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Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta

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Listed:
  • Nhan Quoc Tran

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Thong Van Ngo

    (Hau Giang Center for Agricultural Extension and Services, Vi Thanh City 911080, Vietnam)

  • Nay Van Nguyen

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Thanh Ngoc Duong

    (Mekong Delta Development Research Institute, Can Tho University, Can Tho City 270000, Vietnam)

  • Can Duy Nguyen

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

  • Tu Duong Quach

    (College of Economics, Can Tho University, Can Tho City 270000, Vietnam)

  • De Van Le

    (College of Rural Development, Can Tho University, Can Tho City 270000, Vietnam)

Abstract

The major goal of this study is to examine the impact of agricultural cooperative membership on the net return on production cost (ROC). The data used for the study were gathered from 233 rice farmers in the central Mekong River Delta’s province of Hau Giang, Vietnam. Propensity score matching and two-step Heckman selection models were employed to account for possible selection bias stemming from systematically different observable and unobservable attributes between cooperative members and non-members. The findings reveal that cooperative membership has a positive and statistically significant impact on rice farmers’ ROC, suggesting that agricultural cooperatives could help increase the profitability of rice farms.

Suggested Citation

  • Nhan Quoc Tran & Thong Van Ngo & Nay Van Nguyen & Thanh Ngoc Duong & Can Duy Nguyen & Tu Duong Quach & De Van Le, 2022. "Impact of New-Type Agricultural Cooperatives on Profitability of Rice Farms: Evidence from Vietnam’s Mekong River Delta," Economies, MDPI, vol. 10(12), pages 1-15, December.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:12:p:306-:d:990443
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    References listed on IDEAS

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    1. Meiyuan Wang & Bin He & Jinsong Zhang & Yanan Jin, 2021. "Analysis of the Effect of Cooperatives on Increasing Farmers’ Income from the Perspective of Industry Prosperity Based on the PSM Empirical Study in Shennongjia Region," Sustainability, MDPI, vol. 13(23), pages 1-18, November.
    2. Lei Deng & Lei Chen & Jingjie Zhao & Ruimei Wang, 2021. "Comparative analysis on environmental and economic performance of agricultural cooperatives and smallholder farmers: The case of grape production in Hebei, China," PLOS ONE, Public Library of Science, vol. 16(1), pages 1-19, January.
    3. Chagwiza, Clarietta & Muradian, Roldan & Ruben, Ruerd, 2016. "Cooperative membership and dairy performance among smallholders in Ethiopia," Food Policy, Elsevier, vol. 59(C), pages 165-173.
    4. Meike Wollni & Manfred Zeller, 2007. "Do farmers benefit from participating in specialty markets and cooperatives? The case of coffee marketing in Costa Rica1," Agricultural Economics, International Association of Agricultural Economists, vol. 37(2‐3), pages 243-248, September.
    5. Shumeta, Zekarias & D'Haese, Marijke, 2016. "Do coffee cooperatives benefit farmers? An exploration of heterogeneous impact of coffee cooperative membership in Southwest Ethiopia," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(4), August.
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    Cited by:

    1. Oratilwe Penwell Mokoena & Thembelihle Sam Ntuli & Tshepo Ramarumo & Solly Matshonisa Seeletse, 2023. "Sustainability of Rural Small-Scale Farmers Using a Thematic Content-Fed Analytic Hierarchy Process," Sustainability, MDPI, vol. 15(15), pages 1-22, August.
    2. Utomo, Raden Priyo & Kuleh, Yohanes & Darma, Dio Caisar, 2023. "Conventional vs modern: which approach is better for the success of agricultural cooperatives?," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(4), December.

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