Contract farming in a conflict zone : a case study of Mansi township, Kachin State, Myanmar

Abstract

Farmers from Mansi Township under KIO-controlled area have been doing sugarcane contract farming under China’s Opium Substitution Programme since 2005 up until the present. The main thesis question is: what are the opportunities and challenges for sugarcane contract farming in Mansi Township under China’s Opium Substitution Programme, in terms of improving farmer livelihoods and enabling peaceful development? The thesis is based on both qualitative and descriptive statistical research that involved focus group discussions, key informant interviews, in-depth interviews, and semi-structured interviews. The thesis finds that there have been major development changes in the Mansi Township Kachin-China border in terms of infrastructure, migration, socio-economic conditions, farming land, and the political system. Regarding the results of contract farming, there have been both positive and negative impacts on farmers and on the whole border area. For instance, farmers have had access to better social and economic conditions since sugarcane production began, but face some significant negative impacts on their health and the level of soil degradation. This situation presents a dilemma to farmers; although currently sugarcane farming is not satisfying, there is a very limited choice of future livelihood opportunities and going back to the past is not favourable since there was not enough income. The thesis is framed by the ceasefire capitalism concept, which was a process of state building by the central government with Chinese agricultural investment under China’s Opium Substitution Programme. However, the Mansi Township area on the border with China area is controlled by KIO and has its own way to approach state building under Chinese investment, which has encouraged farmers’ livelihoods. Due to conflict breaking out in 2011, farming is under the pressure of conflict. However, currently the area is peaceful as there is a constant relationship between Chinese and Myanmar, even though it is not sure to remain peaceful. Overall, the status of sugarcane contract farming in Mansi Township clearly offers great benefits to farmers. Nevertheless, many costs remain for farmers and there are security concerns for the whole border. Moreover, the thesis shows that farmers’ livelihoods and peace are the most important and interconnecting factors that create challenges and opportunities both under the current conflict situation as well as if there were to be a new ceasefire again in the future.