SWOT Analysis of Contract Farming for Certified Rice Seed Production in Myanmar

Abstract

Exporting rice from surplus rice production is major source of foreign exchange in Myanmar and using certified rice seed is important to get higher rice yield. Private seed companies are now producing certified rice seed doing contract farming with local farmers in Myanmar. Main objective of this study was to know the current situations of contract farming for certified rice seed production in Myanmar.  The strengths, weaknesses, opportunities, and threats analysis method were used to understand the situation among contract seed farmers. A total of 98 contracted rice seed producer farmers in the Mandalay Region were purposively selected and interviewed, using a structured questionnaire, in January 2025. The results show that the major strengths factors were that farmers received advance capital for seed production without using their own capital, they can sell the rice seed immediately at harvest time and obtained higher market price for rice seed. However, the major weaknesses were the unstable seed price at harvest time, the multiple stages required in rice seed production to meet seed quality standard and the need for local skilled labor in rice seed production. As for the opportunities, farmers can obtain higher yields, access to seed production technologies, enhance their ability to work in group activities and build network with entrepreneurs and departments which provide mutual benefit for both farmers and company. Meanwhile there were three main threats: limited irrigation water, high price of agricultural inputs and requirement for a third party to negotiate between farmers and company. Strategies matrix was formatted from this research for contracted seed producer farmers to develop certified rice seed production through contract farming system. Contract farming for certified rice seed production from this research resulted stabilize higher income for farmers that would be strengthen linkages between seed producer farmers and seed companies.