Kitchen Hub

Kitchen Hub is the first ever food incubator in Myanmar providing facilities to develop or manufacture food products and programs to start or scale up the businesses of food entrepreneurs. The agricultural sector contributes to some 40 percent of gross domestic product (GDP), accounts for 25 to 30% of total export earnings and employs 70% of the labour force. The Shan State is a region with high potential in agriculture. However, at present the lack of proper logistics and fragmented value chains make it difficult to link the supply and demand for many products. In harvesting season, the prices for fruits and vegetables are minimal making it often not viable even to bring them to the market and a lot of the produce if lost. Also, there is a lack of local companies that are able to increase the added value of agricultural products in the Shan State. Therefore, a large potential for value addition, job creation and development are not utilized. The modern retail sector in Myanmar is currently developing, changing the market for fresh produce as well as for processed food. This development opens new opportunities for food processing companies as retailers are expanding their local sourcing for food products and are very interested in locally processed food. However, in order to successfully become a supplier of modern retail, food safety and quality standards are to be applied. Local MSME food producers often lack the respective know-how and technology deterring them from becoming a supplier. Impact Hub Yangon and GIZ are brining an establishment of a Kitchen Hub in Taunggyi, Shan State. The hub is intended to be a market space where start-ups and MSMEs in the food processing sector can develop and test new products in a food laboratory. The small batch processing unit of the Kitchen Hub allows such start-ups and MSMEs to produce small batches of marketable products with all the required certification. An employed food consultant provides advisory services and know-how for the entrepreneurs. The facility will also be used to run capacity development, incubation and acceleration programs. The Kitchen Hub will provide a co-working space, training facilities as well as a small food lab for product development and a simple production facility for small batch production.