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

$27 million to support an enabling environment that reduces the incidence of poverty, malnutrition and food insecurity among the rural poor.
Photo: World Bank

Challenge

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 area and agriculture sector being their main economic activities. Agriculture sector contributes 30% of 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.

Solution

CFAVC is increasing critical rural infrastructure’s climate resilience, enhancing quality and safety testing capacity, strengthening technical and institutional capacity for climate-smart agriculture (CSA), and creating an enabling policy environment for climate-friendly agribusinesses to promote environmental sustainability. To facilitate production of improved and/or 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 CSA and agribusiness by deploying climate-resilient varieties of rice, beans, pulses, and oilseeds and strengthens the capacities of seed growers, agro-dealers, and regional government staff on good agricultural practices, CSA technologies and practices, certified seed production, and farm mechanization. Similarly, 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, and value addition; improve food quality and safety; and facilitate access to inputs (e.g., seeds of climate-resilient varieties, quality agrochemicals), farm mechanization services, and off-farm rural livelihood opportunities.

Project Status

Active

Country

  • Myanmar

Funding

Public

Focus area

  • Fragility

Supervising entity

  • ADB
  • FAO

Results

As of December 2020, CFAVC has benefitted 21,726 people, of which 11,255 are women, and has helped construct 21.9 kilometers of roads. The project is still its early stage of implementation, so more detailed results are not yet available. Overall, the project expects to benefit at least 35,000 households, for a total of 156,000 people, including 80,000 women. On its own, the agricultural digital finance service should benefit at least 35,000 smallholders.