Which Perennial Crop Farm Approach Generates More Profitability? A Case Study in Dak Lak province, Vietnam

Abstract

Dak Lak Province, Vietnam has been identified as the optimal growing area region of cash crops. However, in recent years, perennial crops have faced some challenges need to have a new approach to maintain production sustainability. This study primarily provides a comparative analysis of the economic performance of crop cultivation by two approaches, mono-crop approaches including mono-coffee farms (MCFs) and mono-pepper farms (MPFs); intercropped approaches comprising intercropped coffee farms (ICFs) and intercropped pepper farms (IPFs). Additionally, this paper identifies the main factors affecting the farmer’s adoption decision on different intercropped farm types. Based on an investigation of 120 selected farms, focus group discussions (FGDs) and participant assessments, from January to April 2019, the information about farming operations, costs and profits also were collected. The findings indicated that intercropped farms (include ICFs and IPFs) had a higher reduction of variable costs than mono-crop farms (MCFs and MPFs). Likewise, between two intercropped farm types, ICFs that wasted fewer input costs seem to be more appropriate for the poor and small saving households than that of IPFs. Moreover, ICFs and IPFs generate more profitability, increase by 62 % and 25.7 % as compared with MCFs and MPFs, respectively. Going forward, the study revealed factors influencing farmers’ decision-making on applying different approaches for intercropped farms. These comprise farm profiles (pest and disease status; the age of the tree), farmers’ characteristics (training) and economic factors (profits and other income). The findings devote information to intercropped farms in terms of enhancing economic benefits should be promoted for the coming years. Looking beyond, this empirical evidence is likely a useful contribution to farming management. What’s more, the factors highlighted here demonstrate the need for continued improvement in such farming strategies.