Market information transfer system (MITS) in the rice value chain in the Mekong delta, Vietnam

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Market information transfer system (MITS) in the rice value chain in the Mekong delta, Vietnam

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The research Market information transfer system (MITS) in the rice value chain in the Mekong delta, Vietnam in the world indicated that MITS considerably influenced farmers’ production and trade, it increased the efficiency of agricultural production, the income of farmers and improved the living condition of farmers. However, studying and applying MITS in the reality in the Mekong delta of Vietnam were still limited.

Journal of Vietnam Agricultural Science and Technology - No.1(3)/2018 rice production in Vietnam. Institute for Agricultural Enviroment, Hanoi (in Vietnamese) Tran Viet Cuong, 2010 Report “Study on production of biochar from agricultural waste in the Mekong Delta” Institute for Agriculture Environment (IAE) (in Vietnamese) World Bank, 2004 Economic growth, poverty, and household welfare in Vietnam In P A Glewwe & D Dollar (Eds.), Regional and Sectoral Studies (pp 1-628): e World Bank Group Retrieved from http://www.scopus.com/inward/record.url?eid=2s2.0-20444426860&partnerID=40&md5=75195116 bf31e41a46f3c4accda97cac Date received: 2/12/2018 Date reviewed: 7/12/2018 Reviewer: Ass Prof Dr Pham Quang Ha Date approved for publication: 21/12/2018 MARKET INFORMATION TRANSFER SYSTEM (MITS) IN THE RICE VALUE CHAIN IN THE MEKONG DELTA, VIETNAM Pham Cong Nghiep*1, Vu Van Doan1 Abstract e research in the world indicated that MITS considerably in uenced farmers’ production and trade, it increased the e ciency of agricultural production, the income of farmers and improved the living condition of farmers However, studying and applying MITS in the reality in the Mekong delta of Vietnam were still limited is paper will analyze the current situation of MITS in the rice value chain in the Mekong delta, Vietnam from 315 farmers’ survey in 2017 e ndings of the survey showed that: Majority of rice farmers in the Mekong delta of Vietnam have been accessing to market information from many sources such as relatives, friends, village leaders, traders, collectors, agricultural extension system, television, etc and through some channels face-to-face meetings, phone, television, radio, etc Rice farmers’ satisfaction on MITS was still low because they have met some obstacles during market information seeking and usage such as low quality of market information, lack of market information sources and channels, lack of governmental agencies participation in MITS, etc Rice farmers’ educational level, household size, rice income and amount of market information channels had a signi cant in uence on farmers’ satisfaction on MITS in rice value chain in the Mekong delta, Vietnam Keywords: Market information transfer system, market information sources, market information channels, Mekong delta, rice value chain INTRODUCTION Rice plays an important role in Vietnamese life and economy According to Do i u Ha (2012) rice subsector was occupying 40% of gross output of Vietnamese agriculture, 9.3 million households were planting paddy (65% of rural households) During the period of 2010 to 2017, Vietnam averagely exported 6.06 million tons of rice with its value of 2.609 billion USD annually (General Statistics O ce, 2017) e Mekong delta is rice granary in Vietnam is region contributes up to 50% of national rice output and 90% of rice export However, the main issues in rice sector in the Mekong delta is low pro t of rice farmers According to a study of Tran Cong ang et al (2013) showed that the average income of rice farmers from rice production in the Mekong delta was very low with 535,000 VND/month (about 25 USD/month) * Market information system plays an important role in raising the e ciency of economic performance and helps farmers enter the market better, sell more products with higher prices (Sultan Freihat, 2012) e demand of improving the market information system is imperative and a great signi cant to rice farmers in the Mekong delta, Vietnam e competitive pressure of rice farmers in the Mekong delta is more and more growing because with the development of science and technology, they have produced more and more the rice output, many rice farmers need to sell a bigger amount at the same time and so they need to nd out the larger markets to sell the more rice with higher price ere are more and more intermediates between rice farmers and nal customers and export companies in the Mekong delta and these intermediates became a barrier for the market information ow in the rice value chain, Center for Agrarian Systems Research and Development - Food Crops Research Institute Corresponding author: Pham Cong Nghiep Email: pc_nghiep@yahoo.com 93 Vietnam Academy of Agricultural Sciences (VAAS) even they can distort the market information to get advantages in the bargain, to make a wider gap of market information between participants in the rice value chain erefore, this my research will help us have a clear insight about the current MITS in the rice value chain in the Mekong delta, Vietnam in order to propose a model of MITS that is suitable in Vietnamese condition, a developing country, low income, weak infrastructure 50 farmers per district in Can o and 55 farmers per district in An Giang were randomly chosen to interview e sample total is 315 respondents RESEARCH GOALS, OBJECTIVES AND METHODS SPSS was used for all statistical analyses and the data was entered into SPSS Wrong and missing data were veri ed with the original questionnaires Research goals and objectives Research goals - Identify the rice market information sources and channels of rice farmers in the Mekong delta, Vietnam - Evaluate the usage of rice market information accessed by rice farmers in the Mekong delta, Vietnam - Determine the factors that in uence rice farmers’ satisfaction of MITS in the Mekong delta, Vietnam Objectives of the study Methods to collect the data e qualitative and quantitative data were collected by questionnaire e number of questionnaires was 315 and each of them lasted about 45 minutes Data analysis Descriptive statistics (frequencies, percentages, means) were used to present the variables Binary Logistic model was used to identify the socioeconomic characteristics of rice farmers in uencing on farmers’ satisfaction about MITS in the Mekong delta, Vietnam Model speci cation: Y = log [P/1-P] = logY = α +β1X1+β2X2+β3X3 + β4X4 +β5X5 +β6X6 +β7X7 +µ Methods of the study Where Y = Market information satisfaction; β = Regression coe cient explaining changes caused in Y by changes in the independent variables; Market information satisfaction = 1, Market information unsatisfaction = 0; X1 = Age (in years) of the respondents; X2 = Gender of the respondents (0 = Female; = Male); X3 = Education level (Years); X4 = Household size (amount of people); X5 = Rice income (Million VND); X6 = Amount of market information channels; X7 = Amount of market information sources; µ = Error term Process of sample choice Time and place of the study To provide the general of picture of MITS to all actors in the rice value chain in the Mekong delta, Vietnam, to managers and policy-makers On that basic, all actors in the rice value chain will build their own plan to meet their demands of market information, help managers and policy-makers have the science basic for making decisions, policies related to MITS in Vietnam An Giang province and Can o City were chosen as a research area in this survey because An Giang province is a top rice producer in the Mekong delta and Can o city is an economic, political and social center but also has the most rice traders, export companies in the Mekong delta This study was carried out from September 10th to October 6th 2017 in An Giang province and Can Tho city anks to advice of leader of Agricultural Extensions Center and the statistical data about rice production area, districts per province were chosen to survey, in which there is a district with a large area of rice production, a district with medium area of rice production and a district with a small area of rice production In An Giang, districts were surveyed: Chau Phu, oai Son and Cho Moi In Can o, those districts are oi Lai, O Mon and Phong Dien Socio-economic characteristics may in uence on the e ect of rice production and of market information usage of rice farmers Table presents the socioeconomic characteristics of the respondents 94 RESULTS AND DISCUSSION Socio-economic characteristics of respondents Age: e mean age of the respondents was 47 years Majority of the respondents (30.5%) were between 41 and 50 years of age ose at this age were usually family heads, they decided mainly in rice production and trade of their family Journal of Vietnam Agricultural Science and Technology - No.1(3)/2018 Gender: Gender can a ect the decision in rice production and trade of their family In a Vietnamese family, the husband has a bigger voice in almost activities of their family In the sample, male occupies 74%, higher than female (26%) Educational level: Educational level of rice farmers will in uence on their market information access, analysis and usage 43.2% of respondents were students in high schools, 42.5% of respondents were students in secondary schools and the remainder (14.3%) was pupils in primary schools is infers that respondents have an ability to understand and use market information Household size: Household size may impact the e ect of market information seeking Big families have more and more opportunities to seek good information An average size of a respondent’s family was people, in which 33% of sample had people, people families seized 24.4%, 16.2% of respondents were people family, 14.3% were people family, over people families held 8.6% and people families were 3.5% Rice income of rice producers: Rice income of rice farmers can in uence on their market information seeking and usage Rice farmers with a higher rice income have an ability to search and use in more e ective way e average income from rice of respondents was 70.9 million VND/year (about 3,200 USD/year), equivalently 53% of the total income of a rice household It means that rice has an important role in rice household economy Table Socio-economic characteristics of the respondents Variables Mean Age (years) 47 Educational level (grade) Family size (people) Rice income (million VND) 70.9 Source: Authors survey, 2017 Rice farmers’ satisfaction level on MITS in the rice value chain Farmers’ satisfaction level on market information system is an important norm that re ects the gap between the farmers’ needs of market information and the meeting of the market information system to those needs e high satisfaction infers that the market information system has been running well and the contrary e data from table shows that rice farmers’ satisfaction on market information system was not high 38.1% of respondents had a low satisfaction and 14% of respondents were at very low level, meanwhile only 13% of respondents had a high satisfaction and 0.6% were at very high satisfaction ere are many reasons for low farmers’ satisfaction on market information systems such as lack of market information sources and channels, low quality of market information, etc and these reasons will be analysis in the next parts of this research Table Rice farmers’ satisfaction level on market information system Satisfaction level Frequency Percent Very low 44 14.0 Low 120 38.1 1,108 34.3 High 41 13.0 Very high 0.6 315 100 Medium Total Source: Own survey, 2017 Market information sources e market information sources e ect considerably on the quality of market information farmers’ access Figure indicates that 100% of respondents have been accessing to market information from other farmers, relatives and friends e next source is traders 99% of respondents approached market information from collectors who bought directly rice from farmers, 91% said that they gained market information from big traders Village leaders were an important source for rice farmers when 70% accessed to village leaders to get market information, 64% used television to gain market information, the agricultural extension system provided market information to 34% of respondents In addition, there are other sources of market information such as rice farmer organizations (11%), newspapers (4%), radio (8%), Internet (10), other governmental agencies (6%) Rice farmers in the Mekong delta, Vietnam are passive to access to market information sources, they mainly got market information from informal sources with a low quality of market information 95 Vietnam Academy of Agricultural Sciences (VAAS) Figure Market information sources used by rice farmers in the Mekong delta (%) Source: Authors survey, 2017 Market information channels Market information channel is a very important element in MITS It in uences on the market information quality, information dissemination speed, amount of market information receivers (Asogwa B C., O Abu and M A Onkpe, 2014) A good channel of market information is a channel with a fast speed of information dissemination, a low cost and a big amount of users Figure indicates that 100% of rice farmers in the Mekong delta have been using face-to-face meetings to get market information, 95% of respondents used phones to access to market information, 67% watched televisions to approach market information at harvest time, 37% listened loudspeakers to gain market information In addition, 10% used internet to follow market information, 8% of respondents listened radio and 4% read newspapers to get market information Figure Market information channels used by rice farmers in the Mekong delta (%) Source: Authors survey, 2017 Socio-economic characteristics in uence on rice farmers’ satisfaction on MITS e output of Binary Logistic model in table shows that the signi cant level of the model (Sig.) 96 is high (0.000), the percentage correct of the model is 86% erefore, the model is acceptable and is used to identify factors in uencing on rice farmers’ satisfaction on MITS Journal of Vietnam Agricultural Science and Technology - No.1(3)/2018 e data in table shows that at 5% level of signi cance, educational level, rice income and amount of market information channels signi cantly impacted on rice farmers’ satisfaction on MITS and the rest factors (age, farmer organization member, amount of market information sources) didn’t have signi cant in uences e educational level of respondents had a signi cant and positive in uence on rice farmers’ satisfaction on MITS (B = 0.166; Sig = 0.040) at a signi cant level of 5% is suggests that higher and higher educational level of respondents more and more considerable their satisfaction on MITS It can be inferred from this that rice farmers with a high educational level had a signi cant ability to seek and use market information in an e ective way Rice income had a signi cant in uence on rice farmers’ satisfaction of MITS (B = 0.019; Sig = 0.012) at a signi cant level of 5% is asserts that respondents with a higher rice income had a higher satisfaction of MITS than rice producers who lower rice income In fact, rice producers with a large area of rice production, a big output of rice and a high income from rice had o en high demands of market information and they were also active to seek market information to get better information e amount of market information channels also signi cantly and positively in uenced the rice producers’ satisfaction of MITS (B = 1.405; Sig = 0.000) at a signi cant level of 5% It has been inferred that rice farmers with more and more channels of market information had more and more satisfaction of MITS Rice farmers with many market information channels were convenient to gain market information and had many chances to access to good market information Table Socio-economic characteristics in uence rice farmers’ satisfaction on MITS Variables B S.E Wald df Sig Age 031 021 2.095 148 Educational level 166 081 4.226 040* Rice income 019 008 6.366 012* Channel amount 1.405 309 20.623 000* Source amount –.036 208 030 862 FO member 135 614 049 825 Constant –8.606 2.414 12.710 000 N = 315; Sig = 0.000; -2 Log likelihood = 187.100 Nagelkerke R Square = 0.349; Percentage correct = 86% Note: * e statistic is signi cant at 5% level Source: Authors survey, 2017 CONCLUSIONS Majority of rice farmers in the Mekong delta, Vietnam have been accessing to market information from many sources such as relatives, friends, village leaders, traders, collectors, agricultural extension system, television, etc and through some channels face-to-face meetings, phone, etc However, rice farmers’ satisfaction on market information system was still low because they have met some obstacles during market information seeking and usage such as low quality of market information, lack of market information sources and channels, lack of governmental agencies participation in MITS, etc Besides, the research also indicated that rice farmers’ educational level, household size, rice income and amount of market information channels had a signi cant in uence on farmers’ satisfaction on MITS in rice value chain in the Mekong delta, Vietnam REFERENCES Asogwa B C., O Abu and M A Onkpe, 2014 Marketing Information Usage among Rice Producers in Benue State, Nigeria Asian Journal of Agricultural Extension, Economics Sociology, (5): 427-444, 2014; Article No AJAEES.2014.5.005 Do Thi Thu Ha, 2012 Production survey of paddy in Vietnam Accessed on 8/9/2018; available from: http://www.fao.org/fileadmin/templates/ess/ ess_test_folder/Workshops_Events/APCAS_24/ PPT_after /AP CAS-12-2 0-Rice_Production_ Viet_Nam.pdf General Statistics O ce, 2017 Statistical summary book of Vietnam Available from: http://www.gso.gov.vn/ default.aspx?tabid=384&idmid=&ItemID=18938; accessed on 29/9/2018 Sultan Freihat, 2012 e role of marketing information system in marketing decision-making in Jordanian shareholding medicines production companies IJRRAS 11 (2) May 2012 www.arpapress.com/ Volumes/Vol11Issue2 /I JRR AS_1 1_2_18.pdf; accessed on March 27, 2018 Tran Cong ang, Do Lien Huong, Le Nguyet Minh, 2013 Policy dra : Who bene ts when the rice price increase? https://www.oxfamamerica.org/static/ media/files/who-benefits-rice-prices-vietnamfull-20131017.pdf; accessed on March 25, 2018 Date received: 11/10/2018 Date reviewed: 19/10/2018 Reviewer: Assoc Dr Doan Manh Tuong Date approved for publication: 21/12/2018 97 Vietnam Academy of Agricultural Sciences (VAAS) STUDY ON THE CURRENT SITUATION OF SUPPLY CHAIN FOR MANGO PRODUCTION IN CAM LAM DISTRICT - KHANH HOA PROVINCE Nguyen Tan Hung1, Ho Huy Cuong1, Do i Ngoc1, Pham Vu Bao , Tran Quoc Dat1, Nguyen i Hang Ni1, Nguyen Phi Hung2 *1 Abstract To stabilize and improve the income of local mango producers, a study on current status of mango distribution was carried out in Khanh Hoa province from 2014 - 2015 Results showed that di erent supply chains have been available in mango production in the location, including (1) from the producers retailers consumers (7.5 - 7.7%); (2) from the producers Business owner whole sale markets retailers consumers (92.3 - 92.5%); (3) from the producers business owner export to China (47.3%) In case of Cam Lam district, mango producers bring their products directly to the collecting places (producers business owner), they can bene t much better since it has reduced the intermediate steps As a matter of fact, the income distribution between producers and collectors was not transparent; ununiformed and unsafe products are still big problems Because of that, the establishment of mango production cooperatives in which farmers have to produce high quality and safe products should be accordingly recommended Keywords: Cam Lam mango, mango status, value chain of mango INTRODUCTION Methods Mango is considered as the main crop of Khanh Hoa province with 6,042 - 6,467 under cultivation in 2012 - 2016 period that produces 40,899 - 41,582 tons/year and earns 400 - 450 billion VND Cam Lam is mostly concentrated location of mango production accounting for approximately 50% of the total area and production in whole province (from 2012 - 2016, mango area varied from 2,830 - 3,120 with the uctuated production from 22,952 - 24,828 tons/year) (Khanh Hoa Statistical Yearbook, 2017) It is especially mentioned that in recent years, mango cultivation in Cam Lam district has been gradually shi ed from small-scale production with many cultivars to large scale one focusing on the three main cultivars as Canh Nong, Cat Hoa Loc and Australia mango (R2E2) ough lots of advantages in mango production have been achieved,, the unsustainable income of mango producers in Cam Lam district is also regarded as a main issue that must be accordingly solved to nd out appropriate solution for successful improvement the situation Methods used: Data and information concerned were collected by relevant persons and agencies in combination with the review conducted from 64 retailers and business owner, and 31 farmers OBJECTIVES AND METHODS ough lots of mango cultivars have been available in the location studied (Canh Nong, Cat Bo Trang, Cat Bo Vang, Cat Hoa Loc, Cat Chu, R2E2, Taiwan, ailand etc.), main demand was concentrated on three leading cultivars, says, Canh Nong, Cat Hoa Loc and Australian mango (81.3%, 82.8% and 85.9%, respectively) (Table 1) Objectives e aims of the survey was to assess the strengths and weaknesses of the current status of mango distribution in order to nd out solutions for improvement of mango production in Khanh Hoa province * Survey content: Production chains of mango inside and outside of province; Mango sorting levels in production and harvesting for the three cultivars; Method and capacity of mango growers in product collecting, sorting and preserving; Price uctuations in the mango crop and between sorting levels; Main di culties faced to local producers in terms of production and consumption Data and information collected were then analyzed with the support of Excel program in collaboration with SWOT method (Humphrey, Albert, 2005) Time and place of the study e study was implemented in 2014 - 2015 period in Cam Lam district Khanh Hoa province RESULTS AND DISCUSSION Current status of mango value chain in Cam Lam Agricultural Science Institute for Southern Costal Central of Vietnam; University of Da Nang Corresponding author: Pham Vu Bao Email: vubaoqn@gmail.com 98 ... channels of rice farmers in the Mekong delta, Vietnam - Evaluate the usage of rice market information accessed by rice farmers in the Mekong delta, Vietnam - Determine the factors that in uence rice. .. between participants in the rice value chain erefore, this my research will help us have a clear insight about the current MITS in the rice value chain in the Mekong delta, Vietnam in order to propose... the general of picture of MITS to all actors in the rice value chain in the Mekong delta, Vietnam, to managers and policy-makers On that basic, all actors in the rice value chain will build their

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