Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam
The market that operates effectively will contribute to actors’ profit and welfare in the coffee value chain conversely if the market is affected by imperfect problems. Suppose the value chain lacks market news, short-term storage, information for product and processing, quality check, and marke...
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HCMCOUJS-Economics and Business Administration
2022
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oai:scholar.dlu.edu.vn:123456789-773 |
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Thư viện Trường Đại học Đà Lạt |
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Vietnamese |
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arabica coffee farmers market power lerner index value chain |
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arabica coffee farmers market power lerner index value chain Nguyễn, Thị Tươi Nguyen, Phu Son Pham, Le Thong Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| description |
The market that operates effectively will contribute to actors’
profit and welfare in the coffee value chain conversely if the market
is affected by imperfect problems. Suppose the value chain lacks
market news, short-term storage, information for product and
processing, quality check, and market power. In that case, implied
chain actors’ profit and welfare will not be reached. A new method
can estimate market power by Lerner index through the stochastic
cost frontier once the inputs data price is unavailable and the
existence or non-existence of constant returns to scale. So this
approach is applied to evaluate farmers’ market power in the value
chain of Arabica coffee in Lam Dong Province, Vietnam. Primary
data were collected through interviews with 200 farmers Da Lat,
Lac Duong, Lam Ha, and Don Duong of Lam Dong Province. The
estimated results of the market power and Lerner rate are 0.001.
This index indicates that the local coffee market is perfect
competition. So the coffee growers do not have market power. The
RTS index of 0.56 (less than one) illustrates that farmers’ Return
To Scale (RTS) is decreased. Therefore, coffee farmers should link
together to establish cooperative that increases market power in
price negotiation and coffee consumption. |
| format |
Journal article |
| author |
Nguyễn, Thị Tươi Nguyen, Phu Son Pham, Le Thong |
| author_facet |
Nguyễn, Thị Tươi Nguyen, Phu Son Pham, Le Thong |
| author_sort |
Nguyễn, Thị Tươi |
| title |
Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| title_short |
Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| title_full |
Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| title_fullStr |
Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| title_full_unstemmed |
Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam |
| title_sort |
analysis of farmers’ market power in the value chain of arabica coffee in lam dong province, vietnam |
| publisher |
HCMCOUJS-Economics and Business Administration |
| publishDate |
2022 |
| url |
http://scholar.dlu.edu.vn/handle/123456789/773 |
| _version_ |
1768305844271710208 |
| spelling |
oai:scholar.dlu.edu.vn:123456789-7732022-08-07T15:06:44Z Analysis of farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam Nguyễn, Thị Tươi Nguyen, Phu Son Pham, Le Thong arabica coffee farmers market power lerner index value chain The market that operates effectively will contribute to actors’ profit and welfare in the coffee value chain conversely if the market is affected by imperfect problems. Suppose the value chain lacks market news, short-term storage, information for product and processing, quality check, and market power. In that case, implied chain actors’ profit and welfare will not be reached. A new method can estimate market power by Lerner index through the stochastic cost frontier once the inputs data price is unavailable and the existence or non-existence of constant returns to scale. So this approach is applied to evaluate farmers’ market power in the value chain of Arabica coffee in Lam Dong Province, Vietnam. Primary data were collected through interviews with 200 farmers Da Lat, Lac Duong, Lam Ha, and Don Duong of Lam Dong Province. The estimated results of the market power and Lerner rate are 0.001. This index indicates that the local coffee market is perfect competition. So the coffee growers do not have market power. The RTS index of 0.56 (less than one) illustrates that farmers’ Return To Scale (RTS) is decreased. Therefore, coffee farmers should link together to establish cooperative that increases market power in price negotiation and coffee consumption. 12 1 139-147 2022-08-07T15:06:37Z 2022-08-07T15:06:37Z 2022 Journal article Bài báo đăng trên tạp chí trong nước (có ISSN), bao gồm book chapter http://scholar.dlu.edu.vn/handle/123456789/773 10.46223/HCMCOUJS. econ.en.12.1.1917.2022 vi HCMCOUJS-Economics and Business Administration 2734-9568 Cechura, L., Kroupová, Z. Z., & Hockmann, H. (2015). Market power in the European dairy industry. 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