EVALUATION OF THE COCONUT VALUE CHAIN AND LAND USE SOLUTIONS IN CHÂU THÀNH DISTRICT, BẾN TRE PROVINCE
EVALUATION OF THE COCONUT VALUE CHAIN AND LAND USE SOLUTIONS IN CHÂU THÀNH DISTRICT, BẾN TRE PROVINCE
Nguyễn Thị Song Bình
Phan Hoàng Vũ
Phan Chí Nguyện
Phạm Thanh Vũ
Vương Tuấn Huy
Faculty of Environment and Natural Resources, Cần Thơ University
Abstract:
This study evaluates the current state of the coconut value chain and the factors affecting product distribution, thereby proposing solutions to enhance efficiency and sustainable land use for coconut cultivation.
The research utilizes expert survey methods and descriptive statistical methods, analysis, and evaluation of the value chain. The coconut water value chain has 6 distribution channels, while the coconut oil value chain has 4 main distribution channels. The coconut value chain is mainly influenced by traders, with a low proportion of products reaching direct consumers.
Various factors affect the value chain, among which product brand, fruit quality, and contract signing are highly valued. The study proposes solutions to improve the efficiency of the coconut value chain, allowing farmers to maintain their planting scale without shifting to other cultivation models, aiming for sustainable land use.
Keywords: Coconut, Châu Thành, Value Chain.
I. INTRODUCTION
Châu Thành District is located in the northern part of Bến Tre Province. It is one of the nine administrative units at the district and city level of the province, situated on both sides of National Highway 60 and along the southern bank of the Tiền River, 8 km south of Bến Tre City. Châu Thành serves as one of the centers for trade, services, tourism, economic, and cultural activities in the province and acts as an important gateway connecting Bến Tre Province with Ho Chi Minh City and neighboring provinces. Châu Thành’s natural conditions are favorable for agricultural development, with most residents engaged in farming, particularly in fruit orchards.
Recently, the district has been assessed as having suitable potential for fruit trees, especially coconut trees, which are highly suitable in terms of natural conditions, covering an area of 6,111.41 hectares, accounting for 37.48% of the district’s natural area (Phan Chí Nguyện et al., 2022). Coconut has also been a source of livelihood for many farmers here. However, in recent years, coconut farmers have not achieved the same economic efficiency as before, partly due to hot weather and saline intrusion (Châu Thành District People’s Committee, 2020).
The value chain of coconut products is currently a matter of concern. If the value chain is not effective, producers will not be able to increase the value of their products, and land users may be at risk of shifting to other cultivation models. These issues have led to reduced farming efficiency and income for residents, resulting in a trend of switching to other crops not included in the district and provincial plans. Spontaneous, unscientific shifts can lead to an imbalance in supply and demand, resulting in cultivation risks and lack of sustainability.
Based on these issues, the study aims to investigate the value chain and propose appropriate land use solutions for coconut cultivation.
II. RESEARCH METHODOLOGY
Research Subjects: The focus is on two types of coconuts: coconut water and coconut oil.
Using semi-structured survey questionnaires to interview knowledgeable individuals. The sample size is determined using the minimum sample size method of Hogg and Tanis (1983).
Subjects include agricultural officials from communes within the district to investigate socio-economic aspects. The total number of questionnaires is 18.
Subjects also include farming households knowledgeable about distribution channels to investigate market consumption information. The total number of questionnaires is 28.
Using descriptive statistical methods: Results are presented using data tables; shown as percentages and mean values.
Qualitative data from the survey will be converted to quantitative data based on the Likert scale (Likert, R, 1932). Using the 5-point Likert scale, the range is 4 (5-1=4), divided by 5 (4/5=0.80). Adding 1 to 0.80 gives the highest value (1.80) for the lowest rating level, then calculated from 1.81 adding 0.80: 1.00 to 1.80: Very little; 1.81 to 2.60: Little; 2.61 to 3.40: Average; 3.41 to 4.20: Much; 4.21 to 5.00: Very much.
Using the Value Chain Diagram (GTZ Eschborn, 2007) to draw the value chain of coconuts.
Input -> Producer -> Transformation -> Sale -> Consumption.
III. RESEARCH RESULTS AND DISCUSSION
- Assessment of the current state of the coconut value chain in Châu Thành District, Bến Tre Province
1.1 Coconut water products
The consumption of coconut water in Châu Thành District, Bến Tre Province, is represented through six main distribution channels:
– Channel 1: Farmers produce => Cooperatives => Export.
This channel involves the export of coconut water to China and some neighboring countries. It enhances the product’s visibility and increases farmers’ income, although the sales volume remains low.
– Channel 2: Farmers produce => Traders/Depot owners => Cooperatives => Export.
This channel highlights the importance of Cooperatives in bringing products to foreign consumers, which is a strength of the distribution channel. However, it also poses risks such as price pressure and market dependence.
– Channel 3: Farmers produce => Traders/Depot owners => Out-of-province traders.
Out-of-province traders purchase 7% of the total coconut water production of the district. This channel helps to widen the product’s reach and creates additional outlets for coconut water products.
– Channel 4: Farmers produce => Traders/ Depot owners => Markets => Consumers.
This channel represents a significant proportion of the district’s total coconut water consumption. It is the traditional local distribution channel.
– Channel 5: Farmers produce => Traders/ Depot owners => Processing plants => Consumers.
Traders and depot owners sell 39% of the district’s coconut water production to processing plants, cold storage facilities for further processing before reaching consumers. This channel accounts for the largest proportion of coconut water consumption.
– Channel 6: Farmers produce => Consumers.
This is the shortest distribution channel, with direct sales to consumers accounting for a small proportion, and not ensuring stable outlets for coconut farmers.
1.2 Coconut oil products
The consumption of coconut oil in Châu Thành District, Bến Tre Province, is represented through four main distribution channels:
– Channel 1: Farmers produce => Traders/ Depot owners => Out-of-province traders.
This channel helps the district’s agricultural products to be more widely known, contributing to additional outlets for Châu Thành’s coconut oil products.
– Channel 2: Farmers produce => Traders/ Depot owners => Markets => Consumers.
This channel accounts for a significant proportion of the district’s total coconut oil consumption. It is a traditional distribution channel for coconut products, with the advantage of wide distribution.
– Channel 3: Farmers produce => Traders/ Depot owners => Processing plants => Consumers.
Coconuts are sold to processing plants and cold storage facilities for further processing before reaching consumers. This channel represents the largest proportion of coconut oil consumption. Its advantage lies in product diversity and the ability to transport products to various locations.
– Channel 4: Farmers produce => Consumers.
Direct sales of coconut oil to consumers account for a small proportion. Although direct sales ensure higher prices compared to intermediaries, the consumption volume is not large. Therefore, direct sales to consumers only guarantee a small part of the output, not ensuring stable outlets for coconut oil farmers.
In general, both coconut water and coconut oil distribution channels have the strength of fewer intermediaries but share the common weakness of dependency on traders. Traders almost entirely control the distribution channels of coconut products in Châu Thành District. This issue reveals that coconut cultivation faces many difficulties and risks if traders pressure prices or do not support farmers.
- Factors Affecting the Coconut Distribution Channels in Châu Thành District
The consumption of coconuts, beyond the subjects in the distribution channel, is influenced by various other factors. Fruit quality, weather – disease, product branding, and contractual relationships are major factors impacting both coconut water and coconut oil consumption.
These factors significantly affect the distribution channels, enhancing the value of coconut products and the value of the channels. They indirectly support and impact the scale of coconut cultivation, making it more sustainable. Other factors still have a certain degree of influence related to the scale of planting and the sustainability of the coconut cultivation model.
- Solutions for Developing Coconut Products Based on Sustainable Land Use
– Flexibly apply activities in trading and exchanging goods to increase product value.
– Establish key growing regions with concentrated planting to ensure productivity, quality, and food safety, enhancing efficiency and competitiveness.
– Strengthen investment in synchronized technical infrastructure, transfer technology, organize production towards large-scale commodity, and form cooperative relationships linked by the value chain.
– Develop the value chain of key agricultural products to ensure concentrated, long-term stable raw material areas, combined with tourism development.
– Promote trade promotion to support agricultural products in the province to access and connect well with distribution systems, enterprises, markets, and agricultural product sales points both domestically and internationally.
– Expand agricultural market information channels and connect with out-of-province agricultural processing plants to support the purchase and processing of high-value agricultural products.
– For the export market, proactively grasp information and seek support from the Ministry of Industry and Trade and related sectors in trade promotion activities.
– Strengthen information dissemination and propaganda about building concentrated production areas linked with the value chain, creating motivation for people to implement according to the province’s general orientation.
IV. CONCLUSION
Coconut water and coconut oil are the two main products of coconut cultivation. Coconut water has 6 distribution channels, and coconut oil has 4 channels.
The coconut value chain in Châu Thành District is primarily dominated by traders. Factors affecting the value of coconuts mainly stem from product branding, contractual relationships, and fruit quality.
Products lack guaranteed purchase or contractual agreements and are primarily sold freely.
Solutions should focus on flexible trading methods, with local authorities supporting distribution systems to encourage farmers to maintain their coconut planting scale.
Implementing these solutions will create motivation for stable coconut development, preventing farmers from switching to other crops, thus aiming for sustainable land use.
References
- GTZ. (2007). ValueLinks Manual: The methodology of value chain promotion. Eschborn, Germany: Deutsche Gesellschaft für Technische Zusammenarbeit (GTZ).
- Hogg, R. V. & Tanis, E. A. (1983). Probability and Statistical Inference (2nd ed). Macmillan Publishing Co, Inc, New York.
- Likert, R. (1932). A Technique for the Measurement of Attitudes. Archives of Psychology, 140, 1-55.
- Nguyễn Thị Song Bình (2023). Proposing solutions to improve the livelihood of farming households in the coconut value chain towards sustainable land resource use. Institutional-level science and technology project. Can Tho University.
- Phan Chí Nguyện, Phạm Thanh Vũ, Nguyễn Thị Song Bình, Vương Tuấn Huy, Phan Hoàng Vũ, Võ Quang Minh, and Nguyễn Thanh Hải (2022). Assessment of land potential for the development of fruit trees in Châu Thành District, Bến Tre Province. Hue University Journal of Science, Volume 131, 3B, 31-50.
- Châu Thành District People’s Committee (2020). Report on the socio-economic development situation in 2019-2020 and the socio-economic development plan for 2021, Châu Thành District, Bến Tre Province.
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