Determinants of water melon production at farm household level in tien giang provice

UNIVERSITY OF ECONOMICS HO CHI MINH CITY VIETNAM INSTITUTE OF SOCIAL STUDIES THE HAGUE TRE NETHERLANDS VIETNAM - NETHERLANDS PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS DETERMINANTS OF WATER MELON PRODUCTION AT FARM H OUSEHOLD LEVEL IN TIEN GIANG PROVINCE A thesis submitted in partial fulfilment of the requirements for the degree of MASTER OF ARTS IN DEVELOPMENT ECONOMICS By LUONG THI MY DUYEN Academic Supervisor: DR TRAN TIEN KHAI ACKNOWLEDGEMENTS I would like to express my deep thankfulness to board of professors, doctors, teachers and staffs of Vietnam — Netherlands Programme for Master of Arts in Development Economics for all their instruction, help and support during my study here Firstly, I would like to express my special thankfulness to my supervisor Dr Tran Tien Khai who devoted to his students by all his enthusiasm, advice, encouragement and guidance I could not finish my thesis without his support I also want to thank to Professor Nguyen Trong Hoai who always follow closely and listen each expectation of all the students to guideline and support during this study programme I also would like to give my attitude of admiration to Dr Peter Calkin about his ability to read thesis research design (TRD), to give comments on TRD for all students, and especially his ability to work tirelessly through discussion directly with each student to give them his advice And I applied your valuable advice into my research I am also thankful for the helping from Mr Tran Ngoc An — Director of Agricultural Seed Center of Tien Giang Province who introduced me to Tien Giang’s Rural and Agriculture Development Department, Tien Giang’s Plant Protection Department, Agri-extension station of each district, and Plant Protection station of each district; gave me good information on farm household survey questionnaires; and advised me how to collect sufficient data I give my thanks for enthusiastically helping to persons in charge of at each district (Go Cong Tay, Go Cong Dong, Cai Be, Cai Lay, Chau , Thanh, Cho Gao, Tan Phuoc) Especially, my research could not implement without the co-operation, support and ready to answer my questionnaires of farmers or their farm household Thank you very much to 177 farmers who have been planting water melon around the Tien Giang province Finally, this research would not have been finished without the patience, motivation from my parents who now is living in Go Cong Tay Their support is throughout surveys to collect data I always appreciate high for your helping Thank you very much all of you! CERTIFICATION I certify that the substance of this thesis has not already been submitted for any degree and I not being current submitted for any other degree I certify that to the best of my knowledge any help received in preparing this thesis, and all source used, have been acknowledged in this thesis Luong Thi My Duyen ABSTRACT Tien Giang belongs to basin of Vietnam Mekong River Delta which has good weather and soil conditions for agriculture, forestry and aquaculture Beside of rice as a main crop, Tien Giang has been carrying out the converting agricultural structure program, growing diverse crops like fruits, vegetables, and short-term industrial plants etc , Especially, in recent years, farmers have a chance to get good income from water melon crops because a water melon crop is only two-month which could give high yield and good quality It not only is consumed in Vietnamese markets, but also exported to Chinese market and Cambodian markets by bordering However, Tien Giang’s water melon has not developed to a sustainable level yet because farmers’ cultivation still brings spontaneous nature, lacks concentration and specialization Moreover, there have not yet had any clear information about economic efficiency of this fruit which is provided for provincial authorities That is one of reasons which the author implemented this research to evaluate the productive resources utilization for water melon production and the economic efficiency from 2010’s summer-fall crop Production function under log-log and Cobb-Douglas forms and SWOT analysis are applied In this research, the author used the primary data through direct interview of 177 respondents at districts across Tien Giang province The study results showed that soil has not affected much to water melon yielding yet now However soil will be the most important constraint factor to water melon yield because pest damage can be more seriously if water melon is cultivated continuously at the same location And water melon is a special vegetable need to be taken care carefully; so, farmers should consider the production area which is suitable with their ability to plant and to gain the highest yield Investment more in fertilizer had less effect to water melon yielding change; however, we should fertilize more phosphate fertilizer P 05 during land preparation period for acid sulphate soil Labor is also considered as a determining factor, in which growing years of producers play the most important role in yielding change In addition to, farmers have not cared to market information, agricultural extension services in locations, etc yet In general, although farmers lack support of many organizations, water melon yielding which farmers gained is relatively high because of utilization of productive resources well TABLE OF CONTENTS ACKNOWLEDGEMENT Page CERTIFICATION ABSTRA CHAPTER 1: PROBLEM STATEMENT 1.l Research context 1.2 Research problem 1.3 Goal and specific objectives of the study 1.4 Research question 1.5 Scope of research 1.6 The organization of the thesis CHAPTER 2: LITERATURE REVIEW 2.1 Theoretical framework 2.1 Theory of farm household economies 2.1.2 Production function 2.1.3 Production factors of farm household Ii 2.2 Empirical studies 12 2.3 Analytic framework of this research 17 CHAPTER 3: RESEARCH METHODOLOGY 19 3.1 Analytical framework 19 1.1 Model specification 19 3.1.2 Variables indication 20 3.1.3 Sign expectation 20 3.1.4 Variables description 21 3.2 Data collection and sample distribution 24 3.2.1 Sample size 24 3.2.2 Sample distribution 25 3.2.3 Sampling framework 26 3.2.4 Pre-testing of the questionnaires 26 3.2.5 Orientation to collect data 26 3.2.6 Limitation of data source and collection 27 3.3 Analysis methods 27 3.3.1 Analysis methods .27 3.3.2 Usefulness of the research 28 CHAPTER 4: ANALYSES OF WATER MELON PRODUCTION IN TIEN GIANG PROVINCE AND INFLUENCES OF INPUT USES ON WATER MELON YIELD 29 4.1 Introduction of Tien Giang province and its water melon production 29 4.1.1 Overview of Tien Giang province .29 4.1.2 Climate condition .30 4.1.3 s‹›i1 condition .30 4.1.4 Water melon production in Tien Giang .32 1.5 Market and product competitiveness 33 4.2 Analyses of water melon production in Tien Giang province .36 4.2.1 SWOT analysis 36 4.2.2 Description of water melon production in Tien Giang through farm survey 37 4.2.3 Analyses the influences of input uses to water melon yield by econometrics analyses .55 CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS 63 5.1 Conclusions 63 5.2 Recommendations .65 CHAPTER 6: LIMIT REFERENC CHAPTER I: PROBLEM STATEMENT 1.1 Research context Tien Giang’s water melon is one of the fruit trade-mark which is exported to China and Cambodia through border trade However, water melon production has not been really stable yet at present In 2007, the total water melon productive area of Tien Giang is 3,779 hectares, and output is 70,847 tons In 2008, the total water melon productive area is only 2,954 hectares, and output is also only 55,754 tons (Tien Giang’s Rural and Agriculture Development Department) The water melon cultivation in Tien Giang currently brings spontaneous nature, lacks concentration, lacks specialization, lacks market information, strongly price fluctuation, and market demanded quantity depends much on wholesalers or distributors even also changes according to season At the producer’s perspective, there is not currently available information on economic efficiency and ability to contribute profits from water melon planting into the income structure of farm households Although there are many unknown information related to water melon cultivation and trading, but the author only is interested in the supply side, especially the economic efficiency of planting water melon in Tien Giang province This research also assumes that the following weaknesses need to be strengthened in water melon production process a) low entrepreneurial ability of farmers of both genders and all ages; b) ability to confront bad natural conditions of farmers such as suddenly and usually climate change; c) water melon quality for market 1.2 Research problem It is not yet known what factors lead farmers to gain the highest water melon output Farmers of various types will react differently to each different factor This study is required to find out the potential factors impact to Tien Giang’s water melon production based on production function model, theory of farm household economics and SWOT analysis Page Table 2: The relationship between water melon yield and land type ANOVA Yield (ton/ha) Sum of Squares 7.002 2200.473 2207.475 Between Groups Within Groups Total df Mean Square 3.501 174 176 12.646 F 277 Sig .758 Yield (ton/ha) Duncan a,b Subset 91 for alpha =.05 22.69 dark alluvial soils 16 22.71 acid sulphate soils Sig 70 23.10 657 Land type alluvial soils N Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 3: The relationship between water melon yield and having information from agri-extension Group Statistics Having information from agri-extension Yield (ton/ha) no 81 96 yes Mean 23.16 22.59 Std Deviation 3.450 3.615 Std Error Mean 383 369 Independent Samples Test 95º/» Confidence Mean Std Error Interval of the Equal variances not assumed 224 637 1.060 Page 175 77 291 1.064 172.336 289 566 534 -.488 1.620 532 -.484 1.616 Table 4: The relationship between water melon yield and having agri-extension service in location Group Statistics Std Error Having agri-extension N service in location no yes Yield (ton/ha) Mean 23.19 22.58 78 99 Std Deviation 3.435 3.618 Mean 389 364 Independent Samples Test 95º/« Confidence Interval of the Mean 186 assumed 667 1.124 175 1.131 168.985 Std Error 263 602 536 -.455 1.660 260 602 532 -.449 1.653 Table 5: The relationship between water melon yield and having market information Group Statistics Having market information Yield (ton/ha) Std Error N no Mean 22.86 22.84 77 100 yes Std Deviation 3.597 3.516 Mean 410 352 Independent Samples Test Interval of the Mean 054 assumed Std Error 024 175 981 013 538 -1.050 1.076 024 161.754 981 013 540 -1.054 1.080 Table 6: The relationship between the total cost and land type ANOVA Total cost/ha (million VND) Sum of Squares Between Groups Within Groups Total df Mean Square 84.549 42.275 4113.929 4198.478 174 176 23.643 F 1.788 Sig .170 Page 78 Total cost/ha (million VND) Duncan a,b Subset for alpha =.05 Land type alluvial soils acid sulphate soils dark alluvial soils Sig N 67.6373 68.8047 69.5957 118 91 70 16 Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 7: The relationship between the total cost and having information from agri-extension Group Statistics Having information from agri-extension Total cost/ha no (million VND) yes N Mean 81 96 Std Deviation Std Error Mean 5.50622 4.30819 61180 43970 68.5316 68.0604 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95º/» Confidence F Total cost/ha (million VND) Equal variances assumed Sig df 176 Equal variances not assumed Mean Std Error Interval of the Difference Sig (2-tailed) Difference Difference Lower Upper 175 524 47120 73813 -.98557 1.92798 150.235 533 47120 75342 -1.01746 1.95987 625 Table 8: The relationship between the total cost and having agri-extension service in location Group Statistics Std Error Having agri-extension Total cosVha service in location no (million VND) yes N 78 99 Mean 68.4967 68.1022 Page 79 Std Deviation 5.45863 4.40008 Mean 61807 44222 Independent Samples Test Levene's 175 346 894 assumed 519 145.962 IWean stu Error 595 39455 74096 -1.06782 1.85693 604 39455 75998 -1.10743 1.89654 Table 9: The relationship between the total cost and having market information Group Statistics Total cost/ha Having market information no Std Error N Mean 68.8646 67.8228 77 100 (million VND) Std Deviation 3.88729 5.50742 Mean 44300 55074 Independent Samples Test Levene's Test for Equality of Variances t-test for Equality of Means 95ắô Confidence Interval of the F Total cost/ha Equal variances (million VND) assumed Equal variances not assumed 2.7 Sig t 099 df Mean Std Error Sig (2-tailed) Difference Difference 175 160 1.04176 73844 -.41563 2.49914 1.474 173.785 142 1.04176 70680 -.35326 2.43677 ANOVA Taking care cost (million VND) Sum of Squares ” 32.011 1708.860 1740.870 df 174 176 Upper 1.411 Table 10: The relationship between the taking care cost and land type Between GroupS Within Groups Total fference Lower Mean Square 16.005 9.821 Page 80 F 1.630 Sig .199 Taking care cost (million VND) Duncan Subset a.b for alpha =.05 Land tyj›e N alluvial soils ¿ 91 8.4371 acid sulphate soils dark alluvial soils 7o 16 8.7770 9.9580 Sig .059 , Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 11: The relationship between taking care cost and having information from agri-extension G r o u p S t a t i s t i c s Taking care cost Having information from agri-extension no (million VND) yes N 81 96 Mean 9.8101 7.7799 Std Deviat 3.932 1.84 n location Equality Taking care cost (million VND) care cost N Mean Deviation Mean no Equal variances assumed Equal variances not assumed 99 (million VND) yes Table 12: The relations hip between Page 81 taking care cost and having agriextension service in location Having eKtension Std Error s e r v i c e i 8.5099 2.7505 l 27644 Independent Samples Test Levene's Test for Equality of Variances I-test for Equality of Means 95% Confidence Interval of the F Taking care cost (million VND) Equal variances assumed 2.671 Equal variances not assumed df Mean Std Err‹› Sig (2-tailed) Difference Difference Difference Lower Upper 949 175 344 45183 47629 -.48818 1.39184 920 141.086 359 45183 49127 -.51937 1.42303 Table 13: The relationship between taking care cost and having market information Group Statistics Std Error Having market information Taking care cost (million VND) N no yes Mean 77 100 Mean Std Deviation 8.6669 8.7414 3.17004 3.14128 36126 31413 Independent Samples Test Mean 941 assumed -.156 -.156 175 162.888 876 -.07456 47816 -1.01827 86915 876 -.07456 47873 -1.01988 87076 Table 14: The relationship between chemical fertilizer amount and land type ANOVA Chemical fertilizer amount (kg a.i) ' Between Groups Sum of Squares 276645.7 Within Groups 2669157 Total 2945803 df 174 176 Mean Square 138322.831 15339.983 F 9.017 Sig .000 Page 82 Chemical fertilizer amount (kg a.i) Duncan « a,b Land type alluvial soils dark alluvial soils acid sulphate soils Sig N 91 16 70 Subset for alpha =.05 782.2802 788.2500 842 863.9571 1.000 Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 15: The relationship between phosphate fertilizer amount and land type ANOVA Phosphate amount (kg a.i) Sum of Between Groups Within Groups Total Squares 271369.9 549495.3 820865.3 df 174 176 Phosphate amount (kg a.i) Duncan a,b Mean Square 135684.970 3158.019 F 42.965 Sig Land type alluvial solls dark alluvial soils acid sulphate soils N 91 16 70 Subset for alpha - 05 296.4176 303.6250 377.4714 Sig .597 1.000 Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 16: The relationship between chemical fertilizer amount and having information from agri-extension Group Statistics Std Error Having information Chemical fertilizer from agri-extension no amount (kg a.ID yes Mean N 81 96 818.0679 812.6354 Page 83 Std Deviation 137.47129 122.80227 Mean 15.27459 12.53345 Independent Samples Test Levene's Test for Equality of Variances I-test for Equality of Means 95º7« Confidence Interval of the F Chemical fenilizer amount (kg a.i) Equal variances assumed Sig .038 t 846 Equal variances not assumed df Sig (2-failed) Mean Difference Std Error Difference ' Lower Upper 278 175 782 5.43248 19.57022 -33.19155 44.05652 275 162.108 784 5.43248 19.75855 -33.58485 44.44982 Table 17: The relationship between chemical fertilizer amount and having agri-extension service in location Group Statistics Chemical fertilizer Having agri-extension service in location no N Mean 815.7628 814.6162 78 99 amount (kg a.i) Std Deviation 135.97435 124.62558 Std Error Mean 15.39606 12.52534 Independent Samples Test Levene's Test for Equali|:y of Variances t-lest for Equality of Means 95º7» Confidence Interval of the F Chemical fertilizer amount (kg a.i) df Equal variances assumed Equal variances 058 not assumed jg (2-tailed) Mean Difference Std Enor Difference Difference Lower Upper 175 954 1.14666 19.64266 -37.62034 39.91366 158.204 954 1.14666 19.84749 -38.05358 40.34689 Table 18: The relationship between chemical fertilizer amount and having market information Group Statistics information N Std Error Mean Deviation no amount (kg a.i) Mean yes 100 802.7350 137.65420 13.76542 Independent Samples Test Interval of the Mean amount (kg a.i) assumed 411 522 1.456 175 147 28.47279 19.55279 1.488 173.348 139 28.47279 19.13854 Page 84 67.06241 -9.30178 66.24736 Table 19: The relationship between pesticide cost and land type ANOVA Pesticide cost (million VND) Sum of Mean Squares • Between Groups Square df 3.304 26.652 Within Groups 507.151 174 2.915 Total 560.455 176 F Sig 144 000 Pesticide cost (million VND) Land type dark alluvial soils alluvial soils acid sulphate soils Sig N 16 91 70 Subset for alpha =.05 14.3833 14.4406 15.5539 1.000 890 Means for groups in homogeneous subsets are displayed a uses Harmonic Mean Sample Size = 34.178 b The group sizes are unequal The harmonic mean of the group sizes is used Type I error levels are not guaranteed Table 20: The relationship between pesticide cost and having information from agri-extension Group Statistics Pesticide cost Having information from agri-extension no (million VND) yes N 81 96 Mean 14.8916 14.8623 Std Deviation 2.14789 1.41920 Std Error Mean 23865 14485 Independent Samples Test Levene’s Test for Equality of Variances t-test for Equality of Means 95º/» Confidence Mean F Pesticide cost Equal variances (million VND) assumed Equal variances not assumed 1.973 Sig .162 t df Std Error Sig (2-tailed) Difference Difference Interval of the !fference Lower Upper 108 175 914 02924 26999 -.50361 56209 105 134.432 917 02924 27917 -.52289 58138 Page 85 Table 21: The relationship between pesticide cost and having agri-extension service in location Group Statistics Pesticide cost Having agri-extension service in location no (million VND) yes N 78 99 Mean 14.7621 14.9653 Std Deviation 2.21322 1.36083 Std Error Mean 25060 13677 Independent Samples Test Test for 95% Confidence Interval of the Mean (million VND assumed ² 600 751 109 175 -.712 not 454 20322 27050 33066 478 -.20322 28549 36198 Table 22: The relationship between pesticide cost and having market information Group Statistics Std Error Having market Pesticide cost lTll!!lO ft VN D) N information no 77 100 yes Mean 15.2057 14.6216 Std Deviation 1.32680 2.03957 Mean 15120 20396 Independent Samples Test Levene's Test for quality of Variance t-test for Equality of Means 95% Confidence Interval of the Mean F Pesticide co› Equal varianc (million VND assumed Equal varianc not assumed 2.004 Sig .159 t 2.182 df 175 ip.¶2failed 2.301 170.598 Page 86 Std Error Difference Difference Dlfference Lower Upper 030 58411 26771 05575 1.11247 023 58411 25389 08294 1.08528 ... leading provinces for water melon cultivation in off-seasons for of water melon Many farmers are very experienced in water melon? ??s cultivation A large quantity of marketable water melon fruits... encourage farmer plants more water melon and improve their living standards Page 28 CHAPTER 4: ANALYSES OF WATER MELON PRODUCTION IN TIEN GIANG PROVINCE AND INFLUENCES OF INPUT USES ON WATER MELON. .. http://wv'w.tiengiang.gov.vn?xemtin.asp?idcha=965&cap=3&id—968 4.1.4 Water melon production in Tien Giang Water melon has been commercially grown in many provinces of the country In recent years, water melon