Lender and Pond Owner, If 3% interest rate, money lender received 98.5 lakh
67
(37% of net return) and Pond owner received net profit 166.5 lakh (63% of net return). If
5% monthly interest rate, lender got 176 lakh (67%) and pond owner has 88.3 lakh (33%).
As a result of this scenario, the ratio of the profit of pond owner and money lender
would be; If 3% interest rate= 1: 0.5, and If 5% interest rate= 1: 2. All of key informant
pond owners answered that used to borrow more or less. Only variance the length of the
credit month and amount. Access to finance is the most important problem of aquaculture
farming owner (loss of opportunity) facing every year related to lack of capital.
The majority of investment and operating capital for aquaculture is raised from
informal sources. Although monthly interest rates of 3% and upwards may appear high.
Average rates of interest paid on advance payments from fish traders fallen in recent years,
from 5% in 2010 to 3% in recent year, possibly indicating increasing liquidity in domestic
credit markets emerging with ongoing reform of the banking sector.
4.3.8 Transportation in Midstream (Farm to Market)
Farmers can sell fish to Yangon in one of two ways: 1) through local collectors;
and 2) directly to traders at San Pya or Shwe Padauk. Collectors are present in all major
aquaculture clusters. They can provide harvesting services or purchase fish already
harvested, and may either buy fish to resell to larger traders in Yangon or earn a
commission through brokering sales on farmers’ behalf. Collectors tend to provide this to
service smaller farms, because large traders in Yangon will only arrange collection of fish
from farms if the quantity harvested exceeds 10,000 viss (16 ton). Some small producers
choose to sell direct to wholesalers in Yangon using their own or hired transport, receiving
a better price than if selling through collectors, but incurring transport costs. Most of the
farmed fish traded through Yangon markets is sold without the involvement of an
intermediary. Farmers who have taken advances from fish traders are bound to sell all their
fish through those traders. Those who are not indebted to traders are free to choose to whom
they wish to sell, but often opt to work with one or a small number of trusted individuals.
Farmers usually inform the trader several days in advance of the harvest to set a
date agreeable to both parties, and receive payment from traders at the time of sale or after
a delay of a few days. When fish is harvested, it is packed in crushed ice in the hulls of
collecting boats or in unrefrigerated trucks. Boats are the main form of transport because
many ponds are accessible only by canal. Boat hire price are various depend on the
distance. They got two ways transportation.
68
For example, 10,000 viss weighting boat ice carrying from central fish market to
pond about price approximately, 70,000 MMK and when carrying fish 150,000 MMK for
pond to market. As increase as aquaculture ponds, numbers of boat are increased
accordingly. About 80%- 90% of the volume of fish deliveries to San Pya and 10%-20%
reach to their neighboring village or towns of the fish farms and Shwe Padauk Fish Market.
Refrigerated trucks are also occasionally used to transport fish to market, particularly by
the largest farms. Yangon traders and larger farms own boats and/or trucks for
transportation purposes, and transport rental services are widely available from vehicle
owners located close to wholesale markets and in aquaculture clusters.
4.4 Downstream: Market Actors
In the downstream or post-harvest and market actors including the process of farm
to market, whole sale market, states and regional markets, retail and wet market, cold
storages, processing, labor in downstream, transportation in downstream, Procedures for
Export& Import.
4.4.1 Wholesale Market
Central wholesale markets (Baho Sanpya Ngar Zay Gyi) is located in Kyimyidaing
Township, Yangon at the embankment of Yangon (Hlaing) River. Which marks the city’s
western boundary and provides the main transport link to pond clusters located in the zone
around the city. It was established in 1991, and administered by the Markets Department
of the Yangon City Development Committee (YCDC). The market operates daily, from
late night until mid-morning. A second fish wholesale market, Shwe Padauk, opened in
Yangon in October 2014, further north than San Pya, on the Yangon River. It is envisaged
that it will partially replace San Pya market. Both markets trade fish from aquaculture and
capture fisheries. Informants estimated that farmed fish accounts for 65- 70% of the fish
traded at San Pya, and around half traded at Shwe Padauk which mostly marine fish. This
two markets is distributed throughout the Yangon area, to the country beyond, and abroad.
The six largest fish trading business at San Pya operate riverside landing sites for boats,
referred to as “jetties”. The jetties were originally state owned, but were privatized by the
SLORC government in 1989. Although the jetties were established to allow fish from
marine and freshwater capture fisheries to be brought to market, aquaculture fish now make
69
up the bulk of landings at three of them. In addition to providing a landing site for fish,
jetty operator act as traders, earning a commission for brokering sales. They also receive
deliveries of farmed fish by road, which are sold in the same manner. Four of the jetties
and the trading businesses associated with them belong to individual- or family-owned
companies, but one is run by a shareholder-owned company that also operates Myanmar’s
largest fish farm. Some other jetty operators also own fish ponds, and all were reported to
own fleets of marine fishing boats. There is a single jetty for receiving aquaculture fish
located at the newly established Shwe Padauk market, which is owned by the fish trading
wing of the Htoo Htit fish feed company.
In addition to the jetties, there are three market buildings occupied by wholesale
traders at San Pya, divided into a total of 142 licensed stalls. Only wholesalers officially
licensed to do so by YCDC operate inside these buildings. The largest wholesalers may
own more than one license, while the majority own either a single license or share the
license and physical space that goes with it with other wholesalers. Each license is
reportedly worth MMK 80 million (approximately $70,000) at present. According to
unpublished figures made available by YCDC, excluding jetties, there were 310 licensed
wholesalers operating at San Pya in 2014, of which 152 specialized in trading aquaculture
fish. Most of these traders are men. Licensed stalls are usually constructed of wood and
elevated from the ground, and are accessed by purchasing a license from the authority
controlling the market, or by renting space from an existing license holder. Unlicensed
retailers normally vend produce within or close to the market from a plastic sheet, tarpaulin
or basket laid on the ground.
The total number of traders in the market was reported to have increased by around
50% in 15 years. According to informants, three categories of licensed wholesaler can be
identified at San Pya, based scale of operations and behavior. Approximately 60 “large”
and 90 “medium” traders advance output-tied loans to farmers and/or fishing boat owners
that (as well as earning interest) serve to secure access to large volumes fish. The main
difference separating the two groups is the amount of operating capital they have access to
and the volume of transactions they are capable of handling. Smaller licensed traders, of
which there are around 150, do not advance loans to producers, buying fish from jetties
and larger traders for resale, rather than taking a commission for brokering sales. None of
these licensed wholesalers have access to jetties of their own.
70
Table (4.9) Average Wholesale Market Price of Rohu (Nga Myit Chin) (2015-2016)
Name by
size
Viss
from
Viss
up to
MMK
(Min)
MMK
(Max)
Average
Price MMK
months to
grow (if start
from 6”
sized)
Maximum
ratio used to
get
Gaw Htoe 0.05 0.2
800 1,000 900
rare
Chit Ngar 0.2 0.6
1,700 2,300 2,000
4rd
(Minor)
Nay Kyar 0.6 0.8
2,200 2,400 2,300
3rd
(Minor)
Myo Kwar 0.8 1.2
2,500 2,900 2,700
8 months 1st
(majority)
Thay Pauk 1.2 1.5
2,700 3,200 2,900
10 months 2nd
(majority)
A Lat 1.5 2
3,000 3,500 3,250
1 year Minor
No.2 size 2 3 N/A N/A
3,500
Over 1year Minor
No.3 size 3 4 N/A N/A
4,000
Minor
Source: Survey data
They receive fish delivered by truck or landed by boat at four public landing areas
operated by Myanmar Port Authority, which levies a toll on the boats using them. San Pya
operates as a spot market in which traders set a price for their fish depending on the
volumes available in the market and levels of demand, adjusting the price over the course
of the trading day in line with fluctuations in both, while buyers choose freely between
different sellers on the basis of the product selection and price offered. Rohu Nga Myit
Chin average price is 1,000 MMK in 2000-2001, 2,500 MMK in 2015-2016. Table (4.9)
shows the average price of Rohu (Nga Myit Chin) in 2015-2016, the price are varies by
size/ weight of fish. Most of the farms harvesting time, Myo Kwar (0.8-1.2 viss) and Thay
Pauk size to (1.2-1.5 viss) size are majority and marketable size. If less than this size, low
price and if bigger than 2viss can get best price. Wholesaler/ traders take 3% of total sale
for broker fees. Wholesaler or Traders are the most advantage actors or profit takers along
the value chain.
Many small and unlicensed wholesalers operate from buildings around the outskirts
of San Pya and along the side streets leading to it. When the market was first established,
there were no wholesalers located outside. An additional group of unlicensed traders
71
without fixed business premises act as brokers, buying fish from licensed wholesalers and
dispatching to other states and regions.
There are four major categories of buyer from wholesale markets in Yangon: 1)
wholesalers in distant urban markets; 2) retailers and semi-wholesalers located in and
around Yangon; 3) cold storages/processors/exporters in Yangon; 4) small-scale
processors based around at Sanpya Fish Market.
4.4.2 States and Regional Markets
Long distance trade between San Pya and regional wholesale markets is usually
conducted by telephone, with certain wholesalers specializing in dealing to markets in
specific geographical locations. Some traders in regional wholesale markets work with
family members based in Yangon to assemble and dispatch orders, while others receive
fish through brokers at San Pya working on a commission basis, and some deal directly
with wholesalers. Payment for these orders is usually made by bank transfer. Informants
estimated that 40-50% of the fish traded at San Pya was destined for domestic markets
outside Yangon.
4.4.3 Retail and Wet Market
The customer base in regional wholesale markets is comprised of retailers and
semi- wholesalers from wet markets and outskirt. Semi-wholesalers from these locations
often travel to the nearest urban wholesale market to assemble orders on behalf of groups
of small retailers. Majority of retail fish traders are women. Retailers and semi-wholesalers
from Yangon and township surrounding. They come daily to buy fish, often using transport
rented collectively with other traders from their area. Larger semi-wholesalers may have
their own transport. At San Pya, these customers move from wholesaler to wholesaler,
selecting fish in the combinations they require. Retailers and semi-wholesalers in regional
wet markets outside of Yangon operate in a similar manner; purchasing fish from wholesale
traders in spot transactions based on the selection and price of fish offered, and making
payment in cash immediately, or taking very short term credit (usually one or two days),
or some combination of cash and short term credit Retailers in wet markets can be divided
into those who trade from a licensed stall, and those who have no fixed location from which
to trade. The former type of retailer usually trades quantities of up to 100 viss (160 kg) per
day, whilst the latter may sell from less than 10 viss to 50 viss or more.
72
4.4.4 Cold Storages
Baho Sanpya Market Traders may supply ice, deducting the costs from the sales
price, farmers with their own transport may collect their own ice prior to harvest, or owners
of rented vehicles may supply it as part of their service.
Table (4.10) Ice Plant by Regions and States
No.
States and
Regions
Numbers of plants
Capacity of Ice Plant
(metric ton per day)
1 Yangon 106 2364
2 Taninthayi 48 2536
3 Rakhine 39 456
4 Ayeyarwaddy 70 869
5 Mon 29 528
6 Mandalay 7 30
7 Shan 2 3
8 Total 301 6786
Source: DOF Fisheries Statistic 2016
Ice is sourced from ice plants located in Hlaing Tharyar industrial zone, or from
plants in towns close to major aquaculture clusters. There were a total of 106 ice plants in
Yangon region (DOF, 2016), which produced 2364 metric ton per day. Particularly located
in industrial zones, where large wholesale traders and exporters rent space to store stock.
Cold stores in other locations perform similar functions. Many processors and some
exporters have cold storage facilities integrated into their operations, and some businesses
combine all three functions. There is one cold storage facility located at San Pya, which
sources and freezes fish for processors and exporters. 15 crushing ice blocks businesses at
San Pya. According to DOF statistic data 2016, there were 106 Ice plants in Yangon
Region. According to informant calculation, about 8 blocks of ice needed for 1000 viss of
fishes. One block of (300lb) ice price is about 2800 MMK. About 30,000 viss produced of
20 acre ponds, will need 240 blocks of ice.
4.4.5 Processing and Export
In addition to industrial scale processing operations, there are also a large number
of small businesses located at San Pya and Shwe Padauk markets which produce nga chit
– a paste made of ground fresh fish flesh, which is a popular ingredient in curries and many
other dishes. Traditionally nga chit was made with bronze feather back (nga phel;
73
Notopterus notopterus), a fish sourced from freshwater capture fisheries. However, this
species is increasingly rare and expensive, and small farmed Rohu are now the main raw
material used by processors at San Pya to make nga chit. Byproducts from nga chit
production include fish skins (fried and sold as snacks), fish heads (sold into retail markets
for making soup), and swim bladders (dried and exported to China). Fish frames (bones
with attached scraps of meat) are sold as feed for African walking catfish farms.
The production of walking catfish was initiated after the growth in Nga Chit
production to utilize this supply of byproducts, and there are reportedly now 100 ponds
close to Yangon using nga chit processing waste as the main input. Almost all the nga chit
producers at San Pya originate from a single village, close to the market on the opposite
side of the Yangon River. The number of businesses producing Nga Chit at San Pya was
reported to have grown rapidly. According to one informant, as many as 1500 workers,
most of them women, earning up to MMK 10,000/day for the semi-skilled processing
work. This rapid growth was said to have taken place in response to demand from Nay Pyi
Taw and elsewhere in Upper Myanmar. Businesses producing Nga Chit at San Pya are
unlicensed, and can be fined MMK 100,000 for operating in the market. There was a recent
drive to move them to the new Shwe Padauk wholesale market, but only a small number
have been willing to relocate because their business contacts are at San Pya.
There were 69 seafood processing factories in Yangon Region in 2016, of which
57 were reported to process fish for human consumption. The number of facilities
processing fish sourced from aquaculture could not be ascertained, and there appeared to
be few, if any, which specialized exclusively in processing farmed fish. Factories were
reported to process farmed fish mainly when there were insufficient supplies of fish from
marine capture fisheries, particularly during monsoon when rough weather hampers
fishing. The supplies of fish from marine capture fisheries had become scarcer than in the
past, making securing sufficient raw material difficult for processors, and suggesting
potential for more diversified aquaculture production to utilize this capacity. Most farmed
fish undergo little, value addition at present, with processing activities limited mainly to
freezing and packing whole fish. One informant reported about only 3 companies have
quality control certificate that can export to EU market.
4.4.6 Labour (in Downstream)
Traders hire unskilled workers on a casual basis for jobs such as pushing carts,
carrying baskets, unloading ice and packing fish. There are two types of casual labor at San
Pya: 1) those managed by the Ministry of Labor; and 2) those working directly for
74
wholesalers. There were reportedly 420 Ministry of Labor affiliated laborers and additional
1500 workers are employed directly by wholesalers, for similar purposes in 2016. These
workers, who are almost all men, originate mainly from Yangon and Ayeyarwaddy. Wages
for a night shift are around 10,000MMK. Many wholesale traders employ at least one clerk
to keep track of transactions.
4.4.7 Transportation in Downstream
More than 200 tons of fresh farmed fish going from the Delta to Upper Myanmar
on buses every day. Distribution of fish from San Pya to other areas of the country takes
place primarily by road, by truck and public express bus. Transport workers at San Pya
reported that a total of 12 twelve-wheel trucks made long distance deliveries of fish to Nay
Pyi Taw and Mandalay daily, with additional trucks of a similar size making deliveries to
other states and regions. Ten years previously, out of state deliveries were made by six
wheel vehicles with approximately two thirds of the capacity of those operating at present
6000 viss (9.6 t), versus 10,000 viss (16 t). Five years ago, only one truck delivered fish to
Nay Pyi Taw each day. Trucks sending fish along these routes carry dry goods on their
North-South journey and typically deliver fish to four to five customers on the return
journey, dropping off at several markets along the way. Owner-operators of a further 50
small (six wheel) trucks were reported to offer delivery services from San Pya to cold
storages and processors located in industrial zones in and around Yangon, and to the Aung
Mingalar Bus Terminal. Fish deliveries from Yangon to the rest of the country by express
buses. At present, typical transportation charges for fish are around 5,000 MMK per
Styrofoam box, down from 8,000, in 2011. Completion of Yangon-Mandalay Expressway
in 2011, which reduced journey times significantly, was also an important factor in
increasing the transport of fresh fish to the north of the country. Although transport of fish
by bus has increased dramatically since 2011, vehicle licenses issued for passenger buses
do not permit them to carry goods, and their ability to do so is based on what respondents
described as “mutual understanding” with the authorities.

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“VALUE CHAIN ANALYSIS OF AQUACULTURE DEVELOPMENT IN MYANMAR” 4. chapter (4)

  • 1. 38 CHAPTER (4) VALUE CHAIN ANALYSIS OF ROHU FISH AQUACULTURE DEVELOPMENT IN MYANMAR In this chapter discuss about the value chain analysis of aquaculture development in Myanmar by survey findings by interviews of from upstream actors, midstream actors, downstream actors and other related stakeholders. 4.1 Survey Profile The study is based on the filed survey conducted during the period of November 2016 to June 2017. Mainly focus to the value chain stakeholders in aquaculture sector. According to the secondary data and satellite image from Google Earth, Ayeyarwaddy Region and Yangon Region are the largest contribution to Aquaculture sector of Myanmar that 90% of aquaculture ponds are exist in there. Survey was conducted in Kayan, Thone Khwa, Mingalardon, Hlegu, Twan Tay, Htan Ta Bin Townships in Yangon Region, Nyaung Done and Maubin Townships in Ayeyarwaddy Region. Moreover, survey conducted at the Baho Sanpya Fish Market (Central Fish Market), where is essential place of aquaculture value chain in Myanmar and also Shwe Padauk Fish Market, some wet markets in Yangon, Bayintnaung Trading and warehouse area, feed factories, DOF, MFF, WorldFish and related organizations. Table 4.1 shows the summary of interview by value chain segment, type of actor and number of interviews conducted. The survey focused only on freshwater aquaculture fish farming, which is responsible for 95% of Myanmar’s reported aquaculture and especially focus on Rohu species which is the top the fish export for every year since before 2000. It started by identifying, measuring, and cataloguing inland fish ponds in the Delta where 90% of Myanmar’s aquaculture takes place. Then travelled to seven townships in Yangon and Ayeyarwaddy Regions and to San Pya market– the main fish wholesale market in Yangon which receives most of the fish produced in the Delta and some wet markets in Yangon.
  • 2. 39 Table (4.1) Summary of Interviews; by Value Chain Segment, Actor Type and Number of Interviews Conducted Upstream No. Midstream No. Downstream No. Other related No. Nursery 2 Fish farm 20 Wholesaler 7 Local official 2 Hatchery 3 Pond Labour 5 Wet market fish seller 6 Government Official 2 Nursery, fingerling 3 Labour broker 2 Fish processor 4 Fishing boat (marine) 2 Fingerling intermediary 2 Ice manufacture/ intermediary 2 DOF 2 Rice mill 3 Transport services 4 MFF 3 Chemical supplier 2 Boat rental 3 World Fish 2 Labour @fingerling 2 Net rental 1 Other organizations 3 Boat @fingerling 2 Labour 4 Feed trader 2 Boat Labor 2 Feed mill 2 Pump maker 1 Total: 100 24 27 33 16 Source: Survey Data In each location, keep an inventory of all the segments of the value chain, with numbers of fish farms, rural traders, hatcheries and nurseries, feed mills and feed traders, fish wholesalers and linked services like transport and ice suppliers. In this study, used income method and output method to indicate the Rohu fish aquaculture value chain development and analyzed by the yearly development of the different actors in different segments along the value chain. 4.2 Upstream: Input Sectors In the upstream or input sectors including seed supply and hatcheries, nurseries and fingerling production, feed supply, transportation for inputs, natural resources, equipment and machineries, other inputs and related goods and services.
  • 3. 40 4.2.1 Seed supply and Hatcheries Hatchery production specifically refers to production of seed from indoor or outdoor hatchery/nursery facilities and is usually reported in numbers. The sources of seeds, fingerling and fry are producing from the government hatcheries and private hatcheries. Seeds has been nursed to larger sizes before sale to pond owners and release to culture based and leasable fisheries. The mandates of these stations cum hatcheries are to produce quality seeds, to provide fish seeds to fish farmers, stock replenishing programs and culture based fisheries, to impart technical knowledge on aquaculture and expertise to the fish farmers through extension and demonstration services and to conduct appropriate research related to aquaculture. Induced breeding of Rohu (Nga Myit Chin) has been catering for almost the entire seed requirement in all the countries where it is cultured, although riverine collection still forms the seed source in certain small areas. While induced breeding through hypophysation has been the common practice. This type of hatchery possesses three principal components, viz., spawning/breeding tank, incubation/hatching tank, and water storage and supply system. The depth of water in the breeding tank is maintained at up to 1.5 m, based on the brood stock density; 3-5 kg brood stock/m³ is usually recommended. The female: male ratio is normally maintained at 1:1 by weight (1:2 by number). The size and number of hatching tanks vary, based on the production requirements and size of the breeding tank. The optimum egg density for incubation is 0.7-0.8 million/m³. In general, 0.15-0.2 million eggs/kg of female are obtained. The seed rearing normally involves a two- tier system, i.e. a 15-20 days nursery phase for raising fry, followed by a two-three months phase for fingerling production. Survival ranges from 30 to 50 percent in nursery phase and 60 to 80 percent in fingerling phase. Breading season for Rohu (Nga Myit Chin), Mrigal (Nga Gyin Phyu) and Pacu (Nga Mote) in June-August and breading season for Pangasius (Nga Dan) is June-September. (A)Public Hatcheries The government hatcheries produce seeds for stocking out in aquaculture and sale to leasable fisheries. According to table (4.2), there were 28 government fish hatcheries (and 6 shrimps and prawn hatcheries) in Myanmar. There were 14 main species of fish seeds production from 25 hatcheries produced seeds in 2015-2016. The first hatcheries in Myanmar were established by the Department of Fisheries (DOF) in 1966.
  • 4. 41 Since 2003-04, Department of Fisheries has initiated stocking of quality fish seed into paddy fields in order to sustain subsidized fish production. The result shows that stocking of fish seeds into paddy fields substantiate better livelihood of the paddy farmers. The Department has increased the momentum in stocking fish seeds into paddy fields. Department of Fisheries has taken continuous measure to maintain and enhance the inland fishery resource by stocking of quality fish seeds into open waters, rivers, man-made reservoirs and natural lakes. Table (4.2) Seed Production (million pcs) from Fish Hatcheries under DOF by States and Regions, 2006-2016 Source: DOF Fish Statistic 2006- 2016 The data shows, government hatcheries has been not too much different amount of seed production within 10 years. According to DOF statistic data, DOF produced Nga Myit Chin (Rohu) seeds produced 420 million (69 % of total seed production) which is top one in 2015-16. Nga Khone Ma (Tarpian) is second 100 million seeds which 17% of total seed production and Shwe War Nga Gyin (Common Carp) 36 million and Tilapia 11 million, Pacu (Yecho Ngarmont) and Nga Dan (Pangasius sutchi/ Stripped Catfish) are about 8 million only. Other 18 species are very few amount about thousand and some are not produce for many years. These minor species seed production look like research. According to survey result, most of the commercial ponds mostly buy from the private hatcheries and nurseries and rarely buy from government stations because government hatchery station fingerlings are more focus to distribute to the natural water resources such as lakes, inn and rivers to sustain the biodiversity and natural fisheries resources. 2006 - 07 2007 - 08 2008 - 09 2009 - 10 2010 - 11 2011 - 12 2012 - 13 2013 - 14 2014 - 15 2015 - 16 Yangon 3 23 23 28 21 24 24 23 19 20 22 Mandalay 4 35 36 37 38 45 28 38 25 21 23 Ayeyarwaddy 5 20 16 8 15 13 17 17 10 11 11 Bago 3 8 10 8 12 9 9 10 10 28 9 Nay Pyi Taw 1 0 0 0 0 0 13 7 3 7 7 Sagaing 4 3 4 2 4 4 3 3 3 3 3 Kachin 2 1 1 1 1 2 2 2 2 1 1 Magway 2 4 1 1 1 1 1 1 1 1 1 Shan 2 4 0 1 0 0 0 1 0 1 1 Mon 1 1 1 1 0 1 1 1 0 0 0 Kayin 1 0 0 0 0 0 0 0 0 0 0 Total Number 28 758 706 660 715 767 750 790 551 717 609 State/ Region No.of Fish Hatcheries % of Total Seed Production (Million Pcs)
  • 5. 42 This pattern is similar that found in other countries in the region, where the private sector overwhelmingly dominates fish seed supply for aquaculture. It is likely that the role of public hatcheries in supplying seed for aquaculture is more significant in states and regions which are distant from the main centers of seed production in the delta, but the overall contribution to national seed supply for aquaculture is small. (B) Private Hatcheries According to survey data, private sector seed production is increasing year by year. Individual or private 42 hatcheries are also found in almost all locations with large concentrations of ponds in Yangon, Ayeyarwady and Bago regions in 2016. The first private hatchery was established in Kayan around 1985, through collaboration between a fish farmer from the area and a DOF officer. Members of the extended family of the first hatchery operator subsequently established hatcheries of their own in the area, leading to the development of Myanmar’s first hatchery cluster in Kayan. The earliest fish farmers in Kayan, the east of Yangon (who were already raising wild fish in enclosed deep water rice fields) began to purchase seed produced at DOF stations close to Yangon. Since that time the number of commercial hatcheries has grown steadily. Many of the more recent hatcheries were established by, in partnership with, or with support from, technicians who learned their trade in early hatcheries in Kayan and elsewhere. At present, there are five hatcheries in Kayan. Kamarhmat village is the largest hatcheries in Khayan Township since 20 years ago. Number of production increased over 10 years. Rohu (Nga Myit Chin) and Pangasius (Nga Dan) are main product and other small amount of Mrigal (Nga Gyin Phyu), Catla (Nga Gaung Pwa), Pacu (Nga Mont) and Pangasius (Nga Dan) are also available. There are five hatcheries in Twanty. Myanmar’s second hatchery cluster developed in Twantay after 1990, when the owner of a large farm began to produce seed on an experimental basis, also using knowledge acquired from staff at a local DOF station. In Maubin, hatchery cluster that emerged after 2000 especially in Latkyargyi village tract. Some private hatcheries also increasing after 2000 in Nyaung Done, after 2005 Htantabin, Mingalardon and Hlegu as aquaculture farms developing. Some hatcheries operate as standalone businesses, while others have been established by the operators of large grow out farms primarily for the purpose of providing seed for own use, with the excess sold commercially. This may explain what appears to be a rather low total number
  • 6. 43 of commercial hatcheries relative to the size of the farm sector. The most common reported, the hatchlings normally receive a supplementary feed of a 1:1 mixture of rice bran and groundnut oil cake. Mixture ratio are different area by area and some said that depend on the size of hatch. Usually 1:1, 1:3, 1:4, 1:5 etc increasingly by the age and growth rate of fish. 4.2.2 Nurseries/ Fingerling production Hatchlings, measuring about 6 mm (1/4”) (Nga Hmone), are reared up to fry of 20- 25 mm (3/4”-1”) (Nga Than) in small nursery ponds. In certain areas, brick-lined or cement tanks are also used as nurseries. Pre-stocking nursery pond preparation should include the removal of aquatic weeds and predatory fish, followed by liming and fertilization with organic manures and inorganic fertilizers. Midsteam fish ponds are very rarely breeding Nga Hmone fry, mostly breeding by the hatcheries and nurseries. The nursery-raised fry are further reared for two-three months to 80-100 mm (3”-4”) (Nga Than) fingerlings in earthen ponds of ¼ acre to 2 or 3 acre. Rohu (Nga Myit Chin) are grown together with other carp species at combined about 30-40 percent of the total densities of 30,000 fry/acre approximately. Pond fertilization with both organic and inorganic fertilizers, and supplementary feeding with the conventional mixture of rice bran and oil cake are the norm; however, the dosage and form of application vary with the farming intensity and inherent pond productivity. Figure (4.1) Public and Private Hatcheries and Nurseries Developing Trend in Surveyed Townships Source: Survey data 0 10 20 30 40 50 60 1966 1985 1990 1995 2000 2005 2005 2005 DOF (Khayan) Khayan Twantay Maubin Nyaung Don Htan Ta Bin Mingalardon Hlegu YearsofExperience Name of Surveyed Township
  • 7. 44 Figure 4.1 shows the public and private hatcheries and nurseries developing trend in surveyed townships. Most of the Fish firms/ ponds owners in survey area used to buy fingerlings from private nursery/ hatcheries rather than government hatcheries. The reason for prefer to buy from private because private include delivery up to the pond that reduce the risk of fingerlings died in the transportation. Private fingerling traders and nurseries are mostly in Pandaing, Twan Tay, Maubin, Nyaung Don, Kha Yan Thone Khwa and Htauk Kyant areas. Most fingerlings produced by commercial nurseries are sold to local grow out farms, and transactions are often direct from nursery to farm without an intermediary. In larger hatchery and nursery clusters, distributed through traders. Some nursery operators will accept delayed payment from traders, but mostly in cash. Fingerling fish are harvested at monthly intervals and graded by size during each harvest and stocked accordingly to ensure that each pond contains fish of uniform size. The process of regularly grading fish by hand is labor intensive. Fingerlings are fed mainly with rice bran and peanut oilcake. The non-availability of commercial feed, forcing the farmers to resort to the conventional bran-oilcake mixture, is another limiting factor for the growth and survival of fry. Fingerlings can be sold at any size from 1 inch or bigger. Usually, small holder Fish firms/ ponds owners start to buy fingerlings (Nga Pyann) size from 3” to 7” inches that varies price by size. At the end of 2016, the average fingerlings/ Nga Than price (delivered to ponds) are 3”-27 kyats, 4”-47kyats, 5”-85 kyats, 6”-120 kyats and 7” -150 kyats. The farming practice of the most of nurseries firms: start to nurse about 50,000 pcs of fingerlings (about < 3” Nga Than) in small pond about 2 months. It used to feed 1:1 of Peanut oil cake and rice bran, 3 times per day. After that increase to 1:2 ratio, 1:3 ratio. It is enough 1 pyi of peanut oil cake and 3 pyi of rice bran for about 30,000 to 50,000 fry. After one month old, 2 pyi of peanut oil cake and 6 pyi of rice bran. After 2 months, 30 to 40 thousands (80% to 60% of fry) are survived, moved to middle size pond for 10 months or 1 year to become the size 7”to 10”. In this stage, only feeding rice bran 12 pyi increasing up to 20 pyi until 10 months/ 1 year. The problem in this middle stage is mostly too much feeding and crowded the fishes that not enough space of pond size for fingerlings. The reason of rapid growth of nurseries are: (1) Nurseries are more profitable than agriculture, 5-10 times more income than paddy; (2) Nurseries have a more rapid production cycle and revenue turnover than alternative types of agriculture or aquaculture, return within two months;
  • 8. 45 (3) Production is less risky than agriculture or grow out farming aquaculture and rare to lose money; (4) Increase in demand for fingerlings due to growth in the area of grow out ponds, and the market price of fingerlings is high; due to changing production technologies, grow out farmers preference for stocking larger sizes fingerlings, (5) The investment requirement to establish and operate a nursery is much lower than grow out ponds, easy to enter production; (6) Many banana and mango orchards destroyed during Cyclone Nargis 2008 were replaced with nurseries. Most commercial nurseries range from 1-5 acres in size. Hatcheries, nurseries and grow out farms tend to co-locate in clusters due to agglomeration economies. As a result of clustering, - costs of transporting seed between enterprises are minimized; - laborers perform functions required by all types of enterprise (e.g. fish harvesting, pond construction, and specialized services (e.g. fingerling transport boats) are available; - information can share between enterprises; small individual nurseries, hatcheries producers can easily find customers such as seed traders, nurseries, grow out farms; - traders can easily assemble bulk orders for distant markets from multiple small differentiated suppliers such as nurseries, offering a range of choices in terms of species and sizes of fingerlings. Many commercial grow out farms buy fingerlings from nurseries, typically sized between 1- 6 inches, and nurse them for several months before stocking in grow out ponds at large sizes (6-12 inches) to ensure higher survival rates and reduce the duration of production cycles. The main advantages gained by farms from nursing seed themselves rather than buying fingerlings at the desired size are reduced production costs, and the ability to ensure that seed of the desired quantity and size is available in a timely manner. There are many variations in on-farm nursing practice depending on the number of nursery ponds available and the production strategy of the farm. Commercial nurseries are usually comprised of at least two ponds or more. Hatchlings are usually purchased directly from nearby hatcheries during early-mid monsoon, and stocked at high density. The typical areal ratio of nursery ponds to grow out ponds on farm was reported to be 1:5.
  • 9. 46 4.2.3 Aqua Feed Traditional or Conventional aquaculture feeding by about 6 types such as rice bran, peanut oil cake, sesame cake, cotton cake, coconut cake and wastes from pulses and cassava, and waste from breweries and noodle or vermicelli factories. Most of smallholder firm feed mainly rice bran and peanut cake. Due to the encouragement of the government of State Law and Order Restoration Council (SLORC), aquaculture sector has been grown rapidly since after 1989. Myanmar aquaculture feed sector has developed by after establishment of 5 tons per hour productivity pelleted feeds factory which guideline by Ministry of Livestock, Fisheries and Rural Development in 2003. But, according to the key informant answers, the Ministry of Agriculture, Livestock and Irrigation has three feed mills, all of which were said to be inactive now. This apparent lack of co-development in fish and livestock feed manufacturing is rather unusual when compared to other countries in the region. Table (4.3) Feeding System of the Surveyed Aquaculture Ponds Pallet 10% Mixed 20%Rice Bran and Groundnut Oil Cake 20% Mixed 30%Wastes from Breweries, Noddle, vermicelli factories etc 5% Own food (RB+GOC+fishmeal) 10% Conventional 5% Source: Survey data Nutritious feeding is the most important role in the aquaculture because 70% to 80% of total production cost spent by fish/ prawn feed. The type, quantity and quality of feeds used, and the efficiency with which they are applied are key factors influencing fish growth rates, duration of production cycle, water quality in ponds, yields and profitability. In the production of scientific pelleted feed, nutrient and effectiveness of feed to the fishes and reduce the requirement of raw materials for feed, reduce the feed cost, reduce the feed waste, can be protected the pond pollution and sustain water quality due to less fish manure and finally increase fish productivity. Pellets feed produced systematically formulated based on the size/age of fish/prawn’s requirement of nutrients. It used quality control and not adding any other unwanted byproducts. When producing scientific pelleted feed, ingredients are including about 20 types. It was mixing by systematically ratio of rice bran,
  • 10. 47 dry rice bran, wheat bran, peanut cake, sesame cake, soya-bean cake, cotton cake, corn, rape seed cake, mustard cake, sunflower cake, coconut cake, pulses and cassava, fish meal powder, dried fish, Prawn Shell Bran, Oyster shell powder, dried shrimp etc. There were two types of pelleted feed as floating pellets feed and sinking pellets feeds. Floating pellets feeds is more expensive than sinking pellets feed. Manufactured pelleted fish feeds in Myanmar are expensive that commercially manufactured floating feeds with comparable characteristics are 10% to 30% higher than other neighboring countries and ASEAN. Seventy percent of the feed produced by Htoo Thit is floating feed, and it is the only producer of floating feed in Myanmar at present. The company was reported to produce an 18% and 25% crude protein (CP) in sinking feed, and a 25% and 28% CP in floating feed, and to manufacture a number of other specialist feeds to order (e.g. frog feed, sea bass feed, soft shelled crab feed). Three other domestically owned private companies were confirmed as producing and distributing pelleted feeds, but their market shares appear rather small. MFF estimated that greater than 85% of aquaculture production in Myanmar is reliant on the use of agricultural byproducts, wastes as feeds and the remainder using commercially manufactured pelleted feeds. But as survey result shows in Table 4.3, 10% fed the pallet and 20% fed rice bran and groundnut oil cake, 5% fed wastes from breweries, noddle, vermicelli factories etc, 5% fed own food (rice bran+ groundnut oil cake + fishmeal), 5% answered conventional all available food and agriculture byproducts. 20% mixed pellet and rice bran and groundnut oil cake, 30% mixed rice bran, groundnut oil cake and wastes from breweries factories. Figure (4.2) Feed Type Using Percentage of the Surveyed Aquaculture Ponds Source: Survey data Pallet 20% Rice Bran and Groundnut Oil Cake 45% Breweries wastes 20% Own food (RB+GOC+fishmeal) 10% Conventional 5%
  • 11. 48 This data seems not clear to describe but it is based on survey answer because some used to feed mix type of feed. If analyzed as percentage per type of feed, the result can be shown as in figure (4.2) Some informant answered, Pallet feed used especially at two or three months before harvesting to quick growth of the fish. The reasons not feeding the pallet are higher feed costs, fish died in last year due to pallet feed, fish do not like pallet feed, higher transportation cost or do not want to go to town/ Yangon to buy pallet. Rice bran is much cheaper than peanut oilcake. Approximately 1 bag (24 pyi) of Rice bran is 6,000MMK/4USD and peanut is 20,000MMK/15USD in 2016. However, peanut oilcake has a much higher protein content than rice bran - 42% and 10-15% respectively (Favre and Myint, 2009). Peanut oilcake is thus converted to fish biomass more efficiently, resulting in faster rates of growth than feeding rice bran alone. Farmers combine the two inputs in the attempt to optimize fish growth whilst minimizing production costs. Large farms source bulk orders of rice bran direct from rice mills (mainly in Ayeyarwady, Yangon and Bago, oilcakes from oilseed mills mainly from Central Dry Zone, brewery, pulse, and other processing wastes from factories located in the industrial zones around Yangon. Depending on circumstances, farmers may pay advances to mills to guarantee large orders, and mills may extend credit to farms on a short term basis, and bank transfer or in cash. Large farms will sometimes also act as brokers, selling agricultural byproducts to neighboring farms at a markup. Modern large and medium-scale rice mills produce higher yields of better quality rice bran than small village based milling operations. Large traders interviewed at Bayintnaung Commodity Exchange Center purchased a wide variety of feed ingredients direct from mills for resale to fish and animal feed factories and farms. About 15 small shops feed traders in Twantay town. Rice bran traders are more numerous and more geographically dispersed than traders of oilcake, perhaps reflecting the larger numbers of rice mills as compared to oil mills, and their wider geographical distribution. 4.2.4 Transportation for Inputs Many large farms own transport (boats and/or trucks) which can be used for collecting feed. Only small and medium farms used boat/truck rental services to collect or deliveries feeds, or accept from mills, traders and feed dealerships. If the farmer organizes transport, need to arrange labor for unloading using their own permanent workers or hire
  • 12. 49 casual laborers. Many of smallholder farms have access to hire boat/truck rental services in their location. Fingerlings are transported using boats that have been specially modified so that the hull becomes a ‘live well’, and covered with netting to prevent fingerlings jumping out. Water is sprayed into the hull from suspended pipes to maintain high levels of oxygenation, and excess water is discharged automatically. The largest fingerling boats can carry 300,000 three inch fingerlings, but most have a smaller capacity. Most boats are owned by fingerling traders or hatcheries, but rental services also exist. About 10 to 50 boats in each cluster. In all these locations, numbers of fingerling transport boats were reported to have increased two to three times over the last 10 years. Fingerlings can be transported by boat over long distances because the delta is well connected by a system of waterways that serve as an alternative to the road network. Small trucks and motorbikes are used to transport fingerlings packed in oxygenated bags. Transportation of fish, although stressful, is an inevitable procedure in aquaculture practices. In a study (FAO: Aquaculture Reports 2/2015, Stress responses in rohu), investigated the changes in biochemical and haematological indices in advanced fingerlings of rohu, in order to optimize the packing density as is imperative to avoid transportation stress and associated mortality. Optimizing the packing density for a specified period of transportation is needed to reduce stress related mortality both during and/or after transportation. The results of the study suggested that the optimum packing density for rohu fingerlings for 2–3 h duration of transport would be 134 g L−1 as it kept the stress at low levels and caused no mortality subsequently as against 201 g L.−1 4.2.5 Equipment and Machineries There were lack of proper equipment and machineries in majority of the farms in all cluster. Mechanical excavators for pond construction first appeared after 2009. There were 3 excavators available for rental in Twantay in surveyed time. Other clusters only relied to labours to digging the ponds. 4.2.6 Other Inputs and Related Goods and Services There were many direct or indirect related inputs along the aquaculture value chain in studied area. Key informant interviews mentioned these direct and indirect commodities and services are increasing as develop as aquaculture sector development. A wide range of other inputs and services are required to facilitate fish production. These include a variety
  • 13. 50 of fixed or quasi-fixed inputs (e.g. buildings, poultry houses, pumps, generators, trucks and boats, fishing net), variable inputs (e.g. lime, salt, vet medicines, ice), transport (truck and boat rentals) and other specialized services (e.g. mechanical repairs, earth moving equipment rentals). The number of businesses providing these goods and services has grown 2 to 3 times as long as the aquaculture growth in their area. 4.3 Midstream: Farm Sector Studied in the midstream or farm sectors, include pond owners’ experiences by size of farming, their farming practices, land access and tenure, other natural resources, labor and access to finance. 4.3.1 Size of Farming According to Department of Fisheries, aquaculture ponds can be categorized by size of pond such as (a) household farming, (b) small scale, (c) medium scale and (d) large- scale farming. Table (4.4) No. of Fish Farmers and Fish Ponds in Ayeyarwaddy and Yangon Region (2010-2011) Source: EMPA 9th Batch, 2013, Wine Wai Wai Win, Large scale and small scale fish farming in aquaculture sector in Myanmar According to table (4.4), no. of fish farmers and fish pond acres in Ayeyarwaddy and Yangon Region shows that small farmers who 53% of total farmers are shared only 17% of aquaculture land in Ayeyarwaddy. Similarly, small farmers who 53% of total farmers shared only 17% of aquaculture land in Yangon Region. Meanwhile, over 50 acre land owned large scale who 21% of farmers occupied 50% of aquaculture land in Small Medium Large Total Small Medium Large Total Ayeyarwaddy 2,679 1,331 1,086 5,096 18,820 37,637 56,452 112,909 53% 26% 21% 17% 33% 50% Yangon 2,750 1,662 576 4,988 9,979 19,957 29,934 59,870 55% 33% 12% 17% 33% 50% Other States/ Regions 9,183 776 124 10,083 26,608 12,908 6,451 45,967 Total 14,612 3,769 1,786 20,167 55,407 70,502 92,837 218,746 72% 19% 9% 25% 32% 42% States/ Regions No.of Fish Farmers Fish Pond Acres
  • 14. 51 Ayeyarwaddy. Majority of farmers are small scale farmers in those area but large portion of land owned by large scale farming. (A)Household Farming The household farming means extensive culture in small or homestead backyard pond not more than one acre and harvest occasionally for family consumption. This kinds of ponds are not rear systematically and feed rice bran or kitchen waste and mostly seeds from wild and small capture fishes. Normally, this homestead backyard ponds no need to pay any tax. 10% of surveyed respondents are small or homestead backyard pond owned household farming. They started their household farming after 2005 by adopting practice from neighboring commercial ponds in their area. In this group of informants, difficult to measure their development as the area expansion or by increasing production but they answers their benefit by household farming as; - More saving by reduce kitchen expenditure - Health and nutrition impact for family members. (B) Small-Scale Farming If stand as main or major family livelihood operated by family members is called Small-scale aquaculture. Generally the fish ponds areas are not more than ten acres in total comprising a good number of half to one to two acre fish ponds and sometimes integrating with other business such as poultry farming or plantation. 30% of surveyed respondents are small-scale farming. 53% of small scale farming are increasing the pond acre within 2000-2016. (C) Medium Scale Farming Medium scale fishery is between 11 acre and 50 acres. 40% of surveyed respondents are Medium-scale farming. 39% of small scale farming are increasing the pond acre within 2000-2016. (D)Large-Scale Farming In terms of the volume of fish produced, it seems clear that aquaculture is dominated by large-scale operations. A small number of very large vertically integrated farms operated by companies, a few of these have achieved almost complete vertical integration; including hatchery, nursery, feed mill, grow out, transport (boats and trucks), ice plants, and cold storage/export. At least two companies also market feed, and buy back
  • 15. 52 harvested fish from customers for onward sale, on a contractual or quasi-contractual basis. Some of these companies have investments in other agro-industrial enterprises, including marine fishing, brewing, rubber, rice mills, food processing and dairy farming. The largest of these farms is reportedly 7000 acres in size, and another is more than 3000 acres. Some very large, partially vertically integrated farms of around 1000 acres are operated by individuals or families, often from among the earliest investors in the sector. Large farms at the next ‘tier’ down the scale are sized in the low hundreds of acres. Although they are also relatively few in terms of absolute numbers, farms of this size are found in most locations with significant concentrations of ponds, and represent a large share of total pond area. Some of these farms operate hatcheries for their own use, and some also sell feeds such as rice bran to smaller farmers in the vicinity. 20% of surveyed respondents are Medium-scale farming. 50% to 80% and large scale farms are expend 200% to 500% more of their initial acreage. (E) Integrated Farming (Poultry-Fish& Paddy-Fish) Integrated poultry-fish production poultry, chicken houses over fish ponds, much of the growth in to the north of Yangon has been fueled by the inflow of capital from ethnic Chinese investors from Shan State with trading, mining and agricultural businesses, seeking to diversify their asset portfolios. Broiler and eggs poultry farming are found in this area. According to informant answer, poultry fish are lower price than normal fish farm because fish are a little bit smelly or different odor. Since 2003-04, Department of Fisheries has initiated stocking of quality fish seed into paddy fields in order to sustain subsidized fish production. The result shows that stocking of fish seeds into paddy fields substantiate better livelihood of the paddy farmers. But paddy fish farming are other small fish species not include Rohu. 4.3.2 Experience of Pond owner Myanmar freshwater aquaculture farming can be classified as small scale and large scale aquaculture enterprises. Pond aquaculture in Myanmar is set against a Buddhist tradition of non-culture of fish, religious avoidance of cruelty to fish and unwillingness or preference not to kill animals. It is apparent though that freshwater aquaculture is increasing and is growing fastest where ethnic Chinese are becoming involved since they do not have this cultural avoidance. The ethnic Chinese are also able to raise the input
  • 16. 53 capital for aquaculture development more readily and also have access to information and technologies from China. As aquaculture area expanded, the land availability in pioneering areas become limitation and high price. Therefore, farmers from early aquaculture clusters began to extend their pond construction in new areas with adequate water supply and transport links. Former residents near from new area began construct ponds and start the aquaculture that reasons for increasing numbers, leading to the formation of new pond clusters. Total pond acreage has increased rapidly over the last decade through the conversion of paddy and uncultivated wetlands in pond clusters. Figure (4.3) Pond Area Expansion of Pond Owners Source: Survey Data Usually, a business might be expend and re-investment their incomes when this business is high return and benefit for them. To be measured the development of surveyed aquaculture farms, as figure (4.3) shows years of pond area expansion of pond owners. According to result, pond owners are expend their pond acreage 3% are before 2000, 53% are between 2000-2005 and 32% are between 2006-2010. It can be say that fish aquaculture has high return of profit and developing business. Only 9% did not expend their pond acreage due to late entry to this business or invested in other business or land not available nearby area. Except from the household farming under one acre, majority of small and medium are expend their pond area about 50% to 80% and Large scale farms are expend 200% to 500% more of their initial acreage within those years. 4% 55% 33% 3% 6% Before 2000 2000-05 2006-10 2011-16 No expend 0% 10% 20% 30% 40% 50% 60% PondAreaExpensionyears % of Respondant Pond Owners
  • 17. 54 4.3.3 Farming Practice (Production Technology) The farming practice in midstream can be categorized by on-growing practices, harvesting practices. Moreover, technical extension and production cost are discussed under this topic. (A) Grow-Out Practices Aquaculture production specifically refers to output from aquaculture activities, which are designated for final harvest for consumption, output is reported in weight. The farm designs are based on topography, water level and flow, rainfall, soil types. The slice gate, inlet-outlet cannel, dykes are constructed accordingly. To get more oxygen into water and to reduce the water temperature, making shower by pumping into the air is normal practice. The regular exchange of water by pumping or through slice gate. Water refilled and maintaining the depth of water between four to six feet to compensate water loss due to seepage and evaporation. After three to four years, in the summer season, drained out the pond and dried completely till the bottom soil are cracked. And then, removed the upper layer of pond bottom and utilized in plantation as organic fertilizers. Treated with lime to eradicate fish predators and their eggs. When water pumping into the pond, screened and filtered thoroughly to prevent unwanted fish. Different farming practices in Myanmar accordance with environment conditions, infrastructure, land and water, markets demand, buyer choice, farmer’s investment capacity. In surveyed area of delta, use the rearing as low stocking density for grow-out farms. The grow out pond started moving to large pond, after raring finagling size reach up to 4”-7” used to grow about 1500-2000 fishes/ acre. It will take about 8 months to reach the marketable size about 1 viss (1.63kg) in average. If some farm want to grow out in short term and non-crowded system, size start from the size 8”-10” used to grow only 1000- 1200 fishes/acre. It will take about 7 months to reach the marketable size about 1 viss (1.63kg) in average. If grow up to 10 months, may reach to 1.5 viss (2.45kg). Generally, marketable size of export and some local market is above 2 kilogram (1.25viss). According to survey data, the grow-out ponds starting fingerling size, growing duration and harvesting time are variance and depend on the pond owners’ strategy. Normally, in grow-out ponds, combination of feeds was 1 sack of peanut oilcake (unit weight 32 kg) to 10 sacks of rice bran (unit weight 27 kg). In large scale farming, while the adoption of scientific carp culture in recent years has been realizing production
  • 18. 55 levels of 3-5 tonnes/ ha/ yr ((1800-3000 viss/acre/yr), such practices are limited to only a few small areas. Small and medium farms are average 2-3.5 ton/ha/yr (1200-2400 viss/acre/yr). The pond fertilization with organic manures like cattle dung or poultry droppings and inorganic fertilizers; the provision of a mixture of rice bran/wheat bran and groundnut/mustard oil cake as supplementary feed, fish health monitoring and water management. The usual harvestable size of rohu is over 0.8 -1.5 viss (1.3-2.5 kg) and is achieved within a culture period of 12-18 months (if not include nursery phase, only 10-12 months). Production levels of 6-8 tonnes/ha are recorded in other country. But according to survey data, only 2-5 tonnes/ ha (1200-3000 viss/acre). The higher price of commercial feeds has been forcing farmers to resort to the conventional bran-oil cake mixture, usually supplied in dough form, thus leading to wastage and deterioration of water quality. Judicious feed management, therefore, requires attention in order to enhance the profit margin. In grow out, especially at higher stocking densities, carp lice, has been a major problem for Rohu, causing reduction in growth and sometimes mortalities. (B) Harvesting Practices Manually operated dragnets are the most convenient gear used for harvesting. The length of these nets depends on the width of the pond. In most cases fish are harvested at the end of the culture period through repeated netting. However, in some cases, this is followed by total draining of the ponds. In water bodies where multiple stocking and multiple harvesting are practiced, the harvesting of larger sizes (300-500 g) is usually initiated after six-seven months of culture, and the smaller ones are returned to the pond for further growth. Multiple stocking and multiple harvesting is the most common practice in sewage-fed carp culture system. (C) Technical Extension and Veterinary Services According to survey, majority of pond owners answers no technical extension received. Most of them relied on their experience and getting advice from neighboring firms and sharing experience each other. Very few pond owner have water quality test kits (eg.pH level, Oxygen level test kits). Some large firm have access to fishery specialist or veterinarians and field visit regularly or when fish disease occur in their ponds. Majority of farms not received veterinarian service. They are relied on traditional or folk medicine
  • 19. 56 and peer education method for their fish health. For example, water pump in and out, aeration, using herbal medicine like lime, tobacco, salt etc. Over 90% of small farm did not know or did not access to DOF provided technical extension or trainings. But some large farm owners and association members who have contact and familiar with the DOF or MFF are received opportunities of trainings, workshops, and forum in both local and abroad. (D) Production costs In general, Rohu is fetching market prices of approximately in 2016, USD 1.7/kg (2, 800MMK/Viss) at the producers' level; therefore, the use of major inputs such as seed, fertilizers and supplementary feed, besides labour costs, is kept to a minimum. Supplementary feed constitutes about 60-80 percent of the total input cost in Rohu fish aquaculture. Therefore, judicious feed management is of prime importance for enhancing profits. In surveyed ponds, average production level are 2.5 ton/ ha (1500viss/acre). In extensive systems, with a targeted production level of 3-5 tones/ha (1800-3000 viss/ acre). The cost of production is about USD 0.80/kg (1800 MMK/viss) for small and medium farmers who are not used the pelleted feed. And cost of production who used the pelleted feed is about USD 1.12 /kg (2400 MMK/viss). Some informant answered that it seems high production cost but high productivity by more weight and less health problem due to pelleted feed. But majority of small and medium farms are still not using the pelleted feed. They answered that they already tried one or two times but not different too much and only high costing. 4.3.4 Land Access and Tenure The Aquaculture Law 1989, which promoted the conversion of uncultivated “wasteland” to fish ponds. Small and medium-sized commercial farms are more numerous than is generally recognized. In certain areas these farmers, attracted by the high returns possible from fish production, have circumvented regulations about conversion of paddy land to fish ponds. Fish farmers rarely rent privately owned land to construct fish ponds. . However, farmers have had freedom to choose which crops they plant since 1993, with the exception of rice, which must be cultivated on all designated paddy land (UN- Habitat/UNHRC, 2010). There are three types of land title related to aquaculture. Form 7 is title for agriculture land, Form 105 is temporary license to change the land title use. Form “LaNa 39” is long term license land title that to use the land for aquaculture purpose. Aquaculture is not legally designated as a form of agriculture, it need to conversion of agricultural land
  • 20. 57 to ponds. All aquaculture farmers/ pond owners want to hold La Na (39), the reason why to answer it, needs to refer page 1, 2nd paragraph (Ga) of Aquaculture Regulation (appendix of 1989 Aquaculture Law); Land hold La Na (39) means “a Land can be used for aquaculture which has exemption from the nationalization of the agriculture land of 1953 Farm Land Law”. Moreover, in this law acted an aquaculture farm without license would be fine or sentence for 1 year prison and/or grabbing all the land and materials on this land. According to key informant responds, the land or pond value/ price are differences but depend on the location. For example, supposed if Form 105 own price become three to six time more than whilst only have Form 7. If Form 39 hold, it worthy more than 20-40 times of Form 7 holder price. Here is example calculation by respondent, -if hold only Form-7, land price let says 10 lakh/acre. -When holding Form-105, it became about 40 or 50 lakh. - If occupied From-39, Lend worth as 200 to 300 lakh. But in the reality, nobody resell it after getting Form 39. Table (4.5) La Na (39) occupied pond in States and Regions (until 31.10.2016) State/ Region (Fish/Prawn/ Crab) Ponds Occupied La Na (39) Ponds (owners) Acre Ponds (owners) Acre Ayeyarwaddy 6,403 177,961 2,146 48,767 Yangon 4,428 84,457 1,775 35,937 Other states & Region 21,783 218,495 1,083 23,811 Total 32,614 480,913 5,004 108,515 Source: Myanmar Fisheries Federation, (U Win Kyaing, 2017, ppt) According to table (4.5), La Na (39) occupied ponds and area acre in states and regions (until 31 October 2016), there were only 5,004 pond owners/ farms hold the La Na (39) among the 32,614 pond owners/ farms the whole country. In term of area acre only 108,515 acre have this La Na (39) out of 480,913 total acre. It shows that only 15% of pond owners/ aqua farmers and 23% of ponds acre only hold the La Na (39). To change land title, the process is complex. It needs initiated at the village tract level and must go through successive tiers in the state structure, eventually to be endorsed or approved at the union (national) level, after undergoing factual verification by the Settlement and Land Records Department (SLRD), within the Ministry of Agriculture, Livestock and Irrigation, at the township and district levels. The township-level General
  • 21. 58 Administrative Department (GAD), within the Ministry of Home Affairs, is responsible for processing such applications. Informants reported that navigating this complex process entails the payment of substantial “unofficial” fees. The full costs of obtaining La Na 39 could be as much as one hundred times greater than the official fees for doing so. As a result, few of the farmers interviewed who operated an area of ponds of less than 10-15 acres had chosen to apply for La Na 39. A pond license, issued by DOF, is a legal requirement for the cultivation of fish, it’s granted as possession of a pond and evidence of land use rights (Form 105, etc.), and irrespective of whether they have applied for or possess La Na 39. Having a pond license entails payment of a small annual fee to DOF, which is one of the means by which the department generates revenues. According to survey result, fees/ tax is about 25,000 MMK/ acre/ year. Some informant said that some dug the new pond even not received yet the form 105. The reason said that nobody check at the village level. If a good relationship with village tract level authority and township level authority, they made new ponds. As reported by informants, permission to convert paddy land to aquaculture can only be granted legally if the land is of very poor quality (i.e. producing extremely low yields, usually as a result of being deeply flooded). Paddy land of this type is referred to as category ‘R3’. Having paddy land officially recognized as of R3 quality is thus usually part of the La Na 39 application process. Informants suggested that it was sometimes, possible for farmers to have the better quality paddy land downgraded to R3 status by providing financial incentives to officials, making it possible to convert it to ponds either with or without La Na 39. The village administrator was sufficient to allow a person wishing to convert a small area of agricultural land into ponds to do so. Village administrators act as ‘gatekeepers’ as their consent is required before ponds can be constructed and benefit financially from giving permission to convert land, they are frequently involved in aquaculture themselves. This local political economy accounts for part of the reason why widespread breaches of the procedural laws on land use are apparently possible. From the perspective of most farmers, the only discernible benefit of obtaining La Na 39 is that it affords the bearer some protection in the case of disputes over land use rights, and provides entitlement to compensation in the event that the land is confiscated by the state. Thus, most pond operators have little incentive to apply unless their farm is sufficiently large that their lack of La Na 39 might come to the attention of the authorities, subjecting them to the
  • 22. 59 possibility of fines, other penalties, or rent seeking behavior, or if they have reason to fear that their land use rights might be challenged. The current land use regulations do not act as a break on the expansion of aquaculture. Effective policy safeguards are thus required to avoid unintended consequences arising from initiatives aimed at ensuring greater transparency and accountability with respect to land use. The majority of pond operators had initiated aquaculture on land to which they or their family members already possessed permanent use rights (Form 105/Form 7), usually as a result of inheritance, marriage or, in some cases, having cleared and registered uncultivated land. Large producers often stated that they had applied for La Na 39 for only part of the area farmed in order to minimize the costs entailed, while others reported having begun the application process. However, policies strictly regulated paddy production targets, sales and prices, leaving many farm households deeply indebted and they are the most likely cause of distress sales of land. In addition, land prices are reported to have risen sharply in all pond clusters, as suitable land for aquaculture has become less available, providing incentives for indebted farmers to dispose of unprofitable agricultural land. Some wealthy pond farmers were reported to have acquired land from paddy farmers who defaulted on private loans. Members of households having sold land to aquaculture producers tended either to become labor on fish farm or to invest in non-farm businesses. Migrating to take up work in the non-farm sector, usually in Yangon, appeared to be the most common livelihood strategy among the adult children of newly landless households. Thus, large scale forms of aquaculture appear to have been implicated in the concentration of access to land and associated processes of ‘crowd out for peasants’. Pond farmers had amassed financial losses too great for them to bear subsequent operating costs, but not so large as to necessitate sale of the land on which their ponds were constructed. The leasing in land for aquaculture from state institutions, including various government departments, prisons and the military, all of which own large tracts of agricultural land and also engage in aquaculture directly (Belton, B and Thilsted S.H. 2014). The limited development of a private land rental markets is linked to the continuing ambiguity pertaining to private property rights, although it is also likely that purchasing land use rights is seen as a better investment than renting.
  • 23. 60 4.3.5 Other Natural Resources (Water, Weather etc) Water is a key input for aquaculture, and must be available in sufficient volumes, and be of sufficient quality, for production to take place successfully. Optimal environments for pond based aquaculture are usually low lying lands located close to permanent water sources (e.g. irrigation canals, rivers or other water bodies), allowing for filling, ‘topping up’, or exchange of water to be achieved without heavy expense on fuel for pumping. Heavy soils that retain water well and minimize nutrient leaching are ideal. Although most of the commonly farmed freshwater fish can tolerate low levels of salinity, growth is best in areas that are not severely affected by saline intrusion. Ideally, ponds should also be located in areas protected from frequent heavy flooding that could allow fish to escape. Ideal environmental conditions for pond based aquaculture are thus almost identical to those optimal for the production of lowland rice. The development of aquaculture has therefore been closely linked to the development of flood control and irrigation schemes designed to support agricultural expansion in the delta. Water control schemes have also proven important role in the development of aquaculture because they provide access routes to and from farms in the form of canal networks and roads constructed on embankment such as the main road linking Twantay and Maubin, along which feed and seed can enter and harvested fish can leave. Weather condition of the Delta area is suitable for Rohu Fish aquaculture temperature is never under 14˚C and approximately not over 37˚C. According to the informant answers, the highest risk in aquaculture pond is flood. It can be lose all or some of fish out to nearby stream or river. Second risk of the fish ponds owner is hot weather especially in summer when over 35˚C but it can be treat by water pumping in and out. 4.3.6 Labor Demand for labor and productivity of labor are important for future agricultural development and rural development. In 2015‐2016 fiscal year, there are 3,216,300 number of labors working in fisheries sector and 216,746 are working in aquaculture sector. Even it is only counted on production segment and not including for processing and market related segments labor. If calculate fisheries related all labor force estimated nearly 4 million, it means about 8% of Myanmar total population. Farm labor in aquaculture can be recruited on a temporary or permanent basis. Temporary labor is required mainly for harvesting fish, grading fingerlings, unloading feed delivered to the farm, and pond construction/repair. Teams of temporary workers are
  • 24. 61 usually hired through local labor brokers, and large groups of loosely organized casual laborers were found in all pond clusters visited. Average labor requirement as 2 full time labors/ 10-30 acre of ponds. Harvesting requires large teams of workers to net ponds, weigh fish, transfer them to boats or trucks and ice them prior to transport. Netting ponds is reported to be dangerous work, as large, fast moving fish jumping at head or chest height sometimes collide with workers, causing injuries and, in some cases, death. Netting, grading and restocking fingerlings in nursery ponds on grow out farms is also labor intensive work. Teams, usually numbering around 10 individuals, are employed to unload feed from boats or trucks and carry it to the pond side. A number of farms reported experiencing labor shortages. Larger farms may also employ supervisors or managers to oversee the work of permanent laborers, employed for activities such as feeding fish, day-to-day maintenance and guarding, as well as that of casual workers. Operators of small and medium scale commercial farms tend to play more actives role in daily on site management, but medium sized farms usually also employ additional permanent labor to carry out manual work. Family management and labor inputs are supplied by both men and women household members in small and medium sized operations, although it appears to be the norm for male household heads to assume a leading role in farm management in most cases. Residents of pond clusters, rarely choose to engage in permanent farm work, preferring the greater relative freedom and better remuneration of daily labor. As a result, the majority of permanent workers on fish farms originated from outside pond clusters, mostly from remote townships in Ayeyarwady and Bago regions, where there were reported to be few employment opportunities other than occasional causal agricultural work. In the past, all ponds were constructed using manual labor. Manual workers continue to perform this function, but are increasingly being replaced by mechanical earthmoving equipment that is considerably cheaper. The cost of pond excavation using a mechanical backhoe was reported at 300,000 MMK/acre, as opposed to 600,000 MMK/acre using human labor. Rental services for mechanical earthmovers were reported to have developed rapidly in all clusters visited within the last three years.
  • 25. 62 Table (4.6) Changes in Labour Cost and Requirement (MMK) Type of labour Before 2000 2000- 2005 2006- 2010 2011- 2016 Requirement (depend on farm size) Permanent Labour cost/ month 20,000- 40,000 40,000- 60,000 50,000- 100,000 80,000- 150,000 2 to 20 Temporary or Casual Labour Cost/ day 500-1,000 1,500- 2,500 2,500- 4,000 4,000- 7,000 10 to 60 for a week in harvesting time Source: Survey Data Table (4.6) shows the changes in labor cost and labor requirement. Harvesting fish for transport to market is a labor intensive process. For harvesting time, 10-20 acre ponds need 40 labor for 3 days. Labor charges are variance between the clusters and average about 4000 MMK-7000 MMK per day. A 30 acre pond will take a team of 30 day laborers 10 days to harvest completely; equivalent to 10 person days of labor per acre. A medium size pond requires the fulltime labor of one to two people to manage it, plus additional temporary workers for grading and restocking fish during on-farm nursing, and unloading and feed porter. In most cases, temporary laborers are long term residents of the pond clusters where they work, not inward migrants. Women and men were engage in all kinds of day labor associated with the farm segment of the aquaculture value chain buy greater numbers of men to be employed in pond harvesting. Wage rates for temporary workers are usually gender differentiated, falling in the region of 4000-7000 MMK/day for men and 3500-4500 MMK/day women. Permanent workers are usually provided with on-site accommodation, and the most common arrangement is to hire husband and wife teams. One family is usually employed to manage each grow out pond (or, in the case of integrated poultry-fish farms, each chicken house). Very large ponds may require more workers. Wages for a single permanent male fish farm worker are estimated at approximately 3,000MMK/day. Members of families hired as permanent workers are not paid individually, and the male household head generally receives a lump sum of around 80,000 MMK/month to 150,000 MMK/month, with additional bonuses paid as an incentive for meeting production targets in some cases. This arrangement effectively undervalues women’s work. Widespread outmigration was reported from pond clusters in Twantay and Maubin, particularly among landless residents, including members of families who had sold agricultural land to fish pond operators. The
  • 26. 63 main destination for these migrants was the industrial zones around Yangon city. Informants linked this outflow of labor to rising wage rates and occasional labor shortages within pond clusters. Outmigration for employment in the urban industrial sector resulting in a tightening of the labor market in the dynamic agricultural zones surrounding Yangon. This in turn has created opportunities for in-migration among landless workers from more remote areas, where more limited off-farm employment opportunities exist. If this flow of migrants occurs on a sufficiently large scale it should eventually begin to drive up wages in more distant hinterland areas. 4.3.7 Access to Finance Aquaculture farming is high investment in operation cost. Approximately 60% to 80% of operation costs by feed, average feed cost reach MMK 2 million to 2.5 million per acre/year. Estimate about 20 acre pond owner need to invest about 50 million MMK and about 10-15 million MMK for labour and other operation costs. When harvesting, totally return about 80 million MMK and might be received net profit about 15 to 30 million MMK/year. If calculate the Return on Investment (ROI) of this aquaculture farming business 18% to 35% net profit. Noted that it is not counted on fixed cost of land and only calculated on variable costs. However, it has comparative advantage than rice/paddy or other crop agriculture. As key informant estimates, aquaculture net profit is 5 to 10 times of rice/paddy or other crop agriculture but it need high investment. Fixed or quasi-fixed inputs may include land purchase or rental, pond construction, housing for workers, poultry sheds, boats, trucks or other means of transport, water pumps, generators and transformers. Variable inputs include labor, feed, seed, chemicals, fuel, and ice. The ease and terms with which start up and operating capital for aquaculture can be accessed thus have important implications for the sector’s inclusiveness. Small farms and nurseries are usually financed from a combination of own savings, informal loans from relatives and informal moneylenders (at between 5-10% interest per month) or advance loan from fish market whole sellers/ brokers. In the case of credit from fish market whole sellers/ brokers, interest rate is 3% to 5% depend on the amount and duration of the credit. On the other hand, they have to sell fish to lenders when harvested. It is a kind of contract farming/ mutual understanding. When harvesting, return the original amount plus interest. Some informant answered, who have paddy land also, using agricultural loans disbursed by the Myanmar Agriculture Development Bank (MADB). This behavior indicates that these farmers prioritized fish production, but had it not been for the
  • 27. 64 complementary timing of agricultural loan dispersal they might have been prevented from stocking fish by a lack of funds. The larger farmers was output tied loans provided by large fish traders based at San Pya wholesale market. These loans are used to fund both the expansion of operations (buying land and constructing ponds), and operating costs (feed), and obligate the farmer to sell fish through the trader who provided the loan. The trader deducts a commission of 3-4% for brokering the sale of the farmer’s fish, along with monthly interest ranging from 3-5% depending on the anticipated duration of the loan and whether or not it is secured. Loans which are secured usually use land ownership documents belonging to the farmer as collateral. Farms tend to borrow regular monthly basis in order to minimize interest payments, taking only as much as is needed to pay for their feed requirements for each month. Long-term borrowing to fund feed purchases is rare, but may occur when big farms stockpile large quantities of agricultural byproducts when their market value is low. Other sources of credit used by large farms include gold shops, which serve as pawn brokers and other informal private moneylenders. Access to loans for aquaculture from the Global Treasure Bank (GTB), Former name as Myanmar Livestock and Fisheries Development Bank (MLFDB), is more limited, as indicated by informants who ranked banks as the least important source of credit after fish traders, informal moneylenders, relatives, and feed traders. Although GTB/MLFDB provides credit at low rates of interest (13% per annum), it was said by informants only to issue loans to farmers with more than 50 acres of ponds. These loans must be secured with land, and informants reported that it was only possible to borrow up to one third of the value of the land owned, and that the bank tended to value land at below market rates. Borrowers required to possess La Na 39/ Form (105) and License for ponds used as collateral. Feed traders and mills selling rice bran, peanut oilcake and other agricultural byproducts usually extend credit to farmers on a very short term basis only. Myanmar’s largest manufacturer of pelleted feed, Htoo Thit, operates a quasi-contract farming system, under which customers who have obtained feed on credit (2% monthly interest rate) are obliged to sell harvested fish through the company’s trading arm. Htoo Thit operates a quasi-contract farming system, under which farmers receiving feed on credit from the company’s dealerships are required to sell through wholesalers trading fish for the company, with outstanding feed costs deducted at the time of sale. Land use certificates must be provided as collateral for these loans. Farmers who buy feed from the company without taking credit are not bound to sell their products back to it. This arrangement makes pelleted feed available to smaller and medium sized farms, as well as to some larger
  • 28. 65 operations, but reportedly places restrictions upon the management decisions that can be made by the farmer, as the company stipulates that alternative sources of feed cannot be used by its customers (Integrated Farming: poultry houses over fish ponds). This sanction can be enforced because the company is able to withhold payment after fish are harvested. Another informant reported that foreign fish feed companies were wary of investing in Myanmar dues to fears over their ability to recover credit extended to farmers. This may suggest that development of a more competitive feed sector is constrained by foreign investors’ access to capital and concerns over the strength of the legal frameworks in place. Although loans from fish traders are often secured with land use certificates (e.g., La Na 39 or Form 105), meaning that land can be foreclosed in the face of a serious default, the conditions are flexible (allowing for regular borrowing to cover monthly feed costs, repayment upon harvest, and rescheduling of payments in case of unforeseen circumstances) and beneficial to both lender and borrower. In addition to the interest they charge, fish traders benefit from the commission that they take from brokering sales of fish. Table (4.7) Comparison of 3% Interest Rate and 5% of Interest Rate of Pond Owner Credit (MMK lakh) Month Loan(10% more than Previous month) 3% interest rate 5% interest rate Debt until last month loan+ interest Total Debt Debt until last month loan+ interest Total Debt June 25 28 30 July 28 28 57 30 60 August 30 57 90 60 95 September 33 90 127 95 135 October 37 127 169 135 180 November 40 169 215 180 231 December 44 215 267 231 289 January 49 267 325 289 355 February 54 325 390 355 429 March 59 390 463 429 512 April 65 463 543 512 606 May 71 543 633 606 711 Total 535 99 16% 177 25% Annual Loan amount Annual Interest amount (for 3%) Annual Interest Rate (for 3%) Annual Interest amount (for 5%) Annual Interest Rate (for 5%) Source: Own calculation based on survey feedback
  • 29. 66 Large fish farmers do not generally appear credit constrained, it is likely that many small and medium sized farms are, to varying degrees. Some of the smallest commercial pond operators interviewed reported being unable to access credit from any source, and being averse to the risk of doing so even in the event that it were available, for fear of losing their remaining assets in case of default. Stocking and feeding practices and financial returns on these farms were found to be suboptimal as a result. The high cost of credit increases the risk of productive investments and lowers potential rates of return, and may thus act as a disincentive to investment in the sector by smaller producers and SMEs. Suppose that a medium size pond owner (about 15 acre) needs the loan for investment, currently have to pay 3% to 5% interest rate. Assume that 2,500,000 MMK in 1st month and increasing 10 % more due to feed requirement increasing month by month. Table (4.7) calculate the pond owner have to share his/her profit to money lender about 10 million if 3% monthly interest rate that is equivalence to 16% annual interest rate. If 5% monthly interest rate, it can says 25% annual interest rate. 18 million have to share his/ her profit to money lender. Table (4.8) Profit sharing of Money Lender and Pond Owner (MMK lakh) Particular MMK (Lakh) % Total Sale 800 100 Capital/ Loan 535 67 Net Return (Profit) 265 33 Interest Rate Unit Net Profit for Pond Owner Interest to money Lender 3% MMK (Lakh) 166.5 95.5 % of profit 63% 37% Profit sharing ratio 1 0.59 5% MMK (Lakh) 88 176.7 % of profit 33% 67% Profit sharing ratio 1 2 Source: Own calculation based on survey feedback As informant answer in survey, this pond might be get about 800 million approximately and estimate production cost (variable cost, feed and labour) is about 535 lakh (67% of total sale). Net return is about 265 lakh (33% of total sale). According to this calculation, 33% of Return on Investment (ROI) is high that can be conclusion as aquaculture is a good business for investor in Economic point of view. Table 4.8, explain about profit sharing of Money Lender and Pond Owner, If 3% interest rate, money lender received 98.5 lakh
  • 30. 67 (37% of net return) and Pond owner received net profit 166.5 lakh (63% of net return). If 5% monthly interest rate, lender got 176 lakh (67%) and pond owner has 88.3 lakh (33%). As a result of this scenario, the ratio of the profit of pond owner and money lender would be; If 3% interest rate= 1: 0.5, and If 5% interest rate= 1: 2. All of key informant pond owners answered that used to borrow more or less. Only variance the length of the credit month and amount. Access to finance is the most important problem of aquaculture farming owner (loss of opportunity) facing every year related to lack of capital. The majority of investment and operating capital for aquaculture is raised from informal sources. Although monthly interest rates of 3% and upwards may appear high. Average rates of interest paid on advance payments from fish traders fallen in recent years, from 5% in 2010 to 3% in recent year, possibly indicating increasing liquidity in domestic credit markets emerging with ongoing reform of the banking sector. 4.3.8 Transportation in Midstream (Farm to Market) Farmers can sell fish to Yangon in one of two ways: 1) through local collectors; and 2) directly to traders at San Pya or Shwe Padauk. Collectors are present in all major aquaculture clusters. They can provide harvesting services or purchase fish already harvested, and may either buy fish to resell to larger traders in Yangon or earn a commission through brokering sales on farmers’ behalf. Collectors tend to provide this to service smaller farms, because large traders in Yangon will only arrange collection of fish from farms if the quantity harvested exceeds 10,000 viss (16 ton). Some small producers choose to sell direct to wholesalers in Yangon using their own or hired transport, receiving a better price than if selling through collectors, but incurring transport costs. Most of the farmed fish traded through Yangon markets is sold without the involvement of an intermediary. Farmers who have taken advances from fish traders are bound to sell all their fish through those traders. Those who are not indebted to traders are free to choose to whom they wish to sell, but often opt to work with one or a small number of trusted individuals. Farmers usually inform the trader several days in advance of the harvest to set a date agreeable to both parties, and receive payment from traders at the time of sale or after a delay of a few days. When fish is harvested, it is packed in crushed ice in the hulls of collecting boats or in unrefrigerated trucks. Boats are the main form of transport because many ponds are accessible only by canal. Boat hire price are various depend on the distance. They got two ways transportation.
  • 31. 68 For example, 10,000 viss weighting boat ice carrying from central fish market to pond about price approximately, 70,000 MMK and when carrying fish 150,000 MMK for pond to market. As increase as aquaculture ponds, numbers of boat are increased accordingly. About 80%- 90% of the volume of fish deliveries to San Pya and 10%-20% reach to their neighboring village or towns of the fish farms and Shwe Padauk Fish Market. Refrigerated trucks are also occasionally used to transport fish to market, particularly by the largest farms. Yangon traders and larger farms own boats and/or trucks for transportation purposes, and transport rental services are widely available from vehicle owners located close to wholesale markets and in aquaculture clusters. 4.4 Downstream: Market Actors In the downstream or post-harvest and market actors including the process of farm to market, whole sale market, states and regional markets, retail and wet market, cold storages, processing, labor in downstream, transportation in downstream, Procedures for Export& Import. 4.4.1 Wholesale Market Central wholesale markets (Baho Sanpya Ngar Zay Gyi) is located in Kyimyidaing Township, Yangon at the embankment of Yangon (Hlaing) River. Which marks the city’s western boundary and provides the main transport link to pond clusters located in the zone around the city. It was established in 1991, and administered by the Markets Department of the Yangon City Development Committee (YCDC). The market operates daily, from late night until mid-morning. A second fish wholesale market, Shwe Padauk, opened in Yangon in October 2014, further north than San Pya, on the Yangon River. It is envisaged that it will partially replace San Pya market. Both markets trade fish from aquaculture and capture fisheries. Informants estimated that farmed fish accounts for 65- 70% of the fish traded at San Pya, and around half traded at Shwe Padauk which mostly marine fish. This two markets is distributed throughout the Yangon area, to the country beyond, and abroad. The six largest fish trading business at San Pya operate riverside landing sites for boats, referred to as “jetties”. The jetties were originally state owned, but were privatized by the SLORC government in 1989. Although the jetties were established to allow fish from marine and freshwater capture fisheries to be brought to market, aquaculture fish now make
  • 32. 69 up the bulk of landings at three of them. In addition to providing a landing site for fish, jetty operator act as traders, earning a commission for brokering sales. They also receive deliveries of farmed fish by road, which are sold in the same manner. Four of the jetties and the trading businesses associated with them belong to individual- or family-owned companies, but one is run by a shareholder-owned company that also operates Myanmar’s largest fish farm. Some other jetty operators also own fish ponds, and all were reported to own fleets of marine fishing boats. There is a single jetty for receiving aquaculture fish located at the newly established Shwe Padauk market, which is owned by the fish trading wing of the Htoo Htit fish feed company. In addition to the jetties, there are three market buildings occupied by wholesale traders at San Pya, divided into a total of 142 licensed stalls. Only wholesalers officially licensed to do so by YCDC operate inside these buildings. The largest wholesalers may own more than one license, while the majority own either a single license or share the license and physical space that goes with it with other wholesalers. Each license is reportedly worth MMK 80 million (approximately $70,000) at present. According to unpublished figures made available by YCDC, excluding jetties, there were 310 licensed wholesalers operating at San Pya in 2014, of which 152 specialized in trading aquaculture fish. Most of these traders are men. Licensed stalls are usually constructed of wood and elevated from the ground, and are accessed by purchasing a license from the authority controlling the market, or by renting space from an existing license holder. Unlicensed retailers normally vend produce within or close to the market from a plastic sheet, tarpaulin or basket laid on the ground. The total number of traders in the market was reported to have increased by around 50% in 15 years. According to informants, three categories of licensed wholesaler can be identified at San Pya, based scale of operations and behavior. Approximately 60 “large” and 90 “medium” traders advance output-tied loans to farmers and/or fishing boat owners that (as well as earning interest) serve to secure access to large volumes fish. The main difference separating the two groups is the amount of operating capital they have access to and the volume of transactions they are capable of handling. Smaller licensed traders, of which there are around 150, do not advance loans to producers, buying fish from jetties and larger traders for resale, rather than taking a commission for brokering sales. None of these licensed wholesalers have access to jetties of their own.
  • 33. 70 Table (4.9) Average Wholesale Market Price of Rohu (Nga Myit Chin) (2015-2016) Name by size Viss from Viss up to MMK (Min) MMK (Max) Average Price MMK months to grow (if start from 6” sized) Maximum ratio used to get Gaw Htoe 0.05 0.2 800 1,000 900 rare Chit Ngar 0.2 0.6 1,700 2,300 2,000 4rd (Minor) Nay Kyar 0.6 0.8 2,200 2,400 2,300 3rd (Minor) Myo Kwar 0.8 1.2 2,500 2,900 2,700 8 months 1st (majority) Thay Pauk 1.2 1.5 2,700 3,200 2,900 10 months 2nd (majority) A Lat 1.5 2 3,000 3,500 3,250 1 year Minor No.2 size 2 3 N/A N/A 3,500 Over 1year Minor No.3 size 3 4 N/A N/A 4,000 Minor Source: Survey data They receive fish delivered by truck or landed by boat at four public landing areas operated by Myanmar Port Authority, which levies a toll on the boats using them. San Pya operates as a spot market in which traders set a price for their fish depending on the volumes available in the market and levels of demand, adjusting the price over the course of the trading day in line with fluctuations in both, while buyers choose freely between different sellers on the basis of the product selection and price offered. Rohu Nga Myit Chin average price is 1,000 MMK in 2000-2001, 2,500 MMK in 2015-2016. Table (4.9) shows the average price of Rohu (Nga Myit Chin) in 2015-2016, the price are varies by size/ weight of fish. Most of the farms harvesting time, Myo Kwar (0.8-1.2 viss) and Thay Pauk size to (1.2-1.5 viss) size are majority and marketable size. If less than this size, low price and if bigger than 2viss can get best price. Wholesaler/ traders take 3% of total sale for broker fees. Wholesaler or Traders are the most advantage actors or profit takers along the value chain. Many small and unlicensed wholesalers operate from buildings around the outskirts of San Pya and along the side streets leading to it. When the market was first established, there were no wholesalers located outside. An additional group of unlicensed traders
  • 34. 71 without fixed business premises act as brokers, buying fish from licensed wholesalers and dispatching to other states and regions. There are four major categories of buyer from wholesale markets in Yangon: 1) wholesalers in distant urban markets; 2) retailers and semi-wholesalers located in and around Yangon; 3) cold storages/processors/exporters in Yangon; 4) small-scale processors based around at Sanpya Fish Market. 4.4.2 States and Regional Markets Long distance trade between San Pya and regional wholesale markets is usually conducted by telephone, with certain wholesalers specializing in dealing to markets in specific geographical locations. Some traders in regional wholesale markets work with family members based in Yangon to assemble and dispatch orders, while others receive fish through brokers at San Pya working on a commission basis, and some deal directly with wholesalers. Payment for these orders is usually made by bank transfer. Informants estimated that 40-50% of the fish traded at San Pya was destined for domestic markets outside Yangon. 4.4.3 Retail and Wet Market The customer base in regional wholesale markets is comprised of retailers and semi- wholesalers from wet markets and outskirt. Semi-wholesalers from these locations often travel to the nearest urban wholesale market to assemble orders on behalf of groups of small retailers. Majority of retail fish traders are women. Retailers and semi-wholesalers from Yangon and township surrounding. They come daily to buy fish, often using transport rented collectively with other traders from their area. Larger semi-wholesalers may have their own transport. At San Pya, these customers move from wholesaler to wholesaler, selecting fish in the combinations they require. Retailers and semi-wholesalers in regional wet markets outside of Yangon operate in a similar manner; purchasing fish from wholesale traders in spot transactions based on the selection and price of fish offered, and making payment in cash immediately, or taking very short term credit (usually one or two days), or some combination of cash and short term credit Retailers in wet markets can be divided into those who trade from a licensed stall, and those who have no fixed location from which to trade. The former type of retailer usually trades quantities of up to 100 viss (160 kg) per day, whilst the latter may sell from less than 10 viss to 50 viss or more.
  • 35. 72 4.4.4 Cold Storages Baho Sanpya Market Traders may supply ice, deducting the costs from the sales price, farmers with their own transport may collect their own ice prior to harvest, or owners of rented vehicles may supply it as part of their service. Table (4.10) Ice Plant by Regions and States No. States and Regions Numbers of plants Capacity of Ice Plant (metric ton per day) 1 Yangon 106 2364 2 Taninthayi 48 2536 3 Rakhine 39 456 4 Ayeyarwaddy 70 869 5 Mon 29 528 6 Mandalay 7 30 7 Shan 2 3 8 Total 301 6786 Source: DOF Fisheries Statistic 2016 Ice is sourced from ice plants located in Hlaing Tharyar industrial zone, or from plants in towns close to major aquaculture clusters. There were a total of 106 ice plants in Yangon region (DOF, 2016), which produced 2364 metric ton per day. Particularly located in industrial zones, where large wholesale traders and exporters rent space to store stock. Cold stores in other locations perform similar functions. Many processors and some exporters have cold storage facilities integrated into their operations, and some businesses combine all three functions. There is one cold storage facility located at San Pya, which sources and freezes fish for processors and exporters. 15 crushing ice blocks businesses at San Pya. According to DOF statistic data 2016, there were 106 Ice plants in Yangon Region. According to informant calculation, about 8 blocks of ice needed for 1000 viss of fishes. One block of (300lb) ice price is about 2800 MMK. About 30,000 viss produced of 20 acre ponds, will need 240 blocks of ice. 4.4.5 Processing and Export In addition to industrial scale processing operations, there are also a large number of small businesses located at San Pya and Shwe Padauk markets which produce nga chit – a paste made of ground fresh fish flesh, which is a popular ingredient in curries and many other dishes. Traditionally nga chit was made with bronze feather back (nga phel;
  • 36. 73 Notopterus notopterus), a fish sourced from freshwater capture fisheries. However, this species is increasingly rare and expensive, and small farmed Rohu are now the main raw material used by processors at San Pya to make nga chit. Byproducts from nga chit production include fish skins (fried and sold as snacks), fish heads (sold into retail markets for making soup), and swim bladders (dried and exported to China). Fish frames (bones with attached scraps of meat) are sold as feed for African walking catfish farms. The production of walking catfish was initiated after the growth in Nga Chit production to utilize this supply of byproducts, and there are reportedly now 100 ponds close to Yangon using nga chit processing waste as the main input. Almost all the nga chit producers at San Pya originate from a single village, close to the market on the opposite side of the Yangon River. The number of businesses producing Nga Chit at San Pya was reported to have grown rapidly. According to one informant, as many as 1500 workers, most of them women, earning up to MMK 10,000/day for the semi-skilled processing work. This rapid growth was said to have taken place in response to demand from Nay Pyi Taw and elsewhere in Upper Myanmar. Businesses producing Nga Chit at San Pya are unlicensed, and can be fined MMK 100,000 for operating in the market. There was a recent drive to move them to the new Shwe Padauk wholesale market, but only a small number have been willing to relocate because their business contacts are at San Pya. There were 69 seafood processing factories in Yangon Region in 2016, of which 57 were reported to process fish for human consumption. The number of facilities processing fish sourced from aquaculture could not be ascertained, and there appeared to be few, if any, which specialized exclusively in processing farmed fish. Factories were reported to process farmed fish mainly when there were insufficient supplies of fish from marine capture fisheries, particularly during monsoon when rough weather hampers fishing. The supplies of fish from marine capture fisheries had become scarcer than in the past, making securing sufficient raw material difficult for processors, and suggesting potential for more diversified aquaculture production to utilize this capacity. Most farmed fish undergo little, value addition at present, with processing activities limited mainly to freezing and packing whole fish. One informant reported about only 3 companies have quality control certificate that can export to EU market. 4.4.6 Labour (in Downstream) Traders hire unskilled workers on a casual basis for jobs such as pushing carts, carrying baskets, unloading ice and packing fish. There are two types of casual labor at San Pya: 1) those managed by the Ministry of Labor; and 2) those working directly for
  • 37. 74 wholesalers. There were reportedly 420 Ministry of Labor affiliated laborers and additional 1500 workers are employed directly by wholesalers, for similar purposes in 2016. These workers, who are almost all men, originate mainly from Yangon and Ayeyarwaddy. Wages for a night shift are around 10,000MMK. Many wholesale traders employ at least one clerk to keep track of transactions. 4.4.7 Transportation in Downstream More than 200 tons of fresh farmed fish going from the Delta to Upper Myanmar on buses every day. Distribution of fish from San Pya to other areas of the country takes place primarily by road, by truck and public express bus. Transport workers at San Pya reported that a total of 12 twelve-wheel trucks made long distance deliveries of fish to Nay Pyi Taw and Mandalay daily, with additional trucks of a similar size making deliveries to other states and regions. Ten years previously, out of state deliveries were made by six wheel vehicles with approximately two thirds of the capacity of those operating at present 6000 viss (9.6 t), versus 10,000 viss (16 t). Five years ago, only one truck delivered fish to Nay Pyi Taw each day. Trucks sending fish along these routes carry dry goods on their North-South journey and typically deliver fish to four to five customers on the return journey, dropping off at several markets along the way. Owner-operators of a further 50 small (six wheel) trucks were reported to offer delivery services from San Pya to cold storages and processors located in industrial zones in and around Yangon, and to the Aung Mingalar Bus Terminal. Fish deliveries from Yangon to the rest of the country by express buses. At present, typical transportation charges for fish are around 5,000 MMK per Styrofoam box, down from 8,000, in 2011. Completion of Yangon-Mandalay Expressway in 2011, which reduced journey times significantly, was also an important factor in increasing the transport of fresh fish to the north of the country. Although transport of fish by bus has increased dramatically since 2011, vehicle licenses issued for passenger buses do not permit them to carry goods, and their ability to do so is based on what respondents described as “mutual understanding” with the authorities.