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

1
Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10115 Berlin, Germany
2
Faculty of Economics, Tay Nguyen University; Dak Lak 630000, Vietnam
3
Faculty of Agriculture and Forestry, Tay Nguyen University, Dak Lak 630000, Vietnam
*
Author to whom correspondence should be addressed.
Economies 2019, 7(3), 66; https://doi.org/10.3390/economies7030066
Received: 2 May 2019 / Revised: 26 June 2019 / Accepted: 28 June 2019 / Published: 4 July 2019
(This article belongs to the Special Issue Productivity and Efficiency Analysis)
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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. View Full-Text
Keywords: sustainable; conventional; smallholder farmer; technical efficiency; stochastic frontier sustainable; conventional; smallholder farmer; technical efficiency; stochastic frontier
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Hung Anh, N.; Bokelmann, W.; Thi Nga, D.; Van Minh, N. Toward Sustainability or Efficiency: The Case of Smallholder Coffee Farmers in Vietnam. Economies 2019, 7, 66.

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