Smallholder dominated rice farming and related activities play a vital role in Myanmar’s economy in terms of cultivated land areas, income and employment opportunities, and production and export values. In 2008, private rice specialization companies (RSCs) launched rice contract farming system in major rice growing areas of Myanmar under encouragement of government in order to reduce barriers to develop Myanmar rice sector. Rice contract farming system not only link smallholders to world export markets along the stable supply chain but also provide essential inputs, finance and technical assistance to smallholders. Although rice contract farming system received attention by researchers, there is still limitation in literatures. Therefore, the difference performance of millers, wholesalers, local traders, retailers and exporters under contract and conventional value chains are also compared by using Quantitative Value Chain analysis. This book applied Full Information Maximum Likelihood Endogenous Switching Regression Model to identify the most important socioeconomic factors which influence smallholders to join the rice contract farming system and empirical impacts of contract participation on smallholder livelihoods. The paddy price, fertilizer cost, production shock experiences, extension access, participation in local farmer organizations, age and education level of household head as well as regional difference show most influential to adopt contract farming system. This book finds that the impacts of contract participation vary depending on the contract specification between RSCs and smallholders. The results show that shorter chain of RSCs via contract system shows superior in production, processing and marketing stages of the value chain as compared to conventional one. Finally, this book expresses some policy recommendations to enlarge the rice contract farming system and to construct better managements to develop rice sector in Myanmar.
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Farming and Rural Systems Economics, Vol. 160ISSN 1616-98082017; XIV+230pp.; 21 x 14,8 cm; paper
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