Myanma Awba Group, Myanmar’s largest manufacturer and distributor of agricultural technology, launched Myanmar’s first private agrochemical production complex in Yangon Region on August 19.
The US$35 million Hmawbi Agricultural Input Complex (HAIC) is located near Wa Nat Kyaung Village in Hmawbi Township, occupying 126 acres of land.
Myanma Awba is providing up to $25 million to finance the HAIC, while the remaining funds have been provided by the International Finance Corporation (IFC).
The agriculture sector contributes almost a third of the country’s GDP and provides jobs for at least 70 percent of the population.
Despite this though, agrochemicals such as fertilisers and pesticides, which are necessary for agriculture, are mostly imported. As high quality agrochemicals are encouraged, farmers are seeing their costs of production rise by the year.
To ease that load, HAIC will manufacture more than 200 proprietary agrochemical blends which it will distribute at an affordable price to local farmers. This will reduce the cost of production per acre for each farmer, U Aung Thu, union minister of Ministry of Agriculture, Livestock and Irrigation, said at the opening ceremony.
Based on his estimates, a local production plant can help to reduce farmers’ costs up to 20 percent and raise competitiveness.
By 2021, HAIC expects to supply around half of Myanmar’s agrochemical demands, said U Thadoe Hein, chair and CEO of Myanma Awba.
“Given the importance of the agriculture sector in Myanmar, it is time for us to take charge and develop our capacity and capabilities in agrochemical formulation technology,” he said.
HAIC is aiming to manufacture 3.3 million-10.3 million liters of insecticides, fungicides and herbicides in concentrate form within the next four years. It will also manufacture 1.7 million-5 million kilograms in powder form.
Myanma Awba is planning to utilise solar power and greenhouse technology to manage its own production costs and power consumption needs.
The company was established in 1995 and now serves 3.5 million farming families. It also provides microfinance, digitisation and logistics services.