Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State

As a result of recent political reforms, Myanmar has the opportunity to enact major policy changes to reinvigorate its agriculture sector. In this context, Myanmar’s rubber sector has the potential to become an even greater source of export earnings and rural household incomes, but there are major c...

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Main Authors: van Asselt, Joanna, Htoo, Kyan, Dorosh, Paul A.
Format: Artículo preliminar
Language:Inglés
Published: International Food Policy Research Institute 2017
Subjects:
Online Access:https://hdl.handle.net/10568/148170
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author van Asselt, Joanna
Htoo, Kyan
Dorosh, Paul A.
author_browse Dorosh, Paul A.
Htoo, Kyan
van Asselt, Joanna
author_facet van Asselt, Joanna
Htoo, Kyan
Dorosh, Paul A.
author_sort van Asselt, Joanna
collection Repository of Agricultural Research Outputs (CGSpace)
description As a result of recent political reforms, Myanmar has the opportunity to enact major policy changes to reinvigorate its agriculture sector. In this context, Myanmar’s rubber sector has the potential to become an even greater source of export earnings and rural household incomes, but there are major challenges related to low rubber productivity and poor rubber quality. Using data from the Mon State Rural Household Survey (MSRHS) conducted from May to June 2015, as well as qualitative data collected from rubber producer focus groups and other interviews with rubber producers, traders, and processors, this paper describes the cost structure of rubber production in Mon State. We then estimate smallholder production costs and the profitability of smallholder rubber production under various alternative yield and price scenarios. The results suggest that if the weaknesses hindering the profitability of the rubber sector are not addressed, the rubber sector will likely stagnate. Moreover, in the absence of a major increase in world prices (substantially above the 2000–2016 average), new rubber investments will not be profitable without major improvements in yield and quality. Further, increasing only yields or only quality, or only improving the institutional environment, will not result in positive returns on investment for smallholders; reforms are needed in all three areas. If these weaknesses are addressed, however, Myanmar’s new investments will be profitable and Myanmar could become an important rubber producer and exporter on the world stage.
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spelling CGSpace1481702025-11-06T06:04:20Z Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State van Asselt, Joanna Htoo, Kyan Dorosh, Paul A. rural communities production households agriculture smallholders production costs productivity rubber yields prices As a result of recent political reforms, Myanmar has the opportunity to enact major policy changes to reinvigorate its agriculture sector. In this context, Myanmar’s rubber sector has the potential to become an even greater source of export earnings and rural household incomes, but there are major challenges related to low rubber productivity and poor rubber quality. Using data from the Mon State Rural Household Survey (MSRHS) conducted from May to June 2015, as well as qualitative data collected from rubber producer focus groups and other interviews with rubber producers, traders, and processors, this paper describes the cost structure of rubber production in Mon State. We then estimate smallholder production costs and the profitability of smallholder rubber production under various alternative yield and price scenarios. The results suggest that if the weaknesses hindering the profitability of the rubber sector are not addressed, the rubber sector will likely stagnate. Moreover, in the absence of a major increase in world prices (substantially above the 2000–2016 average), new rubber investments will not be profitable without major improvements in yield and quality. Further, increasing only yields or only quality, or only improving the institutional environment, will not result in positive returns on investment for smallholders; reforms are needed in all three areas. If these weaknesses are addressed, however, Myanmar’s new investments will be profitable and Myanmar could become an important rubber producer and exporter on the world stage. 2017 2024-06-21T09:23:59Z 2024-06-21T09:23:59Z Working Paper https://hdl.handle.net/10568/148170 en https://hdl.handle.net/10568/150030 Open Access application/pdf International Food Policy Research Institute Van Asselt, Joanna; Htoo, Kyan; and Dorosh, Paul A. 2017. Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State. IFPRI Discussion Paper 1610. Washington, DC: International Food Policy Research Institute (IFPRI). https://hdl.handle.net/10568/148170
spellingShingle rural communities
production
households
agriculture
smallholders
production costs
productivity
rubber
yields
prices
van Asselt, Joanna
Htoo, Kyan
Dorosh, Paul A.
Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title_full Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title_fullStr Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title_full_unstemmed Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title_short Prospects for the Myanmar rubber sector: An analysis of the viability of smallholder production in Mon State
title_sort prospects for the myanmar rubber sector an analysis of the viability of smallholder production in mon state
topic rural communities
production
households
agriculture
smallholders
production costs
productivity
rubber
yields
prices
url https://hdl.handle.net/10568/148170
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AT htookyan prospectsforthemyanmarrubbersectorananalysisoftheviabilityofsmallholderproductioninmonstate
AT doroshpaula prospectsforthemyanmarrubbersectorananalysisoftheviabilityofsmallholderproductioninmonstate