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Coffee Boom, Coffee Bust and Smallholder Response in Vietnam’s Central Highlands

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  • Dang Thanh Ha
  • Gerald Shively

Abstract

This paper studies the recent boom and bust in Vietnam’s coffee economy. Data from smallholder coffee farms in the Central Highlands are used to examine responses to a drop in producer coffee prices. A multinomial logistic regression model is used to identify several factors associated with four specific patterns observed among coffee farmers: no response to price change, reductions in use of purchased inputs, changes in crop mix, and responses aimed at enhancing liquidity through off‐farm work or borrowing. Patterns of response are shown to have differed systematically across sub‐groups of smallholders. Policy implications raised by the findings are discussed.

Suggested Citation

  • Dang Thanh Ha & Gerald Shively, 2008. "Coffee Boom, Coffee Bust and Smallholder Response in Vietnam’s Central Highlands," Review of Development Economics, Wiley Blackwell, vol. 12(2), pages 312-326, May.
    • Handle: RePEc:bla:rdevec:v:12:y:2008:i:2:p:312-326
    DOI: 10.1111/j.1467-9361.2007.00391.x
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    References listed on IDEAS

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    1. Mehta, Aashish & Chavas, Jean-Paul, 2008. "Responding to the coffee crisis: What can we learn from price dynamics?," Journal of Development Economics, Elsevier, vol. 85(1-2), pages 282-311, February.
    2. Unknown, 2000. "Policy Harmonization and Adjustment in the North American Agricultural and Food Industry," Proceedings of the 5th Agricultural and Food Policy Systems Information Workshop, 1999: Policy Harmonization and Adjustment in the North American Agricultural and Food Industry 252446, Farm Foundation, Agricultural and Food Policy Systems Information Workshops.
    3. World Bank, 2004. "The Socialist Republic of Vietnam : Coffee Sector Report," World Bank Publications - Reports 14405, The World Bank Group.
    4. Varangis, Panos & Siegel, Paul & Giovannucci, Daniele & Lewin, Bryan, 2003. "Dealing with the coffee crisis in Central America - impacts and strategies," Policy Research Working Paper Series 2993, The World Bank.
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    3. Mitsuru Igami, 2015. "Market Power in International Commodity Trade: The Case of Coffee," Journal of Industrial Economics, Wiley Blackwell, vol. 63(2), pages 225-248, June.
    4. Fukase, Emiko, 2013. "Foreign job opportunities and internal migration in Vietnam," Policy Research Working Paper Series 6420, The World Bank.
    5. Suraya A. Afiff, 2014. "Engineering the Jatropha Hype in Indonesia," Sustainability, MDPI, vol. 6(4), pages 1-19, April.
    6. Emiliano Magrini & Pierluigi Montalbano, 2012. "Trade openness and vulnerability to poverty: Vietnam in the long-run (1992-2008)," Working Paper Series 3512, Department of Economics, University of Sussex Business School.
    7. Barbier, Edward B., 2013. "Structural change, dualism and economic development : the role of the vulnerable poor on marginal lands," Policy Research Working Paper Series 6456, The World Bank.
    8. Emiko Fukase, 2014. "Job Opportunities in Foreign Firms and Internal Migration in Vietnam," Asian Economic Journal, East Asian Economic Association, vol. 28(3), pages 279-299, September.
    9. Ghoshray, Atanu, 2022. "Trends and persistence of farm-gate coffee prices around the world," 96th Annual Conference, April 4-6, 2022, K U Leuven, Belgium 321166, Agricultural Economics Society - AES.
    10. Yan, Ruhe & Zinda, John Aloysius & Ke, Shuifa, 2020. "Designating tree crops as forest: Land competition and livelihood effects mediate tree crops impact on natural forest cover in south China," Land Use Policy, Elsevier, vol. 96(C).
    11. Clément, Rigal & Tuan, Duong & Cuong, Vo & Le Van, Bon & Trung, Hoang quôc & Long, Chau Thi Minh, 2023. "Transitioning from Monoculture to Mixed Cropping Systems: The Case of Coffee, Pepper, and Fruit Trees in Vietnam," Ecological Economics, Elsevier, vol. 214(C).
    12. Phan Thi Thuy & Le Duc Niem & Thi Minh Hop Ho & Philippe Burny & Philippe Lebailly, 2018. "Economic Analysis of Perennial Crop Systems in Dak Lak Province, Vietnam," Sustainability, MDPI, vol. 11(1), pages 1-14, December.
    13. Jiping Wang & Jun He, 2024. "Livelihood resilience in context of crop booms: insights from Southwest China," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 41(4), pages 1755-1772, December.
    14. Rios, Ana R. & Shively, Gerald E., 2005. "Farm size and nonparametric efficiency measurements for coffee farms in Vietnam," 2005 Annual meeting, July 24-27, Providence, RI 19159, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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