YCDC profits from farm production, leasing activities

Yangon Region draws profits every year from its farms and other means of production, Yangon Mayor U Maung Maung Soe said at a Yangon Regional Parliament session last week. Since 2001-02, Yangon residents have enjoyed affordable access to rice, fish, eggs, poultry, meat and vegetables produced by farms operated by the Yangon City Development Committee (YCDC). There are currently 12 such YCDC farms in Yangon.

Since farming operations started, the YCDC has cultivated over 4,000 acres of paddy and harvested over 1,000 acres of crops every year. It also operates 3,000 fish farms, while prawn and shrimp farms occupy 250 acres of land around Yangon. The YCDC also bred around 90,000 hens, U Maung Maung Soe said. The produce is sold to Yangon residents at affordable prices.

In 2006-2007, five years after the farms were up and running, the YCDC began leasing out its fish and prawns farms to private businesses to generate more income. It then diversified into cement and brick production by opening two new plants.

In 2013, the cement plant, which can produce up to 500 tonnes of cement a day, was leased out to the private sector.

Meanwhile, the brick factory was transferred to the Ministry of Industry. Since its opening in 2009, the brick factory has produced around 15 million bricks and now also supports the YCDC’s construction projects, U Maung Maung Soe said.

According to YCDC documents, total capital expenditure for its farming and construction projects was around K90 billion for the nine months ended December 2017. So far, K68.5 billion, or around 76 percent, of the YCDC’s capex requirements have been met with internal funds and supply from the farms and plants.

The shortfall of K21.5 billion was adequately covered by income generated from the YCDC’s leasing and other investment activities, which totaled K33.3 billion as at December 2017. “So, the YCDC is in a net profit position for production activities,” said U Maung Maung Soe.

Source : Myanmar Times

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