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Economic Sustainability of The Mango Value Chain

Authors
  • Phu, Le
Publication Date
Jun 17, 2019
Source
[email protected]
Keywords
License
Unknown
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Abstract

In the last three decades, the agricultural sector of Cai Be, a key area agricultural area in Vietnam, has developed significantly, thereby making it the main component of the local GDP. However, the agro value chains in that region still face numerous problems such as low quality of produce, heavy dependence on middle actors, and limited participation in the global value chain. All of these issues result in low added values and high poverty rates of farmers. In addition, much focus has been placed on the environmental and social dimensions, thereby eclipsing the importance of the economic aspect of sustainability. Therefore, this paper seeks to create a comprehensive framework with respect to the factors affecting economic sustainability of agro value chains, including value chain structures, price variability, income equality, post- harvest losses, and the participation in global value chains This capstone maps out the mango value chain with all channels involved to make some comparisons on the distribution of the total added values. The use of descriptive statistics contributes greatly to understanding the variability of mango prices between 2013 and 2018. The results from extensive surveys in that area further reveal the factors that determine economic sustainability of the mango value chain such as post-harvest losses and the impact of middlemen. The analyses show that farming cooperatives outperform small-scale farmers, as the former have more bargaining power and take advantage of economies of scale, which results in a difference of nearly 10% in the added values. In addition, foreign channels are able to generate higher added values than domestic ones. Therefore, improving the mango value chain in Cai Be necessitates a clear development roadmap with more focus on establishing more cooperatives to increase the power of farmers and promoting foreign channels to diversify risks as well as capture more profits.

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