Abstract

Although Hau Giang province has many competitive advantages in sugarcane production, the frequent fluctuations of market price of sugarcane have prompted farmers to convert their farming systems. This conversion has greatly affected the sustainability and stabability of the raw material supply and livelihoods of sugarcane farmers. Therefore, it is necessary to investigate the sugarcane value chain in order to find out the solutions for developing sugarcane farmers’ livelihoods and sugarcane industry in Hau Giang province. Based on the data collected from face-to-face interviews with 325 observations of actors in the value chain, the study showed that the sugarcane value chain comprises of 13 distribution channels and they all are domestic ones. Regarding the profit allocation, the sugar processing company had the highest profit with VND 77.013 billion/year, accounting for 64.48%, followed by middlemen with 28.989 billion/year, farmers with VND 13.422 billion and sugar retailers with 0.016 billion/year. In order to achieve the stable development of sugarcane value chain, sugar processing companies need to support sugarcane farmers in transferring high yielding setts and promoting mechanization to reduce production cost and increase income for sugarcane farmers. Besides, sugarcane farmers should focus on managing and using inputs effectively, particularly the quantity of cane setts to reduce production cost.

Full Text
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