Big investment boost for pig farming in Kayah
Big investment boost for pig farming in Kayah
The Myanmar Times, 26 Oct 2018
URL: https://www.mmtimes.com/news/big-investment-boost-pig-farming-kayah.html
Dutch animal feed company De Heus and the UK government announced an investment of US$3.2 million to develop Myanmar’s pig farming industry, including establishing the country’s first ever pig stud farm. The project aims to increase productivity of farmers and help them tap into rising market demand for pork, improving their incomes and livelihoods.
The UK’s Department for International Development (DFID) said the project will be “the largest single business investment in Kayah State.”
The DFID-funded DaNa Facility and De Heus Myanmar, will be investing across the swine production value chain, setting up Myanmar’s first pig stud farm near Loikaw, Kayah’s state capital, and importing 250 sows with high quality genetics from abroad. The Netherlands-based firm will also establish demonstration farms in Kachin, Chin, Nay Pyi Taw, Shan, Yangon, Bago, Mandalay, Pyay, Pathein, as well as Kayah to provide training for 10,000 farmers to enhance their pig-rearing and management practices.
Myanmar’s domestic pork production currently relies on small-holders who account for 90 percent of the total production. The industry is inefficient by international standards and is currently unable to keep up with increasing demand. Constraints on the market include a lack of quality feed, weak breeding stock, poor veterinary services, bio-security problems, poor management and poor genetics of local pigs.
As a consequence, small-scale pork producers miss out on economic opportunities to expand their businesses and earn better incomes, while pork consumers pay a high price for lower quality products compared to other markets in the region.
The head of DFID, Dr Gail Marzetti, said that the project would address those issues.
“DFID believes this programme has significant potential to transform the swine market in Myanmar and make it both more efficient and inclusive. Improving the genetic standards of pigs in Myanmar, while also increasing the skills of small-scale breeders and improving the efficiency of the market, will benefit small-scale breeders and low income producers across the country. The aim is to increase their net profit by 10pc to 25pc.
“We are investing in pigs because by improving the market and increasing the profits of low-income producers, we are helping to improve the lives of poor and marginalised families across the whole country,” she remarked.
Growing demand
In Myanmar, pork consumption is low compared to fish or poultry. One of the reasons is the price of pork, which is higher than fish or poultry.
However, Harry Schimmel of De Heus Myanmar is convinced that demand for pork meat is growing fast.
“We see a change in demand from traditional pork – from local breeds, dark meat, and fatty – towards pork from modern breeds with light, lean meat. The current consumption of pork per capita is less than half of the poultry consumption per capita, and less than 20pc of the fish consumption per capita,” he told The Myanmar Times.
De Heus expects animal protein consumption per capita to increase and demand for pork will grow relatively fast in combination with a shift in preference.
The project is a “huge opportunity” for local pig farmers and the entire pig production market to “improve the quality of their pigs but also the income of those working in the sector”. “Without the grant and support from UK aid through the DaNa facility, this would not have happened and so we are sincerely thankful for their support and we are grateful to be given the opportunity to support development in the Myanmar pig sector,” he continued.
“Livestock farmers will not have the opportunity to raise their efficiency and income if they don’t have access to the right breeding stock, and thus will not be able to compete with the large integrated producers.
“Providing quality feed and breed stock, means improving farmers’ lives and incomes and creating a future for independent Myanmar livestock farmers. They play a very important role in the economy of Myanmar, which is largely an agriculture-based economy.”
In addition, the scheme will support local farmers to engage and sell directly to “professional” buyers, avoiding informal middle-men and will conduct a value chain analysis with the International Finance Corporation (IFC) to identify areas to improve efficiency, including the feasibility of supporting abattoirs.
The UK’s Department for International Development (DFID) said the project will be “the largest single business investment in Kayah State.”
The DFID-funded DaNa Facility and De Heus Myanmar, will be investing across the swine production value chain, setting up Myanmar’s first pig stud farm near Loikaw, Kayah’s state capital, and importing 250 sows with high quality genetics from abroad. The Netherlands-based firm will also establish demonstration farms in Kachin, Chin, Nay Pyi Taw, Shan, Yangon, Bago, Mandalay, Pyay, Pathein, as well as Kayah to provide training for 10,000 farmers to enhance their pig-rearing and management practices.
Myanmar’s domestic pork production currently relies on small-holders who account for 90 percent of the total production. The industry is inefficient by international standards and is currently unable to keep up with increasing demand. Constraints on the market include a lack of quality feed, weak breeding stock, poor veterinary services, bio-security problems, poor management and poor genetics of local pigs.
As a consequence, small-scale pork producers miss out on economic opportunities to expand their businesses and earn better incomes, while pork consumers pay a high price for lower quality products compared to other markets in the region.
The head of DFID, Dr Gail Marzetti, said that the project would address those issues.
“DFID believes this programme has significant potential to transform the swine market in Myanmar and make it both more efficient and inclusive. Improving the genetic standards of pigs in Myanmar, while also increasing the skills of small-scale breeders and improving the efficiency of the market, will benefit small-scale breeders and low income producers across the country. The aim is to increase their net profit by 10pc to 25pc.
“We are investing in pigs because by improving the market and increasing the profits of low-income producers, we are helping to improve the lives of poor and marginalised families across the whole country,” she remarked.
Growing demand
In Myanmar, pork consumption is low compared to fish or poultry. One of the reasons is the price of pork, which is higher than fish or poultry.
However, Harry Schimmel of De Heus Myanmar is convinced that demand for pork meat is growing fast.
“We see a change in demand from traditional pork – from local breeds, dark meat, and fatty – towards pork from modern breeds with light, lean meat. The current consumption of pork per capita is less than half of the poultry consumption per capita, and less than 20pc of the fish consumption per capita,” he told The Myanmar Times.
De Heus expects animal protein consumption per capita to increase and demand for pork will grow relatively fast in combination with a shift in preference.
The project is a “huge opportunity” for local pig farmers and the entire pig production market to “improve the quality of their pigs but also the income of those working in the sector”. “Without the grant and support from UK aid through the DaNa facility, this would not have happened and so we are sincerely thankful for their support and we are grateful to be given the opportunity to support development in the Myanmar pig sector,” he continued.
“Livestock farmers will not have the opportunity to raise their efficiency and income if they don’t have access to the right breeding stock, and thus will not be able to compete with the large integrated producers.
“Providing quality feed and breed stock, means improving farmers’ lives and incomes and creating a future for independent Myanmar livestock farmers. They play a very important role in the economy of Myanmar, which is largely an agriculture-based economy.”
In addition, the scheme will support local farmers to engage and sell directly to “professional” buyers, avoiding informal middle-men and will conduct a value chain analysis with the International Finance Corporation (IFC) to identify areas to improve efficiency, including the feasibility of supporting abattoirs.