Climate-Friendly Agribusiness Value Chain Sector Project in the CDZ (CFAVC)

About the Project

The Government of Myanmar recently formulated the Agriculture Policy (Second Short Term Five Year Agriculture Policies and Plans) with its vision statement for the development of the agriculture sector: an inclusive, competitive, food and nutrition secured and sustainable agricultural system contributing to the socio-economic well-being of farmers and rural people and further development of the national economy. It is estimated that at least 37% of the 51.4 million population live under the poverty line. Myanmar’s stunting rate ranks 106 out of the 132 countries surveyed by UNICEF, and it is among the top ten countries most affected by global climate risk. About 70% of the population in Myanmar resides in rural areas and the agriculture sector is their main economic activity. The agricultural sector contributes 30% of the national GDP, however, the land-based benefits being obtained by the farmers are extremely low. Farmers in the Central Dry Zone (CDZ) face mounting challenges that threaten the production of key crops, such as insufficient rainfall, shortage of labor, increased foreign competition, and a lack of access to quality seed.

GAFSP will invest $27 million to support an enabling environment that reduces the incidence of poverty, malnutrition, and food insecurity among the rural poor. CFAVC is increasing the climate resilience of critical rural infrastructure, enhancing quality and safety testing capacity, strengthening technical and institutional capacity for climate-smart agriculture, and creating an enabling policy environment for climate-friendly agribusinesses to promote environmental sustainability. To facilitate the production of improved, climate-resilient seed, the project is upgrading irrigation, farm roads, buildings, farm machinery, post-harvest equipment, seed testing equipment, and agro-meteorological stations in 10 Department of Agriculture seed farms. 

The project also promotes climate-smart agriculture and agribusiness by deploying climate-resilient varieties of rice, beans, pulses, and oilseeds and strengthening the capacity of seed growers, agro-dealers, and regional government staff on good agricultural practices. The project is establishing an agricultural digital finance service to train agribusinesses on business plan development, efficient manufacturing practices, and Hazard Analysis Critical Control Points. The project also improves value addition, food quality and safety, and access to inputs, such as climate-resilient seed varieties, quality agrochemicals, and farm mechanization services, to increase off-farm rural livelihood opportunities.