Coffee has brought income for many households and significantly contributes to annual GDP growth of the Dak Lak province. The majority of households have said that water sources, soil quality, coffee caring techniq ues, capital, and cultivation experience are important for the sustainable development of coffee production [Table A1]. We used linear function and Cobb-Douglas functional form to analyze the factors affecting the sustainable development of coffee. The production has shown that capital, labor, and land are important factors contributing to improving coffee productivity. The impact assessments of certain factors, such as agricultural equipment, knowledge of farmers, and the investment of capital, are essential for researching sustainable coffee development. Furthermore, the research results will provide some useful information for those working in the agricultural sector management, the agricultural extension center, and the coffee-growing households in investing, planning and development of Dak Lak coffee to reach high yielding, stable and more efficient in the future.
More than 64% of Dak Lak province’s population over 1 million farmers grow coffee as their primary source of income. The coffee industry also generates more than 500,000 jobs, in addition to farmers, and the region produces more than 1.5 million tons of it annually, contributing to around 40 percent of the nation’s production. Coffee from the province was shipped to 60 countries worldwide with an export value of US $650 million and accounted for 90% of the total exports of the province. Today Dak Lak coffee benefits not only from its brand name identification but also from its geographical identification and the region is generally considered the coffee metropolis of Vietnam.
Dak Lak is the earliest province about coffee cultivation, and has more experiences, considerable planting techniques, so yields reached the highest in the Central Highlands. However, the cultivation of coffee in this province presents several shortcomings. These include the high number of inexperienced farmers, low intensive investment levels, poor production levels, as well as scientific and technical applications that limit productivity, and contribute to unstable quality and poor crop efficiency. Productivity of Dak Lak coffee is high but unstable. In recent years when input prices increased sharply, especially in the years 2009-2013, the price of fertilizer and labor had increased 25% - 30% over the year before. Coffee prices also fluctuated depending on the price of the world’s coffee. Therefore, there were periods of time when input prices rose sharply, but coffee prices fell. As a result, coffee growers lost money and could not afford to invest. Coffee plantations were thus unlikely to recover and get high yields during the next season [
Besides, more than 85% of Dak Lak coffee area belongs to the people (the average household coffee area fluctuate from 0.4 hectares to 2 ha), only about 15% of the area of the company, and farm. Therefore, production of Dak Lak coffee production is still small and scattered. Farmers mainly use random cultivation techniques which contributed to low product quality and poor competitiveness in the market.
To analyze and assess the influence of the inputs to the development of sustainable coffee, within this study, we studied only limited effects of the inputs to the economic effects of Dak Lak Province’s coffee. Coffee productivity and coffee production is the measurement of coffee economic effectiveness. Resulting from coffee production business in 2015 (as a linear function and Cobb-douglas functional form).
(1) Cobb-Douglas production function used to study the benefits of scale. The goal of this model to study the benefits from coffee production and trading of households depend on the volume of investment of inputs. General model is as follows:
(2) The linear function used to study the marginal productivity of the inputs. The goal of this model to study the marginal influence of the input variables on the coffee productivity of households. General model as follows:
Ø Y (dependent variable): Production (model 1), productivity (model 2) coffee of household in years.
Ø a: Freedom coefficient of the regression model.
Ø b1, b2, b3: the elastic coefficient of the dependent variable to the independent variables (model 1); the marginal productivity of input variables (model 2). The coefficients were estimated by regression methods.
Ø α1, α2, α3, α4, α5: The parameters of qualitative variables.
Ø X1, X2, X3: respectively independent variables, the total area of the coffee business for coffee production and total labor of household (model 1); Coffee area of the household, the production of capital and labor on average hectare coffee business (model 2).
Ø D1, D2, D3, D4, D5: respectively qualitative variables, planting windbreaks, soil erosion control measures, participate in the training of agricultural extension, fertilization methods, irrigation methods [
Data is from a survey for 500 households in 30 communes of 08 districts and towns: CuKuin district, Krong Ana district, Lak district, Krong Bong district, CuM’gar district, Buon Ho town, Krong Buk district and Krong Pak district (Dak Lak province).
According to the Institute of Agricultural and Forestry Engineering Highlands (1999) [
Through the survey (
Also from the survey results, the survey are summarized in
The survey in
Data compiled from
Data compiled from
VA/IC by 2.03, meaning every 1 million investment intermediary costs will gain an average of 2.03 million of value added from the production and trading of coffee. MI/IC by 1.6, meaning every 1 million investment intermediary costs will gain an average of 1.6 million mixed income. Overall, the business efficiency of households was relatively high status, Krong Buk, CuM’gar and CuKuin is higher overall efficiency at all. Because these areas are generally favorable natural conditions for growing coffee more. Besides, experience, technique and care from both dominant than other regions [
Coefficient R2 = 0.736012, model indicates the independent variables explained 73.6012% change in the dependent variable is the production of coffee.
Results in the
The meaning of the parameters:
Total of three parameters coffee harvest area, production capital and labor, with 0.342 + 0.287 + 0.750 = 1.379. This shows that the regression model increases production with size. At the present time, if the household increases size and the area, capital and labor, the production efficiency will increase the coffee business [
Parameters of fertilizing method by 0.0787 shows that reasonable fertilizing will increase coffee production by 0.082 times (e0.0787 − 1) versus unreasonable fertilization.
Parameters of agricultural extension by 0.1241, said households participate agricultural extension work will make coffee production increase by 0.132 times (e0.1241 − 1) than households not taking part in the extension.
Parameters of preventing soil erosion by 0.0593, said that households have used the anti-erosion measures would be increased coffee production by 0,061times (e0.0593 − 1) than households not using measures anti-erosion measures.
Order | Variable | Intercept | t Stat | P-value |
---|---|---|---|---|
1 | Intercept of freedom | −4.5713*** | −8.362 | 0.0000 |
2 | Coffee production area (ha) | 0.3422*** | 7.166 | 0.0000 |
3 | Capital for coffee production (mil.dong) | 0.2868*** | 9.158 | 0.0000 |
4 | Labor (man-day) | 0.7499*** | 6.079 | 0.0000 |
5 | Irrigation methods (1-suitable; 0-unsuitable) | −0.0007 | −1.106 | 0.2712 |
6 | Fertilizer application(1-suitable; 0-unsuitable) | 0.0787*** | 2.183 | 0.0295 |
7 | Encourage agriculture (1-yes; 0-no) | 0.1241*** | 4.305 | 0.0000 |
8 | Soil erosion mitigation (1-yes; 0-no) | 0.0593** | 2.197 | 0.0285 |
9 | Shaded trees (1-yes; 0-no) | 0.0315 | 1.190 | 0.2348 |
(Note: ***Significance level of 1%, **Significance level of 5%, *Significance level of 10%).
Coefficient R2 = 0.677, said independent variables in the model explained 67.7% change in the dependent variable is the coffee yield.
Through regression results show that the parameters of the model are statistically significant.
The meaning of the parameters:
Parameters of production capital by 0.00082. This is the value of the marginal productivity of capital for production and trading of coffee. This value indicated, in the case of other factors in the model does not change, when the area of the coffee business capital increased to 1 million/ha, the yield of coffee increased by 0.00082 tons/ha.
Parameter of labor by 0.0028. This is the value of the marginal productivity of labor. This value in the event that other factors in the model unchanged, rising labor to 1/ha, the yield of coffee increased by 0.0028 tons/ha.
Parameters of watering method by 0.0979 said reasonable watering will give higher yields up to 0.0979 tons/ha compared with unreasonable watering.
Parameters of fertilizing method by 0.10608 said rational fertilization will give higher yields by 0.10608 tons/ha against unreasonable fertilizing.
Parameters of agricultural extension by 0.0706, said households participate extension work will give higher yields by 0.0706 tons/ha compared to households not taking part in the agricultural extension.
Order | Variable | Intercept | t Stat | P-value |
---|---|---|---|---|
1 | Intercept of freedom | 0.42984*** | 3.000 | 0.00284 |
2 | Coffee production area (ha) | 0.17003*** | 2.902 | 0.00387 |
3 | Capital for coffee production (mil.dong) | 0.00082*** | 6.288 | 0.00000 |
4 | Labor (man-day) | 0.00279*** | 5.103 | 0.00000 |
5 | Irrigation methods (1-suitable; 0-unsuitable) | 0.09794* | 1.755 | 0.07994 |
6 | Fertilizer application(1-suitable; 0-unsuitable) | 0.10608** | 2.341 | 0.01962 |
7 | Encourage agriculture (1-yes; 0-no) | 0.07063* | 1.683 | 0.09297 |
8 | Soil erosion mitigation (1-yes; 0-no) | 0.81658*** | 10.701 | 0.00000 |
9 | Shaded trees (1-yes; 0-no) | 0.55203*** | 6.396 | 0.00000 |
(Note: ***Significance level of 1%, **Significance level of 5%, *Significance level of 10%).
Parameters of preventing soil erosion by 0.81658 said, households have used the anti- erosion measures will give higher yields by 0.81658 tons/ha compared to households with no anti-erosion measures soil.
Parameters of planting windbreak trees by 0.55203 said households participate in planting windbreak trees will give higher yields by 0.55203 tons/ha compared to house- holds with no planting windbreak trees [
In the provinces of Vietnam, the Central Highlands is considered very suitable place for growing Robusta coffee. It is planned, focusing on developing and constantly growing; coffee products have become the main export commodities of the Central Highlands province in general and Dak Lak in particular. Coffee has provided income for many households, contributing significantly to the annual GDP growth of Dak Lak province. Through analysis and evaluation in the study, results showed that the yields of the investigation group reached an average of 2.54 tons/ha. The proportion of households implemented reasonably technical measures such as fertilizing and watering is still at a low percentage (30.8% respectively and 16.2%). This indicates that households develop sustainable coffee but poor in techniques. Analyzing the role of water resources shows that the majority of the interviewed households responded that water resources are very important for the production of coffee and that water levels are gradually degreasing thus showing a downward trend in water levels in the future. To produce coffee business outside water source, other factors such as soil quality, coffee care techniques, capital and experience are very important factors for the sustainable development of the coffee plant. Results and business efficiency of coffee plantations of the crop year 2014/2015 reached a relatively high. Analysis of factors affecting the sustainable coffee development shows that capital, labor and soil are important factors contributing to increased yields. The implementation of effective technical measures (watering, fertilizing, soil erosion control, planting tree windbreaks), as well the agricultural extension will contribute to increase coffee productivity.
Due to poor transportation, data collection is very difficult. Therefore, the scope of this research was limited to the Dak Lak Province, a relatively small province in Vietnam. Authors wished if condition possible, the research will expand to the entire Central Highland of Vietnam-Where climatic condition and land suitable for coffee cultivation in the future. This is a limitation of the research.
The impact assessments of certain factors, such as agricultural equipment, knowledge of farmers, and the investment of capital, are essential for researching sustainable coffee development. Furthermore, the research results will provide some useful information for those working in the agricultural sector management, the agricultural extension center, and the coffee-growing households in investing, planning and development of Dak Lak coffee to reach high yielding, stable and more efficient in the future.
Minh, H.T., Trang, D.T.N. and Chen, J.C. (2016) Input Factors to Sustainable Development of Coffee Pro- duction in the Dak Lak Province. Open Ac- cess Library Journal, 3: e3187. http://dx.doi.org/10.4236/oalib.1103187
Districts | Fertilization method | Irrigation methods (%) | The role of water (1 - 4 points) | The ability of water (1 - 5 point) | Trends in coffee irrigation water (household) | |||||
---|---|---|---|---|---|---|---|---|---|---|
Reasonable | Not reasonable | Reasonable | Not reasonable | Reasonable | Not reasonable | Increase | Increase change | Reduce | Reduce change | |
Buôn Hồ | 12.31 | 87.69 | 12.31 | 87.69 | 1.52 | 2.95 | 0 | 3 | 23 | 39 |
CưKuin | 42.86 | 57.14 | 42.86 | 57.14 | 1.46 | 2.61 | 0 | 5 | 29 | 36 |
CưM’gar | 41.00 | 59.00 | 41.00 | 59.00 | 1.51 | 2.48 | 3 | 6 | 30 | 61 |
Krông Ana | 15.00 | 85.00 | 15.00 | 85.00 | 1.35 | 2.73 | 0 | 1 | 8 | 31 |
Krông Bông | 12.00 | 88.00 | 12.00 | 88.00 | 1.36 | 2.36 | 0 | 1 | 6 | 18 |
Krông Búk | 47.78 | 52.22 | 47.78 | 52.22 | 1.59 | 3.17 | 0 | 4 | 25 | 61 |
Krông Pắk | 25.88 | 74.12 | 25.88 | 74.12 | 1.47 | 2.66 | 0 | 7 | 16 | 62 |
Lắk | 4.00 | 96.00 | 4.00 | 96.00 | 1.44 | 2.96 | 0 | 0 | 6 | 19 |
Total households | 30.80 | 69.20 | 30.80 | 69.20 | 1.49 | 2.75 | 3 | 27 | 143 | 327 |
Source: Survey data of the author in 2015.
Districts | GO | VA | MI | GO/IC | VA/IC | MI/IC |
---|---|---|---|---|---|---|
Buôn Hồ | 55.15 | 33.38 | 27.24 | 2.53 | 1.53 | 1.25 |
CưKuin | 69.46 | 48.32 | 36.61 | 3.29 | 2.29 | 1.73 |
CưM’gar | 67.68 | 48.12 | 36.92 | 3.46 | 2.46 | 1.89 |
Krông Ana | 56.50 | 33.27 | 28.47 | 2.43 | 1.43 | 1.23 |
Krông Bông | 39.22 | 19.84 | 16.08 | 2.02 | 1.02 | 0.83 |
Krông Búk | 65.11 | 46.21 | 35.36 | 3.44 | 2.45 | 1.87 |
Krông Pắk | 63.55 | 40.09 | 32.20 | 2.71 | 1.71 | 1.37 |
Lắk | 46.14 | 32.51 | 28.94 | 3.39 | 2.39 | 2.12 |
Average | 62.03 | 41.56 | 32.72 | 3.03 | 2.03 | 1.60 |
Source: Survey data of the author in 2015.
Districts | Cultivation experience | The distance and the quality of roads | Capital Scale | Area Scale | Coffee caring techniques | Soil quality | Coffee area planning | Coffee consumption market | Market price information |
---|---|---|---|---|---|---|---|---|---|
Buôn Hồ | 3.35 | 2.15 | 3.06 | 2.75 | 2.72 | 2.82 | 2.25 | 2.38 | 2.28 |
CưKuin | 3.23 | 1.96 | 3.29 | 2.86 | 3.36 | 3.30 | 2.49 | 2.73 | 2.46 |
CưM’gar | 3.45 | 2.19 | 3.11 | 3.06 | 3.36 | 3.15 | 2.31 | 2.31 | 2.15 |
Krông Ana | 3.18 | 2.05 | 2.93 | 2.93 | 3.05 | 2.95 | 2.00 | 2.23 | 2.53 |
Krông Bông | 2.52 | 2.28 | 3.12 | 2.68 | 2.60 | 3.16 | 2.72 | 2.64 | 2.44 |
Krông Búk | 3.19 | 2.04 | 2.90 | 3.29 | 2.84 | 2.89 | 2.34 | 2.51 | 2.59 |
Krông Pắk | 3.34 | 2.15 | 3.06 | 2.80 | 2.98 | 3.06 | 2.27 | 2.47 | 2.51 |
Lắk | 2.88 | 2.04 | 3.28 | 3.08 | 2.72 | 2.48 | 2.08 | 2.68 | 2.84 |
Average | 3.24 | 2.11 | 3.08 | 2.96 | 3.02 | 3.02 | 2.31 | 2.47 | 2.43 |
Districts | Total coffee area | Average output (ton/ha) | <1.5 ton/ha | 1.5 - 3 ton/ha | >3 ton/ha | |||
---|---|---|---|---|---|---|---|---|
Area (ha) | Ratio (%) | Area (ha) | Ratio (%) | DT (ha) | Ratio (%) | |||
Buôn Hồ | 65.70 | 2.29 | 12.70 | 19.33 | 11.80 | 17.96 | 41.20 | 62.71 |
CưKuin | 68.20 | 2.80 | 0.00 | 0.00 | 24.20 | 35.48 | 44.00 | 64.52 |
CưM’gar | 118.60 | 2.74 | 5.60 | 4.72 | 35.90 | 30.27 | 77.10 | 65.01 |
Krông Ana | 40.90 | 2.31 | 7.80 | 19.07 | 6.10 | 14.91 | 27.00 | 66.01 |
Krông Bông | 21.60 | 1.67 | 9.00 | 41.67 | 0.40 | 1.85 | 12.20 | 56.48 |
Krông Búk | 110.10 | 2.65 | 6.00 | 5.45 | 34.20 | 31.06 | 69.90 | 63.49 |
Krông Păk | 90.44 | 2.61 | 9.50 | 10.50 | 31.10 | 34.39 | 49.84 | 55.11 |
Lắk | 30.12 | 1.95 | 5.10 | 16.93 | 3.60 | 11.95 | 21.42 | 71.12 |
Total households | 545.66 | 2.54 | 55.70 | 10.21 | 147.30 | 26.99 | 342.66 | 62.80 |
Source: Survey data of the author in 2015.
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