Market Trends of Myanmar Maize Seed Industry
This section covers the major market trends shaping the Myanmar Maize Market according to our research experts:
Rising Domestic Production, and Multiple Industry Application of Maize
Maize accounts for a prominent cereal crop in the country. The main maize-producing areas in Myanmar are primarily found in the hilly and dry zones of the country, with smaller production taking place in the delta and coastal regions. According to official data from the Ministry, Shan State, which is located in the central part of the country, accounts for more than 50% of Myanmar's total maize production. Further, according to the agricultural statistics data from the Central Statistical Organization, maize production reached 2 million metric tons in 2020-21, an increase of 3% from the previous year. Furthermore, the area sown and harvested for maize has recently increased.As per the data from the Central Statistical Organization, the area harvested under maize has decreased by 7% in 2020-2021 from the past year and accounted for 1.37 million hectares in 2020-2021. In the country, 90% of farmers use hybrid seeds that are either purchased from commercial seed producers or provided by the government for commercial production.
Moreover, maize has diverse uses in diverse industries, including the food and feed industries. Even though the major portion of the maize produced is utilized for human consumption, a significant share is utilized in the feed industry. According to the agricultural statistics data by the Central Statistical Organization, the maize utilized in animal feed accounted for 187 thousand metric tons in 2020-2021, an increase of 12% from the past two years. Thus, the demand from multiple industries across the country and the eventual increase in domestic production boost the growth of the market.
Growing Exports of Maize Seeds
Myanmar is a net exporter of maize. The maize is exported from the country as seeds for sowing and for other purposes, including cereal grains and feed grain. However, the majority of maize is used for non-seed purposes. Maize export supplies are normally delivered to Mandalay, the largest wholesale market in central Myanmar, and then subsequently transported for export to the northeastern border towns like Muse, Chin Shwe Haw, Lwejel, and Kan Paiktee.
Further, the exports of maize have increased in recent years. According to UN Comtrade, the country's maize exports are expected to nearly double by 2021.Thailand, the Philippines, Vietnam, Bangladesh, and China constitute more than 90% of the total exported maize and are the major importers from the country. Additionally, nearly 68% of the exported maize seeds in Vietnam are utilized for sowing, and the country accounts for the third largest importer of maize seeds from the country.
Moreover, Chareun Phokphand carries out contract farming in the North and South Shan States. CP 888, which is produced and sold by the CP Group of Thailand, is the most commonly cultivated hybrid corn variety, followed by Yezin 6 and CP 868 varieties. The majority of this high-yielding hybrid (CP 888) is exported, with China occupying a majority share in the exports of maize from Myanmar.
