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Table of Contents
Page
Acknowledgements...iii
Abstract in English...v
Abstract in Thai………. ...vii
List of Tables………...xii
List of Figures………...xv
Abbreviations………...xvi
CHAPTER 1 INTRODUCTION………...1
1.1 Background of the study………...1
1.2 Statement of problems………... ...4
1.3 Objectives……….. ...7
1.4 Significances of the study……….. ...8
CHAPTER 2 OVERVIEW OF AGRICULTURE AND TEA INDUSTRY IN VIETNAM...9
2.1 Socio -economic context……….. ...9
2.1.1 Vietnam economy………...9
2.1.2 Vietnam agriculture and its role………...10
2.2 Tea industry in Vietnam………...12
2.2.1 Origin and role of tea plant………...12
2.2.2 Tea production………...14
2.3 Organic farming and organic tea in Vietnam……….. ...17
2.3.1 History and development of organic agriculture………...17
2.3.2 Marketing of organic products………...19
2.3.3 Producers attitudes towards organic products………. ...19
2.3.4 Consumer attitudes towards organic products………. ...19
2.3.5 Challenges and outlook………...20
CHAPTER 3 LITERATURE REVIEW………... ...21
3.1 Agricultural system, tea system and key factors affecting yield...21
3.2 Studies related to conventional and organic tea...22
3.3 System properties and sustainability development...24
3.4 Previous studies related to technical efficiency...26
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3.5 Comparison between conventional and organic systems ...28
CHAPTER 4 RESEARCH METHODS. ...31
4.1 Gross margin analysis ...31
4.2 Stochastic frontier approach.. ...32
4.2.1 Technical efficiency...32
4.2.2 Theoretical stochastic frontier model...34
4.3 System properties quantification...37
4.4 Types of comparisons ...38
4.5 Data selection...39
4.5.1 Secondary data collection ...39
4.5.2 Sampling technique ...39
CHAPTER 5 COMPARAT IVE ANALYSIS OF CONVENTIONAL AND ORGANIC TEA PRODUCTION SYSTEMS… ...41
5.1 Study sites characteristics………...41
5.1.1 Thai Nguyen province, North Mountainous Region (NMR) ...41
5.1.2 Phu Tho province, Mid-hill Region (MHR) ...45
5.2 Tea production…...50
5.2.1 Perception and definition of tea growers ...50
5.2.2 Characteristics of conventional and organic tea farms ...51
5.2.3 Income of tea farm...53
5.2.4 Tea area, age of tea bushes and productivity...54
5.2.5 Tea varieties ...56
5.2.6 Types of propagating materials ...57
5.2.7 Farm practices...59
5.2.8 Labor employed...66
5.2.9 Tea production cost...66
5.3 Tea processing ...68
5.3.1 Ownership, products, processing stages ...68
5.3.2 Capacity, machine and equipment ...69
5.3.3 Grading tea...70
5.3.4 Packaging, labeling and trade ...70
5.3.5 Tea processing cost...72
5.4 Marketing...74
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5.4.1 Marketing channels ...74
5.4.2 Price of tea...78
CHAPTER 6 COMPARATIVE ANALYSIS OF CONVENTIONAL AND ORGANIC TEA PRODUCTION SYSTEMS' PROPERTIES...81
6.1 Compare system properties ...81
6.1.1 Productivity ...81
6.1.2 Stability ...82
6.1.3 Sustainability...83
6.2 Assessment of factors affecting conversion process ...85
CHAPTER 7 THE FACTORS AFFECTING YIELD OF TEA OF CONVENTIONAL AND ORGANIC TEA SYSTEMS ...88
7.1 Empirical models ...88
7.1.1 Description of variables in the models...88
7.1.2 Multicollinearity test ...91
7.1.3 Model specification ...93
7.1.4 Variable descriptions ...95
7.2 Empirical results...99
7.2.1 Estimation results of stochastic frontier model for conventional tea farm ...99
7.2.2 Determinants of technical efficiency in conventional farms ...101
7.2.3 Estimated results in stochastic frontier model for organic tea farms...104
7.2.4 Determinant affecting technical efficiency...106
7.2.5 Comparison of the factors affecting yield, and determinants in inefficiency effect model between two systems...108
CHAPTER 8 CONCLUSIONS AND RECOMMENDATIONS...114
8.1 Conclusions ...114
8.2 Recommendations ...116
References...119
Appendix ...130
Curriculum Vitae ...139
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List of Tables
Page Table
1 Real GDP growth (%) in period of 1990 - 2000 ...9
2 GDP structure in Vietnam ...10
3 Situation of tea production and trade of Vietnam in period 1990 - 2001...15
4 System properties and indicators for measurement of performance ...38
5 Economic structure of Thai Nguyen province...42
6 Agriculture structure of Thai Nguyen province...43
7 Tea production in Thai Nguyen province (NMR)...44
8 Economic structure by sectors in Phu Tho ...46
9 Land use of Phu Tho in 1999 ...47
10 Conventional and organic tea production in Phu Tho province (MHR)...48
11 Number of conventional, converted tea and organic farms by study sites ...51
12 Social characteristics of samples by systems ...52
13 Age, experience, training course of tea farmers by systems responding study sites ...52
14 Mean values and proportion of income in conventional and organic tea farms ...53
15 Income class of tea smallholders in both systems ...54
16 Tea farm classified by tea land size...54
17 The sampled tea farm classified by age, systems responding to study sites...55
18 Tea varieties used by tea smallholder ...56
19 Percent of respondent received tea varieties by different sources...57
20 Conventional and organic farms classified by type of propagating materials...58
21 Tea farms classified by systems and shading trees...59
22 Classification of tea farms by systems responding to pruning interval...60
23 Tea farms classified by irrigating conditions...61
24 Comparison of average input used between two systems (per farm) ...62
25 Comparison of average input used by tea systems (per ha)...63
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26 Width of buffer zones between organic and non-organic activities...64
27 Comparison of the average output per farm, tea size of farms by systems...65
28 Comparison of tea production cost by conventional versus organic systems...67
29 Descriptive comparison of kind and capacity of machines and equipment conventional versus organic...69
30 Number of processing units in the sample ...70
31 Packaging kinds of conventional versus organic tea………...71
32 Comparison of inputs used in kind for processing 1 ton of processed tea...72
33 Budget analysis for processing 1 ton processed tea ...73
34 Percentage of tea farms sold tea by systems and objects ...77
35 Prices of tea products in selected study sites...79
36 Aggregate comparison of marketing, conventional versus organic……... ...80
37 Productivity and gross margin by conventional and organic tea system ...82
38 Comparison of stability property by systems and criteria using CV(%)...83
39 Assessment of tea production system by criteria………...84
40 Index for sustainability: conventional versus organic system ...85
41 Factors affecting the conversion process...86
42 Assessment of tea growers and consumers on tea production and products...87
43 Descriptive statistics of the variables used in stochastic frontier models for conventional tea farms...89
44 Descriptive statistics of the variables used in stochastic frontier models for organic tea farms ...89
45 Descriptive statistics of variables in technical inefficiency model for conventional tea farms...90
46 Descriptive statistics of variables in technical inefficiency model for organic tea farms ...90
47 Correlation matrix of variables in stochastic frontier model for conventional tea farm ...91
48 Correlation matrix of variable in technical inefficiency model
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for conventional tea farm...91 49 Correlation matrix of variables in stochastic frontier model for
organic tea farm...92 50 Correlation matrix of variables in technical inefficiency model
for organic tea farms ...92 51 Estimated parameters in the Cobb – Douglas Stochastic frontier model
for conventional tea farms by MLE...100 52 Estimated parameters in technical inefficiency effect model
for conventional tea farms ...103 53 Estimated coefficients in the Cobb-Douglas stochastic frontier
production function by MLE for organic tea farms ...104 54 Estimated coefficients in technical inefficiency model
for organic tea farms ...108 55 Marginal product and average product of conventional and
organic tea production...109 56 Technical efficiency of both conventional and organic tea farms...112
Appendix
1 Retail prices of some agricultural products in study sites...130 2 Compare inputs and output means (per farm) between systems ...131 3 Estimated TE of conventional and organic tea farms...132 4 Results of stochastic frontier and technical inefficiency model
for conventional tea farms...133 5 Results of stochastic frontier and technical inefficiency model
for organic tea farms ...135 6 Photos of systems in selected study sites...138
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List of Figures
Page
Figure
1 Technical efficiency of firms in relative input space ...32
2 Technical efficiency of firms in input-output space...33
3 Stochastic frontier production function...35
4 Sample selection for the study...40
5 Temperature and rainfall in Thai Nguyen...42
6 Map of study sites ...49
7 Marketing channel for organic tea products ...76
8 Marketing channel of conventional tea ...78
9 Distribution of technical efficiency of conventional tea farmers...102
10 Distribution of technical efficiency of organic tea farmers ...106
