Impact of Conversion to Organic Tea Cultivation on Household Income in the Mountainous Areas of Northern Vietnam

Nguyen Doanh,Nguyen Thuong,Yoon Heo

doi:10.3390/su10124475

Abstract

This study aims at determining if organic tea farming results in higher net income than conventional tea farming in the mountainous areas of Northern Vietnam. Our sample includes 226 traditional and 319 organic tea-producing households in the provinces of Thai Nguyen, Phu Tho, Ha Giang, and Lai Chau. Using a propensity score matching approach, the study finds that the adoption of organic tea production had a positive impact on households’ farm income in the study area. Using different matching algorithms, organic tea adopters earned higher income than did non-adopters, from 1038.8 to 1059.0 thousand Vietnamese Dong (VND) per hectare of cultivation plot. To increase conversion to organic tea farming amongst smallholder farmers, the government and other stakeholders should aim to provide better extension services, which incorporate relevant training to farmers and better access to information on organic tea production, as well as encouraging the commercialization of organic fertilizers. Simultaneously, the Vietnamese government should introduce mechanisms to coordinate production activities and deliver tea products to processing and/or marketing facilities.

Highlights

Over the past decades, adverse social and environmental effects have increased the need for a more sustainable production system
This study aims at estimating the average treatment effect (ATE) of conversion to organic tea production on household income
The results indicated that the mean of farm size, age of household head, education, culture, participation in training programs, access to credit, technological support, extensive service support, and market access were significantly different between the adopters and non-adopters of organic tea production

Summary

Introduction

Adverse social and environmental effects have increased the need for a more sustainable production system One strategy for such long-term production with minimal effects on the environment is conversion from conventional to organic farming practices. Organic farming can save energy, preserve biodiversity, mitigating climate change, and sustain the environment, especially in the long run [1,2,3]. It can enhance soil fertility and feed nutrients to the soil. This should contribute to employment in rural areas and to rural economies through sustainable development

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Conclusion