Burma (Myanmar) Agricultural Equipment and Fertilizer
Burmese agribusiness companies aim to partner with high-quality American agricultural equipment and fertilizer brands.
The agriculture sector is one of the most important sectors for Burma’s economy; agricultural goods are the country’s second-largest export commodity. The sector normally contributes nearly one-third of the country’s GDP, accounts for 20 to 30 percent of total export earnings, and employs more than 70 percent of the workforce. A total of 12.8 million hectares out of 67.6 million hectares of land in Burma are cultivated. Rice is the country’s primary agricultural product, which accounts for nearly 43 percent of the total agricultural production value. In Burma, 70 percent of the country’s population live in rural areas, and their livelihood drives the agriculture sector as an important growth engine of rural development. The U.S. Department of Agriculture provides additional reports on Burma’s agricultural exports.
Agricultural Machinery and Equipment
Currently, Burma depends on traditional manual labor and lacks the advanced technology needed to produce value-added finished goods. There is market potential for U.S. manufacturers of agricultural equipment and farm machinery. Machinery used in the assembly and manufacturing of light to heavy agricultural machinery, power tillers, walking tractors, water pumps, sprinklers, drip irrigation sets, transplanters, threshers, seeders, weeders, dryers, and farm storage facilities are all in demand.
Burma has a very competitive fertilizer market compared to other ASEAN countries, and the fertilizer industry is attracting a growing number of foreign investors. Fertilizer is one of the most imported items in this sector; Burma imports about 80 percent of chemical fertilizers from China and Thailand, estimated at between 1.2 and 1.4 million tons per annum. The country produces less than 15 percent of fertilizers domestically and does not have a competitive advantage in fertilizer production at this time despite having natural gas as a resource for ammonia production.
U.S. Sanctions and Export Controls
In February 2021, the Burmese military (Tatmadaw) deposed the democratically elected civilian government, including President Win Myint and State Counsellor Aung San Suu, Kyi, and seized governing power. The military’s surprise coup has caused enormous damage to the country’s growing economy and social stability. The subsequent nationwide demonstration and the Tatmadaw’s escalating violent responses have negatively impacted many industries, mainly banking, finance, healthcare, financial technology, and logistics.
U.S. companies are strongly advised not to work with military-backed companies and sanctioned entities and conduct proper due diligence checks on local franchisees.
Visit www.trade.gov/burma for the latest updates on sanctions, export controls and the investment climate for Burma.
To connect with potential local partners and distributors, please contact Ummay Aiman, Commercial Service Specialist for Agriculture.