As Agrochemical Prices Surge, Myanmar Farmers are Turning to Organic Alternatives
Our new range of agricultural biologicals help smallholders mitigate climate change and improve farm profitability.
It has been a long time since many of Myanmar’s farmers last encountered an earthworm while preparing their land. Buffeted by climate change and ecological imbalances, smallholders have become increasingly dependent on chemical pesticides to protect their crops amid falling yields.
That has been bad news for the creatures that live in arable soils, but over the past two years some farmers have noticed the return of the humble worm to their fields. This is thanks, in part, to a fungus called Trichoderma, which can be used as a substitute for certain agrochemicals.
“Using biological inputs, such as Trichoderma, means you can reduce the amount of pesticides and chemical inputs in the soil,” says Nang Seng Aye, Proximity’s Chief Agronomist. Trichoderma also boosts crop yields by an average of 17 percent, enabling farmers to earn an extra USD 50 per acre each harvest on average, according to our impact assessment.
There is an urgent need in Myanmar and around the world for affordable and environmentally friendly alternatives to harmful agrochemicals. Global fertilizer prices are at historically high levels due to the ongoing war in Ukraine and international sanctions on Russia’s fertilizer exports. Meanwhile, locally, Myanmar’s currency has devalued by half (since March 2020) and 80 percent of the country’s supply of inputs are imported. This has cascaded to smallholders paying up to four times the cost for chemical inputs, compared to three years ago.
Surging Demand
As they struggle to afford inputs, Myanmar’s smallholders are farming fewer acres and seeing their profits squeezed. “This trend of exploring organic options has increased dramatically because of rocketing input prices,” Nang Seng Aye says.
Applying Trichoderma costs no more 30,000MMK per acre (equivalent to USD 12), she adds, while using chemical fungicide costs triple or quadruple that. At the same time, Trichoderma enables more efficient uptake of soil nutrients, so farmers get more from the fertilizers they use, and encourages growth of beneficial organisms, which reduces pest and disease outbreaks.
The feedback we have received from farmers using biologicals has been overwhelmingly positive with over 20,000 smallholders that have purchased Trichoderma to date. Sesame farmers have been especially happy with the results, with many saying the benefits of applying Trichoderma even carry over to the next season. Chili farmers say their crops are producing fruit for up to two months longer than before.
“Demand is really high from our customers, and the market cannot currently meet it,” Nang Seng Aye says. “It’s hard for suppliers to scale up capacity. That’s why we decided to invest and create our own products.”
Shaping the Market
Despite the clear economic benefits, the market for biologicals in Myanmar remains nascent. Generally, there is low awareness of the product category, and some farmers have the misconception that they are not as effective as chemical inputs. The few biologicals that are available in the country are made domestically, and have varying quality due to underinvestment in production facilities.
One issue with some of the biologicals available in Myanmar is that they do not contain enough of the active ingredient, either because they weren’t well-cultivated or because they have passed their expiry dates. “Sometimes the population of the microbe in the product is not high enough, so when farmers use it, the efficacy is very low,” Nang Seng Aye says.
We began introducing and distributing Trichoderma in solid form in 2020. Now, we plan to ramp up production and distribution as we roll out a range of agricultural biologicals that improve yields and soil quality, boost soil carbon sequestration and prevent pests and diseases.
In addition, we see an opportunity to set quality standards in the market, while catalyzing demand for various biologicals and encouraging other businesses to supply them. The fact that a handful of small enterprises have started to sell biologicals since we introduced Trichoderma is encouraging, and supports our thesis that there is a viable market for biological alternatives to costly chemical inputs.
Unlike imported agrochemicals, Trichoderma can be manufactured with locally sourced waste materials, including rice husks, as a substrate. Fish Amino Acid fertilizers are also made from byproducts that local fish farms usually throw away. Amid volatile currency markets, import regulations, and rising material costs, it is more important than ever to invest in supply chains that are both domestic and circular.
Local Innovations, Global Implications
Even amid the immense challenges Myanmar is facing, our Design Lab team is working hard to bring valuable innovations to market. We’ve established a microbiology lab to conduct R&D on new products and decide which will have the most impact. The lab is working on a liquid version of Trichoderma with a longer shelf life, which will help alleviate distribution and supply issues.
Whereas the solid powder form of the fungus has an average shelf life of around a month, Nang Seng Aye hopes the new liquid version will last at least three months, and potentially up to six.
Other biologicals that the lab is looking into include EM, or Effective Microorganisms, which are blends of microorganisms in a carbohydrate-rich substrate that improve soil health and crop yields. Also on our new product pipeline is Rhizobium, a genus of soil bacteria that lives inside roots and fixes nitrogen as part of a symbiotic relationship with the plant. Then, there are Amino Acids, which are abundant in nutrients and a good source of nitrogen for crops.
When necessary and possible, we’ll partner with a local supplier to bring a product to market. Any externally manufactured biologicals will still be subject to our stringent testing standards and due diligence measures.
With a strong product line in place, we’ll take advantage of our vast distribution network, as well as the hard-earned trust we’ve built with farmers, to spur adoption nationwide. We have a track record of offering new products that cut farm costs and labor while boosting profits; many farmers who would otherwise have been skeptical of switching to biologicals are now willing to give them a try.
We look forward to extending the reach of our R&D work, beyond Myanmar’s borders. We’ll share our research on biologicals as well as on a range of holistic farm solutions, with organizations working with smallholders in other parts of the world.
The challenges facing Myanmar’s agricultural sector are global, and we must take collective action to scale impact and support communities affected by growing inequality, conflict, poverty and environmental degradation.
Climate Champions
While the challenge is immense, biologicals are an opportunity for smallholders to strengthen their arsenals in the fight against climate change and biodiversity loss. Food and agriculture account for a third of all global greenhouse gas emissions and are the main cause of soil degradation and biodiversity loss. Smallholders in Myanmar are critical caretakers of the country’s resources of soils, water and ecosystems, with 20 percent of the land being used for agriculture.
Climate change has continued to have a severe impact on the livelihoods of Myanmar’s farmers. “Rainfall has become very erratic, monsoons now start later and finish earlier than before, and pests that used to be a minor problem have become major ones,” Nang Seng Aye says. The farm families we work with are keenly aware of how dependent their livelihoods are on environmental health, and want access to resources that will help them farm more sustainably without hurting their farm incomes.
Farmers don’t want to sit on the sidelines. They are intimately tied to their lands and want to be active participants in restoring them and reversing the effects of the climate and environmental crisis. Biologicals will be key in equipping farmers for this role.
“I plan to continue farming for many years to come. So, I am glad to find a natural way that reduces pest and disease outbreaks during the season and that is beneficial for the long-term,” shared Arkar Soe from Kaing Taw Su village, Bago region, one of our Trichoderma customers.
With these nature-positive alternatives in hand, Myanmar’s smallholders will be boosting their yields, building a future for their families and championing for the well-being of the planet.
