A Chinese state-owned enterprise will invest in three agricultural centers around Myanmar valuing USD 130 million. The Chinese CITIC Construction Group will partner with the Myanmar Rice Federation (MRF) and the Myanmar Agribusiness Public Corporation (MAPCO) to establish the centers, which will be in Ayeyarwady Region, Mandalay Region and Rakhine State, according to the Myanmar Times.

The centers will be meant to improve the quality of agricultural products in Myanmar. They will include crop dryers and post-harvest storage warehouses, according to an MRF spokesperson. The improvements could eventually help Myanmar’s agricultural industry access new export markets. The majority of Myanmar’s workers are farmers, although Myanmar’s agricultural exports are low relative to the volume it produces. Part of the problem is that Myanmar farming practices usually fail to meet international standards of fertilizer and pesticide use and other practices.

Asia remains Myanmar’s main agriculture export market, and China has been working to help Myanmar boost its capacity. The MRF has also recently signed an MOU with China to export 250,000 tonnes of rice. An industry report by the World Bank said “there are good market prospects to accommodate higher rice exports from Myanmar over the next 10-15 years. China is becoming a large net importer of Myanmar rice. The European Union has opened its markets for duty free imports from Myanmar.”