content
DESCRIPTION
Large -Scale Field Model: A Policy Implication for Viet Nam ? ANH H. LA Centre for Analysis and Forecasting Viet Nam Academy of Social Sciences Virtual Institute Seminar on Trade and Poverty Geneva, September 8-10, 2014. Content. The Large-Scale Field Model implementation: - PowerPoint PPT PresentationTRANSCRIPT
Large-Scale Field Model:A Policy Implication for Viet Nam?
ANH H. LACentre for Analysis and Forecasting
Viet Nam Academy of Social Sciences
Virtual Institute Seminar on Trade and PovertyGeneva, September 8-10, 2014
Content
• The Large-Scale Field Model implementation:
Technical problems facing An Giang Plant Protection Joint Stock Company
• Policy design: technical issue
• Conclusions
Technical problems facing An Giang Plant Protection Joint Stock
Company (1)• Could not invest in building more milling
plants and warehouses because of their underuse (two crops per year) and lack of budget (only loans with market interest rates available).• Uneven rice quality due to lack of drying
facilities with same quality at harvest time while opportunity cost of building drying plants is too high.• Face broken commitment to deploy LSFM
when a outputs contract is unenforceable or any crop is affected by weather or natural disasters.
Technical problems facing An Giang Plant Protection Joint Stock
Company (2)
• Difficult to get bank loans for paddy seed or fertilizer purchase to supply to farmers because of contract breach risk from farmers (paddy sold to collectors with higher prices or poor crop)• Cannot predict the impact of climate
change and sea level rise on rice production• Underdeveloped agricultural insurance
instruments
Policy design: Technical issue
• Lack of competition in rice exports• Lack of investment in rice growers from
exporters• Habit of small-scale rice producers and
lack of mutual trust between enterprises and farmers, causes the breaking of the contract.
• No clear rules for handling cases of dispute
• 30% profit to rice farmers is not guaranteed
• Inherent conflict of interest in regulating rice exports
• Lack of rice farmers’ participation in policy-making
Conclusions
• LSFM cannot be expanded if farmers’ benefit is not guaranteed.
• Successful implementation of the LSFM would require some level of competition among Vietnamese rice exporters and hence access to the rice export quota.