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Determinants of Smallholders’ Market Preferences: The Case of Sustainable Certified Coffee Farmers in Vietnam

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  • Nguyen Hung Anh

    (Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10099 Berlin, Germany)

  • Wolfgang Bokelmann

    (Department of Agricultural Economics, Faculty of Life Sciences, Humboldt University of Berlin, 10099 Berlin, Germany)

Abstract

This study attempts to analyze the market preference of coffee farmers in Vietnam. Using the transaction cost approach, a seemingly unrelated regression (SUR) model was developed based on the sales volume in different markets, transaction cost attributes, socioeconomic factors, and behavioral aspects of sustainable certified coffee farmers. Factors that significantly influence farmers’ market preference include several transaction cost attributes (price uncertainty, market competition, transportation cost, speed of payment, and sale volume agreement) and characteristics of coffee farmers (age, ethnic, farming experience, location, and certificate ownership). Repeated economic transaction embedded in the social relationship indicates the largest sales volume of coffee farmers to the market of buying agents and the existence of local traders. There is a belief that formal institution brings better market access for coffee farmers, but main issues are regarding opportunistic behavior, imperfect market knowledge, traditional farming habits, and contract noncompliance, which have resulted in a lower preference for the market of processors/exporters.

Suggested Citation

  • Nguyen Hung Anh & Wolfgang Bokelmann, 2019. "Determinants of Smallholders’ Market Preferences: The Case of Sustainable Certified Coffee Farmers in Vietnam," Sustainability, MDPI, vol. 11(10), pages 1-20, May.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:10:p:2897-:d:233225
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    2. Mercy Mwambi & Jos Bijman & Patience Mshenga, 2020. "Which type of producer organization is (more) inclusive? Dynamics of farmers’ membership and participation in the decision‐making process," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 91(2), pages 213-236, June.
    3. Nguyen Hung Anh & Wolfgang Bokelmann & Ngo Thi Thuan & Do Thi Nga & Nguyen Van Minh, 2019. "Smallholders’ Preferences for Different Contract Farming Models: Empirical Evidence from Sustainable Certified Coffee Production in Vietnam," Sustainability, MDPI, vol. 11(14), pages 1-26, July.
    4. Alessandro Flammini & Erik Brundin & Rikard Grill & Hannes Zellweger, 2020. "Supply Chain Uncertainties of Small-Scale Coffee Husk-Biochar Production for Activated Carbon in Vietnam," Sustainability, MDPI, vol. 12(19), pages 1-27, September.
    5. Ali Sher & Saman Mazhar & Hossein Azadi & Guanghua Lin, 2020. "Smallholder Commercialization and Urban-Rural Linkages: Effect of Interest-Free Agriculture Credit on Market Participation of Rice Growers in Pakistan," Land, MDPI, vol. 10(1), pages 1-24, December.
    6. Duyen Nhat Lam Tran & Tien Dinh Nguyen & Thuy Thu Pham & Roberto F. Rañola & Thinh An Nguyen, 2021. "Improving Irrigation Water Use Efficiency of Robusta Coffee ( Coffea canephora ) Production in Lam Dong Province, Vietnam," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    7. Luong, Tuan, 2023. "Network resilience and risk attitudes: Evidence from Vietnamese Vegetable Farming," 97th Annual Conference, March 27-29, 2023, Warwick University, Coventry, UK 334556, Agricultural Economics Society - AES.
    8. Sylvaine Lemeilleur & Julie Subervie & Anderson Edilson Presoto & Roberta de Castro Souza & Maria Sylvia Macchione Saes, 2020. "Coffee farmers’ motivations to comply with sustainability standards," Post-Print halshs-02278751, HAL.

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