CARE International in Myanmar is implementing the Generating Rubber Opportunities (GRO) Myanmar project. The project follows a market development approach and is funded by SDC. The projects vision is to “Strengthen the rubber market system to improve the incomes and livelihoods for women and men smallholder farmers (WMSHF) and tappers in southern Myanmar”
CARE International in Myanmar is a Non-Government Organization representing the CARE International network. CARE International in Myanmar has been operating in Myanmar since 1995, with a program focus on improving the lives of particularly at-risk and vulnerable communities. With a strong emphasis on community engagement, the program currently works in the areas of HIV/AIDS, reproductive health, and primary health care, linked with rural livelihood improvement. CARE International Myanmar is currently working, with around 250 staff currently operating from 8 field offices across Myanmar, supported by our main office in Yangon.
CARE International in Myanmar is looking for proposals from consultant(s)/Organizations for its GRO project for the following study:
“Assessing the Rubber Market Dynamics in Myanmar”
Background
The (GRO) Generating Rubber Opportunities in Myanmar project applies a Making Markets Work for the Poor (M4P) approach to increase incomes and social capital of smallholder rubber farmers in the southeast of Myanmar. The project has a particular focus on women’s economic empowerment as well as on secure access to land. By facilitating links between market actors in government and in former armed conflict areas, the project helps create a foundation for lasting peace. The project targets the four southern townships of Mon State and adjacent areas that are dominated by cultivation of rubber by smallholders who own on average roughly ten acres of land. This model is in contrast to other areas of Myanmar and the Mekong Region which are dominated by industrial-scale plantations, with variable impact on rural populations. However, due to unclear land tenure, lack of inputs, and poor market incentive, productivity is very low and processed products of poor quality.
The project aims to improve competitiveness and create investment and employment opportunities within the Rubber sector in Myanmar. To achieve this aim the project follows a market development approach, which means it promotes the development of a variety of business services in selected sectors to improve linkages between different parties in the value chain as well as the flow of knowledge, information and best practices through the chain.
Myanmar Rubber Sector Overview
The rubber sector in Myanmar is facing an enormous challenge of creating a healthy balance between export-oriented industrial agriculture and smallholder farmer based production. The nationwide production of natural rubber has more than tripled over the past decade, reaching a volume of 150,000 tons in 2011-2012. This growth has been driven mainly by the opening up of the economy in 2008 and the rapid expansion of the total tapped area, with Mon State producing 61% of national tonnage. Nevertheless, productivity of the Myanmar rubber sector is low by international standards and compared to that of neighboring rubber-exporting countries. The sector is also affected by what could be called the ‘Myanmar rubber discount’, involving local producers getting paid less due to the substantially lower quality of rubber exported from Myanmar, the result of 20 years of under investment and a failure to keep up with other countries.
The lower price at which rubber produced in Myanmar is sold has a direct impact on reduced livelihoods and profits of actors across the entire rubber market value chain, from smallholder farmers and tappers, to suppliers and traders, and nursery and latex factory owners. The lower price can be linked to number of key issues those being a) Lack of information, knowledge on updated production technique b) Lack of awareness and knowledge on quality and high grade market demand c) lack of investment capacity of smallholder farmers and traders d) Issues related to land tenure and land rights e) Unavailability of skilled tappers etc.
Objectives of the Rubber Market Information study:
Since 1992 Myanmar Rubber sector has been through significant changes. There has been a change in market dynamics, foreign investment, exports, procurement systems, cultural practices, rubber trading amongst others. Rubber market dynamics study is important for GRO to learn and understand these changes better to be able to develop appropriate interventions under the current economical context and market dynamics.
Specific Objectives of the Study are as follows
• To identify the domestic demand for rubber in Myanmar in different industries. The study should identify major industries where rubber is used, the major users within those industries, their demand according to the quality of rubber, constraints faced by these users/industries for rubber, their business dynamics etc
• To identify and critically analyze the price setting mechanism of Myanmar rubber.
• To understand the current Myanmar rubber export/import market situation and identify the potential export/import dynamics and try to draw the comparative advantages (if any) for Myanmar Rubber. The study should be able to give a comprehensive idea about interested global/regional actors who has the interest and could potentially invest in Myanmar rubber.
• To understand the Rubber Market information “value chain” and identify the key market players in the information value chain. It should also include Business partner identification – joint venture, agents, distributors, suppliers, retailers etc. The study should identify how and through what channels key technical and market (quality, quantity, price etc) information and knowledge flows from end users to producers and vise versa.
• To identify the interest and incentive of downstream market actors (traders, factories, tyre manufacturers, exporters etc) to explore the opportunities to provide and share information and knowledge to the producer farmers to improve the quality of rubber in Myanmar
• To develop effective relationship between interested downstream market actors and the GRO project for future collaboration.
• To specify the legislation chapter of current Myanmar policy which directly link with rubber market conditions.
• To collect the all available research documents which related with rubber market situations in South East Asia countries especially Myanmar.
Key Outcomes
The consultant is required to discuss with GRO staff, Private sector organizations, relevant public sector actors and other stakeholders, to produce a comprehensive report for GRO Myanmar. The consultants/organization is expected to submit a report based on an agreed after consultation with the GRO team. The specific outcomes from the assessment should be (but not limited to)
a) Compressive understanding of the Myanmar rubber market dynamics from the context of the downstream market actors.
b) Draw clear picture of the export/import market dynamics
c) Identify Myanmar’s Comparative advantage in the rubber market (if any)
d) In-depth analyses and visualization of information value chain of the rubber market and the actors involved
e) Recommendations on developing a private sector lead model for sharing key Rubber Market Information to improve the quality and
f) Develop relationship between key private sector players in the Myanmar rubber market and the GRO project
g) Present the study findings to GRO stakeholders for discussion and feedback
h) Express the price situations figures and analyze multiple regressions (but not fixed) research the influences factors upon on price of rubber in Myanmar.
i) Collect and screen the all available rubber market situations research in SEA countries and figure out in study as Literature Review.
j) Sharing the Legislations of Myanmar rubber market which issued in status quo.