THE food production industry in Myanmar must conquer a number of barriers to compete successfully in both domestic and international markets, said U Myat Thin Aung, president of the Myanmar Industrial Association (MIA).

He said Myanmar’s foodstuff industry was facing keen competition from neighbouring countries – especially Thailand and India - which have made inroads into the Myanmar market at a rapid pace.

“That’s why some local manufacturers are struggling with the intense competition from overseas food giants which have flocked into the domestic market,” he said.

More than 80 percent of Myanmar’s foodstuff manufacturers are small and medium enterprises (SMEs); some 43,000 are registered with the Ministry of Industry 1, which oversees the food industry alongside the Food and Drug Administration (FDA).

“Companies within the food and beverage industry in Myanmar play an important role in the country’s economy and there is always a market out there for them. But the standards, norms and quality of their products are crucial for them to stand strong in the competitive market,” U Myat Thin Aung said.

Unfortunately, U Wai Phyo, secretary general of the Myanmar Agricultural Based Food Stuffs Manufacturers Association, a sub-branch of the MIA, told The Myanmar Times that Myanmar was lagging behind regional competitors.
“The majority of food stuff enterprises are still applying traditional methods when it comes to manufacturing food products,” he said.

U Wai Phyo is also managing director of Cho Cho Company, which has made instant noodles in Myanmar for more than 10 years.

According to U Wai Phyo, Myanmar’s food industry is being hampered by backward technology, lack of investment and insufficient management training.
U Wai Phyo said SMEs struggled to access the national market, leaving only the large companies with strong capital bases to fight for market share domestically. He said SMEs could not get loans to expand their businesses because they did not possess sufficient capital.

For U Wai Phyo, the potential for the Myanmar food industry was enormous because raw materials are readily and cheaply available, giving local producers a significant advantage.

Recognising the need to encourage long term development of the country’s food industry, Myanmar’s government allowed the private sector to organise the Myanmar Foodstuff Association in August 2006.