Support for Agricultural Restructuring Project : The Financial and Economic Competitiveness of Rice and Selected Feed Crops in Northern and Southern Vietnam
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Washington, DC
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One area of weakness in current
agricultural policy work in Vietnam is the lack of a clear
understanding of both the private profitability of farmers
for different crop activities and the social profitability
of such activities. Agricultural performance is thus gauged
in physical terms (i.e. yields and the volume of aggregate
output) rather than in financial or economic terms. This has
hampered efforts to compare and contrast the impacts and
effectiveness of alternative policy and program measures.
Comparative metrics for different crops and farm management
systems have been lacking. The main objectives of this paper
are: (i) to describe the Policy Analysis Matrix (PAM)
methodology and how to interpret key financial and economic
indicators; (ii) to document the underlying assumptions used
for the analysis; and (iii) to provide a summary and brief
interpretation of the main quantitative results and outcome
of selected sensitivity tests. As a step towards improved
sector planning, this paper utilizes the PAM to analyze
various farm management systems for rice, maize, and cassava
in different parts of Vietnam. Tradeoffs are involved in all
production decisions and the PAM provides a systematic way
of comparing the private and underlying social costs and
returns from different agriculture enterprises together with
the effects of government policy. The paper is presented in
following five sections: section one is introduction;
section two describes the methodology and main assumptions
used for the analysis; section three presents the main
quantitative results for different kinds of rice grown for
export in An Giang province in the Mekong delta of southern
Vietnam and for domestic rice and alternative stock feed
crops grown in northern Vietnam; section four presents the
results of various sensitivity tests that looked at the
impact of changes in crop yields, commodity prices,
fertilizer costs, and labor costs; and section five
concludes with a summary of key findings and policy recommendations.
Palabras clave
ACTUAL YIELDS, ADVERSE EFFECTS, AGRICULTURAL ACTIVITIES, AGRICULTURAL ACTIVITY, AGRICULTURAL COMMODITY, AGRICULTURAL DEVELOPMENT, AGRICULTURAL LAND, AGRICULTURAL LAND USE, AGRICULTURAL OUTPUTS, AGRICULTURAL PERFORMANCE, AGRICULTURAL POLICIES, AGRICULTURAL POLICY, AGRICULTURAL PRODUCTION, AGRICULTURAL SECTOR, AGRICULTURAL SYSTEM, AGRICULTURAL SYSTEMS, AGRICULTURE, AGRICULTURE SECTOR, ALTERNATIVE CROPS, ANIMAL FEED, ANIMALS, AQUACULTURE, AVERAGE YIELDS, CASSAVA, CLIMATE, COFFEE, COMMERCIAL AGRICULTURE, COMMERCIAL VALUE, COMMODITY, COMPARATIVE ADVANTAGE, COMPARATIVE ANALYSIS, CONSUMERS, CONSUMPTION LEVELS, COOPERATIVES, COST ASSUMPTIONS, CROP, CROP ALTERNATIVES, CROP CYCLE, CROP HUSBANDRY, CROP INTENSIFICATION, CROP MODEL, CROP MODELS, CROP PRICES, CROP RESEARCH, CROP ROTATIONS, CROP YIELD, CROP YIELDS, CROPS, CULTIVATION SYSTEMS, DECISION MAKING, DEVELOPMENT STRATEGY, DOMESTIC FOOD, DRAINAGE, DUNG, ECONOMIC COMPETITIVENESS, ECONOMIC EFFICIENCY, ECONOMIC RATE OF RETURN, ECONOMIC VALUE, ECONOMICS, ECONOMIES OF SCALE, EQUIPMENT, EXCHANGE RATES, EXPORTS, EXTENSION, EXTENSION SERVICES, FAMILY FARM, FARM, FARM EMPLOYMENT, FARM EMPLOYMENT OPPORTUNITIES, FARM FAMILY, FARM HOUSEHOLDS, FARM LABOR, FARM MANAGEMENT, FARM MODEL, FARM PRACTICES, FARM PRODUCTION, FARM SIZE, FARM YIELDS, FARMER, FARMER ADOPTION, FARMER INCOMES, FARMERS, FARMING, FARMLAND, FARMS, FERTILIZER, FINANCIAL CRISIS, FISCAL POLICIES, FISH, FIXED COSTS, FOOD SECURITY, FUTURE RESEARCH, GDP, GRAIN, GRAIN PRICES, GROSS MARGIN, HARVESTERS, HARVESTING, HARVESTS, HERBICIDES, HYBRIDS, INCOME, INCOME DISTRIBUTION, IRRIGATION COSTS, IRRIGATION WATER, LABOR COSTS, LAND USE PLANNING, LIVESTOCK, LIVESTOCK ACTIVITIES, LIVESTOCK RAISING