Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam

This study attempts to uncover the truth behind an increasing number of smallholder farmers participating in sustainable coffee farming in Vietnam. Using stochastic frontier and cost-benefit analysis, a sample of 316 smallholder farmers in Dak Lak was chosen to analyze the economic impacts of sustai...

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Main Authors: Nguyen Hung Anh, Wolfgang Bokelmann, Do Thi Nga, Nguyen Van Minh
Format: Article
Language:English
Published: MDPI AG 2019-07-01
Series:Economies
Subjects:
Online Access:https://www.mdpi.com/2227-7099/7/3/66
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author Nguyen Hung Anh
Wolfgang Bokelmann
Do Thi Nga
Nguyen Van Minh
author_facet Nguyen Hung Anh
Wolfgang Bokelmann
Do Thi Nga
Nguyen Van Minh
author_sort Nguyen Hung Anh
collection DOAJ
description This study attempts to uncover the truth behind an increasing number of smallholder farmers participating in sustainable coffee farming in Vietnam. Using stochastic frontier and cost-benefit analysis, a sample of 316 smallholder farmers in Dak Lak was chosen to analyze the economic impacts of sustainable and conventional coffee farming on farmers’ welfare. In addition, we conducted field observation and key informant interviews to describe several farming practices. The results highlight the fact that farmers’ decisions to participate in sustainable coffee farming are mainly driven by economic benefits. Sustainable farming is more cost-effective and profitable than conventional farming, despite the insignificant difference in production efficiency. Improvement of education, farming knowledge, and collective actions could mitigate negative effects of small-scale production for sustainable coffee farmers. Pesticide management, shade coffee encouragement, and reduction of excessive fertilization, over-irrigation, and unproductive coffee varieties are recommended for sustainable development of the sector.
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spelling doaj.art-1ffb5fbace5648c496acdadd0a9251cd2022-12-22T04:20:17ZengMDPI AGEconomies2227-70992019-07-01736610.3390/economies7030066economies7030066Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in VietnamNguyen Hung Anh0Wolfgang Bokelmann1Do Thi Nga2Nguyen Van Minh3Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10115 Berlin, GermanyDepartment of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10115 Berlin, GermanyFaculty of Economics, Tay Nguyen University; Dak Lak 630000, VietnamFaculty of Agriculture and Forestry, Tay Nguyen University, Dak Lak 630000, VietnamThis study attempts to uncover the truth behind an increasing number of smallholder farmers participating in sustainable coffee farming in Vietnam. Using stochastic frontier and cost-benefit analysis, a sample of 316 smallholder farmers in Dak Lak was chosen to analyze the economic impacts of sustainable and conventional coffee farming on farmers’ welfare. In addition, we conducted field observation and key informant interviews to describe several farming practices. The results highlight the fact that farmers’ decisions to participate in sustainable coffee farming are mainly driven by economic benefits. Sustainable farming is more cost-effective and profitable than conventional farming, despite the insignificant difference in production efficiency. Improvement of education, farming knowledge, and collective actions could mitigate negative effects of small-scale production for sustainable coffee farmers. Pesticide management, shade coffee encouragement, and reduction of excessive fertilization, over-irrigation, and unproductive coffee varieties are recommended for sustainable development of the sector.https://www.mdpi.com/2227-7099/7/3/66sustainableconventionalsmallholder farmertechnical efficiencystochastic frontier
spellingShingle Nguyen Hung Anh
Wolfgang Bokelmann
Do Thi Nga
Nguyen Van Minh
Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
Economies
sustainable
conventional
smallholder farmer
technical efficiency
stochastic frontier
title Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
title_full Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
title_fullStr Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
title_full_unstemmed Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
title_short Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam
title_sort toward sustainability or efficiency the case of smallholder coffee farmers in vietnam
topic sustainable
conventional
smallholder farmer
technical efficiency
stochastic frontier
url https://www.mdpi.com/2227-7099/7/3/66
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AT nguyenvanminh towardsustainabilityorefficiencythecaseofsmallholdercoffeefarmersinvietnam