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Factors Affecting the Decision Making of the Farmers and Traders on Corn Storage in Moc Chau District, Son La Province, Vietnam
Thesis Abstract:
The study examined the nature and extent of corn storage by farmers and traders. The profitability of storing corn was determined and the effects of physical and socioeconomic factors on the farmers’ and traders’ decision on storing corn were evaluated.
Data covering 2006-2007 crop seasons were gathered through personal interviews of 99 corn farmers and 40 corn traders. Partial budget analysis was used to determine the additional profits from storing corn while logit models were utilized in evaluating the effects of different factors on the farmers’ and traders’ decision on corn storage.
Results showed that 53.5 percent of the farmers decided to store all or partly sell and store their produce while 57 percent of the corn traders did the same. The corn farmers adopted the traditional practice of storing corn while traditional and modern practices were employed by the traders. All the farmers and traders did not have to pay for corn storage fees except depreciation because they all own the land where they have built storage houses. The monthly volume of corn handled by the farmers and traders varied per season of harvest. Majority of the farmers and traders stored their corn for two months. Marketing margins gained by the farmers and traders were higher during winter season. Storage costs differed between the farmer and trader groups and they depended on volume of corn stored.
The partial budget analysis revealed that the average additional profits from storing corn were VND 4,705 thousand and VND 26,284 thousand for the farmers and traders, respectively. On per ton basis, the farmers obtained an average additional profit of VND 279.5 thousand while the traders earned VND 153 thousand.
The factors found to be significantly affecting farmer’s decision on corn storage were price of corn after storage, volume of corn harvested, costs of corn storage, total annual household income, number of years with experience in farming, crop season, and extension. On the other hand, the factors affecting trader’s decision on storing corn included quantity procured, storage losses, price of corn after storage, storage costs, annual income of the trader, gender of the trader, situation of borrowing, and type of trader.