NguyenThiMinhChi TV pdf Department of Tropical Agriculture and International Cooperation National Pingtung University of Science and Technology Master’s Thesis Impact of Coffee Certification on Smallh[.]
୯ҥࡀܿࣽמεᏢၭᄤ୯ሞӝբس Department of Tropical Agriculture and International Cooperation National Pingtung University of Science and Technology ᅺγᏢՏፕЎ Master’s Thesis ڜଢ଼കჹλၭ܌ளϐቹៜˇаຫࠄၲࠖӦࣁٯ Impact of Coffee Certification on Smallholder Farmers’ Income: Case Study at Dakha District, Vietnam ࡰᏤ௲Ǻഋలৱ റγ (Shwu-En Chen, Ph.D.) ᗛඁ റγ (Rebecca H Chung, Ph.D.) ࣴزғǺٜМܴฐ (Nguyen, Thi Minh Chi) ύ҇୯ 103 ԃ Д 28 В May 28, 2014 ᄔा ᏢဦǺM10122033 ፕЎӜᆀǺ ڜଢ଼കჹλၭ܌ளϐቹៜˇаຫࠄၲࠖӦࣁٯ ᕴ।ኧǺ100 ᏢਠӜᆀǺ୯ҥࡀܿࣽמεᏢ )܌(سձǺၭᄤ୯ሞӝբس ਔ໔ϷᄔाձǺ102 Ꮲԃࡋಃ ᏢයᅺγፕЎᄔा ࣴزғǺٜМܴฐ ࡰᏤ௲Ǻഋలৱ റγ ᗛඁ റγ ፕЎᄔाϣǺ җុ҉ܭᇡകډڙӄШࣚ߆ޑǴ٬ளຫࠄڜଢ଼λၭуΕڜଢ଼ ӝբޗрαԖᇡڜޑଢ଼ǴӢԶׯᡂځғीǶՠࢂϦѳҬܰ(Fair Trade) ᇡࢂࡋڋցૈၲѱΚໆٰගϲၭ҇܌ளǴ٠όమཱǶࢂܭǴ ҁࣴزࣴޑزҞޑջӧകᇡࡋڋჹຫࠄஜ༵࣪ၲࠖӦЊλ ၭڜޑଢ଼ృ܌ளϐቹៜǶ ҁࣴ߃ޑزભၗࢂٰԾΓፓၲࠖӦ 200 Տڜଢ଼λၭǴځύ ֖ 80 Տࢂڜଢ଼ᇡӝբޗޗᆶ 120 ՏؒԖᇡڜޑଢ଼λၭǶҁࣴز२ ӃКၨԖᇡᆶคᇡڜޑଢ଼λၭϐޗΓαीᡂኧǶฅࡕҔനλѳ БݤǴᆉ֖аȨୖуᇡകȩࣁᔕှញᡂኧϐλၭϦഘڜଢ଼ ృ܌ளڄኧǴаຑᇡࡋڋϐቹៜǶനࡕճҔ propensity score matching (PSM)ٰᔠᡍᇡകӧλၭϦഘڜଢ଼ృ܌ளޑѳ֡ਏ݀Ƕ ่ࣴ݀زᡉҢᇡകჹϦഘڜଢ଼ృ܌ளڀԖᡉ҅ޑय़ਏ݀Ƕ ќѦǴၭЊৎߏޑ௲ػำࡋǵၭЊύவ٣ڜଢ଼ਭΓኧǵၭЊՐৎډѱ ύЈޑຯᚆǵௗڙቶ૽ግޑܰำࡋΨჹϦഘڜଢ଼ృ܌ளڀԖᡉ ܄ቹៜǶҁࣴ׳ز௦Ҕᎃ߈ଛჹݤǵ֨ъ৩ଛჹݤǵਡЈଛჹݤǵ໘ቫ I ଛჹݤѤᅿଛჹݤǴٰсᡉڜଢ଼ᇡӝբޗޑޗϐϦഘڜଢ଼ృ܌ ளКคᇡޣଯǶനࡕҁࣴࡌزࡹ۬ǵࣽᏢৎǵၗޣǵڜଢ଼ၭ҇ᆙ ஏڐӝǴය٬ӦБᇡӝբޗᙯᡂԋٮᔈύ׳மԶԖਏޑუՔǶ ᜢᗖӷǺᇡകࡋڋǵڜଢ଼λၭǵຫࠄ II Abstract Student ID: M10122033 Title of Thesis: Impact of Coffee Certification on Smallholder Farmers’ Income: Case Study at Dakha District, Vietnam Total pages: 100 Name of Institute: National Pingtung University of Science and Technology, Department of Tropical Agriculture and International Cooperation Graduation Date: May 28, 2014 Degree Conferred: Master Name of Student: Nguyen, Thi Minh Chi Advisor: Shwu-En Chen, Ph.D Rebecca H Chung, Ph.D The content of abstract in this thesis: The popularity of sustainable certification programs in the world resulted in Vietnam smallholder coffee farmers to participate in certification cooperatives to export certified coffee and to affect their livelihood However, it remains unclear whether Fairtrade and other certification programs can shape market forces to deliver higher producer incomes This study attempts to investigate the impact of certification program on smallholder farmers’ net coffee income per unit at Dakha District, Kontum, Vietnam Primary data of the study was obtained from the survey of 200 smallholder coffee farmers Out of 200 samples, 80 smallholders are members of certified cooperatives and 120 of non-certified farmers Followed by the comparisons of the socio-demographic and economic characteristics between certified and non-certified farmers, the study used ordinary least squares III (OLS) to estimate the impact of certification scheme by including certification participation as a dummy explanatory variable in function of farmers’ net coffee income per hectare To reduce the selection bias, the propensity score matching (PSM) was applied to examine the average treatment effect of certification program on net coffee income per hectare As a result, net coffee income per hectare is positively influenced by certification participation Furthermore, education status the household head, number of members involved in coffee cultivation, distance from household to town center, and accessing to training have significant effects on net coffee income per unit Moreover, four matching algorithms of PSM, nearest neighbor matching, caliper and radius matching, kernel matching, and stratification matching, highlighted that members of the certified cooperative got to achieve higher net coffee income a hectare compared to non-certified farmers Finally, close coordination among government, scientists, investors, and farmers to turn local coffee cooperatives into stronger and more effective partners in value chain is suggested Keywords: certification program, smallholder coffee farmer, Vietnam IV Acknowledgements First of all, I would like to express my advisor, Professor Shwu-En Chen, for the worthy discussion and comments to my research These gave me a capable to develop knowledge in Agribusiness Management and science research skills for my career in the future I appreciate the freedom that she has authorized me to work on the topics that I am interested Meanwhile, she was very patient to instruct me in the first steps when I began to make the acquaintance of science research My sincere thanks also go to my co-advisor, Professor Rebecca H Chung, who provided me useful knowledge during master course of two years Special thanks go to National Pingtung University of Science and Technology, Taiwan for providing financial supports to accomplish my Master study Otherwise, I am grateful to University of Danang, Vietnam where I am working for granting me during the period of study I also would like to thanks all professors, administer staff of Department of Tropical Agriculture and International Cooperation (DTAIC) for their guidance and supports I am thankful to my entire classmate for beautiful memory I am grateful to my Vietnamese friends and colleagues for their useful comments and suggestions to my work throughout the period of research investigation in Vietnam Finally and most importantly, I would like to thanks my whole family for their understanding and support during my master course Sincere thank goes to my mother for her love, encouragements, and motivation My deep thanks go to my father for always supporting me to pursue my dreams and ambition V Table of Contents Chinese Abstract I Abstract III Acknowledgements V Table of Contents VI List of Tables IX List of Figures X Introduction 1 Background 1 Statement of the Problem Objectives of the Study Outline of the Study Literature Review Sustainable Coffee Development 2 Coffee Certification Schemes Income Impacts of Certification Schemes 11 Income Impact of Socio-economic Determinants in Agriculture 12 Net Coffee Income of Smallholder Farmers 14 Regression Analysis with Ordinary Least Squares (OLS) 15 VI Propensity Score Matching (PSM) 16 PSM and Its Role in Social Studies 16 Comparison with Other Methods of Selection Bias Issue 18 Theoretic Background 19 Methodology 25 OLS Regression Analysis 25 PSM in Practice 27 Estimating the Propensity Score (Pscore) 27 2 Stratifying and Balancing Pscore 32 3 Estimating the Causal Effect 33 Sensitivity Analysis 36 3 Data 38 3 Study Area 38 3 Data Sources 44 Results and Discussions 46 Descriptive and Comparative Statistics 46 OLS Regression Analysis Results 55 PSM Results 59 Estimating the Pscore 59 VII Stratifying and Balancing Pscore 60 3 Estimating the Net Coffee Income Effect of Certification 64 4 Analyzing Sensitivity: Rosenbaum Bounds 68 Concluding Remarks 70 Findings 70 Implications 70 Recommendations 71 Further Researches 73 References 74 Appendices 83 Appendix A Vietnam Coffee Value Chain 83 Appendix B Certified Coffee Production in Vietnam 86 Appendix C Questionnaire 89 Appendix D OLS Regression Analysis 95 Appendix E Propensity Score Matching Estimation 96 Appendix F Sensitivity Analysis 99 Biosketch of Author 100 VIII List of Tables Table 1.1 Green Coffee Production by Province, 2011/1012 Crop Year Table 1.2 Size Distribution of Coffee Farmers in Vietnam Table 2.1 The Evaluation Framework 19 Table 2.2 Propensity Score Matching in Practice 23 Table 3.1 Description of Variables in OLS Regression Model 26 Table 3.2 Description of Variables in the Logit Model 31 Table 3.3 Planted Area of Coffee by Districts in Kontum 40 Table 3.4 Production of Green Coffee by Districts in Kontum 41 Table 4.1 Descriptive Statistics of Certified Farmers and Non-Certified Farmers 47 Table 4.2 OLS Regression Results 56 Table 4.3 Factors Influencing the Likelihood of Participation 60 Table 4.4 The Reduction of Bias of the Covariates 63 Table 4.5 PSM Results for Net Coffee Income per Hectare 65 Table 4.6 Rosenbaum Bounds Sensitivity Analysis 69 IX List of Figures Figure 1.1 Top Three Coffee Exporters in 2012 Figure 1.2 Vietnam’s Coffee Planted Area and Production Figure 3.1 Map of Kontum Province 39 Figure 4.1 Propensity Scores Distribution 61 Figure A.1 Vietnam's Coffee Value Chain 85 Figure A.1 Vietnam's Coffee Value Chain 84 X