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Rice market participation and channels of sale in rural Vietnam


  • Cazzuffi, Chiara
  • McKay, Andrew


This paper contributes to the existing literature on agricultural commercialisation by focussing on the channels through which households sell their crops, as well as considering the determinants of their participation behaviour. An important innovation of this paper is to look at both the type of purchaser households use (trader or other household) and the location of sale (farmgate or not). We study these issues for the case of Vietnam, which over time has achieved an impressive success in agricultural commercialisation, and in relation to rice, drawing on data from a detailed rural panel survey for 2006, 2008 and 2010. We find that household asset endowments and access to public goods such as transport infrastructure significantly increase the probability of selling rice. We also find that larger scale of production and low transport costs are significant determinants of the probability of using more established channels of sale, such as traders or enterprises. Wealthier farmers are more likely to sell via this channel, but not if the quantity they produce is large, which is consistent with their better ability to meet costs for reaching more remunerative marketing opportunities. With respect to location of sales, we find that wealthier households with access to phones and own means of transport, but also households located in areas where transport infrastructure is less developed, are less likely to sell at the farmgate.

Suggested Citation

  • Cazzuffi, Chiara & McKay, Andrew, 2012. "Rice market participation and channels of sale in rural Vietnam," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126566, International Association of Agricultural Economists.
  • Handle: RePEc:ags:iaae12:126566

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    References listed on IDEAS

    1. Marcel Fafchamps & Ruth Vargas Hill, 2005. "Selling at the Farmgate or Traveling to Market," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 87(3), pages 717-734.
    2. Ann Harrison, 2007. "Globalization and Poverty," NBER Books, National Bureau of Economic Research, Inc, number harr06-1, January.
    3. Nigel Key & Elisabeth Sadoulet & Alain De Janvry, 2000. "Transactions Costs and Agricultural Household Supply Response," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(2), pages 245-259.
    4. Emily Ouma & John Jagwe & Gideon Aiko Obare & Steffen Abele, 2010. "Determinants of smallholder farmers' participation in banana markets in Central Africa: the role of transaction costs," Agricultural Economics, International Association of Agricultural Economists, vol. 41(2), pages 111-122, March.
    5. Barrett, Christopher B., 2008. "Smallholder market participation: Concepts and evidence from eastern and southern Africa," Food Policy, Elsevier, vol. 33(4), pages 299-317, August.
    6. von Braun, Joachim, 1995. "Agricultural commercialization: impacts on income and nutrition and implications for policy," Food Policy, Elsevier, vol. 20(3), pages 187-202, June.
    7. Heltberg, R. & Tarp, F., 2002. "Agricultural supply response and poverty in Mozambique," Food Policy, Elsevier, vol. 27(2), pages 103-124, April.
    8. Alene, Arega D. & Manyong, V.M. & Omanya, G. & Mignouna, H.D. & Bokanga, M. & Odhiambo, G., 2008. "Smallholder market participation under transactions costs: Maize supply and fertilizer demand in Kenya," Food Policy, Elsevier, vol. 33(4), pages 318-328, August.
    9. Pingali, Prabhu L. & Rosegrant, Mark W., 1995. "Agricultural commercialization and diversification: processes and policies," Food Policy, Elsevier, vol. 20(3), pages 171-185, June.
    10. C. Peter Timmer, 1997. "Farmers and Markets: The Political Economy of New Paradigms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(2), pages 621-627.
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    Cited by:

    1. McKay Andrew & Cazzufi Chiara & Perge Emelie, 2015. "Commercialization in agriculture in rural Viet Nam, 2006-14," WIDER Working Paper Series 096, World Institute for Development Economic Research (UNU-WIDER).

    More about this item


    Agriculture; Market participation; Rice; Transactions costs; Vietnam.; Agricultural and Food Policy; Community/Rural/Urban Development; Consumer/Household Economics; Crop Production/Industries; International Development; Marketing; O13; Q12; Q13;

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q13 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Markets and Marketing; Cooperatives; Agribusiness

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