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Asian Journal of Agriculture and Development (AJAD) - Call for papers!

Economic analysis of supply chain of mud crab in the Mekong Delta, Vietnam

(Vietnam), Doctor of Philosophy in Agricultural Economy (Cantho University)

Dissertation Abstract:

The thesis on economic analysis of the supply chain of mud crabs (Scylla paramamosain) in the Mekong Delta aims to propose solutions to improve the economy of the mud crabs in the Mekong Delta. The thesis used the economic analysis method of supply chain according to Lambert, 2008 and Stadtler et al., 2015 to analyze the waiting time effects on the quality and selling price of mud crab products and to analyze logistics costs and supply chain risks. In addition, the study uses multivariate regression analysis methods to determine the factors affecting the quality of mud crabs in the production stage of farmers. Exploratory factor analysis and binary regression to analyze factors affecting domestic customers' intention to buy processed crab products. The SWOT analysis summarizes and proposes solutions to improve the supply chain economy of the mud crab industry in the Mekong Delta.

The thesis was conducted to survey 560 actors participating in the supply chain, including input suppliers (actors of aquatic materials and seeds), production actors (crab farmers from the three largest crab farming provinces in the Mekong Delta (Kien Giang, Bac Lieu, and Ca Mau), distribution actors (traders, crab merchants, wholesalers in wholesale markets (Can Tho, Ho Chi Minh, and Hanoi), retailers of traditional markets, (supermarkets retail), and consumers from three major cities in Vietnam - Can Tho, Ho Chi Minh City, and Hanoi. The main research results of the thesis show that: By 2020, the whole Mekong Delta region will reach 68 thousand tons, with an average yield of mud crabs 152 kg/ha and an area of 465 thousand ha, of which three provinces, Kien Giang, Bac Lieu, and Ca Mau have the highest area and production in the region. In the market for buying and selling mud crabs, traders divide them into four types of crabs with different prices (meat crab: Y1, Y4; brick crab: egg-bearing crab; defective crab: crabs with defective parts and soft shells). The supply chain of mud crabs in the Mekong Delta has six distribution channels, including one export channel and five domestic channels. The main export channel is brick crab, accounting for 18%. For the domestic consumption channel, most crabs are consumed in big cities. The analysis shows that if calculated on 1kg of fresh crab without ropes, crab farmers are allocated the highest profit in the supply chain. But if it comes to the profit for each actor per year, the highest is 256 million VND/year, the trader is 237 million VND/year, and the farmer is the lowest at 3.2 million VND/1000m2/year. The study also analyzed the factors affecting the quality of mud crabs in the production stage (decision to catch Y4 crabs, the quantity of rice, and culture time).

Latency time analysis in the mud crab industry with an average wait time for fresh mud crab in the supply chain is between 45 and 107 hours. In which channel 1 has the longest latency time and channel 5 has the lowest latency time in the supply chain. Analysis of logistics costs through actors in the supply chain of the mud crab industry is: For crab farmers, the logistic structure of labor costs accounts for the highest proportion, followed by loss costs and depreciation costs; For intermediaries, labor costs account for a smaller proportion than household actors but are still the highest, while the cost of loss of intermediate actors is much higher than that of farmers. Risk analysis in the supply chain bears the risk of impacts from natural conditions, markets, diseases, institutions, policies, and management. In which, risks from weather and market are rated the highest among risks in the supply chain. In addition, the output of mud crabs and the price depends on the tide in the month. Notably, the price of mud crabs will be high from the 21st to the 26th and the 5th to the 10th of the lunar calendar.

Through analyzing the production and market of mud crabs domestically and globally, analyzing the quality of mud crab products at the production stage, analyzing supply chain economics, analyzing crab consumption behavior, and analyzing the strengths and weaknesses of actors, the thesis proposes solutions for each actor in the supply chain of mud crabs in the Mekong Delta. In addition, the thesis combines expert opinion and SWOT analysis of the entire mud crab industry in the Mekong Delta, thereby proposing four solutions for the whole chain in order of priority as follows. Solution No. 1: Take advantage of the consumption demand high mud crab to expand production scale and ensure product quality to meet market demand. Solution No. 2: Catch up with the increasing requirements of quality mud crab products to meet the needs of consumers. Solution No. 3: Take advantage of infrastructure development to help reduce the latency time of mud crabs in the supply chain of mud crabs in the Mekong Delta. Solution No. 4: Improve the level of environmental control and input materials to reduce risks and reduce the impact of competition with substitute products by improving the economic efficiency of the mud crab supply chain.