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Technical efficiency of organic participatory guarantee system certified cabbage producing farmers in Northern Vietnam

Adamu, Badmaw
(2024)

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Adamu_47862300_2024.pdf
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Adamu_47862300_2024_appendix.pdf
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Details

Supervisors
Goedele Van den Broeck
Faculty
Faculté des bioingénieurs
Degree label
Master [120] en sciences agronomiques et industries du vivant, à finalité spécialisée: Agricultural, Food and Environmental Policy Analysis
Abstract
The rapid advancement of agricultural technologies has substantially increased farm production and productivity. However, the excessive use of synthetic chemicals in farming, particularly in the vegetable sector, has raised significant environmental and food safety concerns worldwide. Consequently, there is growing collaboration among governments, NGOs, and farmers to develop and adopt organic farming systems. Despite the growing organic market, high certification costs hinder farmers from adopting organic practices. Organic agriculture and certification through Participatory Guarantee Systems (PGS) offer a viable alternative. This study aims to fill the literature gap by examining the technical efficiency of organic PGS-certified cabbage farmers in Northern Vietnam. Using stochastic frontier analysis (SFA) and the two-limit Tobit model, the study found that seedling input had positive and significant contribution to cabbage production. The technical efficiency score, based on the Cobb-Douglas production function, revealed that the mean technical efficiency of cabbage producers was 80%. Hence, this indicates on average there is a 20% potential for improvement with the current inputs and technology. On average, farmers lost approximately 1,059 thousand VND (42 Euro) per cabbage producer due to technical inefficiency, underscoring the potential to increase farmers' income. Age exhibited a quadratic relationship with technical efficiency, indicating that both younger and older farmers tend to be less efficient compared to middle-aged farmers. The number of plots negatively determined technical efficiency, while regional differences highlighted varying technical efficiency levels across Hanoi, Ha Nam, and Hoa Binh. The study found that seedlings had a positive and significant contribution to cabbage production. Furthermore, developing tailored support programs for farmers of different age groups, managing the number of plots, and addressing regional disparities are crucial. These insights provide a basis for improving the technical efficiency of organic cabbage production in Vietnam, contributing to sustainable organic agricultural practices.