Hot topic 4

1. H: human capital P: Physical capital S: Social capital F: Financial capital N: Natural capital Livelihood assets Transforming structures & processes ………… Level of government Private sectors Law Policies Culture Institutions H Livelihood outcomes ………………. More income Increasing well-being More sustainable use of NR base More reliance Vulnerability context ……………. Shocks Trends Seasonality Livelihood strategies S N Influence & access P F Hot topic 4 My Hien DO – Nagoya University, Graduate School of International Development - myhien@nifmail.jp Innovation and Sustainable Development in agriculture and Food – June 28 / July 1, 2010 Endogenous development- partnerships, an effective approach to obtain sustainable livelihood of small-scale coffee farmers in the Central Highlands of Vietnam Objective The cooperation between producer-processor is definitely necessary for enterprises and farmers to compete in global market and obtain sustainable livelihood. The success of this cooperative relation results in the quality of the socio-economic development of the local community too. For small producers this cooperation gives them opportunities to overcome their shortage of capital, technology and market information. In this research, the author aims to discuss how endogenous development through partnerships among the private sector and government can helpsmall-scale coffee farmers gain more Research target To analyze risks and vulnerabilities using the approach of partnerships -endogenous development income and absorb knowledge and learn lessons to achieve their sustainable livelihood. With the framework of Sustainable Livelihood develops by DFID and has practiced by several NGOs, international organizations, the author identifies risks and vunerabilites that famers are facing and investigates their using of risk management . Hence, this demonstrates in the content of endogenous development how partnerhips have performed a significant role in uplifting livelihoods. Lastly, the author expects to provide a new trend of endogenous development in developing country like Vietnam. Source: DFID’s sustainable livelihood framework, http://www.dfid.gov.uk/ Method and tools The study adopts the qualitative-research and case-study approach. Fieldwork was conducted in Dak Lak a Central Highland Province of Vietnam; data was also obtained from 263 coffee farmers in three districts of this Province. Data was also obtained through in-depth interviews conducted at the Tay Nguyen Research Institute, members of the People Committee in Dak Lak Province, international buyers, and domestic coffee enterprises; data was also obtained from documents and literatures on the endogenous development in Japan, South Europe, and Latin America. Samples were randomly selected by area and type of cooperation in production. Three districts with three kinds of farmer groups were surveyed; the first group consists of coffee farmers with very high coffee production; the second engages in collaborative activities; and the last does not have. The study establishes the difference with regard to the effectiveness of partnerships among these three groups and the new knowledge gained through the partnership. From the result of the fieldwork in Dak Lak province from October, 2008 to June 2009, the comparison between these three groups are illustrated briefly in the two tables in the right side. All the farmers have the similar consideration to risks, but farmers in Doan Ket commune are more aware of risk management than other groups, because of their knowledge have obtained from collaboration. Table 1: Risks faced by coffee producing households in Dak Lak accounts for more than 50% (number and percent of people reporting risk as very important) Table 2: Risk management techniques chosen by more than 50% of coffee households in Dak Lak (number and percent of people who feel that this technique is very important) Partnerships can not only help resolve many of the present difficulties that the coffee industry in Vietnam faces; they also enhance the sustainable development of coffee cultivation through the combination of knowledge obtained from the global market, customers, and international standards. Partnerships-endogenous development is an effective approach for reducing the difficulties in the Vietnamese coffee industry, and can be a useful indicator to evaluate the sustainable development process in rural Vietnam. This research mainly focuses on one participant in the coffee supply chain—the coffee farmer—and demonstrates on how endogenous development, through partnerships between the private sector and government, can help increase coffee farmers’ income and provide them greater knowledge and better ability to compete in the global market. Dak Lak province, in the Central Highlands of Vietnam, accounts for more than half of the country’s coffee production, with the Robusta variety dominating. Here, farmers face many risks, including vulnerabilities from the market and the requirements of globalization. Combining the results obtained by the approach of endogenous development with the effects of the global economy, this research aims to show how the integration between internal knowledge and external innovation aids rural development by reducing the risk in coffee supply. With the new trend of partnerships, endogenous development is not only using its own resources but also mobilizing support, knowledge, and innovation from external sources to promote sustainable development for all stakeholders. Picture caption : In the coffee field with interviewees (2008 year)Photo taken by My Hien DO Results / Conclusions From the fieldwork, the categories of risks faced by the Vietnamese coffee farmers are identified; the result also reveal that the partnerships lead to a reduction in the production risks faced by coffee farmers and thus, facilitates sustainable development. Such partnership not only contributes to the resolution of the present difficulties but also enhances the sustainable development of coffee cultivation through the combination of the knowledge obtained from the global market, customers, and international standards. Thus, it is concluded that the integration and contribution of endogenous development-partnerships are effective in reducing the risk in coffee supply; further, it is found that the indicators that are used to evaluate the sustainable development process in rural Vietnam could probably be very effective even with respect to the Vietnamese coffee industry. Vietnamese farmers are eager to participate in the activities pertaining to coffee certificates in order to reduce risk to the continuity of their income and pertaining to the improvement of their knowledge on coffee cultivation. The author confirms, in this research, that the domestic coffee processing enterprises and buyers cannot escape the trend of globalization; they are forced to compete with international buyers and multinational companies and thus have to participate in the trend of collaborating with farmers and institutes to ensure stable supply sources and standard quality. As well as famers are encouraging , supporting to cooperate sustainably to utilize other sectors’ resources to improve their livelihoods. Picture caption : Coffee village, Buon Me Thuat city (2009 year)Photo taken by My Hien DO Nagoya University GSID To know more www.vicofa.org.vn www.hoinongdan.org.vn www.agroviet.gov.vn Key words: Partnerships, endogenous development, coffee supply, risk management w w w . i s da 2 0 1 0 . n e t