Coffee boom, coffee bust and smallholder response in Vietnam's Central Highlands

  • Ha D
  • Shively G
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Abstract

This paper studies the recent boom and bust in Vietnam's coffee economy. Data from smallholder coffee farms in the Central Highlands are used to examine responses to a drop in producer coffee prices. A multinomial logistic regression model is used to identify several factors associated with four specific patterns observed among coffee farmers: no response to price change, reductions in use of purchased inputs, changes in crop mix, and responses aimed at enhancing liquidity through off-farm work or borrowing. Patterns of response are shown to have differed systematically across sub-groups of smallholders. Policy implications raised by the findings are discussed.

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Authors

  • Dang Thanh Ha

  • Gerald Shively

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