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An Economic Analysis of Sweet Potato Production and Utilization for Animal Feed in North Vietnam
Thesis Abstract:
The study aimed to determine the effects of government policies on the incentive structure of the sweet potato industry in North Vietnam. It reviewed the national program on sweet potato production and the government policies in the input and output markets of the sweet potato industry and related these to the question of whether or not the country has comparative advantage in sweet potato production.
The nominaI protection rate (NPR) was used as measure of production incentive. On the other hand, the comparative advantage study focused on the concept of net social profitability (NSP).
Results showed that government policies provided incentives to sweet potato growers, as indicated by the NPR values which ranged from 7 to 25 percent. However, these also served as disincentives for sweet potato growers by imposing positive implicittariff (IT) on major inputs (e.g., fertilizer) used for sweet potato production. The NSP values in all study areas were positive, showing that sweet potato production in North Vietnam had comparative advantage, or sweet potato production in the study areas used domestic resources more efficiently. The largest NSP value was 3,517,500 dong and the smallest value was 182,800 dong per hectare of sweet potato in Hatay and Hanoi, respectively (USjumi = 10,000 dong).
The study also evaluated the prospects of using sweet potato products (roots and vines) for swine feed. The largest proportion of roots used as feed was 82.1 percent and the sma llest was 50.2 percent in Hatay and Thanhhoa, respectively. For sweet potato vine, the highest proportion used was 80.8 pereent in Thanhhoa and the lowest was 54.5 percent in Hanoi. Sweet potato occupied a large part in total feed costs for swine: 16.5-33.6 percent in Bacthai and 29. 1-45.1 percent in Thanhhoa.
Weight gains of swine fed with sweet potato, which has good supplemental protein, was at par with those given commercial feeds. The study showed that using sweet potato as the ma in feed ingredient for swine could bring profit to swine raisers. The highest values of returns on labor were 103,300 dong and 255,500 dong per swine in one rearing cycle in Bacthai and Thanhhoa, respectively. In general, therefore, North Vietnam has a comparative advantage in sweet potato production and use as swine feed. The swine industry can provide an important source of income-generating opportunities in the rural areas and, at the same time, provide protein-rich foods for the growing population, particularly in the urban areas. Hence, sweet potato production should be included in the economic development process.