Luận văn thạc sĩ UEH determinants of water melon production at farm household level in tien giang

UNIVERSITY OF ECONOMICS

HO CHI MINH CITY

VIETNAM

INSTITUTE OF SOCIAL STUDIES

THE HAGUE

THE NETHERLANDS

VIETNAM- NETHERLANDS

PROGRAMME FOR M.A IN DEVELOPMENT ECONOMICS

DETERMINANTS OF WATER MELON

PRODUCTION AT FARM HOUSEHOLD LEVEL

IN TIEN GIANG PROVINCE

A thesis submitted in partial fulfilment of the requirements for the degree of

MASTER OF ARTS IN DEVELOPMENT ECONOMICS

By

LUONG THI MY DUYEN

Academic Supervisor:

DR. TRAN TIEN KHAI

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ACKNOWLEDGEMENTS

I would like to express my deep thankfulness to board of professors, doctors, teachers

and staffs of Vietnam - Netherlands Programme for Master of Arts in Development

Economics for all their instruction, help and support during my study here.

Firstly, I would like to express my special thankfulness to my supervisor Dr. Tran

Tien Khai who devoted to his students by all his enthusiasm, advice, encouragement

and guidance. I could not finish my thesis without his support. I also want to thank to

Professor Nguyen Trong Hoai who always follow closely and listen each

expectation of all the students to guideline and support during this study programme. I

also would like to give my attitude of admiration to Dr. Peter Calkin about his

ability to read thesis research design (TRD), to give comments on TRD for all

students, and especially his ability to work tirelessly through discussion directly with

each student to give them his advice. And I applied your valuable advice into my

research.

I am also thankful for the helping from Mr. Tran Ngoc An- Director of Agricultural

Seed Center of Tien Giang Province who introduced me to Tien Giang's Rural and

Agriculture Development Department, Tien Giang's Plant Protection Department,

Agri-extension station of each district, and Plant Protection station of each district;

gave me good information on farm household survey questionnaires; and advised me

how to collect sufficient data. I give my thanks for enthusiastically helping to persons

in charge of at each district (Go Cong Tay, Go Cong Dong, Cai Be, Cai Lay, Chau

Thanh, Cho Gao, Tan Phuoc). Especially, my research could not implement without

the co-operation, support and ready to answer my questionnaires of farmers or their

farm household. Thank you very much to 1 77 farmers who have been planting water

melon around the Tien Giang province.

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Finally, this research would not have been finished without the patience, motivation

from my parents who now is living in Go Cong Tay. Their support is throughout

surveys to collect data. I always appreciate high for your helping.

Thank you very much all of you!

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CERTIFICATION

I certify that the substance of this thesis has not already been submitted for any degree

and I not being current submitted for any other degree.

I certify that to the best of my knowledge any help received in preparing this thesis,

and all source used, have been acknowledged in this thesis.

Luong Thi My Duyen

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ABSTRACT

Tien Giang belongs to basin of Vietnam Mekong River Delta which has good weather

and soil conditions for agriculture, forestry and aquaculture. Beside of rice as a main

crop, Tien Giang has been carrying out the converting agricultural structure program,

growing diverse crops like fruits, vegetables, and short-term industrial plants etc.

Especially, in recent years, farmers have a chance to get good income from water

melon crops because a water melon crop is only two-month which could give high

yield and good quality. It not only is consumed in Vietnamese markets, but also

exported to Chinese market and Cambodian markets by bordering. However, Tien

Giang's water melon has not developed to a sustainable level yet because farmers'

cultivation still brings spontaneous nature, lacks concentration and specialization.

Moreover, there have not yet had any clear information about economic efficiency of

this fruit which is provided for provincial authorities.

That is one of reasons which the author implemented this research to evaluate the

productive resources utilization for water melon production and the economic

efficiency from 2010's summer-fall crop. Production function under log-log and

Cobb-Douglas forms and SWOT analysis are applied. In this research, the author used

the primary data through direct interview of 1 77 respondents at 7 districts across Tien

Giang province.

The study results showed that soil has not affected much to water melon yielding yet

now. However soil will be the most important constraint factor to water melon yield

because pest damage can be more seriously if water melon is cultivated continuously

at the same location. And water melon is a special vegetable need to be taken care

carefully; so, farmers should consider the production area which is suitable with their

ability to plant and to gain the highest yield. Investment more in fertilizer had less

effect to water melon yielding change; however, we should fertilize more phosphate

fertilizer P20 5 during land preparation period for acid sulphate soil. Labor is also

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considered as a determining factor, in which growing years of producers play the

most important role in yielding change. In addition to, farmers have not cared to

market information, agricultural extension services in locations, etc yet. In general,

although farmers lack support of many organizations, water melon yielding which

farmers gained is relatively high because of utilization of productive resources well.

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TABLE OF CONTENTS

Page

A CKN 0 WLEDG EMENTS ............................................................................................ .

CERTIFICATION .......................................................................................................... .

ABSTRACT ..................................................................................................................... .

CHAPTER 1: PROBLEM STATEMENT .................................................................. !

1.1 Research context .......................................................................................... 1

1.2 Research problem ........................................................................................ 1

1.3 Goal and specific objectives of the study .................................................... 2

1.4 Research question ........................................................................................ 2

1.5 Scope ofresearch ......................................................................................... 3

1.6 The organization of the thesis ...................................................................... 3

CHAPTER 2: LITERATURE REVIEW ..................................................................... 5

2.1 Theoretical framework ................................................................................ 5

2.1.1 Theory of farm household economies ......................................................... 5

2.1.2 Production function ........................................................................................ 8

2.1.3 Production factors of farm household ....................................................... 11

2.2 Empirical studies ....................................................................................... 12

2.3 Analytic framework of this research ......................................................... 17

CHAPTER 3: RESEARCH METHODOLOGY ...................................................... 19

3.1 Analytical framework ................................................................................ 19

3 .1.1 Model specification ...................................................................................... 19

3.1.2 Variables indication ...................................................................................... 20

3.1.3 Sign expectation ............................................................................................ 20

3 .1.4 Variables description .................................................................................... 21

3.2 Data collection and sample distribution .................................................... 24

3.2.1 Sample size .................................................................................................... 24

3.2.2 Sample distribution ....................................................................................... 25

3.2.3 Sampling framework .................................................................................... 26

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3 .2.4 Pre-testing of the questionnaires ................................................................ 26

3.2.5 Orientation to collect data ........................................................................... 26

3.2.6 Limitation of data source and collection ................................................... 27

3.3 Analysis methods ....................................................................................... 27

3 .3 .1 Analysis methods .......................................................................................... 27

3.3 .2 Usefulness of the research.: ......................................................................... 28

CHAPTER 4: ANALYSES OF WATER MELON PRODUCTION IN TIEN

GIANG PROVINCE AND INFLUENCES OF INPUT USES ON WATER

MELON YIELD ........................................................................................................... 29

4.1 Introduction ofTien Giang province and its water melon production ...... 29

4.1.1 Overview ofTien Giang province ............................................................. 29

4.1.2 Climate condition .......................................................................................... 30

4.1.3 Soil condition ................................................................................................. 30

4.1.4 Water melon production in Tien Giang ..................................................... 32

4.1.5 Market and product competitiveness ......................................................... 33

4.2 Analyses of water melon production in Tien Giang province ................... 36

4.2.1 SWOT analysis .............................................................................................. 36

4.2.2 Description of water melon production in Tien Giang through farm

survey ........................................................................................................................ 37

4.2.3 Analyses the influences of input uses to water melon yield by

econometrics analyses ............................................................................................ 55

CHAPTER 5: CONCLUSIONS AND RECOMMENDATIONS ..............•............. 63

5.1 Conclusions ................................................................................................ 63

5.2 Recommendations ..................................................................................... 65

CHAPTER 6: LIMITATION ..................................................................................... 68

REFERENCES ............................................................................................................. 69

APPENDIX 1 ................................................................................................................ 71

APPENDIX 2: ............................................................................................................... 76

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CHAPTER 1: PROBLEM STATEMENT

1.1 Research context

Tien Giang's water melon is one of the fruit trade-mark which is exported to China

and Cambodia through border trade. However, water melon production has not been

really stable yet at present. In 2007, the total water melon productive area of Tien

Giang is 3,779 hectares, and output is 70,847 tons. In 2008, the total water melon

productive area is only 2,954 hectares, and output is also only 55,754 tons (Tien

Giang's Rural and Agriculture Development Department). The water melon

cultivation in Tien Giang currently brings spontaneous nature, lacks concentration,

lacks specialization, lacks market information, strongly price fluctuation, and

market demanded quantity depends much on wholesalers or distributors even also

changes according to season. At the producer's perspective, there is not currently

available information on economic efficiency and ability to contribute profits from

water melon planting into the income structure of farm households. Although there

are many unknown information related to water melon cultivation and trading, but

the author only is interested in the supply side, especially the economic efficiency

of planting water melon in Tien Giang province.

This research also assumes that the following weaknesses need to be strengthened

in water melon production process a) low entrepreneurial ability of farmers of both

genders and all ages; b) ability to confront bad natural conditions of farmers such as

suddenly and usually climate change; c) water melon quality for market.

1.2 Research problem

It is not yet known what factors lead farmers to gain the highest water melon output.

Farmers of various types will react differently to each different factor. This study is

required to find out the potential factors impact to Tien Giang's water melon

production based on production function model, theory of farm household

economics and SWOT analysis.

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