IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v10y2022i12p306-d990443.html

Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta

Author

Listed:
  • Nhan Quoc Tran

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Thong Van Ngo

    (Hau Giang Center for Agricultural Extension and Services, Vi Thanh City 911080, Vietnam)

  • Nay Van Nguyen

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Thanh Ngoc Duong

    (Mekong Delta Development Research Institute, Can Tho University, Can Tho City 270000, Vietnam)

  • Can Duy Nguyen

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Tu Duong Quach

    (College of Economics, Can Tho University, Can Tho City 270000, Vietnam)

  • De Van Le

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

Abstract

The major goal of this study is to examine the impact of agricultural cooperative membership on the net return on production cost (ROC). The data used for the study were gathered from 233 rice farmers in the central Mekong River Delta’s province of Hau Giang, Vietnam. Propensity score matching and two-step Heckman selection models were employed to account for possible selection bias stemming from systematically different observable and unobservable attributes between cooperative members and non-members. The findings reveal that cooperative membership has a positive and statistically significant impact on rice farmers’ ROC, suggesting that agricultural cooperatives could help increase the profitability of rice farms.

Suggested Citation

  • Nhan Quoc Tran & Thong Van Ngo & Nay Van Nguyen & Thanh Ngoc Duong & Can Duy Nguyen & Tu Duong Quach & De Van Le, 2022. "Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta," Economies, MDPI, vol. 10(12), pages 1-15, December.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:12:p:306-:d:990443
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/10/12/306/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/10/12/306/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lei Deng & Lei Chen & Jingjie Zhao & Ruimei Wang, 2021. "Comparative analysis on environmental and economic performance of agricultural cooperatives and smallholder farmers: The case of grape production in Hebei, China," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-19, January.
    2. Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    3. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    4. Meike Wollni & Manfred Zeller, 2007. "Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica1," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 243-248, September.
    5. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    6. Shumeta, Zekarias & D'Haese, Marijke, . "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oratilwe Penwell Mokoena & Thembelihle Sam Ntuli & Tshepo Ramarumo & Solly Matshonisa Seeletse, 2023. "Sustainability of Rural Small-Scale Farmers Using a Thematic Content-Fed Analytic Hierarchy Process," Sustainability, MDPI, vol. 15(15), pages 1-22, August.
    2. Utomo, Raden Priyo & Kuleh, Yohanes & Darma, Dio Caisar, 2023. "Conventional vs modern: which approach is better for the success of agricultural cooperatives?," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pierre Chollet & Geoffroy Enjolras & Iciar Pavez & Louis‐Antoine Saïsset, 2026. "The sustainability performance of agricultural cooperatives: A systematic literature review," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 97(2), pages 321-367, June.
    2. Lei Wu & Chuanjian Li & Yang Gao, 2022. "Regional agricultural cooperatives and subjective wellbeing of rural households in China," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(S2), pages 138-158, November.
    3. Jasper GRASHUIS & Ye SU, 2019. "A Review Of The Empirical Literature On Farmer Cooperatives: Performance, Ownership And Governance, Finance, And Member Attitude," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 90(1), pages 77-102, March.
    4. Abebayehu Girma Geffersa, 2024. "Agricultural cooperative membership and welfare of maize farmers in Ethiopia: Insights from panel data analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(4), pages 1223-1250, December.
    5. Xin Deng & Lingzhi Zhang & Rong Xu & Miao Zeng & Qiang He & Dingde Xu & Yanbin Qi, 2022. "Do Cooperatives Affect Groundwater Protection? Evidence from Rural China," Agriculture, MDPI, vol. 12(7), pages 1-14, July.
    6. Wanglin Ma & Sanghyun Hong & W. Robert Reed & Jianhua Duan & Phong Luu, 2023. "Yield effects of agricultural cooperative membership in developing countries: A meta‐analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 761-780, September.
    7. Eric Ofori & Gabriel S Sampson & Jessie Vipham, 2019. "The effects of agricultural cooperatives on smallholder livelihoods and agricultural performance in Cambodia," Natural Resources Forum, Blackwell Publishing, vol. 43(4), pages 218-229, November.
    8. Kassoum Ayouba & Chloé Duvivier & Claire Bussière, 2025. "Does agricultural cooperative membership improve farm productive performance? A meta‐regression analysis," Agricultural Economics, International Association of Agricultural Economists, vol. 56(1), pages 45-72, January.
    9. Wanglin Ma & Hongyun Zheng & Yueji Zhu & Jianling Qi, 2022. "Effects of cooperative membership on financial performance of banana farmers in China: A heterogeneous analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(1), pages 5-27, March.
    10. Kifle T. Sebhatu & Fatemeh Taheri & Tekeste Berhanu & Miet Maertens & Steven Van Passel & Marijke D'Haese, 2021. "Beyond focus: Exploring variability of service provision of agricultural cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 92(2), pages 207-231, June.
    11. Kumse, Kaittisak & Suzuki, Nobuhiro & Sato, Takeshi & Demont, Matty, 2021. "The spillover effect of direct competition between marketing cooperatives and private intermediaries: Evidence from the Thai rice value chain," Food Policy, Elsevier, vol. 101(C).
    12. Fang Wu & Xibao Guo & Xia Guo, 2023. "Cooperative membership and new technology adoption of family farms: Evidence from China," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 94(3), pages 719-739, September.
    13. Hery Toiba & Moh Shadiqur Rahman & Rachman Hartono & Dwi Retnoningsih, 2024. "Improving dairy farmers’ welfare in Indonesia: Does cooperative membership matter?," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 95(4), pages 1003-1019, December.
    14. Ma, Wanglin & Renwick, Alan & Yuan, Peng & Ratna, Nazmun, 2018. "Agricultural cooperative membership and technical efficiency of apple farmers in China: An analysis accounting for selectivity bias," Food Policy, Elsevier, vol. 81(C), pages 122-132.
    15. Hao, Jinghui & Bijman, Jos & Gardebroek, Cornelis & Heerink, Nico & Heijman, Wim & Huo, Xuexi, 2018. "Cooperative membership and farmers’ choice of marketing channels – Evidence from apple farmers in Shaanxi and Shandong Provinces, China," Food Policy, Elsevier, vol. 74(C), pages 53-64.
    16. Abebayehu Girma Geffersa & Md. Monirul Islam, 2026. "Beyond subsistence? The role of rural cooperatives in driving smallholder commercialization in Ethiopia," Agribusiness, John Wiley & Sons, Ltd., vol. 42(1), pages 271-295, January.
    17. Daniel Adu Ankrah & Bright Owusu Asante & Stephen Prah & Forster K. Boateng, 2024. "Impact of digital financial inclusion on the participation in farmer‐based organisations, structured market and off‐farm work in Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 36(2), pages 1254-1273, March.
    18. Ahmet Candemir & Sabine Duvaleix & Laure Latruffe, 2021. "Agricultural Cooperatives And Farm Sustainability – A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(4), pages 1118-1144, September.
    19. Rui Chen & Nawab Khan & Shemei Zhang, 2022. "Policy Evaluation of Demonstration Cooperative Construction: Evidence from Sichuan Province, China," IJERPH, MDPI, vol. 19(19), pages 1-22, September.
    20. Haodong Luo & Youtian Fan & Xuefeng Hu, 2025. "Impact of Rural Industrial Integration on Rural Air Quality: Evidence from Prefecture-Level Cities in China," Sustainability, MDPI, vol. 17(16), pages 1-21, August.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jecomi:v:10:y:2022:i:12:p:306-:d:990443. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager The email address of this maintainer does not seem to be valid anymore. Please ask MDPI Indexing Manager to update the entry or send us the correct address (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.