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

Author

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  • Nguyen Hung Anh

    (Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10115 Berlin, Germany)

  • Wolfgang Bokelmann

    (Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10115 Berlin, Germany)

  • Do Thi Nga

    (Faculty of Economics, Tay Nguyen University; Dak Lak 630000, Vietnam)

  • Nguyen Van Minh

    (Faculty of Agriculture and Forestry, Tay Nguyen University, Dak Lak 630000, Vietnam)

Abstract

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.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jecomi:v:7:y:2019:i:3:p:66-:d:245641
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