A Quiet Revolution Emerging in the Fish-farming Value Chain in Myanmar: Implications for National Food Security

The sector is rapidly growing and transforming, with output from the Delta region increasing by approximately 250% over the past decade. This growth is driven by a combination of expansion in pond area and yields, with the length of the production cycle reducing from 12 to 9 months for many farms. The fish-farming value chain in Myanmar is highly concentrated spatially, with the majority of ponds located within 50km of Yangon. This pattern is due to favorable transport times, access to energy grids, and a suitable water supply. Contrary to conventional wisdom, most ponds are constructed on rice paddy land, and the sector is characterized by a "dualistic" structure, with large and small farms coexisting. The farm size distribution in Myanmar is highly concentrated, with very large farms accounting for over half of total pond area. This is attributed to the 1989 Aquaculture Law, which promoted the conversion of uncultivated land to fish ponds, and improvements to paddy lands that made the land more suitable for pond farming. Small and medium-sized commercial farms are also present, although their development is hindered by insecure land tenure and strict regulations. The fish-farming value chain is rapidly developing, with a proliferation of small and medium enterprises (SMEs) in off-farm segments, such as ice manufacture, rural transport, and fish trading. The sector is also characterized by a growing number of fish traders and rapid expansion of urban wholesale markets. The development of small-scale processing of minced fish balls in Yangon is another notable example of growth in the value chain. The consumption of farmed fish is increasing rapidly, particularly in urban areas, where it accounts for 26% of total fish consumption. As incomes rise in Myanmar, farmed-fish consumption is expected to grow faster than capture-fish consumption, with urban consumers driving demand. The export share of aquaculture output is expected to decline further in the near to medium term as the Myanmar urban market grows. The sector's growth and development have important policy implications for unlocking its full potential and contributing to national food security. Diversification of production technologies and species is necessary to meet local demand and improve farm income and rural development. The development of a smallholder fish farm sector is also crucial for promoting rural development and improving food security.