Received: 09-08-2013
Accepted: 21-11-2013
DOI:
Views
Downloads
How to Cite:
RICE CONTRACT FARMING – THE POTENTIAL KEY TO IMPROVE RICE GROWERS’ INCOME:A FARM LEVEL STUDY IN AN GIANG PROVINCE
,
Ikuo TAKEUCHI
4
,
Do Van Hoang
6
Keywords
Economic performance, profitability of rice production, rice contract farming, rice households’ characteristics
Abstract
This paper compares profitability of rice production between contract and non-contract farmers in An Giang province of the Mekong delta in order to measure the role of contract farming in economic performance of rice growers. The present paper also analyzes households’ characteristics associated with participation in rice contract farming and explores constraints to contract farming practice by farmers’ perspective. The findings showedthat contract farmers are likely to get significantly higher net returnthan non-contract farmers but their production costs are also much higher; particularly, labor cost is remarkably higher. We also found not a few evidences that there is a sharp association of joining farmer’s organizations with participation in rice contract farming, large farmers and farmers residing in favorable location are more likely to be selected for contract participation, implying that small farmers will be marginalized in the contract scheme.
References
Arumugam, N., Fatimah M.A., Chew E.F.C., Zainalabidin M. (2010). Supply chain analysis of fresh fruit and vegetables (FFV): Prospects of contract farming. Czech Journal of Agricultural Economics 56 (9): 435-442.
Arumugam, N., Fatimah M.A., Chew E.F.C., Zainalabidin M. (2011). Determinants of fresh friut and vagetable (FFV) farmers’ participation in contract framing in Penisular Malaysia. Internationl Journal of Agricultural Management & Development. 1 (1): 65-71.
Bolwig, S., Gibbon P., Jones S. (2009), Theeconomics of smallholder organic contract farming in tropical Africa. World Development 37 (6): 1094-1104.
DOC or Department of Cultivation of Ministry of Agriculture and Rural Development (2012). Report on application of “large-scale paddy field” to rice production of the whole nation in Summer- Autumn 2011 crop and Winter-Spring 2012 crop and development orientation for next years. Hanoi, Vietnam. pp.16.
Dodamani, M.T., Kunal L.B. (2010). An economics analysis of contract farming of organically produced, natural cotton in Karnataka. Agriculture Update 5 (1-2): 11-16.
Eaton, C., Shepherd A.W. (2001). Contract farming: Partnerships for growth. FAO agricultural services bulletin 145, Rome, Italy. pp.182.
GSO or General Statistics Office (2012). Statistical yearbook of Vietnam in 2011. Statistical Publishing House. Hanoi, Vietnam. pp.876.
Kristen, J., Sartorius K. (2002). Linking agribusiness and small-scale farmers: is there a new role for contract farming. Development Southern Africa 19 (4): 504-529
Kumar, J., Prakash K.K. (2008). Contract farming: Problems, prospects and its effect on income and employment. Agricultural Economics Review 2: 243-250
MARD (Ministry of Agriculture and Rural Development) (2008). Final report on 5 years of enforcement of the Decision No.80/QĐ-TTg on encouraging and promoting farm products producing and trading via contract. Hanoi, Vietnam. pp.16.
Minot, N. W. (1986). Contract farming and its effect on small farmers in less developed countries. Working Paper No.31. Deparment of Agricultural Economics, Michigan Sate University. pp.100.
Miyata, S., Minot N., Hu D. (2009). Impact of contract farming on income: Linking small farmers, packers, and supermarkets in China. World Development 37 (11): 1781-1790.
MP4 or Making Markets Work Better for the Poor (2005). 30 cases of contract farming: an analytical overview. Asian Development Bank Viet Nam Resident Mission. Hanoi, Vietnam. pp.164
Nhan, T.Q., Takeuchi I. (2012). Analyzing causes of failure in contract farming enforcement between farmer and entrepreneur in Vietnam. Journal of Science and Development 10(7): 1069-1077
Pha, D.N. (2011). Linkage models of rice production and application of “large rice field” in An Giang province presented at Vietnam Rice Festival. Soc Trang, Vietnam. pp.4, (in Vietnamese).
Rehber, E. (1998). Vertical integration in agriculture and contract farming. Working Paper No. 46. Faculty of Agriculture, Uludag University, Barsa, Turkey, pp. 33.
Roberts, M., N.T. Khiem (2005). contractand rice quality in value chain of rice supplyin An Giang province, Vietnam. In: linking farmers to market through contract farming. Presentation submitted at MP4 workshop/ An Giang University, ADB. pp. 58.
Sanh, N.V., Can N.D., Tu V.H., Hoang D.V. (2011). Analysis and assessment of “four- house” relationship and recommending solutions for the Mekong rice production and distribution under the context of international economy integration. Finally scientific report submitted to Vietnamese Ministry of Education and Training. Cantho, Vietnam. pp.63, (in Vietnamese, with abstract in English).
Schipmann, C., Qaim M. (2011). Supply chain differentiation, contract agriculture, and farmers’ marketing preferences: The case of sweet pepper in Thailand. Food Policy 36: 667-677.
Senthinathan, S., Govindaraj S., Chandrasekaran M. (2010). Economic analysis of production and marketing of cotton under contract and non-contract farming: A case study in Tamil Nadu. Madras Agricultural Journal. 97 (10-12): 411-414.
Tripathi, R.S., Singh R., Singh S. (2005). Contract farming in potato production: An alternative for managing risk and uncertainty. Agricultural Economics Research Review 18 (Conference No.): 47-60.
UBND Vinh Nhuan, or Vinh Nhuan commune people’s committee (2011). Final report of agricultural production in 2011 and agricultural production planning in 2012. Vinh Nhuan commune, An Giang province, Vietnam. pp.9, (in Vietnamese).