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Comparative analysis of economic efficiency of carrot production using sustainable agricultural production practices in Cam Giang district, Hai Duong province, Vietnam
Dissertation Abstract:
This study analyzed the economic efficiency of carrot production by farmers in Cam Giang district, Hai Duong province, Vietnam, where sustainable agricultural production practices, specifically Good Agricultural Practices (GAP), are being applied. The stochastic production frontier model was used to estimate technical efficiency, while the stochastic profit frontier model was applied to evaluate economic efficiency (EE); and the Robust estimation was used to estimate the affect factors. Based on a random sample of 200 carrot-growing households applying VietGAP and 146 households cultivating using traditional methods, the study found that the mean technical efficiencies of the GAP and non-GAP groups were not statistically different. The economic efficiency of the households ranged from 30% to 90%. The proportion of households achieving economic efficiency at 90% was higher in the GAP group than in the non-GAP group (26% vs. 19.18%). In contrast, at the economic efficiency level of 80%, this proportion was lower in the GAP group (29%) than in the non-GAP group (34.25%). Similarly, at the economic efficiency level of 70%, the GAP group achieved 18%, lower than the non-GAP group (18.49%). This trend continued at the economic efficiency levels of 50% and 60%, with the proportion of households in the GAP group consistently lower. This shows that although GAP households tend to achieve higher profits and better technical efficiency, they have not yet fully and effectively applied GAP processes to improve economic efficiency significantly. Findings from the study showed that farmers need to improve their understanding of GAP and be further trained in GAP application, which can help them use inputs more efficiently, thereby achieving higher economic efficiency. Although GAP-certified households have better access to markets, especially export markets, with higher prices, better profits, and more stable distribution channels, they still lack control over the pricing of their products.