IN A BID to fill the gap of limited foreign investment in Myanmar’s agricultural sector, Japanese diesel engine manufacturer Yanmar and global trading firm Mitsui & Co on Tuesday launched a joint-venture sales business in the nation’s commercial hub.
Operating under the name, ‘Yanmar Myanmar Co Ltd’, the import and wholesale agricultural machinery business was founded in March 2016 with paid-up capital of US$6 million. It currently employs 20 staff and plans to add 80 more employees in the near future. Around 10 billion yen in sales are expected, according to the firm’s medium-term plan.
The wholly foreign-owned firm will deliver agricultural products that can help improve value chains in the domestic food sector and modernise Myanmar’s agricultural practices, according to Takeshi Terada, managing director of Yanmar Myanmar Co.
“In Myanmar, we are seeing a steady increase in demand for agricultural mechanisation as well as strong economic development more broadly… Myanmar is already the world’s seventh largest rice producer,” he said.
“Through our joint venture with Mitsui & Co, we have developed strong sales and marketing functions to provide high quality services to overcome some of the challenges in Myanmar’s agricultural sector. Additionally, we hope to make an active contribution to improving lives across the country.”
According to Terada, the joint venture has fully equipped service facilities, a large-scale parts centre, education and training facilities for farmers and service workers, and a display room with enhanced hospitality features. It will be Myanmar’s first multifunctional agriculture solutions centre.
Ryotaro Sumi, executive chief representative in Myanmar, said that Yanmar Group holds 60 per cent of the stake while Mitsui holds 40 per cent.
“We recognise that Myanmar is becoming an increasingly important market in the global food supply chain,” he said.
Sumi said that both firms prioritise in food and agriculture in the Asia Pacific region. He believes the joint venture will contribute to the solution of local problems and the improvement of living standards by offering a wide range of high-quality services, agricultural machinery and solutions tailored to local needs.
“Today’s announcement is good news for Myanmar and I am confident that providing access to world-class agricultural solutions will help the Myanmar economy grow and contribute to the development of the food sector here,” he said.
Source: Eleven Myanmar
