Constraints to commercialisation of smallholder agriculture in Tanintharyi division, Myanmar

Abstract

Myanmar is a country in rapid economic and political transition, with opportunities emerging for its smallholders to benefit from current economic growth. However many smallholders are trapped in semi-subsistence agriculture, disconnected from markets. Commercialisation can increase farm incomes, and - through the multiplier e ect - lead to wider pro-poor growth in the rural economy. However, there are many constraints to commercialisation that prevent this process from occurring. While literature on constraints confronting smallholders abounds internationally, there is a paucity of literature on the challenges confronting smallholders in Myanmar. This study investigates constraints to commercial farming in the townships (districts) of Myeik and Palaw in Myanmar’s Tanintharyi Division. A representative two-stage sample of 259 rural households was drawn from these townships, and data relating to livelihoods and agricultural enterprises were gathered using a structured questionnaire. The most important determinants of commercialisation identified using Heckman regression were the household’s land endowment, liquidity, land quality, and productive assets. Access to a ordable financial services could boost household liquidity and investment in farm inputs, assets and improvements to land, so alleviating the most important constraints to commercial farming.