More Investments Needed for Expansion in Food-Processing Industry
More Investments Needed for Expansion in Food-Processing Industry
Myanmar Times, 11 Mar 2019
URL: https://www.mmtimes.com/news/more-investments-needed-expansion-food-processing-industry.html
The Myanmar processed food industry needs more investment support in order to develop further, U Aye Win, chair of the Myanmar Food Processors and Exporters Association, told The Myanmar Times.
Currently, Myanmar processes basic raw commodities such as rice, beans, maize and other agricultural products. Excess products are exported. However, the country also imports value-added processed foods such as canned or dairy products. In that light, Myanmar should increase its focus on manufacturing higher value food products, which will require funds from both local and foreign investors, U Aye Win said.
According to the Myanmar Micro, Small and Medium Enterprise Survey 2017 by the Ministry of Planning and Finance, the majority of MSMEs in Myanmar are involved in the food processing sector.
Currently, state-owned Myanma Economic Bank lends money to MSMEs in the import substitution business, while local private banks work with the Japan International Cooperation Agency (JETRO) to disburse loans to businesses in the industry.
“Interest in the Myanmar food industry among Japanese investors is rising due to the size of the population. Myanmar currently has a population of over 52 million,” said U Khun Thura, deputy managing director of JETRO in Yangon.
Stricter regulations to curb illegal imports and standards ensuring a minimum level of quality must also be enforced, U Zarmi Maung Maung said. “The government should take action on these two fronts to enable a fair and viable paying field for legal businesses,” he said.
Currently, Myanmar processes basic raw commodities such as rice, beans, maize and other agricultural products. Excess products are exported. However, the country also imports value-added processed foods such as canned or dairy products. In that light, Myanmar should increase its focus on manufacturing higher value food products, which will require funds from both local and foreign investors, U Aye Win said.
According to the Myanmar Micro, Small and Medium Enterprise Survey 2017 by the Ministry of Planning and Finance, the majority of MSMEs in Myanmar are involved in the food processing sector.
Currently, state-owned Myanma Economic Bank lends money to MSMEs in the import substitution business, while local private banks work with the Japan International Cooperation Agency (JETRO) to disburse loans to businesses in the industry.
“Interest in the Myanmar food industry among Japanese investors is rising due to the size of the population. Myanmar currently has a population of over 52 million,” said U Khun Thura, deputy managing director of JETRO in Yangon.
Stricter regulations to curb illegal imports and standards ensuring a minimum level of quality must also be enforced, U Zarmi Maung Maung said. “The government should take action on these two fronts to enable a fair and viable paying field for legal businesses,” he said.