Due to Myanmar's economic crisis, the Korean factory in Yangon has stopped working

-
Due to the impact of the current economic crisis in Myanmar, South Korea-based CJ FEED Myanmar has announced that it will temporarily suspend the production and sale of animal feed and chicks in Yangon starting May 28.

Due to the current economic crisis, transactions have become difficult. raw material cost increases; He said that he is facing difficulties in obtaining raw materials and insufficient manpower to operate the business.

A livestock entrepreneur told RFA that although the domestic economic crisis has affected foreign investment companies, domestic animal feed production may not have a major impact.

"In the country, all entrepreneurs are facing this situation regarding business. Although CJ FEED has stopped now, there are still many other feed manufacturing companies in the country. As far as livestock is concerned, this has not yet had a huge impact on food production.”

CJ FEED Myanmar's business reopening time has not been officially announced yet.

CJ FEED Group based in Korea is China, including Myanmar. Vietnam Indonesia Philippines We operate animal feed production and breeding in 15 countries, including Cambodia.

According to the Japan-based Nikkei Group, which reports business information, CJ FEED Myanmar started operating with an investment of more than 16 million US dollars in 2017.

All industrial zones across the country only get electricity for two hours a day

Industrialists told RFA that since May 19, all industrial zones throughout Myanmar have only received electricity for two hours a day.

He said that he was informed through the relevant township electricity offices that all industrial zones will only get electricity for two hours from 5 am to 7 am.

An industrialist in Yangon told RFA that if there is no electricity, when running on diesel fuel, production costs may rise and prices may rise.

"I was informed that the industrial zones will be given only at such a time. So we have to run with diesel. When running on diesel, the cost of manufacturing the finished product will be higher. With such a rise, the prices of goods will rise more than before. This is a situation that all industrial zones will have to face."

An official from Yangon's township electricity office told RFA that due to the lack of electricity, the factory owners were informed that they would only provide electricity for 2 hours a day in order to supply water to the industrial zones.

General Min Aung Hlaing, the Chairman of the Military Council, said that the need for electricity is the biggest challenge, so we are working to get enough electricity by 2025. He said at the military council meeting held in Nay Pyi Taw on January 27.

More than a year later, 2024 On May 1, the Ministry of Military Council of Electricity announced that although the country's electricity demand is about 5500 megawatts, in practice, only 2800 megawatts can be produced on average per day, so that only 50% of the country's electricity needs can be supplied.