Efficiency and adoption of organic tea production: Evidence from Vi Xuyen district, Ha Giang province, Vietnam

Abstract

This paper considers two empirical models. Initially, a stochastic frontier analysis is employed to investigate the technical efficiencies of tea growers in Vi Xuyen, Ha Giang. The findings indicate that the average technical efficiency of organic tea farmers in surveyed area was 65.2.1% which is lower than that of conventional tea growers (70.1%). Furthermore, the average age of tea plant has negative effect on technical efficiency of tea production, meanwhile, the remaining parameters have positive effects on the technical efficiency. Secondly, binary logistic regression analysis is used to determine the influencing factors of the tea farmer’s choice on organic tea production. The variables such as cultivation land, access to extension services, experience of household’s head and especially contract farming have large influences on the decision of tea farmers. The marginal effects after logit of the explanatory variables are -0.01, 0.63, -0.05, 0.71, respectively.