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Analysis of the lychee industry competitiveness and good agricultural practice (VietGAP) in Bac Giang Province, Vietnam
Thesis Abstract:
The study analyzed the lychee industry competitiveness and adoption of good agricultural practice (VietGAP) in Bac Giang Province, Vietnam. Results showed that 56 percent of VietGAP farmers were applying eight or more of the prescribed practices; the rest were considered low adopters. The practices which were highly adopted by farmers were related to soil and water, harvesting, storage and transport, chemical application, waste management, and fertilizer application. Other practices such as choice of varieties, pruning, recording, compliance, and safety for workers had lower adopters. No farmer adopted the internal audit requirement.
Factors that significantly influenced the probability of high adoption of VietGAP were farm size, net profit, accessibility to VietGAP information, and membership in lychee farmers’ group. The estimated resource cost ratios from the Policy Analysis Matrix (PAM) showed that Luc Ngan District, where VietGAP was adopted, had grater comparative and competitive advantages than Luc Nam District where no farmers adopted VietGAP. Lychee production with high adoption of VietGAP also had higher comparative and competitive advantages than that with low adoption of VietGAP. Results of the sensitivity analysis showed that the world price of lychee, lychee yield, and official exchange rate had positive effect on the lychee industry competitiveness while the labor costs, input prices, and interest on capital had negative effect.
The study recommended improving the VietGAP program implementation and the input distribution system; providing processing support, insurance fund, greater access to capital, and better equipment and tools for lychee production; and encouraging membership to lychee farmers’ group.