Local livestock entrepreneurs have to extend their reach beyond the local market into global exports in order to survive the stiff competition posed by foreign players coming into the industry, local livestock industry insiders say.
“Foreign investors are now penetrating Myanmar’s livestock industry. So, it would become impossible for local businesspeople to survive by only doing business in the tiny local market,” U Win Sein, a spokesperson of Myanmar Animal Husbandry Federation, said.
“All the up and coming companies are going to vie for this small market. When this happens, all businesses will circle around the same space and eventually be forced to terminate their production,” he added.
He said the manufacturing expenditure, especially meat production costs, in the local livestock industry is higher than Brazil and Thailand, which export to international markets.
“We definitely have a big challenge at hand to compete in the global market,” U Win Sein said.
Small livestock businesses said financing and availability of modern equipment are one of the biggest obstacles for them. Local livestock and breeding entrepreneurs say that substantial monetary support is required to run their businesses.
“We need a lot of capital if we want to use high-tech equipment. Now foreign companies are coming in and it’s becoming impossible for us to keep up. If the government supports small breeding enterprises, livestock industry will be competitive,” said U Win Sann, a livestock farmer from Hlegu township.
Currently, companies from China and South Korea have shown interest in investing in Myanmar’s livestock and breeding sector.