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Assessing the Sustainability Performance of Coffee Farms in Vietnam: A Social Profit Inefficiency Approach

Author

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  • Daniel Gaitán-Cremaschi

    (Business Economics Group, Wageningen University & Research, PO Box 47, 6700 AA Wageningen, The Netherlands
    Current address: Farming Systems Ecology Group, Wageningen University & Research, PO Box 430 6700 AK, Wageningen, The Netherlands.)

  • Frits K. Van Evert

    (Agrosystems Research, Wageningen University & Research, PO Box 16, 6700 AA Wageningen, The Netherlands)

  • Don M. Jansen

    (Agrosystems Research, Wageningen University & Research, PO Box 16, 6700 AA Wageningen, The Netherlands
    Current address: Agri-Logic, Bennekomseweg 45 6866 DB, Heelsum, The Netherlands.)

  • Miranda P. M. Meuwissen

    (Business Economics Group, Wageningen University & Research, PO Box 47, 6700 AA Wageningen, The Netherlands)

  • Alfons G. J. M. Oude Lansink

    (Business Economics Group, Wageningen University & Research, PO Box 47, 6700 AA Wageningen, The Netherlands)

Abstract

If we aim to increase the sustainability of farming, we must be able to measure the sustainability of individual farms and relate this sustainability to the characteristics of the farm and its management. We hypothesized that (i) sustainability can be expressed using social profit, and (ii) socio-economic characteristics and management practices of farms explain differences in sustainability. The objective of our work was to provide empirical evidence for these hypotheses. Data was collected data over two years from 361 coffee farms in Vietnam to calculate social profit. We found that the average social profit of farms was 2300 USD. The main source of social profit inefficiency is the sub-optimal allocation of resources and levels of production. Statistical association between the set of socio-economic characteristics and management practices and social profit inefficiency shows that social profit inefficiency is increased (sustainability is decreased) by larger distances from the coffee farm to the closest town/city center and to the closest coffee factory/traders and by a high frequency of spraying. On the other hand, sustainability is increased when coffee producers belong to the ethnic group JoRai, when using more hired labor and frequency, and when there are a larger number of fertilizing and pruning activities. We conclude that social profit inefficiency can be used to summarize sustainability.

Suggested Citation

  • Daniel Gaitán-Cremaschi & Frits K. Van Evert & Don M. Jansen & Miranda P. M. Meuwissen & Alfons G. J. M. Oude Lansink, 2018. "Assessing the Sustainability Performance of Coffee Farms in Vietnam: A Social Profit Inefficiency Approach," Sustainability, MDPI, vol. 10(11), pages 1-23, November.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:11:p:4227-:d:183236
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    Cited by:

    1. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    2. Nguyen Hung Anh & Wolfgang Bokelmann & Do Thi Nga & Nguyen Van Minh, 2019. "Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam," Economies, MDPI, vol. 7(3), pages 1-25, July.
    3. David Israel Contreras-Medina & Luis Miguel Contreras-Medina & Joaliné Pardo-Nuñez & Luis Alberto Olvera-Vargas & Carlos Mario Rodriguez-Peralta, 2020. "Roadmapping as a Driver for Knowledge Creation: A Proposal for Improving Sustainable Practices in the Coffee Supply Chain from Chiapas, Mexico, Using Emerging Technologies," Sustainability, MDPI, vol. 12(14), pages 1-26, July.
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