Per Capita Edible Oil Consumption in Nay Pyi Taw, Myanmar

Per Capita Edible Oil Consumption in Nay Pyi Taw, Myanmar

Published: 2021.11.16
Accepted: 2021.11.16
8
Assistant Lecturer
Department of Agricultural Economics, Yezin Agricultural University
Professor
Department of Agricultural Economics Yezin Agricultural University, Myanmar
Assistant Lecturer
Yezin Agricultural University, Myanmar
Assistant Lecturer
Yezin Agricultural University, Myanmar
Demonstrator
Department of Agricultural Economics, Myanmar
Director
Agricultural Policy Unit, Department of Planning, Myanmar

ABSTRACT

Edible oil in Myanmar plays an important role as an essential food item in the daily diet of the Burmese people. Considering the growth rate of the population in the country, it is assumed that the per capita edible oil consumption will be increased yearly based on the population and type of consumption pattern. Therefore, this research aims to undertake per capita edible oil consumption per year in different consumer groups and perception of edible oil consumers of eight townships in Nay Pyi Taw Council. Per capita edible oil consumption per year of sample consumers was about 17.75 kg per year in the study areas. The average monthly edible oil cost in urban and rural farmer consumer groups was higher than the average edible oil cost of rural landless consumer groups. In addition, the ratio of edible oil cost by the monthly income of landless and rural consumer groups in the study areas was a slightly higher proportion than urban consumer groups. The result reveals that the lowest amount of monthly expense of edible oil formulated the lower rate of monthly income for these consumer groups. In addition, the majority of consumer groups prefer to reduce the consumption amount of edible oil due to health concerns and are willing to change the type of edible oil at a reasonable price. Peanut oil is the most preferable edible oil type and one-third of consumer groups can consume the most preferable edible oil. According to this research, most of consumer groups wants the edible oil crop production and processing to be improved for good quality domestic edible oil. However, it is necessary for the government to focus its policy measures on ensuring marketed edible oil safety and quality, price control and policy mechanism, the technology transfer on edible oil crop production and processing and the development strategies considering domestic market opportunities to achieve self-sufficiency in edible oils crop production. Continuously, it is still needed to do several types of research related to edible oil crop types of production and its quality, per capita edible oil consumption and edible oil self-sufficiency to cover different regions in the country, the domestic market potential of edible oil production, and supply chain analysis aiming at the development of the edible oil sector in Myanmar.

Keywords: Per capita edible oil consumption, Cost of edible oil, Perception and behavior of edible oil consumers

INTRODUCTION

Edible oil consumption

Global vegetable oil production amounted to around 209.14 million metric tons and sunflower seed oil consumption amounted to 19 million metric tons globally in 2020/21 (US Department of Agriculture, 2021). From 2013/14 to 2020/21, major consumption edible oil types over the world includes palm oil, soybean oil, and sunflower seed oil among other different types. In Figure 1, the global demand for palm oil has increased rapidly over the last 8 years which is used for food consumption and industrial consumption.

Edible oil crops have played an important role in the rural economy being the second following rice crops in Myanmar. Myanmar is the world’s third-largest producer of sesame and the world’s sixth-largest producer of groundnut. Groundnut oil and sesame oil can be locally produced in a large volume in Myanmar. According to CSO annual report (various years), it was estimated that these two main oilseed crops production was significantly increased in 2020 and 2021 than the other potential edible oilseed crop production compared to 2006 and 2007.

The annual per capita consumption (CSO annual report, various years) of edible oil in 2001 was 9.2 kg. The annual increase of per capita edible oil consumption was 0.3 kg/capita per year between 1984 and 1996 and 0.1 kg/capita per year between 1997 and 2001. Furthermore, the demand continued to increase by 0.1 kg/capita per year between 2002 and 2015. In the current situation of Myanmar’s consumers, palm oil is the main edible oil consumed in Myanmar and sold either mixed with groundnut and sesame oil in the market with different prices and different qualities. Existing global market opportunities has been important development potential that adds good agro-processing developments for the edible oil crops sector (Raphy Favre and Kyaw Myint, 2009). Meanwhile, capturing higher value with higher price and edible oil self-sufficiency in regional oil crop opportunities stand the major case in Myanmar. Therefore, this study aims to observe per capita edible oil consumption per year in different consumer groups, the cost of edible oil consumption, perception for edible oil consumption and production development in eight townships from Nay Pyi Taw Council.

Objectives of the study

The overall objective of the study is to provide a benchmark in contradiction of future progress in edible oil production development, edible oil self-sufficiency welfare assessment at the regional level. The specific objectives are: 

  1. To express per capita edible oil consumption per year of different consumer groups in Nay Pyi Taw Council, Myanmar
  2. To investigate the cost of edible oil consumption based on monthly expenditure and monthly income 
  3. To observe the perception for edible oil consumption and production development by different consumer groups in the study area  

METHODOLOGY

Data collection and sampling method

By using a simple random sampling method, Tatkone, Zeyarthiri, Ottarathiri, Pobbathiri, Lewe, Pyinmana, Dekkhinathiri and Zebuthiri were selected as the study areas. A research team led by the Ministry of Agriculture, Livestock and Irrigation in collaboration with the Department of Agriculture and Yezin Agricultural University conducted random interviews with a structured questionnaire to collect data on per capita consumption of a total of 457 sample respondents in eight townships in Nay Pyi Taw council area by June 2021. Based on the survey data collection, the sample edible oil consumer groups were divided into households living in urban areas as government staff, private businesses and others and households living in rural areas as rural farmers and rural landless people. The sample respondents included a total of 136 government-employed households in urban areas; a total of 114 private households and 25 households who are working as non-farm workers. In rural areas, the respondents were subdivided into rural farmers households (95 households) and a total of (87) rural landless households were subdivided from primary data collection. The number of sample households from each selected township in the study area was described in Table 1.

Sampling method

According to the survey procedure conducted in eight townships from Nay Pyi Taw Council, a systematic random sampling method with a survey questionnaire was used to select the sample household when the specified number of the complete list of targeted population (457 sampled households) was obtained as (136) government staff, (114) private sector, (25) others and (95) rural farmers and (87) rural landless farmers.

Data collection and data analysis

To study the per capita edible oil consumption in Nay Pyi Taw Council, a field survey for primary data collection was undertaken in June 2021. For the primary survey, the total sample size was 457 sample households. The survey was conducted using a face-to-face interview method for the sample households using survey questionnaires. In the interview, it was made sure that the enumerators did not influence the respondents’ answers to the questionnaire. To fulfil the objectives of the study, the survey questionnaire included farm and household characteristics, monthly income and expenditure, monthly food expense, perception for edible oil consumption, opinion for edible oil production and consumer behavior and preferable types of edible oil-based on different consumer groups. The collected data were digitally aggregated, and the outputs were entered into a pre-defined format for evaluation. Moreover, the data were analyzed via Microsoft Excel to get the results. 

RESULTS AND DISCUSSION

Demographic characteristic of sample respondents  

The number of sample respondents in eight Townships from Nay Pyi Taw Council is shown in (Figure 2). The survey was done with 457 sample respondents in Nay Pyi Taw Council and the female ratio in data collection was about 79% from these selected areas. Most of the sample respondents from urban areas were completed with graduate-level (58.91%) in all townships. The graduate-level of rural landless sample respondents and sample farmers in rural areas was 8.05% and 7.37% in the study areas.

The majority of urban consumer groups primarily worked as government staff (49.05%) and private businesses (41.45%).  In the study area, most of the rural consumer groups mainly worked in agricultural crop production and rural landless consumer groups work in off-farm and non-farm activities such as operating grocery stores, government staff and private companies’ staff, NGOs and non-farm wage labors. The average family size of sample respondents was 11 in rural consumer groups which were significantly greater than that in urban consumer groups which had only one member. The adult equal balance ratio (calculated by the number of children/3*2) from total sample respondents (457) was included 1,850 adults in the study areas of Nay Pyi Taw Council.

Per capita edible oil consumption in different consumer groups

According to Figure 3, per capita edible oil consumption was 17.75 kg per year in the study areas with the range of 49.20 kg per year and 2.95 kg per year. In such a situation, urban consumer groups consumed the highest amount of per capita edible oil consumption (19.8 kg per year) when the lowest amount of per capita edible oil consumption (16.81 kg per year) in rural landless consumer groups in the study areas.

Based on the analysis of different education levels, there were four levels of consumer groups of the study area which include primary school level, secondary school level, high school level and graduate level. Based on the comparison by different education levels for per capita edible oil consumption per year for urban consumer groups in the study areas, the result found that the highest education level (graduate level) consumed the highest amount of edible oil consumption rate (14.71 kg per year). In farmer consumer groups, the highest amount of per capita edible oil consumption rate amounted to 20.00 kg per year in the graduated level among others. Based on the result of rural landless consumer group, this consumer group who completed the secondary school level consumed the highest amount of per capita edible oil consumption rate of 20.91 kg per year. 

For the comparison of different income levels of consumer groups, there are five income levels of consumer groups with different ranges of yearly income groups such as income level 1 (X> US$3,750/year), income level 2 (US$2,812 < X ≤ US$3,750/year), income level 3 (US$2,187 < X ≤ US$2,812/year), income level 4 (US$1,375 < X ≤ US$ 2,187/year) and income level 5 (X ≤ US$1,375/year). According to the comparison by different income levels for per capita edible oil consumption per year for urban consumer groups, it is found that income level 1 (X> US$3,750/year) consumed the highest amount of edible oil consumption rate (22.56 kg per year). In farmer consumer groups, the highest amount of per capita edible oil consumption rate amounted to 21.07 kg per year in the income level 2 (US$2,812 < X ≤ US$3,750/year), compared with the income level 2 of sample rural landless consumer groups (17.76 kg per year). According to the findings, per capita edible oil consumption is not significantly different in terms of education levels but also in terms of monthly income by urban and rural consumer groups.

Ratio of edible oil cost by monthly expenditure and income

The average monthly income of urban consumer groups was US$314 which was slightly lower than the average monthly income from rural consumer groups (US$328). The lowest average monthly income was found at (US$197) by rural landless consumer groups. According to the findings for the ratio of edible oil cost by the monthly expenditure, monthly edible oil cost in urban consumer groups and farmer consumer groups were the same amount of expenditure (US$113) and rural landless consumer groups (US$87) by monthly expenditure was comparatively lower than others in the study areas.

The share of edible oil cost by the monthly expenditure of sample respondents from urban and rural consumer groups were formulated in Figure 4. About 13.09% and 14.15% of the edible oil cost by monthly expenditures by rural landless consumer groups and farmer consumer groups in the study areas were higher than that of urban consumer groups (12.34%) in the study areas. In addition, the share of edible oil cost by the monthly income of sample respondents from urban consumer groups and rural consumer groups were formulated in Figure 5. About 7.53% and 7.36% of the edible oil cost by monthly income by rural landless consumer groups and farmer consumer groups in the study areas were slightly higher proportion than that of urban consumer groups (5.28%) in the study areas. 

Perception of edible oil consumers

According to the results, more than 50% of sample respondents from urban and rural consumer groups thought that the recent amount of edible oil consumption was reasonable because of health concerns. About 40% of the sample respondents in the study townships described that the recent amount of edible oil consumption was high in the current situation. The findings indicated that the majority of sample respondents (90%) were willing to reduce the amount of edible oil consumption to lead a healthier lifestyle. In addition, the results revealed that about 30% of consumer groups consumed with a reasonable price for their preferable edible oil types. Meanwhile, the perception of edible oil type in the market were higher in urban consumer groups (65%) as compared to the rural consumer groups (50%). Based on the results, the majority of sample respondents in the study areas, fully understood the repercussions of using recycle edible oil which is not good for health. 

Regarding the most preferable five types of edible oil in the study areas, peanut oil, vegetable oil (imported), mixed oil (50:50), mixed oil (25:75) and sesame oil were prioritized among the various types of edible oils in the study areas. Based on the result, peanut oil was highly preferred by (55.00%) of urban consumer groups over rural landless consumer groups (54.02%) and farmer consumer groups (43.16%). Meanwhile, only 36% of consumer groups consumed the most preferable edible oil type (Peanut oil) recently. However, the majority of sample respondents currently consumed mixed oil at affordable prices. About nearly 20% of consumer groups in the urban and rural areas checked the nutrition information (e.g. fat content) and FDA certificate before buying in the market. 

About 50% of consumer groups in the study areas are willing to change the type of edible oil when they could increase their family income in the future. The most preferable type of edible oil in these areas is peanut oil which is domestically produced oil. About 90% of sample respondents in the study areas highly propose to develop the edible oil sector, which revealed that edible oil crop production should adhere to good agricultural practices, and there is a need to develop edible oil production and processing by supporting the small and medium enterprise business sector. In addition, more than 80% of consumer groups in urban and rural areas are willing to prevent the imported oils from other countries.

CONCLUSION AND RECOMMENDATION

This study was an attempt to describe per capita edible oil consumption per year in different consumer groups in eight townships, Nay Pyi Taw Council in June 2021. The findings of per capita edible oil consumption per year in the study townships from Nay Pyi Taw Council is a useful way of measuring edible oil consumption rate and consumer behavior thus strengthening to improve the processing and production of the edible oil sector. The result reveals that per capita edible oil consumption per year of sample consumers is a relatively higher amount (17.75 kg per year) in the study area comparing with the per capita edible oil consumption for the total population of Myanmar (9.2 kg in 2001 according to the CSO annual report, various year). Majority of consumer groups prefer to reduce the consumption amount of edible oil in health concerns and are willing to change the type of edible oil if the price would be affordable and reasonable. Domestically produced peanut oil is the most preferable edible oil type among various types of edible oils in the study areas. The minority of consumer groups checked the nutrient content and FDA certification before buying the product. The average monthly edible oil cost in urban and rural consumer groups was higher than that in rural landless consumer groups. In addition, the share of edible oil cost by the monthly income of rural landless and rural consumer groups in the study areas was a slightly higher proportion than that of urban consumer groups. Therefore, 12% of expenses from total monthly expenditure comes to edible oil cost and 5% of expenses from total monthly income costs for edible oil consumption. Based on the findings, the least amount of monthly expense for edible oil cost formulated the least amount of monthly income for these consumer groups. The quality and various types of edible oil in the market are low quality and relatively high price in the domestic market. However, the majority of consumer groups are with high expectation on improving edible oil crop production and processing, and on the support for small and medium enterprises of the edible oil production sectors to produce high-quality edible oil in the domestic market.

Therefore, based on the findings of this study, the following policy measures are recommended for the government: to ensure the safety and quality of marketed edible oil, to facilitate capacity building training for producers, importers and consumers concerning safety and quality control, to formulate the technology transfer on edible oil crop production and processing to produce healthy edible oil, to support high yield edible oil crop varieties, to adjust development strategies for domestic market opportunities and to achieve self-sufficiency in edible oils production. However, there is still a need to do several types of research related to edible oil crop types of production and its quality, per capita edible oil consumption and edible oil self-sufficiency to cover different regions in the country, the domestic market potential of edible oil production, and supply chain analysis aiming to the development of the edible sector in Myanmar.

REFERENCES

US Department of Agriculture; USDA Foreign Agricultural Service, January 2021, https://www.statista.com/statistics/263937/vegetable-oils-global-consumption/

CSO (Central Statistical Organization), Agriculture Statistics (1992-93 to 2004-2005), Central Statistical Organization, Yangon, Myanmar

Raphy Favre, Kyaw Myint (2009): An Analysis of the Myanmar Edible oil crops sub-sectors. Rural infrastructure and agroindustry division (AGS) food and agriculture organization (FAO) of the United Nations Rome,2009.

Comment