RESEARCH PROJECT i ACKNOWLEDGEMENT First of all, we would like to express the appreciation to our supervisorAssoc Prof Dr Bui Dung The Dr The already encouraged and directed us with his skillful guida[.]
Đại học Kinh tế Huế ACKNOWLEDGEMENT First of all, we would like to express the appreciation to our supervisorAssoc Prof Dr Bui Dung The Dr The already encouraged and directed us with his skillful guidance, innovative idea and stoic patience Without his help, we would never complete our research We would like to acknowledge the valuable input of Dr Nguyen QuangPhuc, who helped to shapethis research, resolve the most difficult modeling in this research ại Đ We are very thankful to the professors and lecturers of the Advanced Program, who have helped us and co-operated with us during the conducting time ho We give deep thanks to all of households in Kim Long Ward who are enthusiastic in supply us data and answer our questionnaire ̣c k Finally, we express to our family for their love and encouragement, we have received so much personal support from family and friends h in Hue, October 2017 ́ uê ́H tê i Luan van Đại học Kinh tế Huế TABLE OF CONTENTS PART I: INTRODUCTION .1 Rationale of this research Research objectives Research methods .2 3.1 Data collection 3.2 Analysis methods Research scope PART II: CONTENTS AND RESEARCH RESULTS Đ Chapter 1: OVERVIEW ABOUT RESEARCH PROBLEM ại 1.1 Theoretical analysis What is organic agriculture? ho 1.1.1 1.1.1.1 Motivation of growing organic agriculture ̣c k 1.1.1.2 Characteristics of organic agriculture 1.1.1.3 Basic criteria of organic agriculture in 1.1.1.4 Quality standards of organic production h 1.1.1.5 Why is organic vegetable necessary? 11 Definition of economic efficiency 12 1.1.3 Indicators reflect production results .13 ́H tê 1.1.2 Practical basis 15 1.2 ́ uê 1.2.1 Situation of organic agriculture model in the world 15 1.2.2 Situation of organic vegetables model in Vietnam .17 1.2.3 Situation of organic vegetables model in Hue city and Kim Long ward .19 Chapter 2: ECONOMIC EFFICIENCY OF ORGANIC VEGETABLES PRODUCTION IN KIM LONG WARD, HUE CITY, THUA THIEN HUE PROVINCE .20 2.1 Study site .20 2.1.1 Natural conditions 20 2.1.1.1 Geographical location 20 2.1.1.2 Topography 21 2.1.1.3 Climate 21 2.1.1.4 Hydrological 22 ii Luan van Đại học Kinh tế Huế 2.1.1.5 The resources 22 2.1.1.6 The situation of the environment 22 2.1.1.7 General assessment of natural features in Kim Long ward 22 2.1.2 Current situation of using land in Kim Long ward, Hue City 23 2.1.3 Economic and Social conditions 24 2.1.3.1 Economic growth and economic structure 24 2.1.3.2 Population and labor 24 2.1.3.3 The infrastructure 25 2.1.3.4 A general assessment of socio-economic features in Kim Long Ward 26 2.2 Organic vegetable producing situation in Kim Long Ward 26 Đ Characteristics of surveyed households 26 2.2.2 Technical process of organic vegetable production of surveyed households28 ại 2.2.1 ho 2.2.3 Economic efficiency of organic vegetable production of surveyed households 35 Distribution channel of market for organic vegetable model in Kim Long 40 2.2.5 SWOT analysis 43 in ̣c k 2.2.4 Ward h Chapter 3: ORIENTATION AND SOLUTIONS FOR ORGANIC VEGETABLES PRODUCTION IN KIM LONG WARD, HUE CITY, THUA THIEN HUE 46 tê 3.1 Orientation of organic vegetable production in Kim Long ward 46 ́ uê ́H 3.2 Some of solutions to improve the efficiency of organic vegetables production in Kim Long ward 46 3.2.1 Solutions about land 46 3.2.2 Solutions about infrastructure investment 47 3.2.3 Solutions about labor 48 3.2.4 Solutions about market 49 3.2.5 Solution about raising awareness about organic catering 50 PART 3: CONCLUSION AND RECOMMENDATION 52 Conclusion 52 Recommendation 52 2.1 Recommendation for local government 52 2.2 Recommendation for farmers 52 iii Luan van Đại học Kinh tế Huế QUESTIONNAIRE FOR FARMERS WHO PRODUCE ORGANIC VEGETABLE MODEL IN KIM LONG WARD – HUE CITY .54 REFERENCES 61 ại Đ h in ̣c k ho ́ uê ́H tê iv Luan van Đại học Kinh tế Huế LIST OF TABLE Table 1-1 : Square of organic agricultural of areas 16 Table 2-1 : Land using situation of Kim Long ward in 2015 23 Table 2-2 : The situation of population and labor of Kim Long ward over 2013-2015 25 Table 2-3 : Technical measures used in organic vegetable production 30 Table 2-4 :Pest and weed control methods 32 Đ Table 2-5 : Type of vegetables grown follow twelve months ại Table 2-6 : Labor and average hour farm working of Smallholder Farmers ho Table 2-7 : Expenditures of organic vegetable model 34 35 36 ̣c k Table 2-8 : Price of some types of seeds 37 in Table 2-9 :Gross output of organic vegetable of production of surveyed households 38 h Table 2-10: Economic efficiency indicators of organic vegetable production ́H tê Table 2-11: Depreciation of fixed cost Table 2-12: SWOT of organic vegetable model in Kim Long ward 39 40 43 ́ uê v Luan van Đại học Kinh tế Huế LIST OF FIGURE Figure 1-1: Closed cycle of organic farm Figure 1-2: Organic vegetable production process Figure 2-1: The measures to improve plant health 33 Figure 2-2: Distribution channel of organic farms in Kim Long ward 41 ại Đ LIST OF IMAGE 20 h in ̣c k ho Image 2-1: Map of Kim Long ward ́ uê ́H tê vi Luan van Đại học Kinh tế Huế ABBREVIATIONS Action Center for the City Development ADDA The Danish Asian Agriculture Development Project Cap Capital CAD Canadian Dollar DANIDA The Danish Government FAO Đ Food and Agriculture Organization of the United Nations HDI Human Development Index ại ACCD International Organic Agriculture Organization ̣c k IFOAM Human Factors Integration ho HFI Intermediate Cost GMOs Genetically Modified Organisms GO Gross output GDP Gross domestic product GNP Gross National Product MARD Ministry of Agriculture and Rural Development MI Mixed Income NGOs Non-Government Organizations Pr Profit SWOT Strength, Weakness, Opportunity, Threat US The United State USDA The United State Development of Agriculture VA Value Added h in IC ́ uê ́H tê vii Luan van Đại học Kinh tế Huế VND Vietnam Dong TC Total cost ại Đ h in ̣c k ho ́ uê ́H tê viii Luan van Đại học Kinh tế Huế PART I: INTRODUCTION Rationale of this research Constructing green agriculture towards using organic methods, biological measures is friendly to environmental that were successfully applied in many countries It provides high efficiency in consumption, the export of agricultural products, branding of agriculture products favored by consumers Currently, the world has 130 agriculture countries are under organic farming methods with approximately 35.6 million hectares of area, revenue of organic products worldwide reached about 55 billion US dollars (FAO statistic, 2015) ại Đ Under the impact of urbanization progress to agricultural land, the level of environmental pollution increases due to using more fertilizers, pesticides, which affect the value of annual agricultural production in Vietnam Besides, misuse chemicals in agriculture production also impacts on human health In this situation, the development of clean agriculture, high-tech agriculture will be right direction for sustainable agricultural development ̣c k ho h in Due to this circumstance, Thua Thien Hue province always care about growing organic vegetables in a wide range.Two farmers in Kim Long ward was initial successful with small scale pioneers in application of organic vegetables growing model in ThuaThien Hue province Especially, after perceiving the prospects of organicmethod, local government in Kim Long Ward mobilize farmers to convert the cultivated cropping patterns to expand the area planted vegetables according to this method They expanded organic vegetable model with households include more over 3000 square meters of land ́ uê ́H tê From 2015 until now, Kim Long's farmers not only improve their income but also contribute to protect environment when they bring organic vegetables to consumers in Hue city With beginning 600 square meters of land, a farmer earned about 150,000 VND each day on average They also extensive farming on many types of vegetable such as basellaalba, salad, fennel, and sweet potato buds, depending on season There are some problemswhich researchers should solve obviouslysuch as what organic agriculture is The result of this case study provides information about organic vegetable production and its benefits The study also shows how organic vegetable in Kim Long Ward grow and develop from the beginning, and provides smallholder farmers with the necessary information on profitability of organic vegetable production system to facilitate making informed decision when converting to organic farming By determining the effect of social economic, farm and market characteristics on profitability of smallholder vegetable production system, the study Luan van Đại học Kinh tế Huế assists providing additional way of increasing profit margins in smallholder vegetable production systems and value chains Capability of expanding organic vegetable model to other wards in Hue is feasible Base on all above reasons weselect the topic:“Economic efficiency of organic vegetable production in Kim Long ward, Hue city, ThuaThien Hue province” to become our science research report ại Đ Research objectives General objectives: Assessing economic efficiency and expandability of organic vegetables model at Kim Long Ward The study had the following specific objectives: Codifying theoretical basis on organic vegetable production and economic efficiency From this basis, having more overall viewpoint about situation of model organic vegetables in Kim Long Figuring out the process of planting the organic vegetables such as the production, and expenditure cost, analysis the characteristic and situation of growing organic vegetables in Kim Long ward Offerring some recommendations to enhance the efficiency of organic vegetable in Kim Long ward and expand this model other wards of Hue city Research methods 3.1 Data collection Secondary data: is collected from books, magazines, professional journals, the state policy is concerned, the scientific studies have been published, these reports about economic effectiveness of organic vegetable production in local and over the world; data is collected from ACCD, information are collected from the beginning of converting conventional vegetable into organic vegetable Primary data: The questionnaire is designed to conduct the survey of smallholder farmers, who growing organic vegetable in Kim Long ward, Hue city From the results of interviewing farmers, this research gathers information about area under cultivation, process of growing organic vegetable, how to convert the model, type of vegetable according to the season 3.2 Analysis methods h in ̣c k ho ́ uê ́H tê Analyzing economic- social issues as well as used the inputs of organic vegetable grow, the results and the efficiency productivity of households over the years Researchers docase study by describing detail farm households situation and clarifying their activities And then analyzing efficiency of households by answering these questions such as what inputs are, how output price changes, what cost of products is, what happen to famers or other factors such as weathers, seasons,…(what Luan van ... implemented inKim Long Ward, Hue city ,ThuaThien Hue province Scale: with over 4,800 square meters belong to smallholder famers who are growing organic vegetables models at Kim Long ward, Hue city, ThuaThien. .. situation of growing organic vegetables in Kim Long ward Offerring some recommendations to enhance the efficiency of organic vegetable in Kim Long ward and expand this model other wards of Hue city Research... growing organic vegetable in Kim Long ward, Hue city From the results of interviewing farmers, this research gathers information about area under cultivation, process of growing organic vegetable,