Contract farming, agriculture productivity and poverty reduction: evidence from tea estates in Viet Nam

Anh Tru Nguyen (), Janet Dzator and Andrew Nadolny ()
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Anh Tru Nguyen: Newcastle Business School, Faculty of Business and Law, The University of Newcastle, Australia
Andrew Nadolny: Newcastle Business School, Faculty of Business and Law, The University of Newcastle, Australia

Asia-Pacific Sustainable Development Journal, 2018, vol. 25, issue 1, 109-145

Abstract: Interest in contract farming is increasing because of its potential as an alternative channel for linking producers to international markets. However, there is limited knowledge on contract farming of tea production in Viet Nam, especially in more inaccessible provinces where tea production plays an important role in generating employment, improving livelihood and reducing poverty. In the present paper, the impact of contract farming on productivity is reviewed in Pho Tho province, a major tea production area that has not been the focus of any other studies. Using survey data, an analysis is conducted on the factors affecting tea productivity and the impact of contract farming on tea productivity in the province. The results indicate that the impact of factors on tea productivity is ambiguous. They also indicate that technical efficiency of tea production of contracted farmers is higher than that of other types of farmers by almost 5 per cent and that contract farming has a positive influence on tea productivity in the province. Because of different climatic conditions, the results from this study are not generalizable across Viet Nam, but they can be applied in the Northern midlands and mountainous areas.

Keywords: contract farming; Phu Tho; poverty reduction; tea productivity; Viet Nam (search for similar items in EconPapers)
JEL-codes: C31 D24 Q12 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (1)

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