Header Page MINISTRY OF EDUCATION AND TRAINING CAN THO UNIVERSITY LA NGUYEN THUY DUNG SOLUTIONS FOR RICE VALUE ADDED AND THE INCOME FOR POOR RICE FARMING HOUSEHOLDS IN AN GIANG PROVINCE ABSTRACT OF DISSERTATION Specialization: Agricultural Economics Code: 62 62 01 15 Can Tho, 03-2017 Footer Page Header Page The research was completed at Can Tho University Supervisor: Assoc Prof Mai Van Nam Opponent 1: Opponent 2: The dissertation will be defended before the council of the school level at: hour date month year Learn about the dissertation in the library: - Learning Resource Center – Can Tho University - Vietnam National Library Footer Page Header Page LIST OF PAPERS RELATED TO THESIS La Nguyễn Thùy Dung Mai Văn Nam (2015) Analysis of the financial performance of rice producing households in the model associated with the enterprise in An Giang province Journal of science, Can Tho University, Volume 36d, page from 92 to 100 La Nguyễn Thùy Dung Mai Văn Nam (2015) Household capacity in business linkage in An Giang province Journal of science, Can Tho University, Volume 38d, page from 25 to 33 La Nguyễn Thùy Dung (2015) Analysis of determine factors affecting the poor rice farmers’income in An Giang province Proceedings of Scientific Conference of socio-economic development in 2015 MD Publicer CTU, page from 175 to 186 La Nguyễn Thùy Dung Mai Văn Nam (2016) Analysis of production efficiency of the poor and non-poor rice-farming households in An Giang province Journal of science, Can Tho University, Volume 46d, page from 30 to 39 Footer Page Header Page CHAPTER 1: INTRODUCTION 1.1 INTRODUCTION This study demonstrates the urgent and high practical significance based on the following issues: (i) An Giang, a province is located in the region upstream of Long Xuyen Quadrangle, plays an important role in rice production: volume ranks second in the region (after Kien Giang) and productivity ranks first period 20112014 (General Statistics, 2015); (ii) An Giang is also one of the first provinces producing rice in the "Large Rice Field model"; (iii) Sustainable economic development accompanied by increasing income, poverty alleviation for the people, especially the poor, are the priorities of government; (iv) Rice chain through many intermediate stages, the value added of the whole sector is lower and lower Yield increases constantly year by year, but farmers’profit is declined because of price instability and high production costs, particularly the poor households Consequently, these issues need to be addressed are: (i) how much value added is made? (ii) Is there a difference whether or not the value added made by rice farmer groups; (iii) How to improve the value added and to improve incomes for rice farmers, especially the poor farmers in An Giang province? Therefore, the study of solutions to improve the value added rice products contributed to improved income for poor households in An Giang province This should be considered as a subject with high imperatives 1.2 RESEARCH OBJECTIVES 1.2.1 General objective The general objective of thesis to analyze the value added in the rice value chain, analyze the impact of the value added to the poor farmers’ income in An Giang province, simultaneous detection of bottlenecks need to improve as a basis for proposing solutions to enhance the value added and improve the poor farmers’ incomes in rice production in An Giang province Footer Page Header Page 1.2.2 Specific objectives Specific research objectives of the thesis should be addressed as follows: (i) analyze the status of rice production, processing and consumption of rice in An Giang province; (ii) analyze value-added and value added distribution among stakeholders involved in the rice value chain; (iii) analyze the contribution from value added to poor farmers’ income; (iv) propose solutions to enhance the value-added for rice products contributing to improve the income for poor households in An Giang province in the near future 1.3 RESEARCH QUESTIONS In this thesis, the research questions should focus on the following: (1) What is the situation of paddy production in An Giang province in the 2011-2014 period like? What is the situation of the rice processing and consumption in An Giang province like? (2) In recent years, how has rice value chain in An Giang operated like? How much does each stakeholder involved in the value chain created the value added for the rice products like? (3) What factors influence rice farmers’ income? Is distributed value-added that affect rice farmers’ income in An Giang or not? (4) What are proposed solutions and recommendations for improving value-added and the poor farmers’ income in An Giang province? 1.4 RESEARCH OBJECTS AND RESEACH SCOPE Research objects: the key objects of the thesis is rice value chain in An Giang province, the value added is made by each stakeholder involved in rice value chain and net value added is distributed to each stakeholder, particularly for the poor rice farmers in the research area Therefore, the solution to enhance the value-added rice products contribute to improving poor farmers’ incomes is also one of the main research objects of the thesis Thesis researches winter-spring crop rice value chain in An Giang province, and not focus on byproduct in the rice value chain Respondents: poor and non-poor rice farmer groups, traders, rice wholesalers/retailers, rice processing mills, food companies The Footer Page Header Page thesis does not examine end-consumers in the domestic market as well as in the foreign market Space scope: According to statistics on rice production area, production, yield and the poverty rate for each administrative unit in An Giang province, research is carried out mainly in five districts (Chau Thanh, Chau Phu, Cho Moi, Tri Ton and Tinh Bien) Research space of the stakeholders in the value chain was expanded by the method of linking the value chain of GTZ (2007) Time scope: the research data on the rice value chain in An Giang is the data of the winter-spring season of 2014 It was the main crop of the farmers and is the lastest time of study CHAPTER 2: LITERATURE REVIEW 2.1 RESEARCH FOR THE VALUE CHAIN Rice value chain in Mekong Delta consists of five functions: input, produce, procurement, trade and consumption There are two main market channels in the rice value chain: domestic channel and export channel (Vo Thi Thanh Loc and Nguyen Ngoc Chau, 2009) In particular, export rice value chain mainly undertaken by the company In addition, the farmer’s profit is lowest in both the domestic and export rice value chain, resulting in farmer’s profit is much lower compared to other stakeholders (Vo Thi Thanh Loc and Nguyen Phu Son, 2011) Farmers play a major role in the rice production However, in fact, the rice producers in the Mekong Delta obtained only 34% of the total value added in the exporting rice value chain (World Bank, 2011) The highest value of the agricultural value chain are made outside the territory of Vietnam, such as processing, distribution and trade; production stage is the lowest profit while consumption reached the highest profit (Nguyen Van Bo and Dao The Anh, 2013) The weakest point in the rice value chain is rice farmers, because this is a discrete set of millions of farmers on their fields, but each person has different behavior It is the enlargement of the force traders to make the relationship between farmers and Footer Page Header Page companies exporting quite loose, the farmer’s profit is distorted (Vo Hung Dung, 2012) 2.2 RESEARCH FOR VALUE CHAIN APPROACH The value chain approach proposed and applied by GTZ, ACDI / VOCA, and M4P applied for value chain research in Vietnam and other developing countries Besides, the methodology for analyzing commodity by FAO (2005) and analysis of competitive advantage by Michael Porter (1985) is also widely used Vo Thi Thanh Loc and Le Nguyen Doan Khoi (2011) have used the synthetic approach of Kaplinsky and Morris (2001), Recklies (2001), GTZ (2007) and M4P (2007) to study the rice value chain in the Mekong Delta Tran Tien Khai (2011) also applied the approach of GTZ (2007), M4P (2007) and FAO (2005) to conduct research and the operational structure of the coconut value chain in Ben Tre Mai Van Nam et al (2010) used the GTZ (2007) value chain approach for the economic analysis of rice value chain in Dong Thap province Along with that, Nguyen Thi Tram Anh and Ngoc Van Bach (2012) based on the Value Links by GTZ (2007) to analyze the rice value chain in Kien Giang Province Nguyen Quoc Nghi (2015) when analyzing the value chain in Tien Giang Hamlet used the "input" approach for the efficiency of agricultural production of Farrell (1957) and "output" of the value chain Kaplinsky & Morris (2001), method of link value chains GTZ (2007) and improve the market for the poor (ADB, 2007) 2.3 VALUE CHAIN METHODOLOGY To analyze the complete and accurate agricultural value chain, the researchers apply both qualitative and quantitative analysis method Tran Tien Khai (2011) have used the specific techniques of qualitative analysis such as sampling purpose, open data collection, text analysis, secondary data, synthesize the meaning and interpretation the results to find out the characteristics of the coconut value chain in Ben Tre, advocacy process, interaction between groups of stakeholders, and between system value chain and impact on its policies Along topic, Nguyen Phi Son (2012) has used the SWOT Footer Page Header Page matrix to provide strategic development value chain grape-applegarlic products in Bind Than The most quantitative method using is descriptive statistical method, analyzing economic value chain method, benefit-cost method, production function, the Cobb-Douglas function and cross tabulation analysis Vo Thi Thanh Loc and Nguyen Ngoc Chau (2009) had applied statistical descriptive method, benefit-cost method, cross tabulation analysis to study the rice value chain in Can Though Mai Van Nam et al (2010) using descriptive statistical method combined with benefit-cost method to analyze the economic value chain of rice in Dong Thap province Nguyen Quoc Nghi (2015) used data envelope analysis method (DEA) to evaluate the effectiveness of poor pineapple producers In addition, the author also uses linear regression method to determine the elements belonging to the household resources affect pineapple production efficiency of the poorer households, analysis of value-added products and the pineapple value added distribution between the stakeholders in the value chain Use SWOT matrix analysis and expert consultation as a scientific basis for proposing solutions to improve value-added products contributed to improved income for poor households in Tien Giang Province 2.4 SAMPLING METHOD Vo Thi Thanh Loc and Phu Son Nguyen (2011) carried out research in the Mekong Delta rice value chain was sampled by a convenient method in the communes of every district and each province based on criteria and rice production area Tran Tien Khai (2011) were sampled according to the non-probability method, namely sampling proportional norms combines convenient sampling carried out research on the coconut value chain in Ben Tre by establishing a list paradigm of farmers is nearly impossible to implement in practice Nguyen Phu Son et al (2012) choose a convenient sampling method for surveying data from a study of the apple-grape-garlic value chain in Ninh Thuan Farmers are selected by a convenient method and the stakeholders selected chain link Footer Page Header Page nature, derived from the producer Next stakeholder sells their products to the other, where they will continue to gather information on the participants in the chain Nguyen Quoc Nghi (2015) made research on the pineapple value chain in Tien Giang province conducted the survey stratified according to criteria pineapple cultivation area, business area of the actors in the value chain and the poverty rate Next, a test conducted by the method of quotas (quotas) to ensure proportional representation of households (poor and nonpoor households); the remaining stakeholders in the value chain is selected by way of the chain link GTZ (2007) 2.5 OVERVIEW OF LITERATURE REVIEW The main research areas of literature review: analysis of rice production situation, evaluate the efficiency of rice production, analyze and evaluate the effectiveness of rice distribution channels, analysis of rice value chain, analysis of risks and effects of policies to the chain stakeholders, develop strategies and solutions to improve the competitiveness for the rice industry The Theory (theoretical basis) was used for the study: the value chain of many authors like Kaplinsky (1999), Kaplinsky and Morris (2001), Porter (1985), Gereffi (1994, 1999) and the theory of "link-Value Links value chain" (2007) of the GTZ Eschborn; five competitive pressures model of M Porter; theory of comparative advantage; competitive advantage These analytical methods have been applied: descriptive statistical method, method of economic analysis value chain, benefitcost method, production function and the Cobb-Douglas function profitability analysis of factors affecting financial performance, cross-table analysis (cross - tabulation), data envelope analysis DEA The convenient method is used by most of researches with the first stakeholder is farmer, because of no overall figures The remaining stakeholders in the value chain are selected by way of the chain link GTZ (2007) However, the studies only focused on the rice value chain in general that no find out what are differences between the value Footer Page Header Page 10 chains In addition, the methodology of the research chain is largely qualitative methods 2.6 APPROACH METHODOLOGY AND RESEARCH FRAMEWORK Thesis using the value chain approach of Kaplinsky & Morris (2001), method of link value chains GTZ (2007) and improve the market for the poor (ADB, 2007) Based on the approach, inheritance research results at home and abroad, the research framework of the thesis is proposed as follows With the proposed research framework, the thesis describes the activities of the stakeholders involved in rice value chain in An Giang province, mapping the rice value chain with participation of poor and non-poor households to find out the difference between the chains Figure 2.1: Research framework Source: Proposed by author Footer Page 10 Header Page 12 Table 3.1: The object survey of the thesis No Stakeholders in Number of Data collection method the chain Observation Agricultural The method of liking the supplies dealers value chain of GTZ (2007) Seed production The method of liking the facilities value chain of GTZ (2007) Farmers 250 Non-random methods (convenience) Traders 14 The method of liking the value chain of GTZ (2007) Processing The method of liking the businesses value chain of GTZ (2007) Food companies The method of liking the value chain of GTZ (2007) Wholesalers / The method of liking the Retailers value chain of GTZ (2007) Total 291 Source: Survey data, 2014 This method is done because: (1) this is the way a lot of research has been done, especially when the research value chain of agricultural products; (2) ensure the scientific and continuity between the chain actors; (3) facilitate the travel agents surveyed 3.3 DATA ANALYSIS The thesis uses the data envelope analysis (DEA) method to evaluate the efficiency of production of paddy farmer groups, find out the weak of the manufacturing process In addition, linear regression models were used to determine the efficiency of production and paddy farmers’ income affected by these factors Value stream maps, value-added, value-added distribution are calculated through value chain analysis toolkit This is the scientific basis for proposing solutions to improve rice value-added and poor rice farmers’ income in An Giang province Footer Page 12 10 Header Page 13 CHAPTER 4: FINDINGS AND DISCUSSIONS 4.1 SITUATIONS OF RICE PRODUCTION AND CONSUMPTION OF THE POOR HOUSEHOLD Poor farmers cultivate average crops/year, while the non-poor farmers produce an average crops/year Currently, there are three varieties are selected to produce (OM4218, OM6976 and IR50404) by poor households IR50404 are choose to plant by most of poor farmers (95.7% accounted for) 48.9% of non-poor households have choose OM4218 and 17.8% of non-poor chose OM6796 to grow in winter-spring crop 61.4% poor farmers buy seeds from local seed production Paddy farmers can poduce seed from the previous season (30%) Moreover, they can buy seed from neighbors (8.6%) For the non-poor households to 45.6% of them cultivate supplied seeds by cooperated enterprise As the result, this is the big difference of rice seed origin between the two farmer groups According to statistics there are 97.1% of poor households not apply technological advances to production This has affected the productivity and production of rice to achieve in their seasons Among poor households to 64.3% of households use family funds to invest in rice farming Meanwhile, the group of non-poor households have access to loans from banks (accounting for 10.5%), so the use of funds from the family to the relatively low rice production (accounting for 8.9%) Rice land area of very small poorer households, averaging 0.62 / household, the lower the rice growing area in the Mekong Delta on average (about 1.29 / household) but higher than the average land area country (is 0.44 / household) Up to 74.3% of poor households surveyed had land less than ♦ Efficient production of poor farmers groups Technical efficiency (TECRS): TECRS of poor farmers achieved relatively good level with the corresponding value is 0.84 This coefficient is less than means that the farmer have not yet reached the optimal TE, in other words, rice farmers should actively Footer Page 13 11 Header Page 14 participate in technical training, participation in local associations, proactive approach credit funds to be able to increase technical efficiency in the next season, reaching maximum productivity For poor households, the TECRS width from 0.52 to 1.00 This breadth said the poor were concentrated and have invested in the production of rice should achieve a high technical efficiency Among households, approximately 40% of total households reached 90% showed growing rice is traditional work should help farmers achieve a high technical efficiency Allocative efficiency (AECRS): If the poor households reached TECRS relatively high level, the coefficient AECRS, they only reached an average of 0.57 Thus, the inefficiency of the distribution of resources in the rice-growing activities of the group of poor households remains high Which is up to 14.3% of poor households have AECRS to 10%, and only 1.4% of the total number of poor households reached 90% AECRS Therefore, this AECRS huge widths (0.00 to 1.00) Efficient distribution of resources by groups of poor farmers grow rice in An Giang province is not high at the time of the survey due to the allocation of resources for production is irrational, prices of inputs unstable and high spending increased, thereby reducing the efficiency of distribution Cost effectiveness (CECRS): The poor households had CECRS coefficient smaller than 1, that is yet to reach the optimal level, so the technical efficiency is high while the effective distribution of resources in production is limited should result in cost-effective is not high Specifically, the poorer households only factor CECRS average at 0.50 ♦ Effective on the size of the poor households The study results showed that rice production activities of the poor farmers in the region are increasing the efficiency of scale (IRS) accounted for 51.4% of surveyed households Farmers in the region are optimal in terms of scale or otherwise than no effective change of scale (CRS) accounted for 45.7% Some farmers to reduce investment scale (DRS) to increase the production efficiency is very Footer Page 14 12 Header Page 15 low proportion (2.9%) Thus, the majority of poor rice farmers in An Giang province in recent years has been pretty good advantage of resources in the production process For farmers in the region by size reduction can reduce the amount of fertilizer, medicine, employer to achieve optimal production efficiency in the future 4.2 THE VALUE CHAIN OF RICE PRODUCTS IN AN GIANG PROVICE 4.2.1 Describe the value chain of rice product in An Giang Province Looking at Figure 4.1, we see rice value chain in An Giang province consists of agents are rice farmers, traders, millers, food companies and agents Farmers (including the poor and non-poor) to perform the function of production, in which poor farmers contributed 6% of the total output of the whole string Collection functions are performed traders and farmers to sell 35.7% of total output to traders In addition, farmers can choose to sell their products for millers or food companies with the corresponding rate was 2.5%, respectively and 61.8% Processing functions are both actors are mills and food companies make Agents are important commercial agent brought 20.7% of total output to the local market chains, and 79.3% of the entire food chain company exported abroad The diagram (Figure 4.2) on the rice value chain shows that poorer households are only traders only partner wheat consumption Footer Page 15 13 Header Page 16 Source: Survey of 250 farmers growing rice in An Giang, 2014 Figure 4.1: Diagram of the rice value chain in An Giang Footer Page 16 14 Header Page 17 Source: Survey of 70 poor rice farmers in An Giang, 2014 Figure 4.2: Diagram of the rice value chain in An Giang province with the participation of poor households Footer Page 17 15 Header Page 18 4.2.2 Analysis of economic integration rice value chain in An Giang province Aggregate economic outcomes rice value chain in An Giang province with the participation of both groups of poor farmers and poor farmers are not calculated and presented in Table 4.1 Total production of rice value chain in An Giang province is 2.737 million tonnes in 2014, of which approximately 2.170 million tonnes were exported (representing 79.3% of the total output of the whole string) This year, revenues are generally rice in An Giang Province is 63,388.8 billion focuses mainly on the actors: Food Corporation (44.4%), farmers (32.0%) and trade driving (12.6%) Total profit was achieved 8410.1 billion, while production by farmers accounted for 75.5% implemented, followed by food companies accounted for 14.9% However, the share of profit / subject / year by farmers and dealers (all accounted for 0.01%) was the lowest in the series, due to the average rice production / household in very low compared to food companies and mills Rice export chain earned revenues of approximately 47,500 billion and bring about a higher profit margin domestic chain trillion Specifically, exports contributed chain gross margin 75.4% 73.8% of total revenue and the rice value chain in An Giang province in 2014 The rest of the domestic rice value chain contributors Thus, the total profit and total revenue of An Giang rice chain largely due to export rice to bring chains This is also the general trend of the Mekong Delta rice industry in recent years, because in the years 2012-2013, as many as 65-70% of rice production in the Mekong Delta have been exported However, in time to come, should focus more on domestic rice chain due to: (1) the price of rice is found to have very high volatility, (2) the power to impose the prices of the exporters not great , (3), Vietnam's rice exports will be subject to strong competition from the emerging rice exporting countries like Cambodia and Myanmar (Nguyen Duc Thanh et al, 2015) Footer Page 18 16 Header Page 19 Table 4.1: Analysis of the economic aggregate rice value chain in An Giang Province in 2014 with the participation of groups of farmers growing rice Indicators Farmer Domestic rice value chain Production (tons) 566.488 Selling price (VND / kg) 7.525 Profit (VND / kg) 2.321 % Profit 53,4 Total profit (billion) 1.314,7 % Total profit 63,5 Total revenue (billion) 4.262,8 % Total revenue 25,2 Export rice value chain Production (tons) 2.170.170 Selling price (VND / kg) 7.525 Profit (VND / kg) 2.321 % Profit 67,8 Total profit (billion) 5.036,4 % Total profit 79,4 Total revenue (billion) 16.330,4 % Total revenue 34,4 Domestic and Export rice value chain Production (tons) 2.736.659 Selling price (VND / kg) 7.525 Profit (VND / kg) 2.321 % Profit 54,2 Total profit (billion) 6.351,0 Footer Page 19 Trader Mill Company Agency 279.139 106.730 347.556 566.488 8.287 333 7,7 92,9 4,5 2.313,2 13,7 10.471 763 17,6 432,1 20,9 5.931,7 35,1 8.904 388 8,9 41,4 2,0 950,3 5,6 9.901 540 12,4 187,8 9,1 3.441,1 20,4 697.848 27.367 2.170.170 8.294 337 9,9 235,5 3,7 5.788,2 12,2 11.580 489 14,3 1.061,8 16,8 25.130,6 52,9 8.790 275 8,0 7,5 0,1 240,6 0,5 Total 4.345 100,0 2.068,9 100,0 16.899,1 100,0 3.422 100,0 6.341,2 100,0 47.489,8 100,0 976.987 134.096 2.517.726 566.488 8.292 336 7,9 328,5 17 8.881 365 8,5 49,0 11.348 496 11,6 1.249,5 10.471 763 17,8 432,1 4.281 100,0 8.410,1 Header Page 20 % Total profit 75,5 3,9 0,6 14,9 5,1 Total revenue (billion) 20.593,1 8.101,4 1.190,9 28.571,7 5931.7 % Total revenue 32,0 12,6 1,9 44,4 9,1 Aveage rice production / stakeholder / year (tons) 4,4 149,7 1.247 141.515 9,3 Aveage rofit / stakeholder/ year (million VND) 10,1 50,3 455,4 70.232,5 7,1 % Profit / stakeholder / year 0,01 0,07 0,64 99,26 0,01 Source: Survey of 250 farmers grow rice and actors in the rice value chain in An Giang, 2014 4.2.3 Analyzing the impact of the value added to the income of rice farmers in An Giang Model study of factors affecting the income of rice farmers in An Giang province is as follows: INCOME =β0 + β1AGR + β2NUMBER LABOR + β3EDUCATIONLEVEL + β4EXPERIENCE + β5GENDER + β6TRAINNING COURSE + β7ORGANIZATION + β8TBKT + β9AREA + β10CAPITAL + β11ADDEDVALUE With regression models were analyzed for the two groups of poor and non-poor households in An Giang province, we see that the income from their rice were positively impacted by the following factors: age, application technical, area of land, value-added with different impact levels to each household group Besides, the group of poor farmers strongly influenced by factors participate in technical training This is entirely consistent with the reality of not attending training poor farmers in An Giang province at the time of the survey 4.2.4 The impact of price changes on the value added and net value added of the paddy farmer groups In terms of other factors (intermediate costs, costs increase) does not change, the price reduction makes the added value and net value added of both groups received poor and non-poor households rice in Footer Page 20 18 100,0 64.388,8 100,0 70.755,4 100,00 Header Page 21 An Giang province tend to decrease Calculation results show that when the price fell by 20%, a loss of 55 poorer households / kg Selling prices decreased by 30% and 40% as poor farmers make more losses Poor farmers groups not only suffer losses when rice price decreased 40% compared to the selling price When the market price of rice increased by making value added and net value added of both groups of farmers growing rice are increased Besides, the ratio of rising price makes the gap in net value added between the group receiving the poor and non-poor households greater 4.2.5 The impact of intermediate costs to value added and net value added of the paddy farmer groups Calculation results show that when the price of rice on the market does not change but the cost of the two groups intermediate rice farmers will be reduced to the value added and value added increase in their net Overall, the cost has been reduced, the intermediate distance of net value added between the two groups of farmers has been shrinking At the time of the survey, the cost of the poor households have higher intermediate intermediate costs of non-poor households which are attributable to poor households incur additional charges bear by purchasing agricultural supplies Therefore, to reduce intermediate costs, the poor households to reduce the charges incurred In intermediate cases increased costs will make the added value and net value added of the two groups of farmers is reduced compared with baseline Calculation results show that when intermediate costs increased to 40%, although no loss, poor farmers receive only the net value added is 218 VND / kg And while the cost of poor farmers intermediaries increased from 50% or more, the poorer households more and more losses Therefore, to continue to be profitable / kg while rice value chain participants, poor farmers need to calculate intermediate costs rose at the lowest level, in the case of rising input costs Footer Page 21 19 Header Page 22 4.3 SOLUTIONS FOR IMPROVING RICE VALUE ADDED AND THE INCOME FOR POOR RICE FARMING HOUSEHOLDS IN AN GIANG PROVINCE Where poor farmers individual production (1) Farming crop / year Poorer households should continue to produce two crops of rice / year (instead of an increase of cases / year) in order: first, completely reduce production costs one crop; secondly, the land was to rest to regenerate soil fertility, reduce the seasonal pressure, reduce pests in the fields; Tuesday, have leisure time to the members of the household can go to the service, raising additional income for the family (2) Selection of suitable varieties The majority of the poorer households often IR50404 rice breeding to produce because this rice variety suitable medium soil had lower investment costs than other varieties For the short term, poor farmers can still maintain rice production, but must ensure 20% lower than the level allowed (3) Improve the quality of the input seed Poor farmers need to purchase certified seed in the seed supply base prestigious to reduce sowing seeds, less disease, less costs and ensure productivity, from which farmers will sell easily, price high, more economical (4) Actively approaching technological advances in rice cultivation Poor farmers should actively updated information, proactive approach to new manufacturing methods by regularly view the extension program on television and radio; actively participate in technical training sessions at local level; involved and associated with the Farmers' Union to have more opportunities to exchange information among members together (5) Improving access to capital Poor farmers face many difficulties in the process of rice cultivation due to lack of capital or capital constraints Lack of funds led to poorer households often have to purchase agricultural supplies Footer Page 22 20 Header Page 23 missing from the dealer should the cost of production increased due to the high end of the interest payment Therefore, the poorer households need proactive, hard to capture information about the incentives for poor households as well as the poverty alleviation programs of the government, funding, funding, credit supply from non-governmental organizations to increase access to these funds (6) Strengthen cooperation links in production Poor farmers need to promote the association and cooperation with each other by engaging in agricultural cooperatives and cooperative groups Participation in these organizations help poor farmers reduce production costs because they benefit directly from a reduction in service charges (water pumping for irrigation, rice breeding, agricultural services ) give the members On the other hand, when linked together, these small farmers will have a larger scale Therefore, these organizations will represent links with companies supplying fertilizer, medicines, seeds in large quantities, cost, quality, and this organization will also earn a commission from the company offering rotten When poor farmers as members, the income from commission also shared them From there, help raise incomes for poor households grow rice in a stable manner (7) Enhancing access to information and markets To actively improve market access Currently, local authorities are cooperative, cooperatives, farmers' associations, agricultural club Poor farmers need positive, proactive approach to information from these sources to always get the latest news on the market Television, radio and newspapers is also an important communication channel, trusted that exploited poor farmers need to increase their knowledge related to the production-consumption situation of rice as well as policy to the poor (credit for poor families, poor families subsidy policy) Besides, the neighbors are one of the sources of market information that poorer households should listen and consult The active participation of the local community will help poor farmers have a chance to expand the relationship and increase the exchange Footer Page 23 21 Header Page 24 of information with each other (8) To reduce production costs in a reasonable manner, effective Buy agricultural materials resistant, inefficient use of fertilizers and farming methods are the traditional reasons for the cost of production of paddy farmers of poor households than among nonpoor Therefore, reducing production costs reasonable, the efficiency will contribute to improving the added value and improved incomes for poor households Where the production of poor farmers in the model link For poor farmers have a chance to participate in '' large Field '' is the first condition, the poorer households to have a spirit of cooperation and become members of the cooperative and its members to cooperate, by for now linked not linked contract manufacturing and marketing of products directly to the farmers that the contract was signed between enterprises and intermediaries or representatives of farmer's cooperatives or cooperative groups Join models' large Fields' ', poorer households will reduce input costs and output by reducing the intermediation in the provision of seeds, fertilizers, plant protection products; reduce costs by applying the correct technical procedures; reduce costs through the reorganization of large-scale production; reduce the cost of harvesting and consumption Since then, the income of poorer households is improved However, to the participation model is stable, long the poor farmers need to: Comply with and implement the requirements of the business associates as using seed supplied by enterprises, application engineering art production under the guidance of staff of associated enterprises, training habits production diary notes Footer Page 24 22 Header Page 25 CHAPTER 5: CONCLUSIONS AND REQUEST 5.1 CONCLUSION An Giang, the province has more than 70% of land area is alluvial, is one of the key local rice production in the Mekong Delta region and the country Research on the rice value chain in An Giang province with the participation of groups of poor and non-poor households, the thesis concludes some problems: First, the poor farmers in An Giang have small acreage of paddy land, fragmentation should have difficulties in the production process as well as the ability to individually join the production model associated with the business is very low Second, the rice value chain in An Giang province includes actors as rice farmers, traders, millers, food companies and agents Poorer households participated market channel while non-poor households have 11 channels Third, value added and net value added from manufacturing operations of the group of rice farmers are poor lower than the value added and net value added of the groups are not poor farmers Fourth, to increase income for poor farmers grow rice in An Giang, the thesis proposes some solutions for poor farmers such as plant varieties selected to suit each stage; improve the quality of rice seeds; proactive approach to new technical advances in the process of rice cultivation; cooperation and association with other farmers, participating cooperatives, cooperative groups; reduce production costs sensibly, efficiently; actively improve market access, access to different funding sources Fifth, since these conclusions as a basis for the assertion that: (1) distribution of value added differ greatly between actors rice value chain from production to consumption (2), the added value of rice products to positively affect the income of poor farmers grow rice 5.2 REQUEST In addition to these achievements, the thesis still exists a certain number of limitations such studies focused value chains Winter- Footer Page 25 23 Header Page 26 Spring rice; observed in the group of poor farmers surveyed less; no in-depth analysis of non-poor households group rice production under the link model; not using all of the tools in the toolkit value chain analysis; not a quantitative measure of the degree of impact risks to each participating agent rice value chain in An Giang Province; no research value chain to the end consumer in the domestic market and abroad; the proposed solution is not innovative Therefore, the thesis proposed a number of research-oriented in time to come * Analysis of the rice value chain rice crops in An Giang Province * Analysis of the market for rice products and the role of the leading actors in the rice value chain * Farmers should grow rice because of poverty or because rice became poor? * Analysis of the rice value chain to the final consumer Footer Page 26 24 ... farmers growing rice in An Giang, 2014 Figure 4.1: Diagram of the rice value chain in An Giang Footer Page 16 14 Header Page 17 Source: Survey of 70 poor rice farmers in An Giang, 2014 Figure 4.2:... of total revenue and the rice value chain in An Giang province in 2014 The rest of the domestic rice value chain contributors Thus, the total profit and total revenue of An Giang rice chain largely... Statistical Yearbook of the An Giang Department of Statistics (2015), Department of Labor, Invalids and Social Affairs of An Giang province (2014), Department of Agriculture and Rural Development In