International Journal of Agricultural Marketing

Vol. 6(2), pp. 215-224, July, 2019. © www.premierpublishers.org. ISSN: 0521-9965

Research Article

Assessment of Supply Chain Management of Sesame

Seed in Pakokku Township, Magway Region, Myanmar
*Theingi Myint1, Ei Mon Thida Kyaw2
1Professor, Department of Agricultural Economics, Yezin Agricultural University, Nay Pyi Taw, Myanmar
2Ph.D Candidate, The University of New England, 8/152, Markham St., Armidale, NSW, 2350, Australia.
2Lecturer, Department of Agricultural Economics, Yezin Agriculture University, Nay Pyi Taw, Myanmar

This study was carried out to examine the market performance of stakeholders along the sesame
seed supply chain. The primary data were collected from 89 sesame farmers from four villages in
Pakokku Township by using simple random sampling method and 11 traders or wholesalers at
the crop exchange center in Pakokku, 5 sesame oil millers in Pakokku, 3 Mandalay wholesalers
and 4 Yangon exporters were purposively selected in 2016-2017. Benefit and cost ratios in
Pakokku were 1.22, it means that if the famer invest one MMK in sesame seed production, they
will gain 0.22 MMK. Wholesalers and Chinese commission agents in Mandalay sell raw sesame
products directly through the Muse exchange center, which is located on the border of Myanmar
and China. Exporters in Yangon sell raw sesame products to Japan, Taiwan, and roasted sesame
powder to Korea via Yangon port. The wholesalers/traders derive the greatest marketing margin
and profit from the Sahmon Nat variety sold in Pakokku and Mandalay. The sesame supply chain
was very weak in the study areas because of the profit by transacting the sesame without value
adding and without any negotiating power by farmers.

Key words: Supply chain, sesame, benefit and cost ratio, price, marketing margin

INTRODUCTION

Oilseed crops play a vital role in Myanmar’s high
consumption of cooking oil compared to neighboring
countries. There are numerous kinds of oilseed crops such
as groundnut, sesame, and sunflower, mustard and niger
seed. Among them, sesame occupies the largest sown
area (approximately 46.62% of total oilseed crop areas),
followed by groundnuts, (26.76%) (MOAI,2014). Sesame
is economically important not only for producing edible oil,
which is used in Myanmar for cooking but also for export.
In Myanmar, there are three main types of sesame seed:
(1)white sesame seed which is famous for making snacks
and cooking, (2) red sesame which is best for oil extraction
and is cheaper than white, and (3) black sesame which is
a major oil seed crops for export and is grown mainly in
Aunglan Township and the Magway Township of Myanmar
(Linn, 2013). Worldwide, India occupies the greatest
sesame harvested area (186,0000 ha), followed by
Myanmar (1590,000 ha); however, in 2013 Myanmar’s
sesame seed production was the highest (890,000 tones)
(Grimay, 2018). In terms of sesame production, Myanmar
produces 21.05% of total world production and 36.37% of
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
the Asian production (FAO, 2013). However, the amount
of sesame seed exporting declined in 2017 because
Myanmar possessed just 6.5% of the sesame world
market that was the fourth position among top sesame
seed exporting countries in 2017 based on the data of
USAID (2019). According to the oil seed crop organization,
Union of Myanmar Federation of Chambers of Commerce
and Industry (UMFCCI), the amount of Myanmar –
produced sesame exported via normal official trade
channel was 96.621 MT in 2015-2016 (UMFCCI, 2017).
Therefore, sesame production constitutes a major part not
only of farmers’ livelihood development but also of
Myanmar’s economic development through its exports.
Corresponding Author: Theingi Myint, Professor,
Department of Agricultural Economics, Yezin Agricultural
University, Nay Pyi Taw, Myanmar. Tel: 95-9-250108681
E-mail: theingi.myint@gmail.com
Co-Author Email: eimonkyawhtun@gmail.com,
eimonthi@myune.edu.au; Tel: 61-452544728
Myint and Kyaw 216
An efficient marketing system for both domestic
consumption and the export market, that transfers
commodities from the production side to the demand side
with the right quality and, quantity, on time and at low cost,
plays an important role in the world’s market economy
system. Aysheshm (2007) argued that a scientific analysis
of that identifies the strengths and weaknesses of the
market structure of a particular commodity and sector is
important to achieve the efficient market system and
sustainable market demand essential for economic
development. Linn’s 2013 research into the sesame
supply chain in Magway region found that the major
problems of the oilseed crops and edible oil sector in
Myanmar were price uncertainty, low productivity and
quality of sesame, and a lack of marketing laws and
regulations. Based on the value chain analysis of Sonar et
al (2012), the major constraints such as lack of agricultural
knowledge and technology, crop price fluctuation, pest and
disease problem, inadequate market information and poor
linkage within marketing activities.
Based on Linn (2013), more research should be done to
explore more deeply Myanmar’s sesame supply chain
because of sesame’s great export potential for Myanmar.
Pakokku Township is located in the Magway region, which
is one of the largest sesame producers in Myanmar, and
its productivity is lower than its potential capacity. Linkages
and relationships among actors in the supply chain of
sesame are fragmented. Farmers in this region face unfair
prices, as there is a huge gap between the farm gate price
and the consumer price in Yangon and Mandalay because
of the higher transaction costs. Moreover, farmers have no
roles or responsibility in production quality and standards
to meet the standardization of markets especially for
export market. Benefit sharing distribution among actors is
also not clear and the number of vulnerable farmers
integrated in the supply chain of sesame production is
unrecorded.
This study was carried out
(1) to analyze the various stakeholders’ activities along
the sesame supply chain in order to investigate the
marketing costs and margins of various stakeholders
along the sesame marketing channel and
(2) to assess the major constraints of sesame production
and marketing in order to improve the supply chain
management.
MATERIAL AND METHOD
To access the current performance of the sesame market,
field surveys for primary data collection were conducted in
Pakokku Township and market surveys were conducted in
Pakokku, Mandalay and Yangon in 2016 and 2017. The
study was designed to analyze the entire sesame supply
chain from farm level to consumer. For this study, farmers,
wholesalers, traders, millers, processors and exporters
along the supply chain were interviewed, each category
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
with a different set of structured questionnaires to obtain a
clear understanding of the current sesame marketing
channels.
The primary data were collected from 89 sesame farmers
from four villages in Pakokku Township by using simple
random sampling method and 11 traders or wholesalers at
the crop exchange center in Pakokku, 5 sesame oil millers
in Pakokku, 3 Mandalay wholesalers and 4 Yangon
exporters were purposively selected in 2016-2017. Data
were collected to investigate of marketing costs, the
marketing margin of various stakeholders, marketing
channels constraints and challenges, and possible
solution for sesame production. Secondary data were
taken from published and official records of the Ministry of
Agricultural, Livestock and Irrigation (MOAI), various
government organizations related to agriculture, the Food
and Agricultural Organization (FAO), the Central Statistical
Organization (CSO) and other publications.
Method and technique of data analysis
The data collected from various stakeholders were
analyzed using the descriptive statistics method and the
statistical software package SPSS Version 16. Enterprise
budget analysis was used to evaluate the economic and
technical performance of each farm enterprise. Marketing
margin analysis is the first and foremost economic analysis
to determine the efficiency of the market. The higher
marketing margin reflects fewer share of producers and
more benefits to marketing middlemen and vice-versa (
Htun, 2013). To calculate the marketing costs and margins
at different levels along the supply chain, a total gross
marketing margin analysis was performed. The following
indicators were used in the analysis
a) Total Gross Marketing Margin (TGMM)
(Consumer Price−Farmer’s Price)
TGMM = (1)
Consumer Price ×100
(Consumer Price−Wholesaler’s Price)
Margin of wholesaler = (2)
Consumer Price×100
(Consumer Price−Miller’s Price)
Margin of Miller = (3)
Consumer Price×100
(Consumer Price−Retailer’s Price)
Margin of processor = (4)
Consumer Price×100
(Consumer Price−exporter’s Price)
Margin of exporter = (5)
Consumer Price×100
(b) Farmer’s Portion of Producer’s Gross Marketing
Margin (PGMM)
(Consumer Price−Marketing Gross Margin)
PGMM = (6)
Consumer Price×100
(c) Gross Marketing Margin (GMM)
GMM= Average Selling price – Average Buying price (7)
(d) Profit
Profit = Gross Marketing margin − Total Marketing cost (8)

RESULT AND DISCUSSION
Sesame Supply Chain Mapping
The structure of the sesame marketing system normally
start with the farmers and there are many stakeholders
along the sesame supply chain in Pakokku Township. The
common channel is the flow of raw sesame from farmer to
township wholesaler. Most township wholesalers and
traders exchanged their commodities in the exchange
centre and millers sometimes double as the
wholesalers/traders buying the raw product for milling.
Sesame oil is processed by oil millers and then distributed
to many towns within Pakokku Township (Pakokku,
Yesagyo, Htilin, Gangaw, and Saw). Simultaneously,
township wholesalers and traders sell the raw sesame
products directly to the Mandalay and Yangon sesame
markets. In the Mandalay marketing channel, traders there
buy the raw material and sell it to Chinese commission
agents who in turn sell it directly to the Muse Exchange
Centre. Sometimes, Chinese commission agents buy
directly from the wholesalers in Pakokku Township. In the
Yangon sesame supply chain, the raw sesame product is
sold directly by township-based wholesalers to the sesame
exporters and then processed in Yangon to obtain the
quality sesame seed and powder. There are three
additional export channels of sesame-graded seed in
Yangon specifically for Japan, Taiwan and Korea and
Wholesaler in
Pakokku
Farmer in Pakokku
Township
Trader in Pakokku
exchange center
Trader in Mandalay Chinese
commission agent
in Mandalay
Muse market (Cross-
border Export to
China)
Raw Sesame Product
Sesame Oil
Roasted Sesame Powder
Figure 1: Core Process for Sesame Supply Chain in Pakokku Township
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
Int. J. Agric. Mark. 217
roasted sesame powder is also sold from here to Korea.
Although the China market accepts normal quality sesame
seed, the Japan, Taiwan and Korea markets accept only
the highest quality sesame seed. The sesame supply
chain in Pakokku Township is shown in Figure 1.
The key market functions of farmers in Pakokku are shown
in Figure 2. According to the sesame farmer survey in
Pakokku Township, Sahmon Nat is the most popular
variety among the sample farmers because of its high price
and market demand. Most people who took part in the
survey (94%) said they used their own seed rather than
buying seed in; this resulted in, low quality product and
reduced of yield. The weighing system when selling was
viss (1 viss = 1.32 Kg) and there are 15 visses in 1 basket.
It was found that the average yield for farmers in the
sample was 3.8 baskets per acre and the price was about
44000 MMK (1 dollar = 1527 MMK) per basket. The
average total variable cost for a sesame farmer was
143,167.10 MMK per acre and the average total gross
return for the farmers in the sample was 168,136.80 MMK
per acre. The return above variable cost (RAVC) was
24,969.69 MMK per acre and the benefit-cost ratio (BCR)
for sesame production was 1.22 which means that if the
famer invests 1 MMK in sesame seed production, he will
gain 0.22 MMK. The costs and benefits for sesame
production can be found in Table 1.
Miller in Pakokku
Wholesaler and
retailer in Pakokku,
Htilin, Gangaw, Saw
Myaing, Yesagyo
Township
Exporter in
Yangon
Export to Japan & Export to Korea
Taiwan
Myint and Kyaw 218

Farmers and Their Specific Activities
The key market functions of farmers in Pakokku are shown
in Figure 2. According to the sesame farmer survey in
Pakokku Township, Sahmon Nat is the most popular
variety among the sample farmers because of its high price
and market demand. Most people who took part in the
survey (94%) said they used their own seed rather than
buying seed in; this resulted in, low quality product and
reduced of yield. The weighing system when selling was
viss (1 viss = 1.32 Kg) and there are 15 visses in 1 basket.
It was found that the average yield for farmers in the
sample was 3.8 baskets per acre and the price was about
44000 MMK (1 dollar = 1527 MMK) per basket. The
average total variable cost for a sesame farmer was
143,167.10 MMK per acre and the average total gross
return for the farmers in the sample was 168,136.80 MMK
per acre. The return above variable cost (RAVC) was
24,969.69 MMK per acre and the benefit-cost ratio (BCR)
for sesame production was 1.22 which means that if the
famer invests 1 MMK in sesame seed production, he will
gain 0.22 MMK. The costs and benefits for sesame
production can be found in Table 1.
wholesalers bought solely from farmers near Pakokku
Township, such as from Pauk, Myaing, Htilin, Gangaw,
Saw and Yesagyo etc. and the rest bought from both
farmers near Pakokku Township and from wholesalers. All
the wholesalers graded the products using their own
judgment and divided them into three categories, namely,
high, medium and low. They set the price depending on
standardization of such characteristics as variety,
moisture, quality, dryness, cleanness and purity of the
sesame. There were many reasons for wholesalers
selecting the sesame varieties they did, market demand
and price being important criteria.
Most of the wholesalers in Pakokku Township, interviewed
for this study-traded in sesame throughout the year. It was
found that international demand and price, especially in
the Chinese market, could significantly affect the export
price, which in turn, could affect the local producer’s price.
The marketing margins, costs and profits of wholesalers in
Pakokku are shown in Table 2. According to the analysis,
while the sample wholesalers in the sample studied-traded
in many sesame varieties such as Sahmon Nat, Red and
Brown, they derived the highest profit from Sahmon Nat.

Table 1: Enterprise Budget of Sahmon Nat Sesame Oil Millers and Their Specific Activities in Pakokku
(Black) Production in Pakokku Township Township
Items Unit Total Value
Yield Bsk/ac 3.8 Oil millers play an important role in the oilseed crop
Average Price MMK/bsk 44178.89 marketing chain by transforming the raw oilseed crop into
Gross return MMK/ac 168136.8 edible oil. According to the survey responses, all oil millers
Material cost MMK/ac 46951.39 bought raw sesame seed and sold sesame oil and oil cake.
All of them used cash to buy and cash and credit to sell.
Family labor cost MMK/ac 39472.22
The weighing system used by the oil millers for both buying
Hired labor cost MMK/ac 47316.67
and selling was viss. The majority of the respondents
Interest rate MMK/ac 9426.80 graded their products using their own judgement. All the
Total variable cash cost MMK/ac 103694.9 millers ran their mills for 9 months, ranging from 6 to 12
Total variable cost MMK/ac 143167.1 months. The average milling capacity per hour was 5.8
Net benefit MMK/ac 24969.69 baskets (ranging from 3 to 10 baskets per hour). By milling
Benefit -cost ratio 1.22 the sesame raw material, a mill produced an average of
330 visses of oil per day, the full range being from 200 viss
Wholesaler/traders and their Specific Activities in to 550 viss per day. Sesame oil millers in Pakokku sold
Pakokku their oil to Pakokku, Htilin, Gangaw, Saw, Myaing,
Yesagyo and villages around Pakokku. In addition, the oil
In the sesame-marketing channel in Pakokku Township, cake byproduct of the oil mills was supplied to the
the wholesalers play key roles in the distribution of crops Mandalay and Yangon markets for animal feed. In the
from producers to millers, processors, traders and areas studied, a similar trend was found with selected oil
exporters. They also have connections with other township millers of Pakokku and Magway. Most oil millers bought
wholesalers and millers from Natmauk, Magway, and red and brown sesame for milling. The marketing margin
Aunglan and keep them informed about the buying and and profit gained from the oil derived from brown sesame
selling prices. In addition, they sell raw material to was higher than that of oil made by the red sesame
wholesalers in Mandalay and Yangon Township on because the average price of the brown sesame seed was
commission. According to the survey responses, all lower than the red sesame seed; however, the average
wholesalers bought raw material. The wholesalers’ prices of both show no difference. The marketing margin,
purchasing methods did not differ they all used the cash cost and profit of oil millers in Pakokku is shown in Table
down purchasing system. Fifty five percent (55%) of 3.

Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
 Int. J. Agric. Mark. 219

Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
Myint and Kyaw 220

Table 2: Marketing Margine, Cost and Profit of Wholesalers in Pakokku

Pakokku wholesalers Sahmon Nat Varieties Red Varieties Brown varieties
(MMK/bsk) (MMK/ bsk) (MMK/bsk)
(1) Average buying price 42400 25000 22000
(2) Average selling price 44000 26000 23000
(3) Marketing Margin (2-1) 1600 1000 1000
(4) Total Marketing cost
Labor cost for loading 46 46 46
Labor cost for cleaning 30 30 30
Packaging cost 110 110 110
Grading cost 50 50 50
Storage cost 275 275 275
Transportation 172 172 172
Total marketing cost 683 683 683
(5) Cost price (1+4) 44683 26683 23683
(6) Profit per unit of each variety(3-4) 917 317 317
(7) Profit per cost price (6/5*100) 2.052234631 1.188022336 1.338512857

Table 3: Marketing Margin, Cost and Profit of Oil Millers in Pakokku

Pakokku oil Miller Red Varieties Brown varieties (MMK/bsk)
(MMK/ bsk)
(1) Average buying price 25000 22000
(2) Average selling price of sesame oil
(1 basket of sesame= 7.5 viss of sesame oil) 27750 26250
(3) Marketing Margin (2-1) 2750 4250
(4) Marketing cost
Labor cost for loading 70 70
Packaging cost 819 819
Transportation 150 150
Milling cost 18 18
Electricity cost 590 590
Total marketing cost 1647 1647
(5) Cost price (1+4) 26647 23647
(6) Profit per unit of each variety (3-4) 1103 2603
(7) Profit per cost price (6/5*100) 4.14 11

Table 4 Marketing Margin, Cost and Profit of Mandalay Wholesalers

Mandalay wholesalers Sahmon Nat Black White Red Brown
Varieties Varieties Varieties Varieties varieties
(MMK/bsk)
1 Average buying price 44000 30000 28300 26000 23000
2 Average selling price 51000 33000 33000 28000 25000
3 Marketing Margin (2-1) 7000 3000 4700 2000 2000
4 Marketing cost
Labor cost for loading 133 133 133 133 133
Labor cost for cleaning 300 300 300 300 300
Packaging cost 366 366 366 366 366
Grading cost 300 300 300 300 300
Storage cost 50 50 50 50 50
Transportation 459 459 459 459 459
Total marketing cost 1608 1608 1608 1608 1608
5 Cost price (1+4) 45608 31608 29908 27608 24608
6 Profit per unit of each variety (3-4) 5392 1392 3092 392 392
7 Profit per cost price 11.8 4.4 10.3 1.41 1.59

Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar

Wholesalers/Traders and Their Specific Activities in
Mandalay
According to the survey data, many wholesalers in
Mandalay bought about 600 baskets/day of sesame raw
material from traders/wholesalers in Magway, Pakokku,
Wetlet, Madaya, Aunglan, Pyay, Taungoo and Pyinmana
by using the cash down system. There were 10
wholesalers and traders in the whole area who collected
raw sesame from their local area. All respondents bought
various sesame varieties especially black (Samhon Nat),
white, red and brown sesame. They traded the commodity
to Chinese buyer’s agents who then sold it directly to the
Muse exchange center and sometimes, they also acted
collectors for these agents on commission. The sesame
was graded by the wholesalers and traders themselves
into low, medium and large categories by hand. They set
the market price depending on the variety, quality, purity,
cleanness and moisture of sesame. All the Mandalay
wholesalers who took part in the surey used a bag
(1bag=45 visses) as their weighing measure: when they
sold to a Chinese buyer’s agent 1 bag contained 30.75
vissees. The wholesalers’ marketing margin, costs and
profits in Mandalay are shown in Table 4. It was found that
the Mandalay wholesalers in the study sample got the
highest profit from trading in Sahmon Nat varieties
followed by white sesame, science black, red sesame and
brown sesame.
Exporters and Their Marketing Activities
There are two kinds of exporters, those who export to
Japan, Korea and Taiwan by normal trade shipment and
those who export to China by truck across the land border.
According ro the study, black sesame and science black
were the most popular varieties for exporting to Japan,
Korea and Taiwan and they were bought from the
collectors (agents) and wholesalers of Magway, Aunglan,
Pakokku and Pwint Phyu. When it came to buying
activities, the exporters in the sample bought high quality,
high purity and low moisture content sesame raw material
by measuring, again into bags of 45 visses each, and
grading the product using their own judgement. Monsoon
sesame was favored by many exporters because of its
high quality and low moisture content. After the raw
sesame products were bought by the sample exporters,
they were cleaned by filter and machine. However, when
these exporters were selling to international buyers, they
sued international grading system standards such as FFA
(Free Fatty Acid) = 2%, chemical residue= 0.005%,
moisture content = 7-8% and color variation = 5-10%. The
weighting scale was by the ton (18 tons = 1 container).
Although it was common for export raw material to Japan
and Taiwan, the exporters who participated in the Yangon
survey exported their product to Korea as sesame powder
because the Korean import tax on sesame powder is lower
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
Int. J. Agric. Mark. 221
than the tax on sesame seed. Exporters set the price
depending on the buying price, lag price, China market
price, world price and the exchange rate. Border trade,
especially in the China market, plays the major role in
Myanmar’s sesame supply chain. Most Chinese buyers’
agents transport the sesame products directly to the Muse
exchange center by car and they buy raw sesame raw
products from collectors, traders and wholesalers from
Mandalay, Magway, Pakokku and some other places
depending on the quality of the sesame. They grade
according to their own judgment and additional
standardization is done by such machines as color sorters
and cleaning machines. They buy in-viss (1bag = 37.8
visses) and, sell in Kilograms (1 bag = 50Kg). It is obvious
that the standard of the border trade grading system is
lower than the grading system used for normal trade,
mostly Sahmon Nat to Japan, Korea and Taiwan.
However, the buyers from China bought several varieties
of sesame; therefore, the China market is the major export
market for Myanmar’s sesame crop. The exporters
participating in the Mandalay survey determined their
prices according to lag price, exchange rate, demand and
supply.
Challenges and Constraints of Farmers in Production
and Marketing Activities
It was found that climate change was the major constraint
for the farmers in the study area because a short monsoon
season reduced the sesame yield. Moreover, the
respondents also faced unstable price and market demand
because the price of sesame seed depended on the China
cross border market in Myanmar. The sesame quality in
the study area was low because many younger people
migrate internationally and to other parts of Myanmar, and
so labor scarcity has become one of the constraints for
respondents in the study area. Pests and diseases, high
input costs, lack of capital, high transportation costs, lack
of advanced technology, lack of improved varieties and
weak systematic usage of pesticides were other
constraints for the respondents in the study area. In the
weighing system, wholesalers always reduce the value of
each viss of sesame by 25% when buying because of inert
materials (impurities) and the weight of the bag itself. In
relation to advanced technology, the farmers in the sample
did not get enough information from Myanmar Department
of Agriculture extension workers in the study area; as a
result, post-harvest loss was a major challenge in the
production of good quality sesame in the study area. Most
respondents could not access good quality seed because
of their high cost; therefore, they used their own seed for
production, which produced a low yield in sesame
production in the study area. The constraints affecting
sesame production in the sample households are shown
in Figure 3.
Myint and Kyaw 222
Figure 3: Major Constraints of Stakeholders in Sesame Marketing System
Challenges and Constraints for Wholesalers in
Sesame Marketing in Pakokku
Dynamically, wholesalers were the leaders in the
Myanmar sesame-marketing sector by connecting the
farmers, oil millers and exporters. However, there was a
weakness in the grading system because it was based on
individuals’ personal judgment and it could not be
accurate. Unstable markets and prices were major
challenges for wholesalers and they needed storage
facilities in order to wait for prices to rise. To maintain the
quality of the goods during storage, they used a lot of
pesticides and insecticides to prevent pests and disease
but this caused a chemical residue problem in the exported
products. Other constraints for the sample wholesalers in
Pakokku Township were lack of capital and high
transportation cost.
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
Challenges and Constraints for Oil Millers in Sesame
Marketing in Pakokku
The major constraints for the millers were lack of capital
and lack of a sesame oil market, the latter because of the
influx of imported palm oil into the edible oil market in
Myanmar. Most people use palm oil because it is cheaper
than sesame oil. Nowadays, many oil millers mix sesame
oil and palm oil to meet buyer demand. It was found that
some uncompetitive millers had shut down their oil mills
because they did not have enough capital to buy good
quality sesame raw materials and, the quality of the oil was
therefore too low to meet international demand.

Challenges and Constraints of Wholesalers/Traders
and Chinese Commission Agents in Sesame
Marketing in Mandalay
Interviews with the wholesalers and Chinese commission
agents in Mandalay about the constraints they faced in
sesame marketing activities, revealed that the major
constraints were lack of capital, low quality sesame, seed
impurity, lack of good storage facilities, lack of modern
cleaning and color sorting machine, unstable demand and
market price, high variation in the exchange rate and
transportation systems. The problems associated with the
transportation systems, including border trading, traffic
jams and civil war, always caused delays in the flow of
commodities. Although the Myanmar government officially
permitted the cross-border trade, the Chinese government
did not; as a result, Chinese commission agents faced the
double challenges of unstable market demand and lower
prices.
Challenges and Constraints of Exporters in Sesame
Marketing in Yangon
Myanmar is the second largest sesame exporter in the
world and there is a large potential demand. However, the
quality of Myanmar sesame seed is still relatively low and
it cannot compete with the world price because of its high
production costs. The major constraint for sesame
exporters is low quality seed because most of the sesame
raw materials have a high chemical residue, high moisture
content and high acidity. Thus, they cannot export large
amounts of sesame despite potential demand. Nor do they
have access to any chemical test laboratory in order to
establish the quality of the seed. Variations in the
exchange rate are another challenge for exporters.
CONCLUSION
The sesame supply chain was found to be very weak in
the study areas for a number of reasons. These included
(1) that wholesalers received much of the profit by
transacting the sesame without value adding and (2)
individual farmers marketed their sesame directly to
wholesalers without any negotiating power. Moreover,
because of the constraints in this supply chain, good
quality seed, stable market price and demand, advanced
facilities and technologies are all needed for market
participants to achieve more benefits along the supply
chain in the study area. Many stakeholders mentioned
palm oil as a major challenge because it was cheap,
although lower in quality. Indeed, the price of palm oil on
the world market was far below the price of sesame oil and
is excellent, for cooking or frying. This imported palm oil
does have a negative effect on the economic returns of all
stakeholders in the sector. The Myanmar sesame market
has great potential for export but its current annual export
rate remains low because of the low quality of the sesame
Assessment of Supply Chain Management of Sesame Seed in Pakokku Township, Magway Region, Myanmar
Int. J. Agric. Mark. 223
and its high chemical residue. According to a study of an
export company in Yangon, it was found that a contract
farming system had the potential to provide an efficient
supply chain system for farmers. This was because it
would enable the farmers to produce quality produce for
normal trade obtain a higher price and be in a stable
market for their goods. It would also reduce the cost of the
intermediaries along the supply chain.
Proposed Interventions for the Sesame Marketing
Sector
• Ensure adoption of good quality seeds, appropriate
fertilizer and pest management alternatives and other
integrated crop management practices by farmers
• Strengthen technology, weather information delivery
and extension services
• Encourage inspection and establish laboratories to test
the agrochemicals marketed locally for export quality
products
• Establish credit facilities with loan equity to enable the
private sector to buy post-harvest and marketing
machinery and facilities for use by all participants
• Upgrade existing oil mills or acquire new units to boost
efficiency, lower unit cost and improve milled output
• Conduct relevant market research in different areas
• Encourage the establishment of a weighting scale and
standards for sesame (in line with international
standards)
• Develop education programs about collective action in
marketing activities
• Encourage public and private sector partnership to
invest in infrastructure
• Develop contract farming to get good quality sesame
for export.
ACKNOWLEDGMENTS
This research was financially supported by YAU-JICA
Technical Cooperation Project. The research team would
like to express its deep gratitude and appreciation for the
financial support of the sponsoring organization JICA
(Japan International Cooperation Agency) for this study.
The team wishes to show its gratitude to Professor Dr.
Tanaka, Dr. Yamamoto and Mr. Nichimoto for invaluable
support, guidance and assistances during the study and to
thank the Rector of Yezin Agricultural University for
providing fruitful support throughout the study period. In
particular, the research team also wants to extend its
sincere appreciation to the respondents of this study who
cheerfully cooperated in the primary data collection and
the local authorities who provided much help and
generously hosted the team in the study areas. Our special
thanks go to U San Lwin, Manager, Department of
Agriculture, Pakokku Township for his very kind assistance
and for accompanying the team to the sites. This report
would not have been possible without their generous
participation.
Myint and Kyaw 224
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Accepted 20 June 2019
Citation: Myint T, Kyaw EMT (2019). Assessment of
Supply Chain Management of Sesame Seed in Pakokku
Township, Magway Region, Myanmar. International
Journal of Agricultural Marketing 6(2): 215-224.
Copyright: © 2019: Myint and Kyaw. This is an open-
access article distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium,
provided the original author and source are cited.