HUE UNIVERSITY COLLEGE OF ECONOMICS THE ADVANCED PROGRAM UNDERGRADUATE THESIS THE ECONOMIC EFFICIENCY OF CORN PRODUCTION IN HUONG LONG WARD, HUE CITY, THUA THIEN HUE PROVINCE NGUYEN TAN LAI Academic Year: 2011-2016 ACKNOWLEDGEMENTS It is important to realize that without the help of all the organization and people I met with, I would not have been able to complete my first Bachelor’s thesis Hence, I am deeply grateful to many people for their help and support during the various stages of writing this thesis First and foremost, I would like to express my sincere appreciation to Dr.Truong Tan Quan, my thesis supervisor, for his enthusiasm and encouragement at every stage of my thesis I could not have imagined having better adviser and mentor for my teacher Besides, I would like to thank all local staffs in Huong Long ward, who helped me in collecting data process Likewise, my sincere thanks also go to all teacher in Agricultural Economics- Finance Department ABSTRACT The thesis is examining empirically economic efficiency of corn production in Huong Long ward, Hue city, Thua Thien Hue province The secondary data for estimating regression models on relationships between the input factors, such as the breed costs, the labor costs, the fertilizer costs, the pesticide costs,, the age of household head, the education level of household, the size of household, and the acreage of household are acquired from the 2015-2016 Summary results from the corn farmer review and survey in Huong Long Ward By the use regression models of Cobb Douglas function in combination with the statistics methods and use the evaluation criteria of economic efficiency , the study shows the economic efficiency of corn cultivation, economic efficiency compare with other crops, namely rice; however, the economic efficiency of corn is still smaller than local potential Besides, the thesis finds that the farmer hasn't used appropriately input sources to get maximize benefit CONTENTS LIST OF SYMBOLS AND ABBREVIATIONS N Abbreviation Mean FAO Food and Agriculture Organization of the United Nations GO Gross Ouput IC Intermediate cost MI Mixed income Pr Profit VA Value added AMIS Agricultural Market Information System USDA U.S Department of Agriculture VND Vietnamese Dong 10 USA The United States of America 11 EU European Union 12 US United States 13 SNA The System of National Accounts 14 GDP Gross Domestic Product 15 MPS Meta Programming System 16 CAGR CIMMYT Compound Annual Growth Rate 17 CIMMYT International Corn and Wheat Improvement Center 18 Mil VND Million of Vietnamese Dong LIST OF FUGURES LIST OF TABLE PART I: INTRODUCTION Rationality Vietnam is an developing country in which agriculture is an important economic sector in the strategy of social-economic development Therefore, several policies of agricultural and rural development have been enabled to accelerate the economic development, increase of income and improvement of welfare of people Thanks to above policies, agriculture in Vietnam in general and cropping activities have been experienced significant changes in production and consumption These achievements have contributed very significantly to the economic and social stability, creating the premise to accelerate industrialization - modernization of the country There are several crops that are cultivated in Vietnam and Central region but corn is one of the important food crops, after rice plants, it has great productive and economic value Besides the tremendous value in terms of food, corn is also an important plant to feed animals About 70% of starches in food are from corn In recent years corn is still popular foods In addition, corn is also material for food processing industry and light industry Corn is not only great value in economic value but also its adaptability very good Corn is grown around the world and its can be grow on many different soil types Corn is a short- day plants with simple of planting techniques and care and has a larger markets and bring high economic efficiency for farmer In recent years, Vietnam corn production has continued to increase in both area and yield, however, that development seems not commensurate with the potential and needs of the country Every year, Vietnam spends about half a billion dollars import corn to serve domestic demand Average corn yield of Vietnam reached only tons / ha, lower than corn yield of many countries such as the corn yield of US is 9-11 t / This shows that the efficiency of corn in Vietnam is low Therefore, important goal of corn in the near next time is to fully meet domestic demand, reducing imports and towards exports for foreign currency earnings Huong Long is a ward located in the outskirts of Hue city With existing geographical features, it is a very favorable land for the production of crops, especially corn However, most of these techniques as well as methods of producing corn in Huong Long ward are artisanal Whether the economic efficiency of corn bring economic vale for local people or not is still a big question without answer and correct assessment Therefore, I chose the topic " The economic efficiency of corn production in Huong Long ward, Hue city, Thua Thien Hue province" to solve these problems The objectives of research 2.1 The overall objective Based on assessing economic efficiency of corn production, the study recommend some proposed solutions to increase economic efficiency of corn, then facilitate sustainable development of corn farming activity and improve income for local farmers 2.1.The specific objectives To achieve above overall objective, following specific objectives are clarified Reviewing theories related economic efficiency of production, particularly in corn cultivation Assessing the existing situation on economic efficiency of corn production of corn crop at Huong Long Ward, Hue city, Thua Thien Hue province Recommending the appropriate and feasibility solution to improve economic efficiency of corn production at Huong Long Ward in next coming years The research content and research scope 3.1 The research content The content study focuses on following areas: Analyzing the situation of corn production in 2015 – 2016 Analyzing economic efficiency of the production over the years 2012 - 2015 Analyzing factors affecting the production and economic efficiency bringing to farmers based on actual costs over three periods 2012 -2015 Recommending possible solutions to improve economic efficiency of corn production in next coming years 3.2 The scope of research 3.2.1 The study site Agricultural cooperatives Huong Long, Hue City 3.2.2 The study period Secondary data: Secondary data are collected from 2012 to 2015 Primary data: Questionnaires and in depth interview are collected from 02/22/2016 to 20/05/2016, through direct interview The research Methodology 4.1 Data collection I selected 50 households in typical cultivation area in Huong Long ward, the selection was totally random based on arrangement of typical corn production households in local area After identifying the number of samples, the next step was to conduct questionnaire of production and consumption situation of corn cultivation in Huong Long Ward 4.2 Data analyzed methods Currently, our country's economy is in the process of development to integration with the world economy One of the economic problems need to is convert the calculation of the synthetic indicator system from the balance sheet of the national economy (MPS) into the system of national accounts (SNA) Since that, we have the conditions for international comparisons on many aspects of economic life - social and also consistent with the requirements of the current change management 10 a Output tons 1533 1690.5 1776 110,02 105,05 3.2 Some solutions to enhance the economic efficiency of corn production in Huong Long Ward 3.2.1 General solutions From the study of the production current status, consumption and some problems in the development of corn production in Huong Long, we launched some major solutions following: Firstly, the development of corn production associated with restruction of plants, bringing corn to replace the rice cultivation area, other plants which are inefficient in order to enhance the added value Expanding the area of corn in the direction of increasing the seasonal by the corn breed with high yield, with ability against drought tolerant; fully exploit the land area which is capable of agricultural in order to minimize production activities on the land with a high slope, and the situation of corn encroach the jungle land Secondary, to limit the erosion and discoloration of steep land which is used to plant corn, need to encourage, guide, transfers to households in some of cultivation technical measures such as crop rotation , improve the quality of corn growing area as peanuts, soybeans, ect; cover the land with crop residues, stalks of crop before ; construct terraces, contour cultivation; fertilizing balance Thirdly, zoning the area in terms of corn development, promote the investment and development of technical infrastructure systems in Huong Long, especially transportation systems in order to create the favorable conditions for developing production and trading between areas Developing the transportation system will also contribute to reduce the rate of loss in the transportation process of corn Fourthly, to create a good consumption market, requring the participation of enterprises in term of commercial and service to supply of materials and product , while diversified development the procurement systems of corn thereby helping the 69 corn growers not suffer low price, prevent the situation of farmers just sell to only one buyer Fifthly, investment in research and select the corn breed which can resistant, suitable for the ecological conditions of the local, encouraging farmers to buy seed in reputable suppliers At the same time, the localities should advise people to select the best corn breed with high yield, with resistance abilility which suitable for the soil conditions to minimize the risk for producers Sixthly, put the mechanized into some stages in corn production in order to reduce costs, improve value added In addition, to minimizing the impact of the rising trend of output in corn production process, especially fertilizers price, Corn growers who need to find and use the alternative investment solutions such as manure, green fertilizers Seventhly, the state should have preferential policies about capital in the development of corn production in Huong Long ward, the policies that focus on: research the development of new corn breed with high resistance ability, yield and quality; develop the rural infrastructure; training and technical training for farmers and loans to farmers to invest in corn production Therefore, to develop the corn production in Huong Long , the solution: limiting erosion and preventing the infertile soil; developing the traffic system; diversifing the consumption systems of corn; technical assistance and encourage to build a system of corn preservation; rearch and select the corn breed suitable for ecological conditions; maximum use the organic inputs which can replace inorganic fertilizer; The state needs to planing the region of corn and has preferential policies for the development of corn production 3.2.2 Specific solutions 3.2.2.1 Solutions for breed: Provide breed which has the high yield, high-quality for producers Accelerate the renovation of the old breed, select the new breed suitable for local conditions 70 3.2.2.2 Capital solutions 3.2.2.2.1 For local governments Call for the investors, invest in the development of corn production in the ward Providing breed for corn growers Support fertilizers for poor households to create favorable conditions for households assured in production To prioritize investment in infrastructure which serve for corn growing areas through funding support from the budget, the programs and projects to integrate and support for irrigation systems, roads, fertilizers, pesticides, building a kiln drying to ensure quality of corn, To diversifies the forms of capital mobilization and encouraging investment to expand the corn production area in the province 3.2.2.2.2 For farmers There is no sector achieve the efficiency without the investment capital Investment capital is an important role in the production process Through empirical studies show that most of corn grower are lack of production capital, especially for poor households To solve this problem the state should take timely policy support about capital on the basis of analysis the investment abilility of each households group in order to set out the capital support for each group Need to simplify the procedures for loans, types of lending 3.2.2.3 Technical Solutions To step up the application of scientific and technical advances and new technologies in the production as the selecting breed, cultivation processes, processing and preserving, improve the production level of farmers Continue to strengthen propaganda and mobilize people to invest in developing corn Therefore farmers should choose breeds, apply the cultivation techniques and have a good agricultural policy to build specialized farming corn crops 71 Accelerate the extension: Guide the farmers prevent pest, use the right pesticides avoiding the medicine abuse 3.2.2.4 Solutions for mechanisms and policies There are mechanisms and policies to stabilize prices, then incentive the people assured to develop the production The policy support for loans or investment in breed for household 3.2.2.5 Technical Solutions Select the new breed which had higher yield, stable and capable of resistance disease better, provide high quality products, timely planting to the yield has guaranteed In the production of corn, the pest preventation is essential If the weather is unfavorable, the corn plant will infect by pests and diseases Therefore farmers need timely detection and treatment In the ward, farmers are rarely spraying or using only manual methods so they can't prevent the pests Need to determine the right kind of pest and proper use of drugs, right dose and avoid the abuse in the use of plant protection medicine which cause the environmental pollution 3.2.2.6 Some other solutions Find out the stable output market for farmers, so that people assured in production Propagate and encourage the farmers interested, buy insurance for plants to limit the risks Having the support services such as fertilizer, materials, ect 72 PART III: CONCLUSIONS AND RECOMMENDATIONS Conclutions Through time researching the topic "Economic efficiency at the production Ngo Huong Long Ward, Hue City, Thua Thien Hue province" I have had to draw some conclusions as follows: Natural conditions of Huong Long Ward are suitable for corn development The lives of the people here have been gradually improving, people's income is increasingly higher, thus number of poor households has decreased a lot compared to the past So, promoting the production of corn and improving the economic efficiency of corn production is the right direction to exploit the potential and the advantages to local economic development and improve incomes for farmers Corn production situation in recent years has made significant strides in terms of area, yield and quantity Compared to other crops, the corn has higher economic value at all Specifically through comparison with rice Although that is grown on the same land, the same land area, we found that the average value of corn obtained 78.9 million VND / / household, the rice average value achieved 48.3 million VND/ /household Proceeds from corn (22.7 million VND / / household) is higher than rice (1.1 million VND / / household) 20.2 times Currently, Farmer in Huong Long Ward has had cultivation methods better than a few years ago They applied the scientific and technological advances in production, raising income and improved living conditions Besides the favorable conditions, there are difficult conditions such as lack of land, lack of capital So efficiency is not high compared to the effort that people spent corn Regarding corn consumption, farmers is still a difficult problem because they lack information about the market There was no stable market and sold mainly to household traders Thus they suffer losses because generally sell price is less than market price The 73 price in beginning of the season and ending of the season was difference From the research results, we can confirm that corn is key economic crops in crop restructuring So in the coming years, we need to invest in developing corn contributed to corn really become a key economic crops of Huong Long Ward Recommendations For Thua Thien Hue province There should be policies to support the development of corn to plant corn become the spearhead crop of the local: Investing in infrastructure structure, bringing high-yield varieties in production Department of Agriculture and Rural Development coordinate with Extension Station training regularly for farmer, transferring of technical progress for the people For Huong Long agricultural cooperative Strengthening agricultural extension staff has expertise to guide cultivation techniques on a regular basis Propaganda and explain to people to see clearly the true farming techniques and bring long-term economic efficiency and contribute completed part of the local goals We should be seeking external partners to consume products for farmer, providing high-quality varieties to the people and support fertilizer for poor household Guiding people use rational pesticides, pest effectively to bring the highest value to the people For famer households Households must actively apply new technical advances, increased investment for corn, in addition to the need to invest the development of livestock manure to increase crop production Full participation of technical training courses by commune extension officers as well as province AEC organizations to enhance the technical level Farmer learn actively the advanced manufacturing households to have more knowledge for the development of production, especially in corn production 74 Actively explore the market information on prices, in order to have more knowledge about the market, avoid selling with unreasonable price for farmers from traders 75 REFERENCES Daniela SIMTION, Roxana LUCA, 2013, ‘PROFITABILITY A SUBSYSTEM WITHIN THE GENERAL SYSTEM OF ECONOMIC EFFICIENCY FOR AGRICULTURAL EXPLOITATIONS’, Vol 13, Issue 4, http://managementjournal.usamv.ro/pdf/vol3_4/Art41.pdf Alain Anderton, 2010, ‘Economics’, fourth edition, p281 Blaug, Mark , 2007 "The Social Sciences: Economics", Microeconomics, The New Encycloedia Britannica, v 27, pp 347–49 Chicago,< https://en.wikipedia.org/wiki/Economics#Economic_efficiency> Bell, Clive (1987) "development economics", The New Palgrave: A Dictionary of Economics, v 1, pp 818–26, Mandel, Ernest “Marx’s Economic Theory- General Approach and Influence.” Youth for Socialist Action Samuelson, Paul A, 1967, “Marxian Economics as Economics.” The American Economic Review 57, no 2, pp 616-623 Aseem Kaul, Jiao Luo, May 1, 2015, ‘The Economic Case for CSR: The Comparative Efficiency of For-Profit Firms in the Market for Social Goods’, The World Bank (2007) "Economics of Education." Retrieved October 21, 2007, Samuelson, Paul A., and William D Nordhaus ,2004 Economics, 18th ed., ch 11, "Uncertainty and Game Theory" and [end] Glossary of Terms, "Economics of information", "Game theory", and "Regulation”, Le Lam Bang,2008, ‘Đánh giá hiệu kinh tế sản xuất chè hộ nông dân địa bàn huyên Văn Chấn, Yên Bái’, MA thesis, Thai Nguyen University K.K.Tripathi, Department of Biotechnology, Government of India, ‘Biology of Maize’, 2011, Ministry of Science and technology, http://igmoris.nic.in/Files2/BiologyDocuments/Biology_of_Maize.pdf 76 Linda Campbell Franklin, "Corn," in Andrew F Smith (ed.), The Oxford Encyclopedia of Food and Drink in America 2nd ed Oxford: Oxford University Press, 2013, p 553 Dolores R Piperno "The Origins of Plant Cultivation and Domestication in the New World Tropics: Patterns, Process, and New Developments." Current Anthropology 2011; 52(S4), S453-S470 Wilkes, Garrison ,2004 "Chapter 1.1 Corn, strange and marvelous: but is a definitive origin known?" In Smith, C Wayne; Betrán, Javier; Runge, E C A Corn: Origin, History, Technology, and Production Wiley pp 3–63 Du Tran Van, 2011,’ Giáo trình Đặc điểm sinh học ngô’, viewed 20 April 2015, http://www.ebook.edu.vn/?page=1.20&view=23206 77 Appendix Figure 2.8 Regression result 78 Appendix PHIẾU ĐIỀU TRA THÔNG TIN CƠ BẢN Họ tên chủ hộ : …………………………… Giới tính……………… Tuổi:………………Dân tộc…………Trình độ văn hóa:………………… Số nhân khẩu:…………………………… Số lao động chính:………… Năm kinh nghiệm:…………………………Khu Vực:…………………… A B THÔNG TIN CHI TIẾT VỀ HỘ SẢN XUẤT NGÔ I Diện tích đất sản xuất nông nghiệp sử dụng hộ Diện tích ( sào ) Loại đất Ghi Đất canh tác Đất trồng ngô vụ Vụ Đông Xuân Vụ Xuân Hè Vụ Hè Thu Đất trồng lúa Đất trồng khác Đất vụ Tổng cộng Chi phí sản xuất cho trồng hộ năm 2015 Chi phí sản xuất cho trồng ngô hộ Chi phí 1.Chi phí trung gian 1.1.Giống 1.1.1 Giống mua 1.1.2 Giống nhà 1.2.Phân bón 1.2.1 Đạm 1.2.2 NPK 1.2.3 Phân chuồng 1.3.Thuốc trừ sâu 2.Chi phí khác Khấu hao máy móc, thiết bị Công lao động 4.1 Công làm đất 4.2 Công trồng 4.3 Công chăm sóc Tổng chi phí Số Đơn lượn vị tính g Kg Kg Kg Kg Kg Kg Kg Đồng Đồng Đồng Công Công Công Công Đơn giá(đ/kg) II Thành tiền(đồng) 79 Chi phí sản xuất cho trồng Lúa hộ Chi phí 1.Chi phí trung gian 1.1.Giống 1.1.1 Giống mua 1.1.2 Giống nhà 1.2.Phân bón 1.2.1 Đạm 1.2.2 Lân 1.2.3 Kali 1.2.4 NPK 1.2.5 Phân chuồng 1.3.Thuốc trừ sâu 2.Chi phí khác Khấu hao máy móc, thiết bị Công lao động 4.1 Công làm đất, cày xới 4.2 Công gieo xạ 4.3 Công chăm sóc 4.4 Công thu hoạch Tổng chi phí Đơn vị tính Số Đơn lượng giá(đ/kg) Thành tiền(đồng) Kg Kg Kg Kg Kg Kg Kg Đồn g Đồn g Đồn g Công Công Công Công Công 80 III Kết sản xuất hộ từ trồng trọt năm 2015 Kết sản xuất ngô năm 2015 Diện tích thu hoạch (sào) Sản lượng (kg) Giá bán giá trị sản xuất (đồng/kg) (đồng) Đông - Xuân Xuân - Hè Hè - Thu Kết sản xuất loại trồng khác năm 2015 Cây trồng Diện tích thu hoạch(sào) Sản lượng (kg) Giá bán Giá trị sản xuất (đồng/kg) (đồng) Lua Đậu phộng Khoai lang Cải Cà tím Dưa Cây trồng khác Tổng cộng IV Giá bán ngô năm 2015: Đơn vị tính: VND Đầu vụ Giữa vụ Cuối vụ Giá bán Xin ông (bà) vui lòng trả lời câu hỏi sau: Nguồn vốn để sử dụng cho sản xuất gia đình: Vốn tự có: Vay ngân hàng: Vay từ hộ khác: Ông (bà) tự trồng ngô hay có hỗ trợ từ bên ngoài? ……………………………… Nếu hỗ trợ thì: - Cơ quan hỗ trợ? ……………………………………………… - Hỗ trợ gì? 81 Vốn Phân bón Giống Không hỗ trợ Kỹ thuật Giống ngô mà gia đình ông (bà) sử dụng: ………………………………………………………………………… Ông (bà) tự sản xuất hay mua giống ngô ngoài: Tự sản xuất Mua Ông (bà) có tập huấn kỹ thuật không? Có Không Nếu có quan, tổ chức thường tiến hành tập huấn: Phòng NN & PTNT Trạm khuyến nông Các quan, tổ chức khác Thị trường tiêu thụ chủ yếu: Bán cho thương lái Tự mang chợ bán Doanh nghiệp đến thu mua Trong thời gian tiêu thụ gia đình có gặp khó khăn hay không? …………………………………………………………………………… Gia đình có tiếp tục mở rộng diện tích trồng ngô không? Có Không Vì sao? …………………………………………………………………… Những khó khăn chủ yếu gia đình ? khó khăn 10 Thiếu đất Ý Thiếu vốn Sâu bệnh thời tiết Thiếu thông tin thị trường Thiếu dịch vụ hỗ trợ sản xuất Khó khăn khác 82 kiến ông (bà) việc phát triển nâng cao hiệu kinh tế sản xuất ngô? XÁC NHẬN CỦA CHỦ HỘ (Ký, ghi rõ họ tên) 83